Campus Cost Sharing Training

1. Campus Cost Sharing Training

2. Administrative Process Redesign (APR) Cost Sharing and CommitmentsReview of Committee’s Work

3. APR Team Members • Ginny Bormann L&S (English) • Sarah Gatz RSP Post-Award • Tammy Kuhn Martin Engineering (Dean’s Office) • Meredith Luschen CALS (Dean’s Office) • Debbie Meltzer Medicine & Public Health (Dean’s Office) • David Ngo RSP ERA Team • Chip Quade Grad School Information Technology • Jennifer Rodis RSP Pre-Award • Jen Stenjem RSP ERA Team

4. APR: What is a Commitment? Commitments Effort Non-Effort PaidEffort Cost-Shared Effort Non-Payroll Cost Sharing Not Paid By Sponsor

5. APR: What is cost sharing? • UW Definition: “Cost sharing is the portion of total costs of a sponsored project that is borne by the UW, rather than the sponsor.”

6. APR: Five Types of Cost Sharing Mandatory Mandatory Voluntary Unavoidable Examples: NIH Salary Cap cost sharing, PI’s minimum 1% Critical to support the research enterprise Example: Small awards where PI’s salary would be too great a portion of the awarded amount Offered “just because” Institutional Institutional

7. Commitments are Fulfilled Tracking and Management APR: Where do we find cost sharing and commitments? PROPOSAL: Commitments are Offered AWARD: Commitments Become Obligations Cost Sharing & Commitment Setup Lifecycle of a Grant Documentation & Reporting of Fulfillment

8. APR: Customer Feedback “Cost sharing is an administrative nightmare.” “Cost share results in a lot of wasted admin time that could be spent on research.” “Where can I look for guidance?” “Where can I find a policy?” “We don’t do anything to really manage Cost share.” “Cannot find all projects with cost share, there is no query out there to get a list of all accounts that have cost share. This makes if very difficult to manage on a pro-active basis.” “Find a solution that is easy to use and understand, and that is accessible for everyone to use.” “We need education, training and guidance.” “There is no accurate or reliable cost share data available right now.”

9. APR: Problem Statement • As an institution, we often do not meet our objectives • Breakdowns occur at every point of the process, and lead to: • Excessive voluntary committed cost sharing • Failure to fulfill our commitments or prove that we’ve done so • Incomplete, incorrect, and inconsistent information in tracking systems • A risk of negative audit outcomes • A reduced F&A rate • Thousands of person-hours spent on reactive problem-solving every year • Faculty and staff are confused and frustrated

10. APR: Observations • The amount, nature and impact of the UW’s cost sharing data is incomplete and indeterminate. • The current situation offers no definitions, roles, responsibilities, policies, or procedures which causes the inconsistencies, frustrations and breakdowns we witnessed • The large amount of variation within the process showed us the objective of this project is not to increase throughput or reduce processing time, but to reduce the variation

11. APR: Building Blocks for the Next Phase Understand sponsors’ standards and ensure our procedures meet those standards Provide guidance to faculty and staff about when to offer voluntary cost sharing Understand and minimize all research costs associated with cost sharing - Consider both reportable cost sharing and lost revenue associated with cost sharing 11

12. APR: Solutions • UW Cost Sharing Policy • http://www.rsp.wisc.edu/costsharing/costsharing_policy_20101021.pdf • UW Cost Sharing Guidance • http://www.rsp.wisc.edu/costsharing/costsharing_guidance_20101021.pdf • Key Ideas for Dean’s Offices • http://www.rsp.wisc.edu/costsharing/costsharing_keyideas_20100131.pdf • Key Ideas for PI’s • http://www.rsp.wisc.edu/costsharing/costsharing_keyideas_PI_20101021.pdf • Cost Sharing Tool • https://www.rsp.wisc.edu/services/admin/CostShareToolkit/CostShareToolkit1.cfm

13. UW-Madison Cost Sharing Policy

14. Cost Sharing Policy • Generally, UW’s policy is to minimize institutional and 3rd party cost sharing on sponsored projects • Approval of voluntary committed cost sharing rests with the Dean’s or Director’s office • Allowed when mandated or necessary to reflect accurately the resources that must be expended to accomplish the project objectives. • Each Division may have their own requirements in addition to this policy.

