What’s a grant, What’s a contract; An introduction to Sponsored Programs Jan 6, 2011

Sponsored Programs Vincent (Bo) A. Bogdanski Office of Sponsored Programs Colorado State University

Why are you here? Heard there would be good food Prepare for cocktail party with professors Decided three hours here was better than three hours shopping Don’t have a life

Sponsored Programs Sponsored programs are projects supported by non-university (external) funds that are awarded as a result of an application submitted to a potential sponsor by the institution on behalf of a faculty or staff member.

Question? Are all Sponsored Programs initiated by the Federal government?

Sponsored Programs (some indicators) Formal sponsor application guidelines; Restrictions on the use of funds; Specific and limited program period; Specified performance or outcomes; Specified use of program outcomes or data; Required fiscal and/or programmatic reports.

Sponsored Programs are not: Direct payments to individuals, such as faculty consulting, honorarium and sabbatical support; Student financial aid and scholarship (except through training award); Gifts and bequests to the university; Donations of equipment or property.

Question? Can there be a sponsored program with internal institution funds?

The Process Proposal Negotiation Award The work Closeout

Agency Specific Guides (Grants and Cooperative Agreements) Broad Area Announcement, BAA Request for Proposal, RFP Request for Quotes, RFQ Solicitation Unsolicited Proposal

The proposal A written submission The science or work Budget Specified time period Specific proposal requirements Terms and conditions

Question? Who can sign a proposal?

OMB Circular A-110 Assistance Awards only Sets maximum allowable conditions Budget revisions Cost sharing defined Defines property disposition and handling Technical and financial reporting

OMB Circular A-110 Assistance Awards only ( A public good) Standards for consistency and uniformity among federal agencies for grants and agreements with institutions of higher ed, hospitals, and other non-profits Recipients shall apply the provisions of this Circular to subrecipients that are passed through or awarded by the primary recipient, if such subrecipients are covered by this Circular Does not apply to contracts administered under procurement laws or regulations

Question? Can the for-profit arm of a private company issue a grant or cooperative agreement?

OMB Circular A-110 Sets maximum allowable conditions “Federal awarding agencies shall not impose additional or inconsistent requirements, except as provided in Sections __.4, and __.14 or unless specifically required by Federal statute or executive order”

OMB Circular A-110 Budget and Budget revisions (Section.25) Estimate at the time of the proposal Changes in budget Change in scope Change in key personnel Absence of PI for three months 25% increase or decrease in effort As designated by funding agency

OMB Circular A-110 Cost sharing defined (Section 23) Part of budget Within the project period Verifiable Non-Federal Necessary for project Allowable under cost principals

Question? Which are cost sharing? 10% unpaid (by grant) committed effort Use of a microscope purchased last year Department of Defense project performing similar work Christmas party paid from gift funds Reimbursed use of personal vehicle

OMB Circular A-110 Defines property handling and disposition ( ) Real property Federal owned property Equipment Supplies and expendable equipment Intangible property Intellectual property including copyright

OMB Circular A-110 Technical and financial reporting ( ) “performance reports shall not be required more frequently than quarterly or, less frequently than annually” “recipient shall not be required to submit more than the original and two copies of performance (or financial) reports”

OMB Circular A-21 Cost Principles for Federal Grants and Contracts All Federal Agencies that sponsor awards A guide for fixed price agreements

OMB Circular A-21 The four factors Allocable and; Allowable and; Consistent and; Reasonable

Allocable Incurred solely to advance the work under that agreement or In proportion to benefit for two or more projects (or accounts) Not to fund overruns on other projects Not for “reasons of convenience”

Question Are computer purchases allocable?

Allowable Section ‘J’ of OMB circular A-21 Remember Allowable is NOT the only criteria Allowable does not necessarily mean direct cost

Question? Name something that would be unallowable as a expense to a sponsored program.

Consistent Disclosure statement (DS-2) Cost accounting standards University policy and practice

Reasonable Prudent person test Under these specific circumstances Multiple individuals would probably make the same decision

OMB Circular A-133 Procurements: Subrecipients vs. Vendors Subrecipient monitoring

Question? Subrecipient or Vendor? Colorado College does some research. Colorado College does data analysis. Colorado College collects samples

Agency Specific Guides (Grants and Cooperative Agreements) National Science Foundation (NSF) Proposal and Award Policies and Procedures Guide (PAPP) Jan, 2011 Cooperative Agreement General Conditions (CA-1) Public Health Service (PHHS/NIH) Grant Policy Statement

Agency Specific Guides (Grants and Cooperative Agreements) Department of Defense (DOD) Department of Defense Grant and Agreement Regulations (DODGAR), DoD R Service Grant General Conditions National Aeronautics and Space Administration (NASA) Grant and Cooperative Agreement Handbook Department of Education (DEPT ED) Education Department General Administrative Regulations (EDGAR)

FAR Issues and Clauses Federal Acquisition Regulation (FAR) Overview Procurement Awards only Title 48 of the CFR Chapter 1 Chapters 2-99 Allowable cost and payments with Paragraph 31.3 give A-21

FAR Issues and Clauses Intellectual Property Rights in Data Special Works Patent clauses Security Requirements Classified work Publication restrictions

FAR Issues and Clauses Stop Work Orders Terminations Cost and Fund Limitations Limitation of Cost Limitation of Funds

FAR Issues and Clauses Other issues: Property clause with Alt II Small Business Subcontracting Certificate of Current Cost or Pricing Data

Other Policies and Issues Institutional Signatures Representations and Certifications Export Control Issues

Other Policies and Issues Institutional Review Board, IRB Institutional Animal Care and Use Committee, IACUC Conflict of Interest/Conflict of Commitment Classified, Sensitive and Propriety Misconduct in Science

Question? Compliance requirement? Which one? Survey of CSU employees by Athletic Department Use of bees Professor’s son owns catering business Accusation of plagiarism

Negotiating Federal Awards With the Contracting Officer With the Program Manager With the Principal Investigator With your boss With other support offices at your University

Budget Issues Effort Reporting versus Hours % of effort labor hour contract, time and material Employment versus Fellowship Fringe Benefits Composition of rate Actual versus Negotiate Consultants, Employees, or Subcontractor Additional Compensation

Question? Can your employee be paid by your institution under a consultant agreement? Professor X helps colleague in Department with a Sponsored Program on Saturday. How does the Department compensate?

Budget Issues Travel Institution policy Justification Foreign Travel, pre-approval Equipment or Supplies “fabricated” equipment

Budget Issues Tuition and fees Your policy Training grant Clerical salaries, office supplies, telephone equipment, memberships, postage Unusual circumstances Consistent with DS-2

Budget Issues Facilities and Administrative costs (F&A) (also known as indirect or overhead) Not to be confused with fees or profit These are real and actual costs associated with the sponsored activity If not recovered through the sponsored project agreement, they must be paid by the institution

Question? What are the restrictions imposed on Colleges, Department, and PI’s when expending recovered (paid by sponsor) F&A funds?

Post Award Issues Limitation of Funds/Limitations of Costs Start/End Dates Pre-award spending No cost Extensions Options and Special Provisions Terminations For Cause For Convenience

Post Award Issues Changes: In scope In budget Of PI/institution In effort (limited to key people)

Reporting Requirements Technical Frequency and Format Financial Consistent with accounting procedure Frequency Spend rates

Reporting Requirements Property Ownership Government furnished Frequency Patents Small Business Plan (294 and 295) Hazardous Substance

Question? A PI moves to another University. Can they take all the equipment purchased under different sponsored programs to continue his research at the new University?

The End