Sponsored Program Sponsored Program Administration BasicsAdministration Basics

Presented by:Presented by:

Shegay Cook & Corey BurgerShegay Cook & Corey Burger

http://spo.usu.edu/http://spo.usu.edu/

Sponsored Programs Sponsored Programs AdministrationAdministration

Sponsored Programs Sponsored Programs OfficeOffice

Funding OpportunitiesFunding Opportunities

ProposalsProposals

Award AdministrationAward Administration

Coordinate CloseoutCoordinate Closeout

Sponsored ProgramsSponsored ProgramsAccountantsAccountants

(Controller’s Office)(Controller’s Office)

Account Set-upAccount Set-up

Financial ReportingFinancial Reporting

InvoicingInvoicing

Financial CloseoutFinancial Closeout

Sponsored Programs Office Sponsored Programs Office MissionMission

• Provide quality service to faculty and staffProvide quality service to faculty and staff• Provide assistance to support researchProvide assistance to support research• Assure compliance Assure compliance

– Protect the University’s assets & keep the PI out Protect the University’s assets & keep the PI out of jailof jail

1. Funding Opportunities1. 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 Sponsored Program Information Network

(SPINPlus)(SPINPlus)• GENIUSGENIUS• SMARTSSMARTS

• Contact Corey Burger (Corey.Burger@usu.edu) Contact Corey Burger (Corey.Burger@usu.edu)

2. 2. ProposalProposal DevelopmentDevelopment / Review/ Review• Solicitation Guidance Solicitation Guidance • University/Sponsor requirementsUniversity/Sponsor requirements

• Sponsor FormsSponsor Forms• Overhead (F&A) RatesOverhead (F&A) Rates

F&A rates stay the same year to year as originally F&A rates stay the same year to year as originally proposed.proposed.

• Limited Submission ProposalsLimited Submission Proposals• Budget Development/ReviewBudget Development/Review

• Benefits RatesBenefits Rates• In compliance with Federal, State, & University In compliance with Federal, State, & University

requirementsrequirements• Conflict of InterestConflict of Interest• Subcontracts / CollaborationsSubcontracts / Collaborations• Signature Authority for the UniversitySignature Authority for the University

Budget DevelopmentBudget Development

Resources for 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 Template Sponsored Programs Budget Template http://spo.usu.edu/files/uploads/Proposal_Budget_Template.xlshttp://spo.usu.edu/files/uploads/Proposal_Budget_Template.xls

Most sponsors require that a budget Most sponsors require that a budget justification accompany the budget. This justification accompany the budget. This section of the proposal gives the rationale section of the proposal gives the rationale for the requests made in the budget. for the requests made in the budget.

Budget JustificationBudget Justification

• Salary & Benefit Rates Salary & Benefit Rates • (Multiple year increases - inflation)(Multiple year increases - inflation)

• Other Direct CostsOther Direct Costs– Lab equipment, computer time, fees, etc.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 IssuesProposal Development IssuesIndirect Cost (F&A) RateIndirect Cost (F&A) Rate

What is it? - Actual costs incurred in a sponsored project that What is it? - Actual costs incurred in a sponsored project that are not directly charged because to do so would be costly are not directly charged because to do so would be costly and cumbersome to determine. Examples – space, utilities, and cumbersome to determine. Examples – space, utilities, library, general administrative services, compliance, such library, general administrative services, compliance, such as IRB, safety personnel, and compliance committees.as IRB, safety personnel, and compliance committees.

When to use it? Always use negotiated rate unless sponsor When to use it? Always use negotiated rate unless sponsor does not allow full rate and provides a lesser rate or does does not allow full rate and provides a lesser rate or does not allow it at all. not allow it at all.

Indirect Cost (F&A) WaiverIndirect Cost (F&A) Waiver

• An indirect cost waiver is an institutional An indirect cost waiver is an institutional agreement that indirect costs will be charged at a agreement that indirect costs will be charged at a rate lower than the sponsor’s published rate.rate lower than the sponsor’s published rate.

• Verification stating sponsor’s IDC limitations must Verification stating sponsor’s IDC limitations must be attached to the waiver, or signature and be attached to the waiver, or signature and approval from the Vice President for Research.approval from the Vice President for Research.

How does Sponsored Programs How does Sponsored Programs Review a proposal?Review a proposal?

Review Request for Proposal (RFP) / Request for Review Request for Proposal (RFP) / Request for Application (RFA) and Announcements Application (RFA) and Announcements

Review BudgetReview Budget Review Administrative FormsReview Administrative Forms Review SP-01Review SP-01

SP-01 (What is this?)SP-01 (What is this?) Internal Approval FormInternal Approval Formhttp://spo.usu.edu/files/uploads/SP01.pdf http://spo.usu.edu/files/uploads/SP01.pdf SP-01 Proposal Information FormSP-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 Safety, Human Participants (IRB), Animal Use (IACUC), Radioactive Materials, rDNA, & Hazardous (IACUC), Radioactive Materials, rDNA, & Hazardous Chemicals.Chemicals.

