Contract and Grant Management Training Series Pre-award Processes

1. Contract and Grant Management Training Series – Pre-award Processes Please view this presentation use “Notes Page” Sarah Smith Contracts and Grants Manager UNC Office of the President 910 Raleigh Road Chapel Hill, NC 27514 (919) 962-4557 – phone (919) 843-4942 – fax smsmith@northcarolina.edu Sarah Smith Contracts and Grants Manager UNC Office of the President 910 Raleigh Road Chapel Hill, NC 27514 (919) 962-4557 – phone (919) 843-4942 – fax smsmith@northcarolina.edu

2. Goals of the presentation Introduction to terms and concepts Discussion of pre-award roles and responsibilities Discussion of regulations and procedures Provide information and access to resources important to proposal submission The administrative requirements associated with contract and grant management have increased in complexity and scope in recent years. At the same time, UNC is becoming more involved in externally funded activities. Our changing operating environment demands that we know how to meet the administrative compliance requirements associated with externally funded activities. We will work hard to provide project directors and staff with clear and current administration procedures, training and technical support, and information resources such as on-line forms and web-based tools. It takes a team effort between the principal investigator (PI), departmental staff, the Contracts and Grants Manager, and the Division of Finance to successfully manage a contract or grant award. Throughout this presentation, UNC refers to the Office of the President and General Administration. This includes all units in Academic Affairs, University Schools Program, Public Affairs and the UNC affiliated entities. The administrative requirements associated with contract and grant management have increased in complexity and scope in recent years. At the same time, UNC is becoming more involved in externally funded activities. Our changing operating environment demands that we know how to meet the administrative compliance requirements associated with externally funded activities. We will work hard to provide project directors and staff with clear and current administration procedures, training and technical support, and information resources such as on-line forms and web-based tools. It takes a team effort between the principal investigator (PI), departmental staff, the Contracts and Grants Manager, and the Division of Finance to successfully manage a contract or grant award. Throughout this presentation, UNC refers to the Office of the President and General Administration. This includes all units in Academic Affairs, University Schools Program, Public Affairs and the UNC affiliated entities.

3. Sections Terms/concepts/definitions Budgeting Proposal review and approval process Format: Each section features resource materials, specific examples and case studies. Other training sessions include: Post-award processes Cost sharing/Time and Effort Subcontracts Federal Circulars Format: Each section features resource materials, specific examples and case studies. Other training sessions include: Post-award processes Cost sharing/Time and Effort Subcontracts Federal Circulars

4. Terms, Concepts and Definitions

5. Terms, Concepts and Definitions Critical Steps in Pre-award Develop Submit Sponsor Review Revise and/or accept Develop proposal idea Investigate funding opportunity Prepare proposal Submit proposal package Review, approve, submit proposal Sponsor review/approval Sponsor receives proposal Sponsor assigns proposal to review panel Proposal is reviewed/ranked Sponsor notifies applicants of award status Revise/respond to sponsor notification Awardee may be instructed to submit revisions Awardee accepts award, returns signed award documents to sponsor Develop proposal idea Investigate funding opportunity Prepare proposal Submit proposal package Review, approve, submit proposal Sponsor review/approval Sponsor receives proposal Sponsor assigns proposal to review panel Proposal is reviewed/ranked Sponsor notifies applicants of award status Revise/respond to sponsor notification Awardee may be instructed to submit revisions Awardee accepts award, returns signed award documents to sponsor

7. Terms. Concepts and Definitions Contract and Grant Proposals Types of funding arrangements Elements of a proposal Types of proposals Refer to Pre-award Processes Definitions Terms and conditions are a set of legal statements that define the limitations and requirements for certain aspects of the business relationship: Payment Project Schedule Reporting Requirements Publication Rights Audit Requirements Liability Modifications/Amendments Termination Other Intellectual Property Rights CASE STUDY 1 Match the document with type of funding CASE STUDY 2 Find the critical information in this RFP Do these proposals meet the Guidelines Refer to Pre-award Processes Definitions Terms and conditions are a set of legal statements that define the limitations and requirements for certain aspects of the business relationship: Payment Project Schedule Reporting Requirements Publication Rights Audit Requirements Liability Modifications/Amendments Termination Other Intellectual Property Rights CASE STUDY 1 Match the document with type of funding CASE STUDY 2 Find the critical information in this RFP Do these proposals meet the Guidelines

8. Terms, Concepts and Definitions Contract and grant budgeting Direct costs/Facilities and Administrative Costs (F&A) Cost sharing/matching Budget categories Refer to Pre-award Processes Definitions Budget composition Direct Costs Facilities and Administrative Costs (F&A) Required cost sharing (local and third party) CASE STUDY 3 Classify examples as direct costs, F&A or cost sharing Specific budgeting exercises will come laterRefer to Pre-award Processes Definitions Budget composition Direct Costs Facilities and Administrative Costs (F&A) Required cost sharing (local and third party) CASE STUDY 3 Classify examples as direct costs, F&A or cost sharing Specific budgeting exercises will come later

