University of Pittsburgh Research Administration Forum

1. University of PittsburghResearch Administration Forum Sponsored by: The Office of Research September 18, 2008

2. Agenda • Grants.gov Update • General Announcements • InfoEd Update • UBMTA • Effort Reporting Primer

3. Grants.gov Corner • Grants.gov has started the transition to Adobe forms through pilot initiatives. • There is also a new Adobe based SF424 application guide for the above pilot initiatives. • Further information about both can be found in NIH guide notice NOT-OD-08-098.

4. Grants.gov Corner • Upcoming Transitions • Research Career Development (All Ks except K12): February 12, 2009 • Individual National Research Service Awards (F): April 8, 2009 • Institutional National Research Service Awards and Other Training Grants (T, D) D43, D71/U2R & K12: September 25, 2009

5. General Announcements • Future RAFs • PI Departures • Checklists for common functions: Account Activations • NOGAs with Restrictions • Chair and Department Feedback • Modular based NIH submissions: paperwork requirements • Constituency changes

6. Training is being developed for the following schools: Medicine, A&S, Engineering, and Public Health. Once training is completed and each school has approved its security rules, full utilization will be possible. A full primer will be given in October or November. OR will begin to use this system as a repository for both proposals and official award documentation. OR also plans to use this system either directly or peripherally for electronic MTA and CDA submissions. InfoEd Update

7. UBMTA • UBMTA stands for the Uniform Biological Material Transfer Agreement. • As of July 1, 2008, Pitt is now able to utilize this master agreement for biological material transfers. • Further information including special procedures can be found at: http://www.pitt.edu/~offres/ResContracts/UBMTAannouncement.pdf.

8. We are MOVING!

9. Effort Reporting Primer

10. Effort Reporting: Outline • Introduction and Recent Issues • Review of Applicable Guidelines & Regulations • Institutional Base Salary and Determination of Effort • NIH Career Development (K) Awards • VA Relationships

11. Effort Reporting: Recent Problems • Issues Behind the Recent National Problems • Basis for calculating effort • Basis for calculating institutional base salary (IBS) • Faculty understanding of effort reporting • How effort and compensation are estimated, tracked and reconciled • Uncoordinated pre- and post-award processes

12. Effort Reporting: Regulations and Guidelines • OMB A-21 is the basis for our current effort reporting. • Pitt uses what is called a multiple plan confirmation system. • NIH & NSF Grants Policy Statements (GPS) • Pitt Financial Guidelines: Effort Reporting, Direct Charging Practices & Financial Responsibilities

13. Effort Reporting: Institutional Base Salary (IBS) • The basis for determining effort is the institutional base salary (IBS). • NIH GPS: The annual compensation paid by an organization for an employee’s appointment, whether that individual’s time is spent on research, teaching, patient care, or other activities. Base salary excludes any income that an individual is permitted to earn outside of duties for the applicant/grantee organization.

14. Effort Reporting: Institutional Base Salary (IBS) • What is typically included in a faculty member’s base IBS? • Annual Salary • Administrative Supplements • What is not included? • Any outside remuneration • Any internal payment submitted through an Other Supplemental Payroll Payment (OSPP)- incidental work outside of appointment

15. Effort Reporting: Institutional Base Salary (IBS) • Example 1 • Dr. Jones receives a base salary of $75,000. • Dr. Jones also receives an administrative supplement as an Associate Dean of $25,000. • Dr. Jones has a consulting practice in which she receives $30,000 per year. • Dr. Jones received multiple honorariums from outside sources totaling $10,000. • What is her IBS?

16. Effort Reporting: Institutional Base Salary (IBS) • Example 1 • The IBS for Dr. Jones is $100,000. • Only the base salary of $75,000 and administrative supplement of $25,000 are reflected on the SPAR and can be counted within the IBS.

17. Effort Reporting: Salary Level Determination • Per A-21, base salaries need to conform to University policy and need to be consistently applied. • Per A-21 and NIH GPS, base salaries may not be increased as a result of obtaining grant funds.

18. Effort Reporting: Salary Projections • IBS and budgeting • All salary estimations/projections need to be based on the IBS. • Salary increases need to be consistently applied and consistently disclosed in sponsored project budgets. • Pending promotions can be included if assured.

19. Effort Reporting: SPAR • University Plan Confirmation System is the Salaried Personnel Activity Report (SPAR). • Documents the following purposes: • Effort reporting and payroll distribution • Effort Certification • Identification of direct and indirect activities • Identification of salary related cost sharing • Compliance with A-21, J.8

20. Effort Reporting: SPAR • What is a simple litmus test we can use to let us know if we are on the right track in regards to effort reporting requirements? Budgets = Other Support = SPAR

21. Effort Reporting: SPAR Percentage Distribution Common Myths • Faculty must conform to a 37.5 hour work week. • Grant budget percentages for faculty are based upon a 37.5 hour work week. • Faculty salaries are based upon a 37.5 hour work week.

