Current F&A Negotiations – Sharing Experiences & Outcomes NACCA - Leading Excellence in Research Costing Practices General Conference: 10/3 – 10/5, 2017

Panel Members Ty Stephens David Beckstrom Trent Riley Director of Cost Accounting University of Arkansas for Medical Sciences David Beckstrom Associate Director of Costing Policy & PP&E University of California, Los Angeles Trent Riley Accounting Manager North Carolina State University

Agenda CAS Updates Review of Negotiation Process Staffing Changes Updated CAS Best Practices Manual Review of Negotiation Process

CAS Updates – Western Staff Retirements – a year or so ago: Bob Lee Ernie Willard Kitty Unti CAS has not hired replacements

CAS Updates – Central Staff Retirements: Narendra Gandhi, September 29, 2017

CAS Updates – Northeastern Currently accepting rate extension requests Reminder that the CAS Best Practices Manual has been updated to conform to the new Uniform Guidance

New CAS Best Practices Manual Issued January 2017 Includes new sections on: Utility Cost Adjustment (UCA) (starting p. 51) Rate Extensions (starting p. 146) https://rates.psc.gov/fms/dca/2017_CU_Best_Practices_Manual.pdf

New CAS Best Practices Manual New Language on: Treatment of IT systems cost, including Wi-Fi (p. 37) Examine Recharging of O&M costs (p. 48) Exclusion of Participant Support (p. 20 and 81)

New CAS Best Practices Manual Modified Sections: NIH Salary Cap Example (p. 22) DS-2 – updated to $50M of federal awards (p. 26) Determine if Building Componentization was used replaced the Use Allowance language (p. 33)

Negotiation Process University of Arkansas for Medical Sciences FY2016 University of California, Los Angeles FY2014 North Carolina State University FY2015

Negotiation Process Who was your CAS Negotiator? What type of Negotiation did you have? Phone Negotiation Only? On-site Space Review? Negotiation after visit on phone or on-site?

Negotiation Process What was the Negotiation Timeline? Proposal Submitted? First Data Request? Site Visit? Negotiation Begin? Negotiation End?

Negotiation Process What OR rate increases did you get? Was the rate a stepped rate or the same increase for all years? Length of rates?

Negotiation Process How many rounds of questions did you get? Was there a focus on Reclassifications? Financial Statements to starting numbers Reclasses out of Organized Research Reclasses into Operations & Maintenance (O&M)

Negotiation Process Was there a focus on: Space of specific departments Equipment of specific departments Utility Cost Adjustment (UCA)

Negotiation Process Was there a focus on trend analysis with the prior F&A Proposal for: Organized Research base Rate components and allocated amounts Organized Research ASF (space) Cost pools

Negotiation Process Did you submit facilities projections? If you submitted facilities projections for your last F&A Proposal, did CAS take a special interest in those facilities this time?

Negotiation Process Were there any questions or comments that surprised you?

Negotiation Process Were there any questions or comments that you thought were not fair?

Negotiation Process Based on what you did this base year, what would you do differently for your next base year?

Negotiation Process Did the possibility of requesting a 4 year extension factor into your negotiation strategy?

Contact Information Ty Stephens StephensTyroneD@uams.edu 501-526-7452 David Beckstrom dbeckstrom@finance.ucla.edu 310-983-3095 Trent Riley atriley2@ncsu.edu 919-513-3471 Adrienne Clifton adrienne@pointconsultinggrp.com 773-575-2599

Questions? Comments? Thank You!!!