Grant and Contract Accounting Brown Bag January 24, 2017 Presenters: Nathaniel Clark Cynthia Hwang

Cost Share Tips and Best Practices

Common Issues When Pledging and Documenting Cost Share Standard F&A rates not used when proposing cost share, thus increased direct costs are committed, often above and beyond the required/initial pledge amount. Third-party contribution letters not obtained prior to proposal being submitted. Amount pledged doesn’t match amounts on cost share addendum/calculators. Assumption made that if cost share is not mandated by the sponsor on the RFP that it is then “optional.” Committed cost share is still required if included in the proposal. Cost share not tracked closely throughout life of project (use of Unmet Cost Share Report can help).

What GCA looks for in unmet cost share during closeout Was total commitment met in full or proportionally to award spent by closeout? Were all faculty effort commitments met in full? (i.e. full effort pledged was met, or full dollar amount met?) Does sponsor require pledge amount met in full prior to award being spent? If so is were commitments met?

Tips for Tagging NFCS Tag and submit cost share contributions at least quarterly (this includes non-FEC and third-party contributions). Use unique batch labels for each submission of contributions (up to 12 characters). Make sure to add applicable benefit and F&A rates on NFCS extracts to get full contribution amounts. No need to tag benefits and F&A in the NFCS, just calculate them on the Excel extract. Read Non-FEC Reporting Process and Step by Step Instructions in full before starting your tagging process.

Non-FEC Cost Share System Non-FEC Reporting Process Step by Step Instructions Non-FEC Cost Share System

ASTRA Access Needed for NFCS, Cost Share Summary, & FEC Applications Needed to tag transactions in the Non-FEC Cost Share application Needed to view and print FEC’s for recertification Needed to view the Faculty Effort Certification application Needed to view the Cost Share Summary application

Re-budgeting Between Direct and F&A Costs

Rebudgeting When is it allowed? And when do you need prior approval? Change in Scope General guidelines Review award policy statements and guidelines. NIH/DHHS – less than 25% of the total costs awarded Standard Federal Demonstration Partnership (FDP) – less than 25% of the total costs awarded. Check out Special terms and conditions. Re-budgeting Form If non-federal, does award give a rebudget threshold?

Effect of rebudgeting on F&A costs When a sponsor allows rebudgeting between the direct costs and F&A costs it is necessary to provide for the increase/ (decrease) in F&A that may occur when rebudgeting.  (See GIM 13) Same process as rebudgeting between direct cost categories. Be aware that if rebudgeting into a non-exempt category from an exempt category additional funds would need to be moved into 25-99 to accommodate the new F&A costs.

Rebudgeting from exempt direct cost from non-exempt direct cost will result in a reduction to F&A costs that may be rebudgeted (example at 50% F&A): Object Code Current Budget Amount Rebudgeted Revised Budget 01-XX-XX (non-exempt) 4,000 3,000 7,000 05-XX-XX (non-exempt) 1,000 06-XX-XX (exempt) 2,000 (2,000) 08-02-XX (exempt) (2,500) 500   Direct Cost total 10,000 -1,500 8,500 25- F&A Cost total 2,500 1,500 Total $12,500 $0

Rebudgeting to exempt direct cost from non-exempt direct cost will result in a reduction to F&A costs that may be rebudgeted (example at 50% F&A):: Object Code Current Budget Amount Rebudgeted Revised Budget 01-XX-XX (non-exempt) 4,000 (2,000) 2,000 05-XX-XX (non-exempt) 1,000 06-XX-XX (exempt) 3,000 08-02-XX (exempt) 5,000   Direct Cost total 10,000 11,000 25 F&A Cost total 2,500 (1,000) 1,500 Total $12,500 $0

Any other questions? Next GCA Brown Bag scheduled for Tuesday, April 25th, 2017 in Foege N130A.