1. Managing Subcontracts and Consortium for NIH and Federal Funding Ramadhani Abdallah Noor, M.D., M.P.H. Research Associate Africa Academy for Public Health (AAPH)

2. Overview Background Scope—management subgrants and consortium for NIH and federal funding Key areas—subgrant management Foreign Organization System (FOS) review Common compliance pitfalls and strategies for success Case studies with references

3. Background It’s about the systems/procedures, activities, and compliance Pre-award, during award, and post-award NIH Grant Policy Statement (Oct. 2012) http://grants.nih.gov/grants/policy/nihgps_2012/ http://grants.nih.gov/grants/policy/nihgps_2012/ NoA, institutional policies, CFRs, OMB circular, etc. Policy requirements “flow down” IMPORTANT! A domestic institution administering a subcontract to a foreign institution must assure NIH that it is holding its collaborator to the policies required for foreign institutions

4. Scope General issues Application preparation Policies and procedures Grant monitoring Fiscal and scientific overlap Standards of conduct Consortium arrangements Indirect costs Records management Local and int. requirements Banking arrangements Budget preparation and controls Accounting systems Personnel Internal controls Procurement Property and asset management Travel

5. NIH Grant Policy Statement Part I—NIH grants information Part II—Terms and conditions of NIH awards – Subpart A: general – Subpart B: for specific types of grants, grantees and activities Part III—Points of contact [Institutes and Centers] Make sure you have the current version

6. General Issues Good organizational charts Clear identification of responsible person/ToRs Clear lines of delegation authority Clear communication lines Required registrations (e.g., eRA Commons [organization/PI]; DUNS number; CCR registration, etc.)

7. Policies, Procedures, and Standards of Conduct Research misconduct, conflict of interest, confidentiality, etc. Well documented and approved Formulated and owned by the institutions All staff trained Evidence of enforcement

8. Application Preparation Team work—led by PI RFA/Call announcement requirements (eligibility, overall impact, etc.) Reviewed and supported by institution If consortium: reviewed and supported by members Peer review and scored review criteria

9. Application Preparation (cont.) Budget preparation – Supported by verifiable information – Based on true costs – Reviewed by finance and accounting Electronic submission Grants management and research administration support are key from the beginning—pre-award, award, and post-award

10. Post-Award Grant Monitoring NoA, agreements, approved proposal, protocols, etc. Periodic programmatic reviews (deliverables and milestones) Financial review of actual versus budget Assess and reassess compliance

11. Fiscal and Scientific Overlap Avoid duplication of payments – Same research – Same equipment – Time of researchers (effort)

12. Consortium Arrangements Steering/decision-making mechanisms Consortium agreement Communication plan Application, budgets—member involvement Performance (deliverables and milestones) Costs and expenditure monitoring

13. Indirect Costs Applicable rates Clearly identified How deduction is carried Properly used

14. Records/Data Management Scientific and administrative (policies and procedures; where, how, and storage period; how disposed) Biological samples (MTA, storage, future use) Data management plan Data sharing agreement

15. Banking and Payment Arrangements Separate bank accounts for the grant Maintain accounts that allow electronic transfer of funds How payments are initiated, authorized, and approved Authorized signatories (preferably two) Compliance with local institution and sponsor financial guidelines

16. Budget Preparation and Controls Source (cost) information document Review by accounts for accuracy Once approved, – Change by authorized person with appropriate supporting communication and approval by sponsor – Regular monitoring (burn rates), monthly/quarterly actual versus budgets Internal controls (accounts audited annually) – Independent accountant – Internal/government auditors – OMB A-133 requirement ($500,000 or more in federal funds during a fiscal year)

17. Personnel and Payroll Personnel – Written policy manuals – Job descriptions – Annual evaluations – Time and attendance is recorded (effort) Payroll – Prepared based on percentage of effort – Verified by a second person – Approved by PI – Direct deposit

18. Procurement and Property/Asset Management Written institutional policies Local/national procurement act National procurement regulatory authorities Three quotes for large purchases/alternative approved vendors list Applicable in all ranges of resources, including human resources Purchases approved by authorized manager Property management (registry, tags, annual inventory, authorized disposal)

19. Travel Written policies How travel is approved How expense claims are verified Proposed per diem is reasonable, limited to mission days and actual travel time Most direct route, not exceeding coach class fare U.S. flag carriers U.S. foreign travel restrictions

20. Foreign Organization System (FOS) Review of administrative and financial systems using the foreign organization system (FOS) review document Ability to manage U.S. federal funds in an accountable manner Benefits to the grantee: – Assists compliance with NIH terms and conditions – Provides a global outlook at internal procedures – Promotes understanding between PIs and administrators FOS is not an audit

21. Common Compliance Pitfalls Unallowable costs Misallocation of costs Excessive cost transfers Inaccurate effort reporting Inadequate monitoring of subrecipients Administrative and clerical costs Noncompliance with assurances and special terms and conditions of award Delinquent closeout reporting

22. Questions? GrantsCompliance@nih.gov Resources OMB Circular A-133: This circular describes audit requirements for organizations receiving federal funds. Sections 225 and 400, Supplement 3, part M, all include information on subrecipients/subcontracts. Sample Foreign Subaward Template NIH Grants Policy Statement section on Foreign Awards, including policy requirements NIH Grants Policy Statement section on Consortium Agreements Fogarty International Center (FIC) Consortium Agreement information NIAID tutorial on subawards