15. Cost Sharing Policy Researchers who engage in sponsored projects will: • Comply with University and sponsoring agency regulations regarding proposing, charging, and reporting of cost sharing. Policy applies to both federal and non-federal sponsored projects.

16. Cost Sharing Policy • Who approves cost sharing? • Dean’s/Director’s Office

17. Cost Sharing Policy • What are the cost sharing impacts? • Institution redirects resources to support specific scientific project beyond the funding level provided by the sponsor. • Potential limitations to programmatic, administrative and financial capabilities to the researcher and University • Reduces flexibility of researchers to conduct other research by obligating effort • Increasing requirements for capturing, monitoring and documenting commitments and expenditures • Decreases the University’s recovery of indirect costs

18. UW-Madison Cost Sharing Guidance

19. Cost Sharing Guidance • When is it appropriate to offer voluntary cost share? • To meet OMB requirements for minimum commitment of PI effort on sponsored projects (1% minimum at UW) • To support investigator on an award for which the total direct costs are a small dollar amount • To indicate a level of effort for a PI who has $0 appt at UW • To respond to clear indication from the sponsor that cost sharing will increase competitiveness of a specific proposal • To establish an institutional commitment for certain federal agencies (NEH, NEA) that use cost sharing to demonstrate the leveraging effect of federal funding

20. Cost Sharing Guidance • When is it appropriate to offer voluntary cost share? • To provide institutional support for a project that is significant in scope and vital to the campus mission • To support an institutional investment in a pioneering project with potential significant future sponsored funding • To secure sponsored funding for an individual or department in a research discipline in which access to extramural funding is inherently limited

21. Cost Sharing Guidance • What are alternatives to voluntary cost sharing? • Offer resources without making a specific and quantifiable commitment. • Limit number of explicit commitments • Ex: “PI X will oversee all aspects of the project. University resources are available as needed for the performance of the sponsored project at no direct cost to the project”

22. Cost Sharing Guidance • What should be offered to meet a cost sharing requirement? • Consider two criteria: • Is there a new cost to the university? • Is there a significant burden for documentation or audit?

23. Cost Sharing Guidance • Preferred mechanisms for cost sharing • UW salaries and fringe benefits • F&A costs associated with any cost shared direct expense • Unrecovered F&A costs due to a lowered or waived F&A rate • Third party cash contributions

24. Cost Sharing Guidance • Acceptable, but not preferred mechanisms for cost sharing • Purchase price of equipment being acquired by the UW • Travel expenses • Tuition or tuition remission • Supplies • Volunteer effort, whether coordinated by the university or a third party • In-kind contributions from non-UW third parties

25. Cost Sharing Key Ideas for Dean’s Offices

26. Cost Sharing: Key Ideas for Dean’s Offices • Cost sharing may be required, but there are drawbacks for the university and PI. • University seeks to minimize cost sharing when possible • Voluntary committed cost sharing is discouraged. Although, there may be instances where it’s appropriate. • There are alternatives to voluntary committed cost sharing. • Cost sharing should be reviewed at the time of proposal submission or when a change is made. Final approval of cost sharing resides with the Dean or Director.

27. Cost Sharing: Key Ideas for Dean’s Offices • If cost sharing must be approved, preferred mechanisms are based on: a) is there a new cost to the university? and b) is there a significant burden for documentation or audit? • All cost sharing contributions should be explicitly identified in the proposal budget • The PI is expected to identify cost sharing items, identifying a funding source for each, and seek approval for cost sharing via the Dean’s or Director’s office • Colleges/Schools may wish to create forms and formal processes for submitting and reviewing requests to cost share.