• Conflict of InterestConflict of Interest• Institutional ApprovalsInstitutional Approvals

3.3. Award Negotiation and Award Negotiation and AcceptanceAcceptance

Types of AwardsTypes of Awards Grant:Grant:

• Most Common Sponsored AgreementMost Common Sponsored Agreement• Financial assistance for research or other program as specified Financial assistance for research or other program as specified

in an approved proposal in an approved proposal • Sponsor anticipates no substantial programmatic involvement Sponsor anticipates no substantial programmatic involvement

with the recipientwith the recipient• Terms and conditions are usually standard for particular Terms and conditions are usually standard for particular

sponsorssponsors• Cooperative Agreement:Cooperative Agreement:

• Similar to a grant but substantial programmatic involvement Similar to a grant but substantial programmatic involvement by the sponsor is anticipated during the projectby the sponsor is anticipated during the project

• Contract:Contract:– Principal purpose of the agreement is to provide tangible Principal purpose of the agreement is to provide tangible

results or other “deliverable” items or to carry out a prescribed results or other “deliverable” items or to carry out a prescribed service for the direct benefit or use of the sponsorservice for the direct benefit or use of the sponsor

– Usually terms and conditions are strict and fiscal management Usually terms and conditions are strict and fiscal management inflexibleinflexible

Award AdministrationAward Administration

• Review and negotiate terms and Review and negotiate terms and conditionsconditions Publication Restriction Publication Restriction Confidentiality (GRAMA)Confidentiality (GRAMA) IndemnificationIndemnification Intellectual PropertyIntellectual Property Period of PerformancePeriod of Performance BudgetBudget Reporting Requirements Reporting Requirements

• Signature Authority for the UniversitySignature Authority for the University

4. Project Administration4. Project Administration• Cost IssuesCost Issues• Administrative IssuesAdministrative Issues• No Cost ExtensionsNo Cost Extensions• Project RevisionsProject Revisions• Re-budgetsRe-budgets• Sabbatical Leave/Leave of AbsenceSabbatical Leave/Leave of Absence• PI Leaving University/Award TransferPI Leaving University/Award Transfer• Monitor submission of annual technical Monitor submission of annual technical

reportsreports

Subaward AdministrationSubaward Administration

Sponsored Programs Sponsored Programs Office ResponsibilitiesOffice Responsibilities

Signature Authority Signature Authority for the Universityfor the University

Sub Award Sub Award Information FormInformation Form

Sponsor Approval Sponsor Approval A-133 Audit A-133 Audit Sponsor Terms and Sponsor Terms and

ConditionsConditions

Sponsored Programs Sponsored Programs Accountants Accountants ResponsibilitiesResponsibilities

Financial MonitoringFinancial Monitoring InvoicesInvoices

(Payment & Monitoring)(Payment & Monitoring)

5. Administrative Closeouts5. Administrative Closeouts

• Monitor Technical and Financial Reporting Monitor Technical and Financial Reporting

*Reports or deliverables are required of most *Reports or deliverables are required of most awardsawards

• Intellectual Property & Patent NotificationsIntellectual Property & Patent Notifications• Equipment ReportsEquipment Reports• Document RetentionDocument Retention

Financial Administration Financial Administration

Federal RegulationsFederal RegulationsOMB Circulars:OMB Circulars:

•A-21: A-21: Cost Principles for Educational Cost Principles for Educational Institutions Institutions

•A-110: A-110: Administrative StandardsAdministrative Standards•A-133: Audit StandardsA-133: Audit Standards

OMB Circular A-21 Cost Principles for OMB Circular A-21 Cost Principles for Educational InstitutionsEducational Institutions

• Purpose: Establishes principles for Purpose: Establishes principles for determining costs applicable to grants, determining costs applicable to grants, contracts, and other agreements with contracts, and other agreements with educational institutionseducational institutions

• A-21 addresses both direct and F&A A-21 addresses both direct and F&A (indirect) costs(indirect) costs

• Determines what costs can be included in Determines what costs can be included in the F&A calculationthe F&A calculation

A-21 ContinuedA-21 Continued

• Defines Allowablility of CostsDefines Allowablility of Costs– ReasonableReasonable

– AllocableAllocable

– Treated Consistently Treated Consistently

– Conform to limitations in A-21 or sponsored Conform to limitations in A-21 or sponsored agreementagreement

Unallowable Costs – Section JUnallowable Costs – Section J(Cannot be charged against Federal (Cannot be charged against Federal agreement, used as cost sharing or agreement, used as cost sharing or

placed in the F&A cost base)placed in the F&A cost base)

• LobbyingLobbying• General public relations General public relations

& alumni activities& alumni activities• Student ActivitiesStudent Activities• CommencementCommencement• Social MembershipsSocial Memberships

• AdvertisingAdvertising• Alcoholic beveragesAlcoholic beverages• EntertainmentEntertainment• Fines & penaltiesFines & penalties• Moving Costs if Moving Costs if

employee resigns employee resigns within twelve monthswithin twelve months

• Certain recruitment Certain recruitment costscosts

Cost SharingCost Sharing

• Portion of university share of Portion of university share of expenses related to total research expenses related to total research projectsprojects

• Do not include cost sharing amounts Do not include cost sharing amounts on the proposal budget if it is not on the proposal budget if it is not required by RFPrequired by RFP

• Do not exceed the cost sharing level Do not exceed the cost sharing level or amount specified in the or amount specified in the solicitationsolicitation

Project CloseoutProject Closeout

Sponsored Programs Office is responsible for the Sponsored Programs Office is responsible for the oversight of the closeout of awards.oversight of the closeout of awards.

