ECU FINANCIAL SERVICES WORKSHOP FEBRUARY 28, 2012

1. EAST CAROLINA UNIVERSITY OFFICE OF GRANTS AND CONTRACTS ECU FINANCIAL SERVICES WORKSHOPFEBRUARY 28, 2012 . grantsc@ecu.edu

2. GRANT REASSIGNED TIME • EMPLOYEE BUY OUT • SALARY CHARGED TO A GRANT INSTEAD OF THEIR STATE LINE/POSITION • LAPSED STATE SALARY DOLLARS (STATE POSITION) • MAY BE CONVERTED TO OPERATING FUNDS • GRANT & CONTRACT REASSIGNED TIME FORM (GCRT) – ON BUDGET OFFICE WEBSITE • http://www.ecu.edu/cs-admin/financial_serv/budget/budget-forms.cfm grantsc@ecu.edu

3. REASSIGNED TIME continued • NEED TO SUBMIT BUYOUT EPAF EARLY • NEED TO SUBMIT GCRT FORM EARLY • SIMULTANEOUS WITH EPAF APPROVAL • SUBMIT TO BUDGET OFFICE NOT OGC • LAPSED SALARY LIMITED TIME AVAILABLE • CURRENT FISCAL YEAR • WILL NOT NORMALLY BE CARRIED OVER TO NEXT FY grantsc@ecu.edu

4. HHS SALARY CAP • APPLIES TO ALL HHS AGENCIES • NIH, HRSA, CDC, FDA, ACYF, AHRQ, IHS, SAMHSA, etc. • IS A RATE OF PAY – NOT A CUMULATIVE AMOUNT PAID • $179,700/YEAR MAX • $14,975/MONTH MAX • $7,487/PAY PERIOD MAX • RESULTS IN MANDATORY COST SHARE FOR ANYONE WITH A UNIVERSITY SALARY HIGHER THAN THE CAP • EFFECTIVE AS OF 12/1/11 FORWARD EFFORT PERIODS grantsc@ecu.edu

5. HHS SALARY CAP continued • EFFORT COMMITMENT REMAINS THE SAME • IT IS ONLY THE RATE OF PAY THAT CAN BE CHARGED TO THE GRANT THAT HAS CHANGED. • EXAMPLE: $200,000 UNIVERSITY 12-MONTH SALARY, WITH 15% MINIMUM EFFORT COMMITMENT. MAX PAY IS $179,700/YR. • 15% = $26,955 MAX PAY RATE, BUT • $26,955 = 13% UNIVERSITY SALARY, THEREFORE • EPAF SHOULD BE FOR 13% $$ EQUIVALENT AND • 2% = WILL BE REQUIRED COST SHARE TO MAKE EFFORT COMMITMENT grantsc@ecu.edu

6. HHS SALARY CAP continued • EXAMPLE: $200,000 UNIVERSITY 12-MONTH SALARY, WITH 15% EFFORT COMMITMENT. MAX PAY IS $179,700/YR RATE. • EP PROCESSED AT UNIVERSITY RATE $200,000, $8,333/PP, 15% = $1,250/PP • AT EFFORT REPORTING TIME WITH 5 PAY PERIODS, TOTAL PAY IS $41,666 • ERS GRANT PAY IS SHOWING AS 15% AND $6,250 • BUT MAX ALLOWABLE IS $5,615 grantsc@ecu.edu

7. HHS SALARY CAP continued • IN ERS - WILL NEED TO COST TRANSFER OFF $635 FOR NEW TOTAL PAID OF $5,615 • THIS WILL EQUATE TO 13% OF SALARY FOR THE EFFORT PERIOD SO • 2% COST SHARE WILL NEED TO BE SHOWN TO MEET THE 15% EFFORT COMMITMENT • IF CORRECTING HR REDISTRIBUTIONS ARE PROCESSED BEFORE EFFORT CLOSES WILL ONLY NEED TO SHOW COST SHARE • WILL NEED TO REVIEW EACH ERS PERIOD AS THERE ARE DIFFERENT NUMBER OF PAY PERIODS IN EFFORT CYCLES grantsc@ecu.edu