22. Effort Reporting: SPAR Percentage Distribution • Dr. Jones works 60 hours per week spread among the following activities: • 30 hours on NIH grants • 15 hours on teaching activities • 15 hours on administrative functions

23. Effort Reporting: SPAR Percentage Distribution • Correct percentage distribution on SPAR: • NIH grants 50% • Teaching activities 25% • Administrative 25% Note: All NIH grant budgets should collectively equal 50% and be disclosed as such in the individual’s other support.

24. Effort Reporting: Tips • Tips for determining effort distribution: • Identify appointment responsibilities. • For each responsibility, estimate total hours per week spent. • Add up the hours and divide each responsibility by the total to get total effort distribution. • This is the distribution that should be reflected on the SPAR.

25. Effort Reporting: Distribution • Example • NIH grant #1 12 hours • NIH grant #2 15 hours • CDC grant 3 hours • Assistant Dean 15 hours • Teaching 15 hours Total 60 hours

26. Effort Reporting: Distribution • Example continued • NIH grant #1 20% • NIH grant #2 25% • CDC grant 5% • Assistant Dean 25% • Teaching 25% Total 100%

27. Effort Reporting: Other Support • Example continued • NIH grant #1 20% • NIH grant #2 25% • CDC grant 5% Total 50% Other support will reflect 50% effort on sponsored projects which will equal the grant budgets which will equal the distribution on the SPAR

28. Effort Reporting: Points to Remember • The percentages reflected on the SPAR may be initially recorded on the basis of estimates. • Constant monitoring is needed in order to determine whether initial estimates equate to the actual levels being expended. • If not, a permanent change to the SPAR distribution is warranted. • Short-term workload fluctuations can be ignored as long as the percentage distribution is reasonable over an extended period of time.

29. Effort Reporting Responsibilities • PI, Employee and Dept/Research Admin: • Plan, assign, budget and distribute various work activities based upon an individual’s expected effort at the beginning of each academic period. • Monitor the accuracy and appropriateness of all effort expended on University activities. • Update effort reporting as significant changes become known to ensure the proper accounting for all effort recorded on their sponsored project accounts. • Certify effort reporting based on direct, first-hand knowledge of actual activities performed.

30. K-Awards • Effort requirements • Most awards require 75% effort • Mid-career level awards recommend between 25-50% effort (K24) • PI Salary • Each NIH/Institute has a specific salary cap • Fringe Benefits • Calculated and included in addition to salary cap

31. K-Awards • Effort Reporting • PI salary requested based on % of effort exceeds the salary cap • Difference between actual and allowable must be cost shared with institutional funds • Example: Base salary of $105,000 at 75% effort = $78,750. Cost share amount is $3,750.

32. K-Awards • K-award PI is participating on another award • No salary can be charged to the “other” award • Effort on “other” award is cost shared under the K • This is the only time that an 05 ledger account can be used for cost sharing

33. VA Appointments • VA employees with UP joint appointments can apply for research support through the UP • Only UP share of effort (8ths) can be budgeted • A Memorandum of Understanding is needed to confirm no duplication of effort • Detailed budget page, Biographical Sketch and Other Support page should reference the joint appointments

34. Recap Question #1 • Institutional Base Salary would include: • Administrative Supplements • Fringe Benefits • Outside Remuneration • None of the Above

35. Recap Question #1 Answer • Institutional Base Salary would include: A. Administrative Supplements

36. Recap Question #2 • Disclosure of an employee’s time distributed to specific project accounts is: • Estimated upon a 37.5 hour work week with no additional hours to be included. • Only required for grants awarded by the National Institutes of Health. • Shown on the SPAR form as an allocation of percentage of time and must equal 100%. • Not required based on the requirements set forth by the Office of Management and Budget (OMB).

37. Recap Question #2 Answer • Disclosure of an employee’s time distributed to specific project accounts is: C. Shown on the SPAR form as an allocation of percentage of time and must equal 100%.

38. Recap Question #3 • Effort Certification is: • Automatically completed if the department has finished all work on the project. • Completed by an employee’s or other signature certifying that, to the best of one’s knowledge and belief, reported effort and related payroll distributions represent reasonable charges in accordance with the provisions of the grant or contract award and OMB Circular A-21 • Not a requirement of sponsored project obligations. • Done each time a SPAR form is completed by the department.

39. Recap Question #3 Answer • Recap Question #3 B. Completed by an employee’s or other signature certifying that, to the best of one’s knowledge and belief, reported effort and related payroll distributions represent reasonable charges in accordance with the provisions of the grant or contract award a nd OMB Circular A-21

40. Recap Question #4 • Dr. Smith works a total of 50 hours in one week consisting of 25 hours teaching, 15 hours on NIH grants, and 10 hours on administrative activities. The distribution on the SPAR should be shown as follows: • 50% teaching, 30% NIH grants, and 20% admin. • 30% NIH grants since only grant effort is required to be reported. • 25 hours teaching, 15 hours NIH grants, and 10 hours admin. • 50% teaching, 30% NIH grants, and no need to report administrative.

41. Recap Question #4 Answer • Dr. Smith works a total of 50 hours in one week consisting of 25 hours teaching, 15 hours on NIH grants, and 10 hours on administrative activities. The distribution on the SPAR should be shown as follows: A. 50% teaching, 30% NIH grants, and 20% admin.

42. Thank you!