the basics of grants administration

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3. 3 What is Grant Administration? Grant Administration refers collectively to administrative activities from proposal inception to project completion of a sponsored program Grants Administration includes acronyms, abbreviations & other “terms of the trade”

4. 4 What’s a Sponsored Program? An externally-funded activity that is governed by specific terms and conditions established in a written agreement between a sponsor and Rutgers University Generally, sponsored programs involve a detailed level of financial accountability, including for example statements of work, project periods, line-item budgets & audits

5. 5 Forms of Sponsored Programs Grants Contracts Cooperative Agreements

6. 6 Grants A type of financial assistance awarded to Rutgers for the conduct of research or other program as specified in an approved proposal A grant is used whenever the sponsor anticipates no substantial programmatic involvement with Rutgers during the performance of the award.

7. 7 Contracts A mechanism for procurement of a product or service with specific obligations from both the sponsor and Rutgers Typically, a research topic and the methods for conducting the research are specified in detail by the sponsor

8. 8 Cooperative Agreements An award similar to a grant, but the sponsor anticipates having substantial programmatic involvement in research activities once the award has been made

9. 9 Types of Sponsored Programs Research Training/Instruction Equipment Fellowship Other (I.e. Travel, Conference/Workshop)

10. 10 General Policies and Cost Principles Office of Management and Budget (OMB) Circulars A-21, A-110, A-133 General Agency Terms and Conditions Expanded Authority I.e. - NIH, NSF – Grant Policy Statements Specific Award Terms and Conditions University Policies and Procedures

11. 11 Life Cycle of An Award

12. 12 Central Research Support Office of Research and Sponsored Programs (ORSP) Division of Grant and Contract Accounting (DGCA) ORSP Mission - advises and assists members of the Rutgers Community who are engaged in scholarly and creative activities. ORSP provides information, services and support above and beyond what is available from traditional departmental sources, so that members of the Rutgers Community may in times of need and opportunity compete successfully for outside funding to conduct scientific research, create works of art, compose music, write books and articles, improve their performance in the classroom, and better serve their students, their professions and the public. In accomplishing this mission, ORSP ensures accountability, compliance and stewardship for sponsored programs as directed by the values of the office and by all applicable Federal, State, and University policies, procedures and regulations. DGCA Mission – to provide post-award grant and contract accounting and compliance support to the University community in an efficient, accurate and timely manner. ORSP Mission - advises and assists members of the Rutgers Community who are engaged in scholarly and creative activities. ORSP provides information, services and support above and beyond what is available from traditional departmental sources, so that members of the Rutgers Community may in times of need and opportunity compete successfully for outside funding to conduct scientific research, create works of art, compose music, write books and articles, improve their performance in the classroom, and better serve their students, their professions and the public. In accomplishing this mission, ORSP ensures accountability, compliance and stewardship for sponsored programs as directed by the values of the office and by all applicable Federal, State, and University policies, procedures and regulations. DGCA Mission – to provide post-award grant and contract accounting and compliance support to the University community in an efficient, accurate and timely manner.

13. 13 DGCA Responsibilities Establish Accounts Maintain Budgetary Control Prepare Billings and Financial Reports Maintain Effort Reporting System (PACE) Provide Training and Assistance Agency Audits, A-133 and 98-07 Negotiate F&A and Fringe Benefit Rates Establish Cost Policies

14. 14 Direct vs. Indirect Costs Salaries and Wages Fringe Benefits Supplies Services Travel Equipment Sub-awards Tuition Remission Referred to also as Overhead Facilities and Administrative Costs (F&A)

15. 15 Direct Costs Must Be Allowable Allocable Reasonable Consistent

16. 16 Salaries and Wages PAF / PDR Position numbers required to ensure proper sub code is charged Types of Employees Post-Doc Fellows vs. Post-Doc Associates Fellows ->Insurance Tuition Remission NIH Salary Caps Effort Reporting (PACE) Faculty Summer Compensation FELLOW: An individual holding a doctoral degree who is located at the university for the purpose of continuing his or her education. Individual Awards - The individual must have been selected by a funding agency which specifically named him or her as the recipient of an individual training award. Institutional Awards – the university would select the person with agency concurrence. During the period the of the award neither the university nor the funding agency may require services of the fellow. Person leave RU then award follows. TUITION – September 1 for Fall and February 1 for Spring Summer Comp - HANDOUTFELLOW: An individual holding a doctoral degree who is located at the university for the purpose of continuing his or her education. Individual Awards - The individual must have been selected by a funding agency which specifically named him or her as the recipient of an individual training award. Institutional Awards – the university would select the person with agency concurrence. During the period the of the award neither the university nor the funding agency may require services of the fellow. Person leave RU then award follows. TUITION – September 1 for Fall and February 1 for Spring Summer Comp - HANDOUT

