With the implementation of PCIP, the practice of establishing a Project as equal to one funding source becomes obsolete. PCIP enables agencies to use the Project ID in SFS to manage and report on the total cost to the overall project within one SFS Project ID, regardless of funding source.
Project IDs should be aligned to support multiple funding sources, considering the following questions:
- What is my total project budget?
- What is my total project cost? Encumbrance?
- What is my federal versus state match spending?
- What are my complete project spending trends?
- What transactions have been recorded against my project, regardless of funding source?
With the implementation of PCIP, Project IDs will be required for any project that is funded with Capital funds and are still required for any project that is funded with Federal funds. This concept also supports concepts such as state matched Federal funding. The project ID can now be used to track state funding sources rather than relying on Chartfield1, Chartfield2, Activity ID or other chartfields.
Budgeting
The budget for the project can be for the entire project with child budgets at an appropriation / segregation level, including for both federal and state funding.
When setting up a project budget, use a KK budget journal to enter a budget line with Project ID and Activity ID with Federal funds and also enter a budget line with the same Project ID and Activity ID for the State funds. This can be accomplished with a single project budget journal. Additional information on Project Budgets can be found in Chapter VI.5 of this Guide.
Federally Funded Billing
The Project Guide asks you to identify what federal funds are being used with the project upon project setup. SFS automatically identifies the costs that will be billed when a cost has the Federal fund. See Section XIX.2.B for guidance on setting up the Federal Funds at the project level and Section IX.5.A for information on SFS billing for Federal reimbursement.
Guide to Financial Operations
REV. 03/28/2022