September 8, 2005 RAC

1. September 8, 2005 RAC Cost Sharing Update Mandatory Cost Sharing (CS) And Over the Salary Cap (OSC)

2. Agenda • Update on policy and forms Janet Simons, Marjorie Forster 2. Cost Sharing Business process Marc Wasserman 3. It’s all about the “fund” …. Capturing OSC and CS in eUMB Ben Rome, Jim Rose, Wendy Cohan 4. Training – how/when/to whom

3. Policy Updates and Clarifications • Reminder - cost sharing is to be limited to mandatory cost sharing (required by the agency) and over-salary-cap cost sharing • The NIH salary cap is part of the DHHS appropriation language applying only to the NIH, AHRQ and SAMHSA

4. Salary, fringe benefits • Calculate cost-shared Fringe Benefits on any cost-shared and over-salary-cap Salary • Salary & fringe benefits must be listed by individual. A spreadsheet may be attached to the form.

5. F&A • F&A should only be included on the cost share approval form if you are including unrecovered F&A as part of a budget for mandatory cost share. This is RARE and normally requires agency approval.

6. Salary cap annual increases • The NIH Salary Cap has been increased annually since FY1999. It is tied to a table of Federal Executive Level annual salary rates. • It is recommended that in your budget proposal, you apply the same annual percentage increase to capped salaries as to other salaries

7. No cost extensions • Rules of thumb • If no budget is required/requested by the agency, then no cost sharing approval form will be needed. Example: most NIH NCEs do not require submission of a budget. • If a budget is required/requested by the agency (e.g., HRSA grants), then any salary/fringe not covered by the grant is considered cost share and the approval form is required. • These guidelines are based on current discussions and are subject to change

8. K Awards • K Awards (NIH) are career development awards that sometimes require a certain commitment of effort for research, but cap the salary • Example - NIMH offers a K08 award requiring a minimum of 50% committed effort. Salary will be reimbursed based on actual level of effort up to $90,000 • The differential - any salary and fringe benefits not paid by the grant - is cost share

9. NSF • National Science Foundation requires 1% statutory cost sharing. This cost share is not to be reflected on the budget forms submitted to NSF, but it is mandatory cost share. • A cost sharing approval form must be completed.

10. Cost Share Approval Form • Salary and fringe benefits must be listed on the form • Salary/fringe must be listed by individual • Spreadsheet may be attached • Signatures on the form must be for the POSITION OWNER. Therefore, you may need to submit more than one approval form for an application • Form will be updated; latest version will be on the FS Forms website

11. Institutional Base Salary • Watch this space - based on new guidelines and advice, this term will be defined

12. Comments on Effort Reporting • Committed effort should not significantly differ from reported effort as changes in effort often require agency approval • Reported effort should not differ significantly from effort reflected in payroll (except for salary cap issues) • Fluctuations within the reporting period (due to classroom activities, clinic time, etc.) should average out to the committed level of effort

13. Back to the topic of K Awards • Some K Awards allow the PI to apply effort on a related project toward the committed K Award effort (effort on the related grant is subsumed under the K Award effort)

14. K Awards, continued • In this case, the effort report would need to reflect the K Award effort, but not the effort on the other grant (because it is subsumed under the K Award effort) • Documentation to validate effort may include interviews, review of clinical appointment calendars, etc., so committed/reported effort for K Awards must reflect reality

15. Training Grants • Committed effort on training grants (such as the Training Grant PI) needs to be protected and reported. If unpaid, it would be listed as cost share. • Faculty listed as potential mentors on training grants should report mentoring effort. This is not cost share.

16. Cost Sharing Business Process • Line Item Detail Budget from ORD to Restricted Fund Accounting • Line Item Detail Budget related to Cost Sharing is captured within the Project ID under a separate fund. Mandatory Cost Sharing (146) or Over the Salary Cap (147)

17. Cost Sharing Business Process • Department charges expenses to Project ID using fund 146 and/or 147 • Periodic transfers of revenue from departments will fund CS or OSC. Policy will be established in the future.

18. Cost Sharing in eUMB • eUMB Financials Chartstring examples • Supporting procurement between regular and CS • eUMB HRMS CA Account Code examples

19. 4344 Medical Equip User entry Combo Edits Validate Dept/Program & Fund combinations Using chartstring within eUMB Financials without Cost Sharing GLBUProject IDOwner Dept ProgramFundAccountTx Dept PSUMB 00521747 10205000 151 181 4344 10205000 00184 PCBU Project ID Activity ID Default 00521747 00 OK Auto populated Drop-down menu SAVE

20. 146 Mandatory Cost Sharing 181 Grants and Contracts 4344 Medical Equip User entry Combo Edits Validate Dept/Program & Fund combinations Using chartstring within eUMB Financials with Cost Sharing GLBUProject IDOwner Dept ProgramFundAccountTx Dept PSUMB 00521747 10205000 151 4344 10205000 00184 PCBU Project ID Activity ID Default 00521747 00 OK Auto populated Drop-down menu SAVE

21. Cost Sharing in FAS

22. Cost Sharing in eUMB Financials

23. Cost Sharing in eUMB HRMS • Unique CA Account Codes will be created to represent CS and OSC chartstrings • Offline calculation must be done to decide what % distribution to use for each

24. Using CA Account Code for non CS

25. Using CA Account Code for OSC

26. Suggestions for Training Approach • Who/What/When

27. Questions