9. Terms, Concepts and Definitions Roles and responsibilities People Institutions Departments Refer to Pre-award Processes Definitions The Principal Investigator (PI) has the most critical role in the contract and grant process. He/she carries out the project and is ultimately accountable for results or delivery of service. In order for UNC to defend PIs against legal claims and requirements, the proposal and subsequent award documents must be signed by the appropriate authorizing official. The VP for Research, Dr. Russ Lea, is the primary authorizing official for UNC. Contract and grant awards are made to the applicant institution. Sponsored Programs and Financial Services work closely together on all areas of contract and grant management (proposals and awards). CASE STUDY 4 Who’s responsibility is it? Refer to Pre-award Processes Definitions The Principal Investigator (PI) has the most critical role in the contract and grant process. He/she carries out the project and is ultimately accountable for results or delivery of service. In order for UNC to defend PIs against legal claims and requirements, the proposal and subsequent award documents must be signed by the appropriate authorizing official. The VP for Research, Dr. Russ Lea, is the primary authorizing official for UNC. Contract and grant awards are made to the applicant institution. Sponsored Programs and Financial Services work closely together on all areas of contract and grant management (proposals and awards). CASE STUDY 4 Who’s responsibility is it?

10. Support available for Pre-award Processes Contract and Grant Pre-award Assistance Budget development Institutional information Approval by authorizing official Other resources Be aware of deadlines Read the Request for Proposal (RFP) Survival Tips for Departmental Administrators Ask me now rather than later There are no dumb questions We are in this together Obtain PI agreement on: Critical dates in the submission process Who will be responsible for certain steps in the application process Sections of the proposal Letters of support Application Forms Copying and mailing BREAK Survival Tips for Departmental Administrators Ask me now rather than later There are no dumb questions We are in this together Obtain PI agreement on: Critical dates in the submission process Who will be responsible for certain steps in the application process Sections of the proposal Letters of support Application Forms Copying and mailing BREAK

11. Budgeting

12. Budgeting Elements of a budget UNC requirements Accuracy/Adequacy Resources for rate information Refer to handout entitled “Budget Guidance” Refer to Pre-award Processes Definitions Elements of a budget Total by category, including F&A Budget Narrative, including cost calculations Clearly identified direct costs and UNC or 3rd party contributions Requirements Budget the full cost of the project Fringe benefits must be budgeted for all UNC salaries Budget local operating support (materials/communication) Budget F&A unless sponsor specifically prohibits URL for current fringe and F&A rates http://www.northcarolina.edu/aa/departments/research/prop_dev_assist.cfm Refer to handout entitled “Budget Guidance” Refer to Pre-award Processes Definitions Elements of a budget Total by category, including F&A Budget Narrative, including cost calculations Clearly identified direct costs and UNC or 3rd party contributions Requirements Budget the full cost of the project Fringe benefits must be budgeted for all UNC salaries Budget local operating support (materials/communication) Budget F&A unless sponsor specifically prohibits URL for current fringe and F&A rates http://www.northcarolina.edu/aa/departments/research/prop_dev_assist.cfm

13. Cost Sharing Do not include unless required Minimize to the fullest extent possible Must meet same UNC costing requirements as direct costs Refer to Pre-award Processes Definitions Cost sharing is the portion of project costs not supported by the sponsor. These costs are borne by UNC or a 3rd party. Try to articulate support for the project without putting actual numbers to it Documentation requirements in the proposal stage: UNC – Division head must agree to commitment of UNC resources 3rd party – Need evidence that 3rd party intend to collaborate on project and will commit it’s resources. Examples of unallowable cost sharing Matching federal funds against another federally-funded project Unallowable as direct cost = unallowable as cost sharing** ** the project may benefits from the contribution, but UNC will not track it for reporting or matching purposes CASE STUDY 5 Is the cost sharing allowable? CASE STUDY 6 Is cost sharing required?Refer to Pre-award Processes Definitions Cost sharing is the portion of project costs not supported by the sponsor. These costs are borne by UNC or a 3rd party. Try to articulate support for the project without putting actual numbers to it Documentation requirements in the proposal stage: UNC – Division head must agree to commitment of UNC resources 3rd party – Need evidence that 3rd party intend to collaborate on project and will commit it’s resources. Examples of unallowable cost sharing Matching federal funds against another federally-funded project Unallowable as direct cost = unallowable as cost sharing** ** the project may benefits from the contribution, but UNC will not track it for reporting or matching purposes CASE STUDY 5 Is the cost sharing allowable? CASE STUDY 6 Is cost sharing required?