Required Reports:Required Reports:• Technical: Technical: Principal InvestigatorPrincipal Investigator• Equipment: Equipment: Central Property Control OfficeCentral Property Control Office• Patent/Invention: Patent/Invention: PI in collaboration with PI in collaboration with

Technology Commercialization Office (TCO)Technology Commercialization Office (TCO)• Fiscal: Fiscal: Controllers OfficeControllers Office• Sub-awards: Sub-awards: Sponsored Programs Office with PI Sponsored Programs Office with PI

and Controllers Officeand Controllers Office– Reports from sub-recipients needed in advance in Reports from sub-recipients needed in advance in

order to close USU’s award.order to close USU’s award.

Reporting RequirementsReporting Requirements

Established by the sponsor and Established by the sponsor and communicated in the award communicated in the award instrument. Timely report instrument. Timely report submission is important:submission is important:

• Critical stewardshipCritical stewardship• Requirement (part of the terms and Requirement (part of the terms and

conditions)conditions)• Incremental funding or future funding Incremental funding or future funding

may be dependent upon receipt of the may be dependent upon receipt of the reportreport

AuditsAudits

Question: When do you start preparing for Question: When do you start preparing for an audit?an audit?

Answer: The day the proposal is being preparedAnswer: The day the proposal is being prepared

Who Audits the University?Who Audits the University?

• Federal Government – Office of Naval Federal Government – Office of Naval Research (ONR) is USU’s cognizant audit Research (ONR) is USU’s cognizant audit agencyagency

• A-133 Auditors – USU utilizes the services of A-133 Auditors – USU utilizes the services of Deloitte & Touche LLPDeloitte & Touche LLP

• USU Internal AuditorsUSU Internal Auditors

• Sponsoring AgencySponsoring Agency

Key to a Successful AuditKey to a Successful Audit

• Organized FilesOrganized Files• DocumentationDocumentation for expenses for expenses• Appropriate ApprovalsAppropriate Approvals• Audit Trails Audit Trails (i.e., documentation)(i.e., documentation)

• Knowledge of policies and regulationsKnowledge 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 A Look at Settlements Associated with NoncomplianceNoncompliance

• Northwestern University (~$5M; Northwestern University (~$5M; mischarging Federal Grants, fraud, Time & mischarging Federal Grants, fraud, Time & Effort issues)Effort issues)

• Yale University - Tenured Professor forced Yale University - Tenured Professor forced out for allegedly padding his business out for allegedly padding his business travel expenses by approximately travel expenses by approximately $150,000. He has made full restitution $150,000. He has made full restitution and resigned. 1/21/05 article from the and resigned. 1/21/05 article from the Chronicle of Higher Education.Chronicle of Higher Education.

A Look at Settlements Associated with A Look at Settlements Associated with NoncomplianceNoncompliance

• Florida International University - $11.5M for Florida International University - $11.5M for improperly billing the U.S. Dept. of Energy for improperly billing the U.S. Dept. of Energy for scientists’ time, travel and administrative scientists’ time, travel and administrative expenses. Article taken from the Chronicle of expenses. Article taken from the Chronicle of Higher Education, 2/15/05Higher Education, 2/15/05

• The Johns Hopkins University - $2.6M to settle The Johns Hopkins University - $2.6M to settle claim that scientists had overstated the claim that scientists had overstated the amount of time they were spending on amount of time they were spending on projects financed by the federal government. projects financed by the federal government. Article taken from CHE, 3/1/04Article taken from CHE, 3/1/04

Current Federal Hot ButtonsCurrent Federal Hot Buttons

• Final ReportsFinal Reports• Cost TransfersCost Transfers• Cost SharingCost Sharing• Effort ReportingEffort Reporting• Departmental Administrative CostsDepartmental Administrative Costs• Subaward MonitoringSubaward Monitoring• Program IncomeProgram Income

Additional ResourcesAdditional Resources

• OMB CircularsOMB Circulars• http://www.whitehouse.gov/omb/circulars/a021/a21_2004.htmlhttp://www.whitehouse.gov/omb/circulars/a021/a21_2004.html

• http://www.whitehouse.gov/omb/circulars/a110/a110.htmlhttp://www.whitehouse.gov/omb/circulars/a110/a110.html

• http://www.whitehouse.gov/omb/circulars/a133/a133.htmlhttp://www.whitehouse.gov/omb/circulars/a133/a133.html

Sponsored Programs OfficeSponsored Programs Office• http://spo.usu.eduhttp://spo.usu.edu

Sponsored Programs AccountantsSponsored Programs Accountants• http://controller.usu.edu http://controller.usu.edu

Questions?Questions?