Sponsored Program Administration Basics Presented by: Shegay Cook & Corey Burger

Sponsored Programs Administration Sponsored Programs Office Funding Opportunities Funding Opportunities Proposals Proposals Award Administration Award Administration Coordinate Closeout Coordinate Closeout Sponsored Programs Accountants (Controller’s Office) Account Set-up Account Set-up Financial Reporting Financial Reporting Invoicing Invoicing Financial Closeout Financial Closeout

Sponsored Programs Office Mission Provide quality service to faculty and staff Provide quality service to faculty and staff Provide assistance to support research Provide assistance to support research Assure compliance Assure compliance – Protect the University’s assets & keep the PI out of jail

1. Funding Opportunities The Foundation DirectoryThe Foundation Directory 10,000 Grant Issuing Foundations10,000 Grant Issuing Foundations Annual Register of Grant SupportAnnual Register of Grant Support 3500 Grant Support Programs3500 Grant Support Programs InfoEd InternationalInfoEd International Sponsored Program Information Network (SPINPlus)Sponsored Program Information Network (SPINPlus) GENIUSGENIUS SMARTSSMARTS Contact Corey Burger Corey Burger

2. Proposal Development / Review Solicitation Guidance Solicitation Guidance University/Sponsor requirements University/Sponsor requirements Sponsor FormsSponsor Forms Overhead (F&A) RatesOverhead (F&A) Rates F&A rates stay the same year to year as originally proposed. F&A rates stay the same year to year as originally proposed. Limited Submission ProposalsLimited Submission Proposals Budget Development/Review Budget Development/Review Benefits RatesBenefits Rates In compliance with Federal, State, & University requirementsIn compliance with Federal, State, & University requirements Conflict of Interest Conflict of Interest Subcontracts / Collaborations Subcontracts / Collaborations Signature Authority for the University Signature Authority for the University

Budget Development Resources for budget development: Your Sponsored Programs Administrator and AccountantYour Sponsored Programs Administrator and Accountant MTDC vs. TDC for Indirect Costs Rate (F&A) MTDC vs. TDC for Indirect Costs Rate (F&A) Sponsored Programs Budget TemplateSponsored Programs Budget Template

Most sponsors require that a budget justification accompany the budget. This section of the proposal gives the rationale for the requests made in the budget. Budget Justification Salary & Benefit Rates Salary & Benefit Rates (Multiple year increases - inflation)(Multiple year increases - inflation) Other Direct Costs Other Direct Costs – Lab equipment, computer time, fees, etc. Travel (No. of trips, travelers, & destination) Travel (No. of trips, travelers, & destination) Equipment (Over $5,000 or life expectancy of > 2 years) Equipment (Over $5,000 or life expectancy of > 2 years)

Proposal Development Issues Indirect Cost (F&A) Rate What is it? - Actual costs incurred in a sponsored project that are not directly charged because to do so would be costly and cumbersome to determine. Examples – space, utilities, library, general administrative services, compliance, such as IRB, safety personnel, and compliance committees. When to use it? Always use negotiated rate unless sponsor does not allow full rate and provides a lesser rate or does not allow it at all.

Indirect Cost (F&A) Waiver An indirect cost waiver is an institutional agreement that indirect costs will be charged at a rate lower than the sponsor’s published rate. An indirect cost waiver is an institutional agreement that indirect costs will be charged at a rate lower than the sponsor’s published rate. Verification stating sponsor’s IDC limitations must be attached to the waiver, or signature and approval from the Vice President for Research. Verification stating sponsor’s IDC limitations must be attached to the waiver, or signature and approval from the Vice President for Research.