28. Cost Sharing Key Ideas for PIs

29. Cost Sharing: Key Ideas for PIs • Minimize cost sharing when possible. • Cost sharing regulations derived from OMB Circulars. Standards apply to federal and non-federal sponsored projects. • Non-compliance brings risk of penalties, up to suspension or termination of awards. • Voluntary committed cost sharing is discouraged, unless appropriate. • Alternatives to voluntary committed cost sharing exist.

30. Cost Sharing: Key Ideas for PIs • Cost sharing should be reviewed at proposal or when change occurs. • Dean or director makes final approval of cost sharing. • Cost sharing contributions should be explicitly identified in the proposal budget. • PI should identify cost sharing items and identify a source for each prior to seeking approval from the Dean’s or Director’s office. • Cost sharing commitments cannot be changed without prior sponsor approval.

31. Cost Sharing Approval Tool

32. Cost Sharing Approval Tool

33. Cost Sharing Approval Tool – Dean’s Summary

34. Cost Sharing Approval Tool – Create PDF

35. Cost Sharing Approval Tool – PDF

36. Cost Sharing Approval Tool • The approval tool should be filled out by the Dept Administrator and submitted to the Dean’s office for review (via attachment/email or WISPER) • The tool will establish a clear understanding on cost sharing expectations & will be used to support decision making regarding cost sharing approval.

37. Cost Sharing Approval Tool & WISPER

38. Cost Sharing Approval Tool & WISPER

39. Cost Sharing Approval Tool & WISPER

40. RSP Proposal Submission • Before submission is okay’d, RSP will be looking for: • Indication of cost share plan (ex: Cost Share Tool) • Indication cost sharing plan being approved (Dean’s approval) • Ensure cost sharing is documented in budget • Ensure preferred cost sharing mechanisms are used • Indicate in notes who will be responsible for collection of cost sharing information

41. RSP Award Setup

42. RSP Award Setup • At award setup, RSP will be using the Cost Sharing Approval Tool and Projects tab to enter information into PeopleSoft Grants • After setup, this information is visible in WISDM.

43. Cost Sharing Documentation

44. Cost Sharing & Commitment Updates Form & Instructions Form: http://www.rsp.wisc.edu/forms/costshare.pdf Instructions: http://www.rsp.wisc.edu/costsharing/UpdateFormInstructions.pdf

45. How campus will manage, track, & document cost sharing • For payroll cost sharing, campus will submit form if: • Missing rows (i.e., was never scheduled) • Corrections to percentage, dates, source funding, etc. • Personnel changes • For non-payroll, campus will submit form after transaction has occurred (see Instructions) • For third party, campus will submit form for goods and services used to meet obligation (see Instructions)

46. How CSWG will handle update forms • All forms will be sent to costshare@rsp.wisc.edu • Payroll cost share: forms will go to pre-award staff • Non-payroll and third party: • Forms will go to accountant; • Accountant will ensure info is acceptable for entry; • Data entry will be done by accountant or intern. In future, upload tool will be available. .

47. How RSP will handle monitoring and reporting of cost share • Accountants will draw information from WISDM for invoices and financial reports

48. RSP Cost Share Working Group

49. RSP Cost Share Working Group • Paul Cameron RSP Post-Award • Sarah Gatz RSP Post-Award • Cheri Gest RSP Pre-Award • Tim Duanmu RSP Post-Award • David Ngo RSP ERA Team • Jennifer Rodis RSP Pre-Award • Nate Rusch RSP Pre-Award Contact: costshare@rsp.wisc.edu

50. Business Processes: Identified, Improved, & Documented • How will CSWG handle the CS mailbox • How will campus get cost sharing approved • How will RSP review cost sharing at proposal • How will RSP setup cost sharing at award • How will campus manage/track/document cost sharing • How will RSP investigate/fix cost sharing errors • How will RSP handle financial monitoring and reporting of cost sharing • How will CSWG Subteam handle update forms