HOT TOPICs in Sponsored Programs

1. HOT TOPICs in Sponsored Programs January 29, 2019

2. Residual balance Procedure • What is a residual fund? If the funding provided by a sponsor is not fully expended after all the appropriate expenses have been accounted for, a residual balance will exist. Residual balances can occur on a grant, or contract.

3. Residual balance procedure • Do all Principal Investigators have access to residual funds on their awards? Having access to residual funds is predicated on a few award conditions: • Fee-for-Service Agreement is a sponsored agreement or contract in which the sponsor agrees to pay an upfront, predetermined price, for agreed upon services or individual tasks to be performed. • Fixed Price Agreement is a sponsored agreement or contract that is not subject to any adjustment on the basis of the University’s cost experience in performing the agreement. This agreement type places upon the University maximum risk and full responsibility for all costs. Fixed-price awards include, but are not limited to fixed fee contracts, deliverable-based agreements, and other awards where there is not a requirement that any remaining funds be returned to the sponsor.

4. Residual balance procedure • What are the determinants? • After the project has ended, the work has been completed, the deliverables met, and the sponsor does not require the return of remaining funds, the Principal Investigator (PI) may request that the remaining funds be transferred to a related sponsored account and be used to further his/her research • Funds must continue to be spent in accordance with OSP’s Allowable and Unallowable Costs Policy and practices. • In the event that the work is not complete and deliverables have not been met by the anticipated due date, the PI should immediately contact the Office for Sponsored Programs (OSP) to discuss next steps.

5. Residual balance procedure • How do I request access to these funds? • The request to access funds is part of the Closeout Process/Form • Request must be for funds over $1000. Anything over $5000 will require a justification. Signature of Dean or Chair is required for balances over 25% of the total award • Accounts will be set up for a one year period only and will be a sponsored acct, not a fund 100 • PI MUST sign off on the Closeout Form

6. Residual balance… Department Form:

7. Residual balance procedure • PI’s and DRA’s must provide and/or confirm the following on the Closeout Form: • All work was completed. • No outstanding work activities or deliverables remain open or in question by the sponsor (and expenses are in accordance with the terms and conditions of the agreement and the negotiated budget). • All required technical reports were received and/or accepted by the sponsor. • All invoices/financial reports for subawards were received and processed for payment. • All applicable expenditures have been charged to the award. • A detailed budget must be provided for the new project number. • Signature of Dean or Chair approving the residual balance transfer if greater than 25% of the total amount awarded.

8. Residual balance procedure • OSP Responsibility: • OSP will confirm that the award end date has passed • The residual transfer request is appropriately completed and signed, and the University has been reimbursed for the work completed • Prior to approving the residual balance request, OSP will review the terms and conditions of the award and determine whether the residual balance request may be approved (for example, the award does not require that any unexpended funds be returned to the sponsor). • Once it is determined that the sponsor does not require the return of the residual balance, then OSP will transfer the unspent balance of the award to a new project number, and the award will be subsequently closed.

9. Fringe benefits calculation • Current Rates: • Fixed Rate for period 6/1/2018 – 5/31/19 • Exempt is 27.4% • Non-Exempt is 44.4% • Provisional Rate for period 6/1/2019 – 5/31/2021 • Exempt is 28.4% • Non-Exempt is 45.3% • Part-time Rate is always 7.65%

10. Fringe benefits calculation • Background Information: The rates are set with the Federal Government. They are negotiated with our Cognizant Agency and are subject to annual audit by the Federal Government. Part of that negotiation is the circumstances under which particular rates are applied. The rates are only for use with sponsored awards. BC does not use rates for people paid from BC funds as direct expenses are applied The office that “owns” this is OSP

11. Fringe Benefits calculation • So what’s the problem?

12. Fringe benefits calculation Rates are not being properly applied! Full time rate: Benefits eligible individuals work 20 or more hours per week for at least 36 weeks per year. Individuals who are benefits eligible are to be charged to the appropriate full time exempt or non-exempt category.  Part-time rate: Part time salary account codes should only be used for individuals working less than 20 hours per week and are therefore not benefits eligible

13. Fringe benefits calculation Human Resources defines part-time differently… Anyone who works less than 35 hours per week is defined as part time by HR. Important to keep in mind that the fringe rates are negotiated with the feds and the way in which they are applied are part of that negotiation. HR is not a part of this process.

14. Fringe benefits calculation • Things to take into account before applying rates: • Type of appointment at BC • How many hours a person works in totality, not just on a particular grant • Emeritus faculty should be charged the part time faculty account code

15. Fringe benefits calculation Any questions on the proper application of rates should be directed to your OSP representative. HR as well has been advised to direct all inquiries to OSP.

16. Institutional base salary • Boston College has instituted an Institution Base Salary Policy (IBS) effective June 2018. • IBS includes regular salary and compensation related to a second assignment (e.g., Appointment as dean, chair, and/or center director) if the second assignment is one year or longer in duration. IBS is based on the full work load for which the individual is compensated by the University regardless of the source of funding or the number of hours expended. The IBS does not include bonuses, one-time payments or incentive pay.  Also excluded from the IBS is salary paid directly by another organization.

17. Institutional BaSe Salary • Institutional Base Salary does not include the following: • Bonuses, honoraria, and incentive compensation; • Summer supplemental pay for faculty with 9-months appointments; • Supplemental pay that may be issued for temporarily (not longer than one year) performing duties that fall outside of duties and responsibilities associated with the current appointment; • Fringe benefit payments; • Reimbursed expenses; • Any income that an individual earns outside of duties performed for Boston College (e.g. consulting).