17. 17 Fringe Benefits FY04 Rates 1200 Salaries- Regular Employees 29% 1230 Wages of Labor 8.5% 1250 Student Wages 0% 1290 Other Compensation 7.5% 1370 Post Doctoral Associates 23.5% 1500 Graduate Assistants 19.0% For more information, go to : http://postaward.rutgers.edu/fb.html

18. 18 Procure to Pay Sub Codes For more information, go to: http://postaward.rutgers.edu/42sub.html Travel TABERS Sub-awards Services Consultants Human Subject Fees Equipment CLASS ON PROCURE TO PAY WILL BE HELD ON APRIL 29TH CLASS ON PROCURE TO PAY WILL BE HELD ON APRIL 29TH

19. 19 Departmental Responsibilities Expenditure Guidelines: Timeliness Distributed throughout the project life Equitably charged to projects Timeliness – Expenditures must be submitted for reimbursement on a timely basis. Expenditures submitted more than one year after the cost was incurred will not be paid.   Distributed Throughout Project Life, Not at the End – Sponsors expect that goods and services will be consumed during the life of the project. Excessive expenditures late in the project period, as well as payments after the termination date raise questions of propriety as well as intent. Goods and services must be procured sufficiently before the termination to assure usage prior to the termination date. Equipment purchases, for example, should be initiated at least sixty days before the end date.   Equitably Charged to Projects – Expenditures should be charged to projects on the basis of the relative benefits. For example, an equipment repair can be charged to a project only to the extent that the equipment is used on the project. If the equipment is used sixty percent of the time on a project, the repair of equipment charged to the project cannot exceed sixty percent of the cost Timeliness – Expenditures must be submitted for reimbursement on a timely basis. Expenditures submitted more than one year after the cost was incurred will not be paid.   Distributed Throughout Project Life, Not at the End – Sponsors expect that goods and services will be consumed during the life of the project. Excessive expenditures late in the project period, as well as payments after the termination date raise questions of propriety as well as intent. Goods and services must be procured sufficiently before the termination to assure usage prior to the termination date. Equipment purchases, for example, should be initiated at least sixty days before the end date.   Equitably Charged to Projects – Expenditures should be charged to projects on the basis of the relative benefits. For example, an equipment repair can be charged to a project only to the extent that the equipment is used on the project. If the equipment is used sixty percent of the time on a project, the repair of equipment charged to the project cannot exceed sixty percent of the cost

20. 20 Indirect Costs(Facilities and Administrative) Percentage of Base Modified Total Direct Cost (MTDC) Total Direct Cost (TDC) Other FY03 Rates On Campus Research 55.5 % Off Campus Research 26.0 % On Campus Training 52.1 % Off Campus Training 36.0 %

21. 21 OMB Circular A-21; Section F.6.b Guidelines for applying F.6.b Administrative and clerical salaries Office supplies, postage, local telephone, copy costs & memberships Conditions for charging an F.6.b expense Explicitly budgeted and justified Cost must be specifically identifiable to specific project Expenses such as Telephone, Office Supplies, Postage, Membership – DIRECTLY ASSOCIATEDExpenses such as Telephone, Office Supplies, Postage, Membership – DIRECTLY ASSOCIATED

22. 22 OMB Circular A-21;Section F.6.b Continued Large complex programs Involve extensive data collection, analysis and entry Travel and meeting arrangement for large number of participants Preparation and production of manuals, large reports, books and monographs Geographically inaccessible to normal operations Project specific database management, individualized graphics or manuscript 3) Nti 4) Edison Papers 5) Tuckerton3) Nti 4) Edison Papers 5) Tuckerton

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26. 26 Cost Transfers Document, Document, Document Clerical Errors must be corrected Promptly Previous certified Effort Timely - < 90 days Must meet Final Cost Deadline

27. 27 Ways to Transfer Costs Salary Reallocation Form Proper position number Effort certification Journal Entries Why is charge being transferred How relates to the project goals Provide reference information – time period, voucher number, PO, dates and amounts

28. 28 Cost Sharing What is it? Policy For more information, go to: http://orsp.rutgers.edu/downloads/CostShare/costshare.pdf Financial Tracking Budget Template