How does Sponsored Programs Review a proposal? Review Request for Proposal (RFP) / Request for Application (RFA) and Announcements Review Request for Proposal (RFP) / Request for Application (RFA) and Announcements Review Budget Review Budget Review Administrative Forms Review Administrative Forms Review SP-01 Review SP-01

SP-01 (What is this?) Internal Approval Form Internal Approval Form SP-01 Proposal Information Form SP-01 Proposal Information Form Project InformationProject Information Document Indirect Cost (F&A) WaiverDocument Indirect Cost (F&A) Waiver Document Cost ShareDocument Cost Share Compliance IssueCompliance Issue Safety, Human Participants (IRB), Animal Use (IACUC), Radioactive Materials, rDNA, & Hazardous Chemicals. Safety, Human Participants (IRB), Animal Use (IACUC), Radioactive Materials, rDNA, & Hazardous Chemicals. Conflict of InterestConflict of Interest Institutional ApprovalsInstitutional Approvals

3.Award Negotiation and Acceptance Types of Awards Grant: Grant: Most Common Sponsored AgreementMost Common Sponsored Agreement Financial assistance for research or other program as specified in an approved proposalFinancial assistance for research or other program as specified in an approved proposal Sponsor anticipates no substantial programmatic involvement with the recipientSponsor anticipates no substantial programmatic involvement with the recipient Terms and conditions are usually standard for particular sponsorsTerms and conditions are usually standard for particular sponsors Cooperative Agreement: Cooperative Agreement: Similar to a grant but substantial programmatic involvement by the sponsor is anticipated during the projectSimilar to a grant but substantial programmatic involvement by the sponsor is anticipated during the project Contract: Contract: – Principal purpose of the agreement is to provide tangible results or other “deliverable” items or to carry out a prescribed service for the direct benefit or use of the sponsor – Usually terms and conditions are strict and fiscal management inflexible

Award Administration Review and negotiate terms and conditions Review and negotiate terms and conditions  Publication Restriction  Confidentiality (GRAMA)  Indemnification  Intellectual Property  Period of Performance  Budget  Reporting Requirements Signature Authority for the University Signature Authority for the University

4. Project Administration Cost Issues Cost Issues Administrative Issues Administrative Issues No Cost Extensions No Cost Extensions Project Revisions Project Revisions Re-budgets Re-budgets Sabbatical Leave/Leave of Absence Sabbatical Leave/Leave of Absence PI Leaving University/Award Transfer PI Leaving University/Award Transfer Monitor submission of annual technical reports Monitor submission of annual technical reports

Subaward Administration Sponsored Programs Office Responsibilities  Signature Authority for the University  Sub Award Information Form  Sponsor Approval  A-133 Audit  Sponsor Terms and Conditions Sponsored Programs Accountants Responsibilities  Financial Monitoring  Invoices (Payment & Monitoring)

5. Administrative Closeouts Monitor Technical and Financial Reporting Monitor Technical and Financial Reporting *Reports or deliverables are required of most awards *Reports or deliverables are required of most awards Intellectual Property & Patent Notifications Intellectual Property & Patent Notifications Equipment Reports Equipment Reports Document Retention Document Retention

Financial Administration

Federal Regulations OMB Circulars: A-21: Cost Principles for Educational InstitutionsA-21: Cost Principles for Educational Institutions A-110: Administrative StandardsA-110: Administrative Standards A-133: Audit StandardsA-133: Audit Standards

OMB Circular A-21 Cost Principles for Educational Institutions Purpose: Establishes principles for determining costs applicable to grants, contracts, and other agreements with educational institutions Purpose: Establishes principles for determining costs applicable to grants, contracts, and other agreements with educational institutions A-21 addresses both direct and F&A (indirect) costs A-21 addresses both direct and F&A (indirect) costs Determines what costs can be included in the F&A calculation Determines what costs can be included in the F&A calculation

A-21 Continued Defines Allowablility of Costs Defines Allowablility of Costs – Reasonable – Allocable – Treated Consistently – Conform to limitations in A-21 or sponsored agreement

Unallowable Costs – Section J (Cannot be charged against Federal agreement, used as cost sharing or placed in the F&A cost base) LobbyingLobbying General public relations & alumni activitiesGeneral public relations & alumni activities Student ActivitiesStudent Activities CommencementCommencement Social MembershipsSocial Memberships Advertising Alcoholic beverages Entertainment Fines & penalties Moving Costs if employee resigns within twelve months Certain recruitment costs

