Sponsored Programs Administration Pre- Award Training

1. Sponsored Programs Administration Pre- Award Training October, 2005

2. Why are we here? • Learn more about what goes on the grant admin world • Get some tips and tools on how better to do our jobs • Understand who I need to work with at SPA, when and how

3. Specific Tasks • How do we manage the proposal process? • How do I find a sponsor? • How should we construct our budgets? • What do I need to do once we receive an award?

4. The SPA Office • Organizational chart • Realignment of resources • Director for Pre-Award Services – Carole Bach • Director of Research Admin – Marlene Erno (Institutional Support) and Gail Ryan (Operations)

5. Other Presenters • Vance Briceland, Information Officer • Gail Ryan, Director of Post-Award Services and friends • Post Award Presenters

8. What is SPA’s mission? • Ensure consistency, reasonableness, allocability and compliance with institutional and agency policies • Protect integrity of institution in its management of sponsored programs • Provide the fiduciary review and management (Stewardship) of sponsor’s funds

9. Definitions • Reasonableness • Nature of goods or services acquired reflect the action that a prudent person would have taken under the same exact circumstances • The expense is necessary for the grant’s performance, the recipient followed organizational policies • Acted with due prudence in carrying out their responsibilities

10. Definitions • Allocability • Cost incurred solely for purposes of the grant • Expense is clearly identified with the project • Conformance • Reasonable and Necessary • In conformance with limitations/exclusions • Consistency • Treated in the same manner across all proposals and awards

11. What is College/Dept’s role? • Proper Budgeting Development and Management • Adhere and ensure compliance with unit’s policies • Provide day-to-day management of sponsor funds • Provide first line of support and communication to faculty and program staff

12. The Grant Life Cycle • From when faculty has idea until the final report has been submitted … and, then some • Extremely variable in timeframe, process, requirements • Need to pay attention at all stages

13. Where do ideas come from? • The “When I was a child …” model • The “I had a family member …” model • The “I had a college professor …” model • Why is this important? – The passion of researcher

14. Find the money! • There are many sources for money • Identifying the right match(es) for their work • Role of Vance Briceland – Information Officer

15. Sponsor Missions • Governmental Sponsors exist to fulfill legislated or mandated goals • Foundation fund projects which support initiative identified in their charters • Not-for Profits support special purposes, e.g American Cancer Society, etc

16. When do we submit? • RFP’s, RFA’s and Program announcements • Regular scheduled cycles – NIH, foundations, organizations • As part of larger proposal – “we, the subcontractor” • Proposals with no deadlines • Pre-Proposals

17. How long does it take to build a proposal? • Should the question be “how long should it take?” • Break proposal into manageable components • Manage each piece individually • Allow time for adequate reviews (internal and external) • The answer - ????

18. Am I in the game? • Acknowledgement from sponsor • Assignment to study section (NIH) • Peer review by sponsor • 3  6  9 months • Did I really get an answer? • Positive feedback vs. award • The tentative process

19. Receiving Award • Needs to be handled by SPA Pre-Award • SPA Starts wheels turning • Need to begin communication with college/departments • Need to make sure there is a proposal and it matches the award

20. Award activation • The award has been accepted by the PI • The award has been accepted by WSU • SPA started the process: • Do we have all the “right” pieces • Does it need a new index? • Established on BANNER • SPA has executed a subcontract

21. Award Life Cycle for SPA • Monitor the award from budgetary perspective • Pay subcontractor, monitor invoices • Manage revenue: • Create invoices • Make LOC draws • Account receivable follow-up • Track other award conditions – reporting, etc.

22. More Award Life Cycle for SPA • Financial Close-out: • Final invoice or FSR • Indirect Cost reconciliation • Other close out activities: • Intellectual property • Fixed Asset/Property

23. Award Life Cycle for Dept • Complete the project • Submit non-financial progress reports • Monitor budget activities • Timely Personnel charges • Setting up blank orders or PO’s • Appropriateness of charges

24. The Standard Proposal Components • Agency Info • Administrative Info • Personnel and Subcontractors • Facilities and Resources • Budget • Protocols (Human Subjects, Animals) • The Science and Abstract

25. Agency Information • Who is the sponsor of the work? • Who is the prime sponsor of the work? Is this a subcontract? • Is the proposal in response to an RFP or program announcement? • Who is the Principal Investigator and what role do the play

26. Administrative Components • What is title of program? And, in how many characters may I use to create the title? • Where does it need to be sent? • When is this proposal due? • How many copies and in what format? • How much $$ can we ask for? • What is allowed what isn’t? • What type of work is being proposed: • Research • Instruction • Other Sponsored Activity • Student Service • Clinical Trials • Fellowship

27. The Standard Proposal Components • Agency Info • Administrative Info • Personnel and Subcontractors • Facilities and Resources • Budget • Protocols (Human Subjects, Animals) • The Science and Abstract

28. Personnel, Consultants & Subcontractors • Need to identify all WSU employees that will be involved on project • Can use named and unnamed individuals • Identify role for each individual – PI, Research Asst. etc • Identify level of effort for each individual • Any intent to cost share any effort? Is there a requirement?

