Community Exchange

We are looking to update our foreign currency management policy as it relates to sponsored agreements.  Currently, we encourage contracts to be negotiated in USD.  If we cannot, we ask for up front payments or agree to a currency rate date, etc.  Our current challenge is what rate is used to record the award in our Sponsored Research platform versus how the award is budgeted in our GL.  There are always differences due to timing and some can be substantial so even upon execution the award may start with a budget vastly different.  We make attempts to adjust the budget when cash payments are received but do not go back and evaluate the award on the Sponsored Research platform.  When researching on-line, I see more policies that are higher level and do not explain the lower level detail for reference.

Is anyone willing to share their policy/process around valuing foreign currency contracts in sponsored research that I could share with my team?

Angela, This doesn't directly respond to your question, but for larger contracts you might consider requesting your Treasury function to implement FX hedges which would protect you from currency fluctuations and make valuation easier.

-Karen