Cost Sharing Portion of university share of expenses related to total research projects Portion of university share of expenses related to total research projects Do not include cost sharing amounts on the proposal budget if it is not required by RFP Do not include cost sharing amounts on the proposal budget if it is not required by RFP Do not exceed the cost sharing level or amount specified in the solicitation Do not exceed the cost sharing level or amount specified in the solicitation

Project Closeout Sponsored Programs Office is responsible for the oversight of the closeout of awards. Required Reports: Technical: Principal Investigator Technical: Principal Investigator Equipment: Central Property Control Office Equipment: Central Property Control Office Patent/Invention: PI in collaboration with Technology Commercialization Office (TCO) Patent/Invention: PI in collaboration with Technology Commercialization Office (TCO) Fiscal: Controllers Office Fiscal: Controllers Office Sub-awards: Sponsored Programs Office with PI and Controllers Office Sub-awards: Sponsored Programs Office with PI and Controllers Office – Reports from sub-recipients needed in advance in order to close USU’s award.

Reporting Requirements Established by the sponsor and communicated in the award instrument. Timely report submission is important: Critical stewardship Critical stewardship Requirement (part of the terms and conditions) Requirement (part of the terms and conditions) Incremental funding or future funding may be dependent upon receipt of the report Incremental funding or future funding may be dependent upon receipt of the report

Audits Question: When do you start preparing for an audit? Answer: The day the proposal is being prepared

Who Audits the University? Federal Government – Office of Naval Research (ONR) is USU’s cognizant audit agency Federal Government – Office of Naval Research (ONR) is USU’s cognizant audit agency A-133 Auditors – USU utilizes the services of Deloitte & Touche LLP A-133 Auditors – USU utilizes the services of Deloitte & Touche LLP USU Internal Auditors USU Internal Auditors Sponsoring Agency Sponsoring Agency

Key to a Successful Audit Organized Files Organized Files Documentation for expenses Documentation for expenses Appropriate Approvals Appropriate Approvals Audit Trails (i.e., documentation) Audit Trails (i.e., documentation) Knowledge of policies and regulations Knowledge of policies and regulations If it’s not documented, it didn’t happen…. If it’s not documented, it didn’t happen….

A Look at Settlements Associated with Noncompliance Northwestern University (~$5M; mischarging Federal Grants, fraud, Time & Effort issues) Northwestern University (~$5M; mischarging Federal Grants, fraud, Time & Effort issues) Yale University - Tenured Professor forced out for allegedly padding his business travel expenses by approximately $150,000. He has made full restitution and resigned. 1/21/05 article from the Chronicle of Higher Education. Yale University - Tenured Professor forced out for allegedly padding his business travel expenses by approximately $150,000. He has made full restitution and resigned. 1/21/05 article from the Chronicle of Higher Education.

A Look at Settlements Associated with Noncompliance Florida International University - $11.5M for improperly billing the U.S. Dept. of Energy for scientists’ time, travel and administrative expenses. Article taken from the Chronicle of Higher Education, 2/15/05 Florida International University - $11.5M for improperly billing the U.S. Dept. of Energy for scientists’ time, travel and administrative expenses. Article taken from the Chronicle of Higher Education, 2/15/05 The Johns Hopkins University - $2.6M to settle claim that scientists had overstated the amount of time they were spending on projects financed by the federal government. Article taken from CHE, 3/1/04 The Johns Hopkins University - $2.6M to settle claim that scientists had overstated the amount of time they were spending on projects financed by the federal government. Article taken from CHE, 3/1/04

Current Federal Hot Buttons Final Reports Final Reports Cost Transfers Cost Transfers Cost Sharing Cost Sharing Effort Reporting Effort Reporting Departmental Administrative Costs Departmental Administrative Costs Subaward Monitoring Subaward Monitoring Program Income Program Income

Additional Resources OMB Circulars OMB Circulars Sponsored Programs Office Sponsored Programs Office Sponsored Programs Accountants Sponsored Programs Accountants

Questions?