Award Management Post Award August 9th, 2017 By Maria Rojas

Learning Objective You will get a better understanding of: Financial Management of Grants Grants Management Cycle Departments Responsibilities Best practices

What is a Grant? Financial/Monetary award given by a government agency, foundation, corporation or other entity to funds a particular project.

Grants Life Cycle

Where does funding come from? Federal Funding NIH (National Institute of Health) NSF (National Science Foundation) ONR (Office of Naval Research), etc State Funding State Health Departments State Departments of Education State Departments of Transportation, etc. Local Government Miami Dade County City of Miami Public/Private Funding Emil Buehler Perpetual Trust Foundation Susan G. Komen Foundation, etc. Foreign Funding University of Qatar Infravation (Italy) University of Havana (Cuba)

Types of Awards Grants Contracts Cooperative Agreements Subcontract A type of financial assistance awarded to conduct research or other program as specified in an approved proposal. Contracts A mechanism for the procurement of a product or service with specific obligations for both sponsor and recipient. They may include restrictive terms, usually specified in the RFP (request for proposal), and require deliverables. Cooperative Agreements Similar to grants, but typically involve a significant level of sponsor participation. Subcontract A Subaward or Subcontract is a special category of sponsored project that may be made under a grant, contract or cooperative agreement and refers to work to be carried out at more than one institution.

Roles & Responsibilities Principal Investigators (PIs) Primarily responsible for all aspects of the project (Technical and Financial) Department Managers (CAE, ECE, MAE, BME, IEN) Assisting PIs with day-to-day financial management of their grants Dean for Research Dr. Solo (COE final Reviewer and Approver) COE Manager (Maria) Oversee COE Pre and Post Award COE Sponsored Specialist (Daviane) Pre-Award (Application submission) ORA (Office of Research) Ensuring Compliance, Training/Guidance, Monitoring, Final Submission, ect.

Essential Department Managers Functions Administration Maintain Effective Communication with PI to ensure: Accounting Allowable (per agency guidelines) Reasonable (shop for the best deal) Allocable (per approved budget) Necessary (is needed to conduct the scope of work) Compliance –Check all policies at http://www.ora.miami.edu/ Reporting Review accounts biweekly/Monthly to get it ready for agency required Financial Reporting Maintain proper documentation (a file for all grants)

Department Manager’s Responsibilities Communicate frequently with PIs Ensure that the budget is accurate based on awarded/approved budget Review project expenditures on a monthly basis Reconcile account monthly against R90 or new reporting system Ensure compliance with grant’s terms and conditions (check allowable & unallowable cost) Maintain schedule of Financial and Technical reports Minimize cost transfer to avoid audit flag Maintain all project records for audit purposes

Examples of Grant Mismanagement Lack of communication with PIs Not following awarded/approved budget Inadequate award monitoring Over/under spending of funds Spend in wrong budget category (do IPAR to avoid) Lack of proper documentation (justification) Inadequate/untimely submission of reports (affects future funding) Lack of effective internal controls and audit

What are Direct Cost? Direct benefit to the grant-supported project or activities Included but not limited to: Salaries/Fringe Benefits Travel Equipment Technical Supplies Publication Participant Support Cost

What is Indirect Cost? Also known as F&A (Facilities and administrative costs) Rent Building maintenance Most utilities General office expenses Cost of administrative personnel General administrative cost

Unallowable Costs Advertising ** Alcoholic Beverages Bad Debt Expense Contributions/Donations Entertainment Fines, penalties, damages, and other settlements Goods and services for personal use Interest Payments Membership** **Please check agency guidelines Always ask yourself-How does this benefit the project?

Cost Sharing The portion of a project or program costs that is not borne by the sponsor. Cost sharing consists of three types: Mandatory (when sponsor requires matching funds) Voluntary committed (becomes mandatory-when PI commits UM/Dpt. resources) Voluntary uncommitted (non mandatory-but still uses university resources) Voluntary cost share are strongly discouraged by the University What department managers need to do? If not automatically allocated, a journal must be completed (PAA or FA-11) before o each financial/progress report is due to sponsor Follow cost share approved budget

Cost Transfers After-the-fact reallocation of costs, either salaries or non-salaries, to an award/grant Key Elements of Cost transfers: Must follow federal regulations Federal regulations require timeliness and properly documented explanations Must be kept to a minimum Note: Salaries transfers are done on a PAA Non-Salaries are done on FA-11

Cost Transfers-Allowable Written approval from sponsor/agency Correction of a clerical error (typographical or transposition of digits in an acct) Reallocation of expenses on multiple project Reallocation of shared resource costs Reallocation of a salary expense to properly reflect effort (PAA) Cost Transfers to move unallowable charges Transfer of pre-award expenses from non sponsored account (when no advance account was done) Transfer within in Master and Sub accounts

Cost transfers-Unallowable Unidentified expense Cost incurred before or after the project period Transfers between two “6” accounts Excessive cost transfers Justifications that are not accepted: Absence of PI or department staff Staff Shortage Inexperienced staff No administrative oversight

IPAR (Internal Prior Approval Request Form) What is an IPAR? The IPAR form can be used to request internal prior approval for Federal and Federal Pass-Through awards for a variety of actions: Pre-Award Cost up to 90 days End Date Extension (NCE-No Cost Extension) Equipment Acquisition (not included in the original budget) Rebudgeting ***Always follow the agency guidelines

Justifications Memos Always answer these questions: Who What Where When How **Samples in binder

Effort Reporting What is effort reporting? Why is it required? Certification that salaries and wages charged to sponsored accounts are reasonable in relation to work performed. Mandate by the Federal Government. Why is it required? Two thirds of the direct charges to federal research funding are to salaries and benefit costs Who should certify? All employees with salary/benefit charges to sponsored awards in the designated effort reporting period All employees with cost share commitments on sponsored awards **New system coming soon**

Questions?