Campus Cost Sharing Training

Administrative Process Redesign (APR) Cost Sharing and Commitments Review of Committee’s Work Slide 2

APR Team Members Slide 3  Ginny BormannL&S (English)  Sarah GatzRSP Post-Award  Tammy Kuhn MartinEngineering (Dean’s Office)  Meredith LuschenCALS (Dean’s Office)  Debbie MeltzerMedicine & Public Health (Dean’s Office)  David NgoRSP ERA Team  Chip QuadeGrad School Information Technology  Jennifer RodisRSP Pre-Award  Jen StenjemRSP ERA Team

APR: What is a Commitment? Slide 4 Paid Effort Cost-Shared Effort Non-Payroll Cost Sharing Effort Not Paid By Sponsor Commitments Non-Effort

APR: What is cost sharing?  UW Definition: “Cost sharing is the portion of total costs of a sponsored project that is borne by the UW, rather than the sponsor.” Slide 5

APR: Five Types of Cost Sharing Slide 6 Mandatory Voluntary Institutional Mandatory Critical to support the research enterprise Offered “just because” Unavoidable Institutional Examples: NIH Salary Cap cost sharing, PI’s minimum 1% Example: Small awards where PI’s salary would be too great a portion of the awarded amount

APR: Where do we find cost sharing and commitments? Slide 7 PROPOSAL: Commitments are Offered AWARD: Commitments Become Obligations Cost Sharing & Commitment Setup Documentation & Reporting of Fulfillment Commitments are Fulfilled Tracking and Management Lifecycle of a Grant

APR: Customer Feedback “Cost sharing is an administrative nightmare.” Slide 8 “Cost share results in a lot of wasted admin time that could be spent on research.” “Where can I look for guidance?” “Where can I find a policy ?” “We don’t do anything to really manage Cost share.” “We need education, training and guidance.” “Cannot find all projects with cost share, there is no query out there to get a list of all accounts that have cost share. This makes if very difficult to manage on a pro-active basis.” “Find a solution that is easy to use and understand, and that is accessible for everyone to use.” “There is no accurate or reliable cost share data available right now.”

APR: Problem Statement  As an institution, we often do not meet our objectives  Breakdowns occur at every point of the process, and lead to: –Excessive voluntary committed cost sharing –Failure to fulfill our commitments or prove that we’ve done so –Incomplete, incorrect, and inconsistent information in tracking systems –A risk of negative audit outcomes –A reduced F&A rate –Thousands of person-hours spent on reactive problem-solving every year Faculty and staff are confused and frustrated Slide 9

APR: Observations The amount, nature and impact of the UW’s cost sharing data is incomplete and indeterminate. The current situation offers no definitions, roles, responsibilities, policies, or procedures which causes the inconsistencies, frustrations and breakdowns we witnessed The large amount of variation within the process showed us the objective of this project is not to increase throughput or reduce processing time, but to reduce the variation Slide 10

APR: Building Blocks for the Next Phase Slide 11 Understand and minimize all research costs associated with cost sharing - Consider both reportable cost sharing and lost revenue associated with cost sharing Provide guidance to faculty and staff about when to offer voluntary cost sharing Understand sponsors’ standards and ensure our procedures meet those standards 11

APR: Solutions UW Cost Sharing Policy UW Cost Sharing Guidance Key Ideas for Dean’s Offices Key Ideas for PI’s Cost Sharing Tool 1.cfm Slide 12

UW-Madison Cost Sharing Policy Slide 13

Cost Sharing Policy Generally, UW’s policy is to minimize institutional and 3 rd party cost sharing on sponsored projects Approval of voluntary committed cost sharing rests with the Dean’s or Director’s office Allowed when mandated or necessary to reflect accurately the resources that must be expended to accomplish the project objectives. Each Division may have their own requirements in addition to this policy. Slide 14

Cost Sharing Policy Researchers who engage in sponsored projects will: -Comply with University and sponsoring agency regulations regarding proposing, charging, and reporting of cost sharing. Policy applies to both federal and non-federal sponsored projects. Slide 15

Cost Sharing Policy Who approves cost sharing? Dean’s/Director’s Office Slide 16

Cost Sharing Policy What are the cost sharing impacts? Institution redirects resources to support specific scientific project beyond the funding level provided by the sponsor. Potential limitations to programmatic, administrative and financial capabilities to the researcher and University Reduces flexibility of researchers to conduct other research by obligating effort Increasing requirements for capturing, monitoring and documenting commitments and expenditures Decreases the University’s recovery of indirect costs Slide 17

UW-Madison Cost Sharing Guidance Slide 18

Cost Sharing Guidance When is it appropriate to offer voluntary cost share? To meet OMB requirements for minimum commitment of PI effort on sponsored projects (1% minimum at UW) To support investigator on an award for which the total direct costs are a small dollar amount To indicate a level of effort for a PI who has $0 appt at UW To respond to clear indication from the sponsor that cost sharing will increase competitiveness of a specific proposal To establish an institutional commitment for certain federal agencies (NEH, NEA) that use cost sharing to demonstrate the leveraging effect of federal funding Slide 19

Cost Sharing Guidance When is it appropriate to offer voluntary cost share? To provide institutional support for a project that is significant in scope and vital to the campus mission To support an institutional investment in a pioneering project with potential significant future sponsored funding To secure sponsored funding for an individual or department in a research discipline in which access to extramural funding is inherently limited Slide 20

Cost Sharing Guidance What are alternatives to voluntary cost sharing? Offer resources without making a specific and quantifiable commitment. Limit number of explicit commitments Ex: “PI X will oversee all aspects of the project. University resources are available as needed for the performance of the sponsored project at no direct cost to the project” Slide 21