14. Allowable and Unallowable Costs Allowable Unallowable All costs presented in a proposal budget must be allowable and consistent with institutional practice. Allowable = reasonable, necessary, allocable and timely Allowable = sponsor guidelines/RFP cites the budget item as allowable Allowable = State Budget Manual cites the budget item as allowable Unallowable = unreasonable (price/rate of pay is exorbitant) Unallowable = unnecessary (item is not essential to successful completion of project/delivery of service) Unallowable = cannot be easily allocated or documented with a high degree of accuracy or relative ease Unallowable = inconsistent with State Budget Manual or institutional practice All costs presented in a proposal budget must be allowable and consistent with institutional practice. Allowable = reasonable, necessary, allocable and timely Allowable = sponsor guidelines/RFP cites the budget item as allowable Allowable = State Budget Manual cites the budget item as allowable Unallowable = unreasonable (price/rate of pay is exorbitant) Unallowable = unnecessary (item is not essential to successful completion of project/delivery of service) Unallowable = cannot be easily allocated or documented with a high degree of accuracy or relative ease Unallowable = inconsistent with State Budget Manual or institutional practice

15. Costing your proposal Salaries Fringes Consultants/Contracted Services Travel Other Direct Costs Subcontracts F&A Refer to handout entitled “Budget Guidance” CASE STUDY 6 Proposal Budget DevelopmentRefer to handout entitled “Budget Guidance” CASE STUDY 6 Proposal Budget Development

16. Budget presentation/format Sponsor requirement UNC requirements Refer to Budget Format Handout Follow the format specified in the RFP or sponsor guidelines Provide sufficient detail so reviewers can see how costs were derived Budget amounts should match the tasks described in the proposal narrative Keep good notes/working papers – may need to translate the sponsor’s budget into UNC budget codes Refer to Budget Format Handout Follow the format specified in the RFP or sponsor guidelines Provide sufficient detail so reviewers can see how costs were derived Budget amounts should match the tasks described in the proposal narrative Keep good notes/working papers – may need to translate the sponsor’s budget into UNC budget codes

17. Proposal Review and Approval Process

18. Proposal Review and Approval Process Roles and responsibilities Timeline Routing processes Allow sufficient time for review, approval, preparation for mailing Submitting approved proposal The Contracts and Grants Manager is here to facilitate the proposal submission process. Proposal budgets must meet compliance requirements and should fund the project to the fullest extent possible. Cost sharing should be minimized Pre-award Administrative Compliance The Contracts and Grants Manager will help PIs identify cost items that must be excluded from budgets or that require additional approval or justification and will also work with PIs to anticipate the administrative management requirements associated with proposed projects. Principle investigators should be familiar with the Internal Review Questions before a proposal is submitted for approval. Consult the UNC Sponsored Programs website for budget development guidance and current rates http://www.northcarolina.edu/aa/research/budgeting/guide.cfm The Contracts and Grants Manager is here to facilitate the proposal submission process. Proposal budgets must meet compliance requirements and should fund the project to the fullest extent possible. Cost sharing should be minimized Pre-award Administrative Compliance The Contracts and Grants Manager will help PIs identify cost items that must be excluded from budgets or that require additional approval or justification and will also work with PIs to anticipate the administrative management requirements associated with proposed projects. Principle investigators should be familiar with the Internal Review Questions before a proposal is submitted for approval. Consult the UNC Sponsored Programs website for budget development guidance and current rates http://www.northcarolina.edu/aa/research/budgeting/guide.cfm

19. None of this could be possible without the principal investigator None of this could be possible without the principal investigator

20. Pre-award Proposal Routing Process This is the ideal path The Contracts and Grants Manager and the Division of Finance work closely in the account setup process. The Division of Finance will not set up trust fund accounts without checking with the Contracts and Grants Manager first.This is the ideal path The Contracts and Grants Manager and the Division of Finance work closely in the account setup process. The Division of Finance will not set up trust fund accounts without checking with the Contracts and Grants Manager first.

21. Revised or Full Proposals When to submit Addressing reviewer comments/concerns Cost sharing implications Reduce scope to correspond to reduced level of support Sponsor will notify PI of need to respond to reviewer comments or submit a revised proposal Revised proposals require the same level of review as initial (original) proposals If instructed to reduce the budget, be sure to make corresponding adjustments to project description Sponsor will notify PI of need to respond to reviewer comments or submit a revised proposal Revised proposals require the same level of review as initial (original) proposals If instructed to reduce the budget, be sure to make corresponding adjustments to project description

22. Questions??