8. HHS SALARY CAP continued • SUMMER SALARY FOR 9-MONTH WILL ALSO NEED TO FOLLOW SALARY CAP (IN ADDITION TO THE 133%) • MAX PAY PERIOD WILL BE $7,487. • SUMMER EPAF MAY NEED TO BE LESS THAN CALCULATED 100% PER PAY PERIOD • EXAMPLE: $200,000 FOR 9-MONTH, 133% = APPX $11,083/PP = 100% IN SUMMER • ACTUAL MAX = $7,487/PP = APPX 68% OF UNIVERSITY RATE CALCULATIONS • NORMALLY CANNOT COST SHARE IN SUMMER • SO SUMMER EPAF RATE WILL BE LESS THAN CALCULATED 100% SALARY RATE grantsc@ecu.edu

9. ALLOWABLE COSTS • APPLIES TO FEDERAL AWARDS • CERTAIN COSTS NOT NORMALLY ALLOWED AS A DIRECT COST • MUST HAVE A SPECIFIC APPROVAL FROM OGC • FEDS REQUIRE ECU TO HAVE AN INTERNAL POST-AWARD APPROVAL PROCESS • EVEN IF INCLUDED IN PROPOSAL BUDGET MUST DOCUMENT ECU POST-AWARD APPROVAL • SUBMIT ALLOWABLE COST EXCEPTION REQUEST TO OGC grantsc@ecu.edu

10. ALLOWABLE COSTS continued • COST MUST HAVE A DIRECT RELATIONSHIP TO THE GRANT PROGRAM • JUSTIFICATION MUST BE FOR EXTRAORDINARY NEED AND MITIGATING CIRCUMSTANCES – NOT ROUTINE NEED COMMON TO ALL PROJECTS • FEDS EXPECTATION THAT THE UNIVERSITY WILL BE A PARTNER/CONTRIBUTE TO COSTS OF THE RESEARCH • THEREFORE DEFINE CERTAIN ITEMS AS NORMALLY “F&A” NOT DIRECT COSTS • REQUIRE EXCEPTION APPROVAL grantsc@ecu.edu

11. ALLOWABLE COSTS continued • SUBMIT REQUESTS EARLY • PRIOR TO ACTUAL EXPENDITURE • AT TIME AWARD RECEIVED • REQUEST TOTAL PROJECT NEEDS • FOR DURATION OF THE PROGRAM • NOT INDIVIDUAL ITEMS; TOTAL ANTICIPATED FOR ALL CATEGORIES • WANT TO MINIMIZE THE NUMBER OF TIMES REQUEST EXCEPTION TO AVOID INCREASED AUDIT SCRUTINY grantsc@ecu.edu

12. EXCEPTION NEEDEDPARTIAL LIST – MOST COMMON • ADMINISTRATIVE/MANAGERIAL/CLERICAL SALARIES • GENERAL PURPOSE EQUIPMENT ($5K) • COMPUTERS, FURNITURE, FREEZERS, CAMERAS • GENERAL PURPOSE SUPPLIES • INCLUDES ALL OFFICE SUPPLIES • INCLUDES GENERAL PURPOSE EQUIPMENT ITEMS THAT DON’T MEET THE $5K EQUIPMENT THRESHHOLD • COMPUTERS/PERIPHERALS/IPADS • FURNITURE • FAX AND OTHER COMMUNICATION grantsc@ecu.edu

13. EXCEPTION NEEDED continued • LOCAL TELEPHONE CHARGES, TELEPHONE EQUIPMENT, FAX, CELLULAR, PAGER • POSTAGE/SHIPPING/MAILING, FEDEX/UPS, COURIER etc. • ONLY SHIPPING INCLUDED IN VENDOR INVOICE PURCHASE IS AUTOMATICALLY EXEMPT • DUES AND MEMBERSHIPS • ALTERATIONS & RENOVATIONS • STAFF RECRUITMENT/RELOCATION • SUBSCRIPTIONS/BOOKS/PERIODICALS grantsc@ecu.edu

14. QUESTIONS? FOR ADDITIONAL INFORMATION, CONTACT YOUR OGC REPRESENTATIVE OR WRITE grantsc@ecu.edu OR VISIT THE OGC WEBSITE AT http://www.ecu.edu/grants/ grantsc@ecu.edu