Sub-accounts at Recharge Cores: What, Why, and How Ruth Halsey, B.S., M.B.A. Unit Administrator, Functional MRI Laboratory, University of Michigan Chair, 2015 Conference Planning Committee, Michigan Chapter, Society of Research Administrators 11/24/2018

Agenda Why care about sub-accounts? What are sub-accounts? What are pre-award benefits of sub-accounts? What are post-award benefits of sub-accounts? What should I consider before implementing? How to implement sub-account policies? Q & A 11/24/2018

Why Care About Sub-accounts? 11/24/2018

Why Care About Sub-accounts? What is your role as a research administrator? How does this role relate to stewardship of financial resources? How does stewardship of financial resources relate to sub-accounts? Managers work within the system (they don’t question why things work they way that they do, and just work within the system as it works). Leaders work on the system (they identify flaws within the system and work to change those flaws). 11/24/2018

Why Care About Sub-accounts? Stewardship of Financial Resources “For people with administrative or supervisory responsibilities, financial stewardship typically includes developing, implementing, maintaining and following proper administrative and accounting procedures, as well as complying with all relevant governmental and regulatory requirements.” http://www.hr.umich.edu/stewardship.html 11/24/2018

Why Care About Sub-accounts? The goal of this presentation… Indirect Cost Revenues Financial Stewardship Sub-account Policies General Fund Budget Demand Projection Pre-Award Oversight 11/24/2018

What Are Sub-Accounts? 11/24/2018

What Are Sub-Accounts? Subordinate account of a parent project Can someone give an example? 11/24/2018

What Are Sub-Accounts? Pre-award Anticipated Sub-account Written into PAF when proposal is submitted Your research core’s anticipated budget Department’s Faculty Member’s 11/24/2018

What Are Sub-Accounts? Post-Award Sub-account Form 7471 is used to set-up sub-account Is your research core’s part of the grant Department’s Faculty Member’s 11/24/2018

What Are Pre-Award Benefits? 11/24/2018

What Are Pre-Award Benefits? Allows for Proposal Prior Review Why might this be important? Ensures accuracy of rate and budget Review of justification for accuracy Accurate description of Core to sponsors 11/24/2018

What Are Pre-Award Benefits? Proactive Communication at Award Why might this be important? Proactively orient new users of policies Reminders to existing users of policies Ensures timely set-up of sub-accounts 11/24/2018

What Are Pre-Award Benefits? Captures Data in eRPM Why might this be important? Query & Create Reports from eRPM Data What kinds of reports might you generate? 11/24/2018

What Are Pre-Award Benefits? Can also see who is NOT your customer Pre-Award Statistics Know who your proposed customers are: Faculty members Departments Schools / Colleges Collaborator Collaborators 11/24/2018

What Are Pre-Award Benefits? Pre-Award Statistics Count of proposals Status of proposals Total Hrs. / Proposal Avg. Hrs. / Proposal Avg. Hrs. / Year 11/24/2018

What Are Pre-Award Benefits? Why might all this data be important? Customer/Collaborator Data Recruit new users Pre-Award Statistics Average funding percentage Calculate estimated utilization Notice changes in # and $$ Anticipate changes in demand 11/24/2018

What Are Post-Award Benefits? 11/24/2018

What Are Post-Award Benefits? Project Demand from Active Projects Why might this be important? Number of hours for budget year Hours remaining unspent 11/24/2018

What Are Post-Award Benefits? Get Your Share of Indirect-Cost “Pie” Why is this the case? Indirect-cost follows the Dept ID where expenses are Incurred. Sub-account Parent Account Sub-account Sub-account 11/24/2018

What Are Post-Award Benefits? Get Your Share of Indirect-Cost “Pie” Why might this be important? General Fund $$ Covers unallowable costs: Admin effort Building repairs Utilities Space Rental Office supplies Sub-account Parent Account Sub-account Sub-account 11/24/2018

What Should I Consider? 11/24/2018

What Should I Consider? Pre-Award Sub-Accounts Develop policies on requirements for review Detailed budget Justification Facilities/resources description Sub-account Staff time/training to review & approve proposals 11/24/2018

What Should I Consider? Post-Award Sub-accounts FMRI Limit is 20% IDC Post-Award Sub-accounts Policy on limits to establishments sub-accounts Controls to ensure sub-account establishment Staff time/training to review & approve 7471s Staff time/training to manage sub-accounts Deficit policies on sub-accounts 11/24/2018

What Should I Consider? Strategies to Reduce Post- Award Staff Time Manage sub-accounts using M-Reports Only expenses that will hit are recharge expenses Only need to review transactions for exceptions 11/24/2018

What Should I Consider? Development of Alternate Tracking Tools 11/24/2018

How to Implement Policy? 11/24/2018

How to Implement Policy? Make A Case to Leadership Directors Administration Become a policy champion! 11/24/2018

How to Implement Policy? Communicate the Change Internal communications Staff/faculty why there is a new policy Share the benefits of switching to this method Share expected extra workload mitigation Provide staff with appropriate training 11/24/2018

How to Implement Policy? Communicate the Change External communications Notify your users you will implement policies Share why you are implementing these policies Provide clear instruction on your website 11/24/2018

Questions & Answers 11/24/2018