29. 29 Close Out Procedures Reporting Responsibilities Final Costs Technical Reports Unallowable Charges Delinquent Reporting A. Reporting Responsibilities PIs are responsible for preparing and submitting all technical reports and disclosure statements associated with their sponsored projects. Departmental Business Offices (DBOs), working in conjunction with their PIs and post award administrators, are responsible for finalizing the costs associated with their sponsored projects. Post award administrators are responsible for preparing and submitting final financial status reports required by sponsoring agencies. Post award administration on the New Brunswick and Camden Campuses is provided by the Division of Grant end Contract Accounting (DGCA). Post award administration on the Newark Campus is provided by the Grant & Contract Accounting -Newark (GCN). B. Final Costs The PI and DBO should monitor the award activity to insure all project costs are incurred prior to the award termination date and recorded thirty (30) days prior to the reporting date. During the sixty (60) day finalization period, the PI, DPO and DGCA/GCN should review program expenditures for any unallowable costs and agree on the appropriate adjustments. If at the conclusion of this process any unexpended project funds remain, they will be returned to the sponsor by the DGCA/GCN with the final fiscal report. C. Cost Sharing Information When cost sharing documentation is required, it must be submitted to the DGCA/GCN thirty (30) days prior to the final fiscal report due date. The final fiscal reports can not be filed without this information. D. Technical Reports Technical reports must be filed with the sponsor within the due dates established under the terms of the award. In order to effectively respond to inquiries received from sponsoring agencies concerning outstanding technical reports, the PI is required to copy the DGCA/GCN on the cover letter transmitting the report to the sponsor and if necessary any letter requesting an extension to file the report. The PI must also retain a copy of the technical report on file in his/her department for examination upon audit and as a backup in the event the report is lost in transit or misplaced by the sponsoring agency. E. Unallowable Charges If any unallowable charges remain on an account after the final fiscal report is filed, they must be cleared by the PI/DBO within six months after the award termination date. If the unallowable charges are not cleared, the DGCA/GCN is authorized to transfer the charges to any related account of the PI, Department Chair or Dean. F. Delinquent Reporting If and when delinquent reporting becomes a chronic problem with a particular PI, the Office of Research and Sponsored Programs, the Newark Office of Sponsored Programs and DGCA/GCN are authorized to suspend processing of new proposals and new account requests for the PI until the delinquent reports are submitted and accepted. A. Reporting Responsibilities PIs are responsible for preparing and submitting all technical reports and disclosure statements associated with their sponsored projects. Departmental Business Offices (DBOs), working in conjunction with their PIs and post award administrators, are responsible for finalizing the costs associated with their sponsored projects. Post award administrators are responsible for preparing and submitting final financial status reports required by sponsoring agencies. Post award administration on the New Brunswick and Camden Campuses is provided by the Division of Grant end Contract Accounting (DGCA). Post award administration on the Newark Campus is provided by the Grant & Contract Accounting -Newark (GCN). B. Final Costs The PI and DBO should monitor the award activity to insure all project costs are incurred prior to the award termination date and recorded thirty (30) days prior to the reporting date. During the sixty (60) day finalization period, the PI, DPO and DGCA/GCN should review program expenditures for any unallowable costs and agree on the appropriate adjustments. If at the conclusion of this process any unexpended project funds remain, they will be returned to the sponsor by the DGCA/GCN with the final fiscal report. C. Cost Sharing Information When cost sharing documentation is required, it must be submitted to the DGCA/GCN thirty (30) days prior to the final fiscal report due date. The final fiscal reports can not be filed without this information. D. Technical Reports Technical reports must be filed with the sponsor within the due dates established under the terms of the award. In order to effectively respond to inquiries received from sponsoring agencies concerning outstanding technical reports, the PI is required to copy the DGCA/GCN on the cover letter transmitting the report to the sponsor and if necessary any letter requesting an extension to file the report. The PI must also retain a copy of the technical report on file in his/her department for examination upon audit and as a backup in the event the report is lost in transit or misplaced by the sponsoring agency. E. Unallowable Charges If any unallowable charges remain on an account after the final fiscal report is filed, they must be cleared by the PI/DBO within six months after the award termination date. If the unallowable charges are not cleared, the DGCA/GCN is authorized to transfer the charges to any related account of the PI, Department Chair or Dean. F. Delinquent Reporting If and when delinquent reporting becomes a chronic problem with a particular PI, the Office of Research and Sponsored Programs, the Newark Office of Sponsored Programs and DGCA/GCN are authorized to suspend processing of new proposals and new account requests for the PI until the delinquent reports are submitted and accepted.