18. Institutional base salary • How to identify the correct salary to use, once you have found the correct employee record please go to the tab that states compensation: • BC Human Resources has identified individuals appointments by using a sequential numbering system identifying employee records which would be 0, 1,2 3 etc: • Employee record #0 – majority of the time this indicates their primary appointment. You need to make sure you are using the correct employee record when doing IBS calculations. Please make sure you use employee record that indicates their professorship (associate, assistant, etc) and please make sure it indicates PRIMARY next to the Job Indicator • You will then need to search through that individuals payroll records to see if the employee has any other assignments. If they do, you will then need to locate the record that would indicate a position to be Chair/ Dean/ Center Director

19. Institutional Base Salary • Salary calculation for regular faculty member with no second assignments: • Faculty salary $125,000 • Faculty member (9 month appointment) paid over 12 months • One month of summer salary would then be 1/9 of their salary • For budgetary proposal purposes one summer month would be $13,888

20. Institutional Base Salary Calculations • Calculation for Faculty Member that has a second assignment: • Faculty appointment position (9 month but paid over 12) • Salary is at $100,000 • One summer month would be $16,666 (1/9) • Faculty member second assignment is a chair (12 month) • salary for second assignment the salary is $20,000 • One summer month would be $1,666 (1/12) • For proposal budgetary purpose • One summer month would be $18,332 • $16666 (1/9 Faculty) add the $1,666 (1/12 Chair)

21. Institutional base salary • Helpful Hints:When trying to locate the individual’s correct salary only use the salary indicated for that position ie, record #0 and effective sequence number. Please make sure it states PRIMARY under Job Indicator and Active. The amount you should use is located under the section entitled PAY RATES: • BC ANNUAL • PLEASE DO NOT USE THE AMOUNT STATED ON THE LOWER RIGHT HAND CORNER WHERE IT STATES: ANNUAL BENEFITS BASE RATE • Please see next slide for clarification on appropriate HR Screen to use • Please remember summer salary calculations are based on the previous academic year salary – if being paid August 2019 – Salary to be used has an effective date of July 2018

22. Institutional base salary

23. Institutional base salary QUESTIONS?

24. T&E Reports Printing - Left Margin Cutoff - Solution • Use the current version of Adobe (not a really old version)   • Print > Page Sizing & Handling, select fit,  and then make sure you have the orientation as landscape

25. T&E Reports Electronic Signature Acceptable NOT Acceptable

26. T&E Reports Distribution – Reports to be Certified (3x per year) • OSP’s server folder labeled Certification (\\gssw\osp\Certification\) and within the appropriate department folders. • OSP is responsible for granting access to department folders. • Department personnel with access are responsible for obtaining the reports, assisting PI with review and any needed changes, processing changes, and returning the certified Report to OSP before the due date.  

27. T&E Reports Returning Certified Reports (3x per year) • Department personnel are responsible for returning certified Reports to OSP before the due date.   • Certified Reports can be saved to your department folder within OSP’s server folder labeled Certification (\\gssw\osp\Certification\) • Saved file name example: Visconti T&E Report Sept-Dec 2018 Signed.pdf

28. P-Cards Documentation • Department to save supporting documents in PeopleSoft. • Write explanations on receipts - helps with allocability. • OSP will periodically review; OSP has access to documents in PeopleSoft.

29. PREPAID EXPENSES • Pre-paid costs (costs requested by vendor to be paid in advance of delivery of goods or services) are not allowed to be directly charged to sponsored project. However, there may be special circumstances that should be discussed with OSP, upon its approval, the costs may be charged to the prepaid account. If you are working with a vendor that requires pre-payment for all or a portion of the expense please discuss the expense with OSP prior to purchasing from or contracting with the vendor. After the goods or services have been evidenced as delivered, OSP will then re-classify the expense to the sponsored award.

30. PREPAID Account • WHEN TO USE PREPAID:PrePaid account is only used when the expenses need to be paid prior to the costs actually being incurred: Example: Travel, data analysis, consultant/speaker • WHEN NOT TO USE PREPAID: • If all of the expenses will be taking place prior to the next billing cycle of your credit card, there is no need to use a PrePaid account. Reason: Trip is September 1 ,purchase tickets August 20, 2018 your credit bill is not due till September 30, 2018 – no need to use prepaid as your credit card is not due till 9/30 and trip has been taken so can be reimbursed directly from the grant. • If the award is not cost reimbursable and non federal, ie: (full payment received up front) then no need to use pre paid account as funds are already here and available.

31. PrePaidExpenes Chartstring to be used: When departments are processing prepaid vouchers – Departments should include Fund 500 - and the BC project number and account code 15445 - that is all.Example of what the chartstring should look like: Department - Fund - Fund Source - Program - Function -Property - Account - business unit - Project/Grant - Activity - Ana type - Amount -  053301          500       00000            00000      000         00000      15445       Blank              51001971        blank     blank        $10,0000

32. PrePaid Expenses • RECONCILIATION: Once the services/goods have been delivered/completed, then reconciliation should happen within 30 days. Reconciliation is initiated by the DRA by providing examples of the following types of documentation : • Invoice • voucher # • sponsored project account number • the Prepaid documentation resubmitted

33. Questions or comments?