LOC Draw and Direct Cost Reimbursement

Transfer of HFH directs costs to MSU

Monthly

• Transfer is initiated by HFH on the 8^th business day of each calendar month.
• Transferred into MSU’s financial system via KFS Doc Type HFB.

• The HFB is automatically final in KFS (no routing).
• The HFB will have a separate income accounting line to the Agency Fund to represent each RC account. Each income line will represent the cumulative total of new direct costs incurred at HFH being transferred to each RC account.
• The revenue associated with the HFB will be received in the Agency Fund account, AA100007.
• F&A is automatically calculated and posted to the RC account by direct cost accounting line.
• The F&A reimbursement is entered into the indirect cost recovery account (GV100001) for UEI #NH77YPDEGG84.

July 13, 2023

Draw

Monthly

• Draw will be initiated by CGA on the 15^th calendar day of each calendar month (or the following business day).
• Draw is completed in the appropriate federal system.

• CGA will complete a separate draw for only HFH accounts. Draws for non-HFH accounts will be completed on a different schedule.
• Draws include reimbursement of both direct costs and indirect costs.

July 15, 2023

Revenue received from federal sponsor

Monthly

• Revenue is typically received from the federal sponsor within one business day of the draw.
• Draw is received in the appropriate MSU bank account electronically.

• CGA staff match daily bank deposits to draw log and notify initiator (within CGA Cash Mgmt team) that funds are ready for deposit in KFS.

July 16, 2023

Allocation of revenue to sponsored program account(s)

Monthly

• KFS Advance Deposit document.

• CGA completes one Advance Deposit per draw which posts the revenue to the appropriate RC account(s).
• The Advance Deposit is initiated by CGA within three business days of MSU receiving the wire payment.
• The Advance Deposit is automatically final in KFS (no routing) and sends an FYI to each Fiscal Officer.

July 21, 2023

Notification of revenue receipt and allocation

Monthly

• CGA will provide email notification to Cheryl Verbruggen (verbru18@msu.edu) and Angelica Santos (santosa@msu.edu) that the draw revenue has been received and allocated.
• Notification will include the HFB doc number associated with the draw and account numbers included in the draw.
• Notification will be sent on the same day of Advance Deposit processing.

July 21, 2023

Direct Cost Reimbursement to HFH

Monthly

• KFS Disbursement Voucher

• The Office of Health Sciences completes the reimbursement to HFH from Agency Fund (AA100007) by the last business day of each calendar month.
• Reimbursement will be sent as a KFS Disbursement Voucher using object code 6173, Refunds.
• A separate reimbursement will be sent for each draw. No other payment to HFH will be included in the reimbursement.
• The reimbursement amount should match the total amount of direct costs transferred to MSU in the associated HFB doc less costs incurred on advance/hardship accounts, unallowable costs, etc.

July 30, 2023

Henry Ford Health Reconciliation

Monthly

• HFH internally reconciliation of costs and reimbursement.

• Reconciliation will be complete prior to the next transfer of direct costs for the following month.
• This schedule provides approximately one week for HFH internal reconciliation.

Aug. 7, 2023