Managing Funds for Non-Competing Years

1. Managing Funds for Non-Competing Years April 16, 2013 Pre-Award Matters That Affect Post-Award Compliance MODULE Session 4of Series III AAPLS (Applicants & Administrators Preaward Luncheon Series)

2. Goals • Identify the key mechanisms for managing funding in non-competing award years: • Annual Progress Reports • Rebudget Requests • No-Cost Extensions • Carry-forward Requests • Provide tools for successful management through the use of case studies.

3. General Notes – Annual Progress Reports • Format and deadline dictated by the sponsoring agency. • NIH currently uses the eSNAP module for awards covered under SNAP. • Effective July 1, 2013, NIH and other federal agencies will use the RPPR module for SNAP and fellowship awards. • MY NCBI feature must be used to report resulting publications. • Awards will be delayed if publications are not in compliance with the NIH Public Access Policy. • Internal approval forms are needed.

4. Estimate expenses for the next three months and balance at the end of the year. • If more than 25% of the budget will remain ($62,500), report and justify the reason for the unobligated balance in progress report. • If annual financial reporting is required, work with SPA to ensure all appropriate expenses are allocated to the account. Dr. Green is the recipient of an NIH-funded R01. There are 90 days remaining before Year 4 of the 5-year project ends. Based on his recent financial summary report, Dr. Green has $100K of his $250K budget remaining. What should he do to prepare for the end of the current budget year?

5. Request a rebudget. In looking more closely at the expenses on his financial summary report, Dr. Green realizes that a portion of the unobligated balance was intended for a piece of equipment ($50K) that is no longer required for the project. What should he do?

6. Request a no-cost extension. There are 90 days remaining before the end of Year 5. In reviewing the scope of work for the project, Dr. Green recognizes that more time is needed to complete the project. What should he do?

7. Estimate expenses for the next three months and balance at the end of the year. • If more than 25% of the budget will remain ($25,000), report and justify the reason for the unobligated balance in progress report. • If annual/final invoice is required, work with SPA to ensure that all appropriate expenses are charged to the account. • Prepare a formal carry-forward request. • Follow-up on carry-forward request. Dr. Smith is the sub-recipient of an NIH-funded R01 that was awarded to APPLS University. There are 90 days remaining before Year 2 of the 5-year project ends. Based on his recent financial summary report, Dr. Smith has spent $65,000 of the $100,000 he was awarded. What should he do to prepare for the end of the current budget year?

8. Carry-forward Request Process

9. Determine if the reduction in effort is within a 25% variation. • 3.6 – 6 = 2.4; 2.4/6 = 40% change • Determine if the scope of work remaining for Year 2 will allow for a reduction in the Co-Investigator’s effort for the last 90 days so that s/he is within a 25% variation. • If not, provide a rationale for the change in the progress report. In reviewing his labor report, Dr. Smith notices that his Co-Investigator contributed 3.6 calendar months in Year 2 instead of 6 calendar months as reported in the progress report previously submitted. What should he do?

10. Determine if the reduction in effort is within a 25% variation. • Dr. Smith: 3.0 – 3.6 = 0.6; 0.6/3.6 = 16.67% change • Co-Investigator: 2.4 – 3.6= 1.2; 1.2/3.6 = 33.3% change • Report the Co-Investigator’s reduction in effort in his progress report. • Only if the Co-Investigator is a named Senior/Key Person in the Notice of Award from NIH. In re-visiting the scope of work and budget for Year 3, Dr. Smith believes it is necessary to reduce his time from 3.6 calendar months to 3.0 calendar months, and his Co-Investigator’s time from 3.6 calendar months to 2.4 calendar months. What should he do?

11. Request an Account Create Without Documentation (ACWD)/Advance Account. • Required information: • Reason for creating the advance account. • A detailed budget. • Correspondence from the sponsor (or prime institution in the case of a subcontract) indicating that the award is forthcoming. • A DeptID that will absorb the expenses in the event the award is not executed. • Approval from the School’s BFO, ORA, and SPA. After submitting his progress report, Dr. Smith has learned from his collaborator at APPLS University that there will be a delay in Year 3 funding and that a subcontract amendment will not be executed before the start date of Year 3. What should he do?

12. ACWD/Advance Account Process

13. Use new account number to update: • Personnel Action Forms (PAFs) • P-card and Marketplace • Purchase Orders • Professional Services, Subcontracts, etc. • Service Center allocations • Follow-up with his collaborator at APPLS University as to the status of the subcontract amendment for Year 3. Dr. Smith’s ACWD was approved and account APP123 was set-up for Year 3 expenses. What should he do as a result of the new internal grant number?