Cost Sharing Guidance What should be offered to meet a cost sharing requirement? Consider two criteria: Is there a new cost to the university? Is there a significant burden for documentation or audit? Slide 22

Cost Sharing Guidance Preferred mechanisms for cost sharing UW salaries and fringe benefits F&A costs associated with any cost shared direct expense Unrecovered F&A costs due to a lowered or waived F&A rate Third party cash contributions Slide 23

Cost Sharing Guidance Acceptable, but not preferred mechanisms for cost sharing Purchase price of equipment being acquired by the UW Travel expenses Tuition or tuition remission Supplies Volunteer effort, whether coordinated by the university or a third party In-kind contributions from non-UW third parties Slide 24

Cost Sharing Key Ideas for Dean’s Offices Slide 25

Cost Sharing: Key Ideas for Dean’s Offices Cost sharing may be required, but there are drawbacks for the university and PI. University seeks to minimize cost sharing when possible Voluntary committed cost sharing is discouraged. Although, there may be instances where it’s appropriate. There are alternatives to voluntary committed cost sharing. Cost sharing should be reviewed at the time of proposal submission or when a change is made. Final approval of cost sharing resides with the Dean or Director. Slide 26

Cost Sharing: Key Ideas for Dean’s Offices If cost sharing must be approved, preferred mechanisms are based on: a) is there a new cost to the university? and b) is there a significant burden for documentation or audit? All cost sharing contributions should be explicitly identified in the proposal budget The PI is expected to identify cost sharing items, identifying a funding source for each, and seek approval for cost sharing via the Dean’s or Director’s office Colleges/Schools may wish to create forms and formal processes for submitting and reviewing requests to cost share. Slide 27

Cost Sharing Key Ideas for PIs Slide 28

Cost Sharing: Key Ideas for PIs Minimize cost sharing when possible. Cost sharing regulations derived from OMB Circulars. Standards apply to federal and non- federal sponsored projects. Non-compliance brings risk of penalties, up to suspension or termination of awards. Voluntary committed cost sharing is discouraged, unless appropriate. Alternatives to voluntary committed cost sharing exist. Slide 29

Cost Sharing: Key Ideas for PIs Cost sharing should be reviewed at proposal or when change occurs. Dean or director makes final approval of cost sharing. Cost sharing contributions should be explicitly identified in the proposal budget. PI should identify cost sharing items and identify a source for each prior to seeking approval from the Dean’s or Director’s office. Cost sharing commitments cannot be changed without prior sponsor approval. Slide 30

Cost Sharing Approval Tool Slide 31

Cost Sharing Approval Tool Slide 32

Cost Sharing Approval Tool – Dean’s Summary Slide 33

Cost Sharing Approval Tool – Create PDF Slide 34

Cost Sharing Approval Tool – PDF Slide 35

Cost Sharing Approval Tool Slide 36 The approval tool should be filled out by the Dept Administrator and submitted to the Dean’s office for review (via attachment/ or WISPER) The tool will establish a clear understanding on cost sharing expectations & will be used to support decision making regarding cost sharing approval.

Cost Sharing Approval Tool & WISPER Slide 37

Cost Sharing Approval Tool & WISPER Slide 38

Cost Sharing Approval Tool & WISPER Slide 39

RSP Proposal Submission Slide 40 Before submission is okay’d, RSP will be looking for: Indication of cost share plan (ex: Cost Share Tool) Indication cost sharing plan being approved (Dean’s approval) Ensure cost sharing is documented in budget Ensure preferred cost sharing mechanisms are used Indicate in notes who will be responsible for collection of cost sharing information

RSP Award Setup Slide 41

RSP Award Setup Slide 42 At award setup, RSP will be using the Cost Sharing Approval Tool and Projects tab to enter information into PeopleSoft Grants After setup, this information is visible in WISDM.

Cost Sharing Documentation Slide 43

Cost Sharing & Commitment Updates Form & Instructions Slide 44 Form: Instructions:

How campus will manage, track, & document cost sharing For payroll cost sharing, campus will submit form if: –Missing rows (i.e., was never scheduled) –Corrections to percentage, dates, source funding, etc. –Personnel changes For non-payroll, campus will submit form after transaction has occurred (see Instructions) For third party, campus will submit form for goods and services used to meet obligation (see Instructions) Slide 45

How CSWG will handle update forms All forms will be sent to Payroll cost share: forms will go to pre-award staff Non-payroll and third party: –Forms will go to accountant; –Accountant will ensure info is acceptable for entry; –Data entry will be done by accountant or intern. In future, upload tool will be available.. Slide 46

How RSP will handle monitoring and reporting of cost share Accountants will draw information from WISDM for invoices and financial reports Slide 47

RSP Cost Share Working Group Slide 48

RSP Cost Share Working Group Slide 49  Paul CameronRSP Post-Award  Sarah GatzRSP Post-Award  Cheri GestRSP Pre-Award  Tim DuanmuRSP Post-Award  David NgoRSP ERA Team  Jennifer RodisRSP Pre-Award  Nate RuschRSP Pre-Award Contact:

Business Processes: Identified, Improved, & Documented Slide 50  How will CSWG handle the CS mailbox  How will campus get cost sharing approved  How will RSP review cost sharing at proposal  How will RSP setup cost sharing at award  How will campus manage/track/document cost sharing  How will RSP investigate/fix cost sharing errors  How will RSP handle financial monitoring and reporting of cost sharing  How will CSWG Subteam handle update forms

Slide 51 Questions?