29. Am I a consultant or employee? • No WSU employee should be noted as a consultant or subcontractor • IRS has specific rules as to who is consultant and who is employee • Do not confuse with the legal mechanism by which we pay to drive role definition • If person controls work arrangement, they are a consultant

30. Are they a consultant or a subcontractor? • Are they providing a service beyond expertise, creation of item to be analyzed? • Are they supplying their own facilities and resources? • Are they part of an organization that does task as part of their normal business? • If these are true = subcontractor

31. What do we need from subcontractor? • A proposal – nice but we won’t get one • Statement of work to be included/merged into science • Proposed budget for work they are proposing • Statement of intent to subcontract

32. Effort Allocations for Personnel • Identify each person’s expected level of effort for project • Identify the time period for level of effort, be specific to their appointment type • For academic appt, break into AY (9 months) and Summer (3 months) • For fiscal year appointment, use 12 month period

33. Calculating Effort • Effort the same over 12 months • = % Effort • Effort different for academic year & summer • =(% Effort for academic year x 9 + % effort for summer month x # summer months)/12 • Calculation • 12 month = % Effort * 12 month salary or 9 month salary x 1.33 • Two line entry for 9 month & Summer

34. The Standard Proposal Components • Agency Info • Administrative Info • Personnel and Subcontractors • Facilities and Resources • Budget • Protocols (Human Subjects, Animals) • The Science and Abstract

35. Facilities and Resources • Where will the majority of the work take place? Bldg and room • Will there be any need to modify/renovate any of this space? • Will there be any work completed at off-campus facilities? How much? • Will there be any specialized WSU facilities or Service Center used to conduct of work? If so, to what extent would they be used?

36. Developing the Budget • Step 1 – Review Sponsor/Program Guidelines • What restrictions are invoked? • Any cost sharing requirement? • Ask SPA • Step 2 – Finalize Personnel Component • Is there a salary cap? Current salary cap for NIH is $180,100 • Convert effort to dollars • Apply applicable fringe benefit rates for staff • Add amounts for any consultants

37. Developing the Budget • Step 3 – Finalize Subcontract Component • Identify direct vs. indirect portions of budget • 8% F & A Costs allowed for International subcontractors on NIH • Add total budget for subcontractors as direct costs in your proposal • Step 4 – Finalize Travel Component • Identify any planned trips • Identify foreign vs. domestic • Estimate cost of each trip, including actual travel, lodging, meals/per diem, registration • Follow WSU Travel Policies

38. Developing the Budget • Step 5 – Finalize Equipment • What is equipment? $5,000 or more and a useful life of more than 2 years by WSU policy • Does Sponsor have rules? • Step 6 – Supplies • Tangible Property • Supplies for labs, equipment less than $5,000 • Step 7 – Patient Care Costs • Inpatient Costs • Outpatient costs, some of which get billed to 3rd party payers, must be Medicare rate for federal government • Services able to be purchased with purchase requisition are not patient care costs

39. Developing the Budget • Step 8 – Other Costs • Other services • Unique project needs • Non-Tangible items needed for the project but you can’t see, touch or store it. • Step 9 – Participant Costs • For training programs outside of WSU courses • Travel and subsistence • Considered other costs

40. Developing the Budget • Step 10 – Training Costs for Training Grants Only • Tuition and Stipends for trainees • Stipends set by grantor • Institutional allowances – used for travel and other allowable costs, i.e. health insurance • Not Employees

41. Cost Sharing on Grants • Whenever we have a legitimate cost for which the sponsor doesn’t pay, we have cost sharing • Cost sharing is a real cost to the University • Therefore, as good business people, we should minimize cost sharing

42. Cost Sharing on Grants • Cost sharing may be mandated by sponsor/program guidelines • When cost sharing is mandatory, we should be careful to meet, not exceed, the requirement • Construct a full budget, then determine what should be cost shared

43. Cost Sharing Types • Mandatory – When agency states in their guidelines that the University must contribute funds to the project • Cash match – University Expenses • 3rd Party – Cost sharing commitment met by someone else outside the University • Voluntary – When the PI includes items in the budget that are not reimbursed by the grant • Salary cap is considered voluntary –These include NIH’s current salary cap as well as some private agencies that have there own salary caps

44. Budget Justifications • Justifies WHY they need the funding requesting • Should relate back to the work outlined in the technical proposal • Make sure justification matches budget as related to % effort, itemization of costs • At the proposal stage: WSU requires the justification required by the agency

45. Indirect Costs • Really, they aren’t all that bad • Reimbursement for costs unable to be allocated to individual project • Utilities, building/equipment depreciation • Administrative costs – central and department

46. Indirect Costs(Facilities and Administrative F & A) • Rates are structured by activity and location • Current rates: on-campus off-campus Research 50.5%* 26%* Instructional 50.5% * 26%* Other 40.0%* 26%* Clinical Trials 26%* *based on Modified Total Direct Costs

47. What is MTDC ? • There are certain items that are excluded from Facilities & Administrative charges • They are Rent, equipment, tuition, patient care costs, stipends, scholarships and the amount of the subcontract over $25,000 • By subtracting these items from the total direct costs you arrive at Modified Total Direct Costs which is used to calculate F&A amount

49. Indirect CostsRate Application • Indirect Cost Rates can be set by Program Activity • Normally, Federal pays full load for Research • Normally, State and local government pay reduced rates • Normally, industry should pay full load • Normally, foundations pay reduced rate

50. Indirect CostsWaivers vs. Reductions • A sponsor may restrict the level of indirect cost we can recover • When sponsor mandated, this is reduction • Sometimes, we “offer/propose” a reduced rate • This is a waiver