Post-Award Process

1. Post-Award Process Carleen Cassidy Joanne Lee Carrie Chesbro Office of Sponsored Programs Montana Tech

2. Glossary of Terms OSP – Office of Sponsored Programs PI– Principal Investigator ATP – Authorization To Proceed BIN – Banner Index Number IDC or F & A – Indirect Costs or Facilities and Administrative costs TDC – Total Direct Costs PCF – Proposal Certification Form OMB – Office of Management & Budget

3. Preparing Proposal Budgets • Program Announcement/RFP • Sponsor Guidelines • Budget Categories • Salaries/Wages • Fringe Benefits • Contracted Services • Subcontracts (provide significant portion of • the deliverable) • Supplies • Copying • Communications • Travel • Participant Support Costs • Tuition • Equipment ($5,000 or more) • Indirect Costs

4. Indirect Cost and Benefit Rates FRINGE BENEFIT RATES Professionals (12 month appointments) - 46% of Salary Contract Faculty - 25% of Salary Classified Personnel (12 month staff) - 57% of Salary Student Employees - 3% of Salary Student Employees--Summer Employment - 10% of Salary (if not enrolled in summer classes) INDIRECT COSTS Federal and Private Contracts: 43.2% of Salaries plus Benefits State Contracts: 30% of Salaries plus Benefits OR 20% of Total Direct Costs, whichever is lower

5. Indirect Costs (IDCs) Indirect Costs (IDCs) are those charges incurred for common objectives and, therefore cannot be readily and specifically assigned to a particular sponsored project, instructional activity or other function without considerable effort IDCs are not “profit” IDCs are legitimate expenses associated with the performance of a project and are used to further the research mission of the institution All projects submitted must include the appropriate maximum IDC Rate allowed by the sponsor Items charged as indirect costs to a project cannot also be charged as direct costs

6. Cost Sharing Cost Sharing is the portion of the total project cost covered by the recipient Don’t include Cost Share unless it is REQUIRED! • Mandatory – required by sponsor (co-funding) • Sources: MT Hard Dollar, MT In-Kind, Third Party Hard Dollar, and Third Party In-kind • To be considered as cost sharing the expense must meet three (3) general requirements: • ALLOWABLE according to the terms of the project • ALLOCABLE to the specific project • DOCUMENTABLE through the recipient’s accounting system

7. Cost Match If your project requires cost sharing/matching, there are several types and ways to document it. To be considered as cost sharing, the expense must be: • Allowable according to the terms of the award & must be within the • award period of performance • Allocable to the project • Documentable from the recipient’s records Samples of Cost Sharing • Waived Indirect Costs – fund accountant will calculate and document • Time & Effort – you certify and return in a timely manner, OSP • documents. • Contact our office for help – Don’t guess!! • Departmental/Institutional Costs – you provide information to OSP. An • expense can only be used as match once. • Examples are: travel, supplies, equipment, etc. • Third-Party (any non-university paid costs) – outside source provides • information, you sign and return to OSP. • Federal funds cannot be used as a match against Federal funds.

8. Indirect Costs Are a Ratio Facilities and Administrative Costs are the sum of research building and equipment depreciation, operations and maintenance, interest expense, library expenses, administration, and the sponsored projects office The Sponsored Projects Cost Base is the sum of all sponsored projects direct costs including cost sharing Success generally lowers IDC rate

9. Course Buyout Information

10. Cost Categories • Direct Costs are those charges that can be specifically identified with a particular sponsored project, instructional activity or other function with a high degree of accuracy in a relatively simple fashion • Examples of direct costs include salaries, benefits, laboratory supplies, and travel all related to a specific project • Developing an accurate direct cost budget should include the participation of your accounting staff, human resources team and possibly your facilities manager for certain projects • Indirect Costs are those charges incurred for common objectives and; therefore, cannot be readily and specifically assigned to a specific sponsored project without considerable effort • Examples of indirect include utilities (heat, lights, phones) and campus administrative offices (OSP, HRS and Business Services). These are real costs of doing research on campus, not profit for the university.

11. Cost Transfer Policy • Transfer must be initiated within 90 days of the date of the original charge and must have occurred within the grant period of the grant being charged. • Cost transfer form must contain a full explanation of how the error occurred and a certification of the correctness of the new charge. The cost being transferred must directly benefit the grant being charged. • Cost transfers should be signed by the principal investigator for each sponsored program involved in the transaction. This responsibility may not be delegated. Federal, state and private agency policies and audit guidelines have become quite stringent as they relate to cost transfers between projects. Circular A-21 contains the following statement: “any costs allocable to a particular sponsored agreement….may not be shifted to other sponsored agreements in order to meet deficiencies caused by overruns or other fund considerations, to avoid restrictions imposed by law or by terms of the sponsored agreement, or for other reasons of convenience.”

12. Authorization to Proceed with Sponsored Program (ATP) • ATP has information about your grant • Funding Agency • Sponsor reference number • Time frame of grant • Budget categories • Indirect cost rate & basis • Cost Match information • A copy of the ATP and award document is sent to the PI and anyone else who is cc’d on bottom of ATP

13. Authorization to Proceed M25564 Patty Haisch MAWeer

14. Budgets Budgets are entered into Banner at the 6XX99 account code level. Expenses are coded to the proper account code. If you are going to have some unusual costs (i.e. meeting costs, foreign travel, etc.), please specify them in your proposal budget so they won’t be questioned by your grant accountant. This will speed up the approval and billing process. Most of our grants are cost reimbursable – you spend the money, then we bill the funding agency

16. UMDWFinance Data Warehouse • An easy way to access Banner Finance information and create professional looking reports without having to log into Banner. • UMDW is a UM custom-built database which was designed specifically for Banner Finance reporting purposes. • A user-friendly MS Access interface that features simple "point and click" reports (prior knowledge of MS Access not necessary).

21. OMB Circulars • A-21 Cost Principles for Educational Institutions • A-87 Cost Principles for State, Local & Indian Tribal • Governments • A-102 Uniform Administrative Requirements for Grants • and Cooperative Agreements with State, Local and Indian • Tribal Governments • A-110 Uniform Administrative Requirements for Grants • and Cooperative Agreements with Institutions of Higher • Education, Hospitals and other Non-Profit Organizations • A-122 Cost Principles for Non-Profit Organizations • A-133 Audits of States, Local Governments, and Non- • Profit Organizations www.whitehouse.gov/omb/circulars

22. Principal Investigator’s Responsibility • Spend grant dollars in an appropriate manner. OMB • Circular A-21 (Cost Principles for Educational • Institutions) has general guidelines that most funding • agencies follow. Your award document may have other • rules and regulations. • Contact OSP for budget revisions before the expense • occurs. • Use clear, concise descriptions on documents. • If you must do a cost transfer, process the cost transfer • within 90 days of the expense. • Document all cost sharing and submit to OSP on a • regular basis. • Contact OSP at least 45 days before the end date of the • project if additional time is need to complete project. • Submit technical reports on time – most payments • are dependent on your reports. • Contact OSP if funding agency contacts you • for a ‘site’ visit.

23. OSP’s Responsibilities • Assure compliance with applicable sponsor regulations and Montana Tech policy and procedure. • Prepare all bills and/or • financial reports to the • funding agency. • Record all cost match (you • provide) and report to • funding agency. • Respond to auditors • provided you have • given us all the necessary • information.

24. We’re Here to Serve & Protect We want to help you be successful while following the rules and regulations.

25. Contact Info Carleen Cassidy Director of Sponsored Programs And Grant Accounting Museum Building, Room 213 496-4769 ccassidy@mtech.edu

26. Questions ?