30. 30 Departmental Responsibilities for Close Outs 60 days before termination 30 days before termination 30 days after termination 90 days after termination Minimum of Sixty (60) Days PRIOR to Termination of Award: 1.       Discuss with DGCA responsible accountant status of award. Review all expenditures – salaries, fringe benefit reconciliation, and F&C reconciliation. If there are budgetary restrictions, check variances from budget to actual expenditures for non-compliance. Project ending balances. 2.       Request necessary budget revisions or no-cost extensions from the sponsor. Coordinate with DGCA. 3.       Coordinate with DGCA receipt of any subcontract closeout documents. Notify any subcontractors of deadline to submit final invoices. Minimum of Thirty (30) Days PRIOR to Termination of Award: 1.       Prepare all necessary payroll documents (PDR) to transfer expense to another funding source, or terminate personnel on award effective the last day of the award. 2.       Follow-up on all outstanding purchase orders, quicks for payment. Contact delinquent vendors to submit invoices to Disbursement control on valid commitments to expedite closeout. 3.       Cancel all invalid outstanding commitments by preparing Change Order Request form in accordance with University policy. 4.       Contact Telephone and Animal Care offices in writing to notify them to change account numbers being charged. 5.       Confirm all cost-sharing/matching detail delineated in proposal which DGCA is required to report to agency has been posted to the applicable accounts. 6.       Follow-up with Department Chair to ensure all effort certification reports (PACE) issued to data on award have been completed and submitted to DGCA. Thirty (30) Days AFTER Termination of award: 1.       Review all expenses after termination date to determine allowability. Prepare and submit to DGCA journal entry removing unallowable expenses. 2.       Contact DGCA representative to finalize costs on award. Ninety (90) Days AFTER Termination of Award: 1.       Review Final Financial Report, contact DGCA for any discrepancies 2.       Forward to DGCA a copy of the cover letter accompanying the Final Technical Report once submitted.Minimum of Sixty (60) Days PRIOR to Termination of Award: 1.       Discuss with DGCA responsible accountant status of award. Review all expenditures – salaries, fringe benefit reconciliation, and F&C reconciliation. If there are budgetary restrictions, check variances from budget to actual expenditures for non-compliance. Project ending balances. 2.       Request necessary budget revisions or no-cost extensions from the sponsor. Coordinate with DGCA. 3.       Coordinate with DGCA receipt of any subcontract closeout documents. Notify any subcontractors of deadline to submit final invoices. Minimum of Thirty (30) Days PRIOR to Termination of Award: 1.       Prepare all necessary payroll documents (PDR) to transfer expense to another funding source, or terminate personnel on award effective the last day of the award. 2.       Follow-up on all outstanding purchase orders, quicks for payment. Contact delinquent vendors to submit invoices to Disbursement control on valid commitments to expedite closeout. 3.       Cancel all invalid outstanding commitments by preparing Change Order Request form in accordance with University policy. 4.       Contact Telephone and Animal Care offices in writing to notify them to change account numbers being charged. 5.       Confirm all cost-sharing/matching detail delineated in proposal which DGCA is required to report to agency has been posted to the applicable accounts. 6.       Follow-up with Department Chair to ensure all effort certification reports (PACE) issued to data on award have been completed and submitted to DGCA. Thirty (30) Days AFTER Termination of award: 1.       Review all expenses after termination date to determine allowability. Prepare and submit to DGCA journal entry removing unallowable expenses. 2.       Contact DGCA representative to finalize costs on award. Ninety (90) Days AFTER Termination of Award: 1.       Review Final Financial Report, contact DGCA for any discrepancies 2.       Forward to DGCA a copy of the cover letter accompanying the Final Technical Report once submitted.

31. 31 Tools Available Grant Budget Report (GBR) Payroll Distribution Report (PDR) Online Financial Information System (OFIS) List serve Dgca_forum@email.rutgers.edu

32. 32 Websites Standards for University Operations http://www.rutgers.edu/oldqueens/standards.pdf University Regulations and Procedures Manual http://www.rutgers.edu/regulations/contents.html#6 ORSP web site http://orsp.rutgers.edu DGCA web site http://postaward.rutgers.edu

33. 33 Web Resources Personnel List Responsibility list Topics and references Federal & Other useful links Hot sheets ORSP – Proposal Information Web Resources Personnel List Responsibility list Topics and references Federal & Other useful links Hot sheets ORSP – Proposal Information

34. 34 QUESTIONS?

35. 35 Upcoming DGCA Workshops DGCA Procurement Issues The Basics of Cost Sharing Cost Sharing Filling Out the Forms For more info visit http://postward.rutgers.edu/new_shop.html

36. 36 Presented by: Steven Levenson Communication and Education Manager The Basics of Grant Administration Email: dgca1@rci.rutgers.edu