TRACK II – OVERVIEW OF SPONSORED PROJECTS SERVICES

1. TRACK II – OVERVIEW OF SPONSORED PROJECTS SERVICES Julia Wood

2. AGENDA • DEFINITION OF A SPONSORED PROJECT • SPS STRUCTURE • SPS HOME PAGE RESOURCES • THREE COMMON PROBLEM AREAS • USEFUL LINKS

3. DEFINITION • A project is considered a "sponsored project" if it meets any one of the following criteria: • Project binds the University to a specific scope or area of work • progress, technical, or final reports or other deliverables are required • billing, separate accounting procedures, or report of expenditures are required • unexpended funds must be returned to the sponsor at the end of the project

4. DEFINITION • The project involves disposition of property, whether tangible or intangible, that may result from the project (e.g., equipment, inventions, copyrights, or rights in data) • the project has a specified performance period or completion date • the project has budgeted indirect costs • the contract contains intellectual property terms

5. SPS STRUCTURE • PREAWARD • Proposal routing, review, and approval • Submission of proposals to sponsoring agency • Receipt, review, and negotiation of grants and contracts • Assignment of FRS account numbers for new grants and contracts • Provide authorization to Post Award to set account up in FRS

6. SPS STRUCTURE • POSTAWARD • Account monitoring from set-up to close-out • Compliance with Sponsor and University regulations, invoicing, aged accounts receivable, financial reporting, expense transfers, etc. • Assist PI and department with account monitoring and resolution of accounting issues/problems

7. SPS STRUCTURE • CASH MANAGEMENT • Monitors cash received on sponsored accounts • Identifies and posts receipts to the general ledgers • Letter of credit • Cost sharing certifications

8. SPS STRUCTURE • PROPERTY ADMINISTRATION • Monitors capital purchases on sponsored accounts • Determines title and sponsor requirements • Submits property reports to sponsoring agencies • Follows up on delinquent PI technical reports

9. SPS HOME PAGE • http://www.sps.arizona.edu/

10. COMMON PROBLEMS • PROPOSAL ROUTING SHEET • AVAILABLE BALANCE OF A SPONSORED PROJECT ACCOUNT • ERROR CERTIFICATION-COST TRANSFERS

11. PROPOSAL ROUTING • PROPOSAL MUST BE ROUTED AND SIGNED BY SPS PRIOR TO SUMBISSION TO A SPONSORING AGENCY • PROPOSALS GENERALLY CONSIST OF THE FOLLOWING ELEMENTS: • Transmittal Letter • Title Page (Application Page, Face Page) • Abstract • Table of Contents • Introduction or Background

12. PROPOSAL ROUTING • Technical Description past work in the area objectives or proposed research method of operation, significance list of references cited Personnel • Current and Pending Support • Facilities • Budget and budget justification • Vitae and other appendices

13. 12/1/05 1/31/05 Wilber@u.arizona.edu Wildcat, Wilber 626-6000 Sponsored Projects 9001 626-4137 Wood, Julia 626-6155 jhwood@email.arizona.edu Study of XYZ in Relation to ABC NSF UCLA (SUB NSF) 151,000 7/1/06 6/30/07 X X 51 X X

14. 52 510 X X X X X X X X X X X X X X X

15. X 12345678 Wildcat, Wilber 10% 9001 100 9001 100

16. Wildcat, Wilber SEE SPS WEBSITE FOR NEW SIGNATURE POLICY

17. AVAILABLE BALANCE • FOLLOW INSTRUCTIONS IN FRS DEPARTMENTAL MANUAL, SECTION 16.31 DETERMINING AVAILABLE FUNDS • OMITS TWO KEY FACTORS -IDC RATE AND BASE -IDC ENCUMBRANCE

18. AVAILABLE BALANCE ITD bdgt. -ITD actual exps. -IDC on current week IDC bearing exps. -Valid non IDC bearing enc. -Valid IDC bearing enc. + assoc. IDC -Valid pending transactions + assoc. IDC ___________________________________ Total Unexpended Balance

19. AVAILABLE BALANCE TOTAL UNEXPENDED BALANCE DIVIDED BY 1.IDC RATE EQUALS TOTAL DIRECT UNEXPENDED BALANCE TOTAL UNEXPENDED BALANCE MINUS TOTAL DIRECT COST UNEXPENDED BALANCE EQUALS THE TOTAL INDIRECT UNXPENDED BALANCE REFER TO HANDOUT EXAMPLE

20. ERROR CERTIFICATION • AUDITORS USE NACUBO’S “A GUIDE TO MANAGING FEDERAL GRANTS” • THE NACUBO PUBLICATION REFERS TO TWO FEDERAL GUIDELINES ON COST TRANSFERS: OMB CIRCULAR A-21 AND THE PHS GRANTS POLICY STATEMENT

21. ERROR CERTIFICATION • "Transfers of costs to PHS grants by grantees, subgrantees, and contractors that represent corrections of clerical or bookkeeping errors must be made promptly after the error is discovered. The transfers must be supported by documentation that contains a full explanation of how the error occurred and a certification of the correctness of the new charge by a responsible financial or administrative official of the recipient organization. An explanation which merely states that the transfer was made 'to correct error' or 'to transfer to correct project' is not sufficient. It should be noted that frequent errors in the recording of costs may indicate the need for improvements in the grantee's accounting system and/or internal controls. Therefore, where such errors occur, grantees are encouraged and may be required to evaluate the need for improvements in these areas and to make what improvements are deemed necessary."PHS Grants Policy Statement 7-18

22. ERROR CERTIFICATION • "Any costs allocable to a particular sponsored agreement under the standards provided in this Circular may not be shifted to other sponsored agreements in order to meet deficiencies caused by overruns or other fund considerations, to avoid restrictions imposed by law or by terms of the sponsored agreement, or for other reasons of convenience."OMB Circular A-21, C.4.b

23. ERROR CERTIFICATION • EXPENSE TRANSFERS ONTO FEDEDERAL AND SUB FEDERAL ACCOUNTS THAT ARE GREATER THAN 30 DAYS PAST THE RUN DATE • MUST BE FILLED OUT COMPLETELY • QUESTION NUMBER TWO IS THE REASON MOST CERTS ARE RETURNED TO THE DEPT • REFER TO HANDOUTS

24. SPS RESOURCES • SPS Home Page http://www.sps.arizona.edu/ • Staff Directory http://www.sps.arizona.edu/staff.htm • PI Handbook http://www.sps.arizona.edu/handbook/ • OMB Circular A-21 “Cost Principles for Educational Institutions” http://www.whitehouse.gov/omb/circulars/a021/a21_2004.html • OMC Circular A-110 “Uniform Administrative Requirements for Grants and Other Agreements With Institutions of Higher Education…” http://www.whitehouse.gov/omb/circulars/a110/a110.html

25. RAM TALK • LISTSERV FOR BUSINESS MANAGERS, ACCOUNTANTS, ETC, FOR UPDATES ON CURRENT ISSUES ON RESEARCH ADMINISTRATION FROM SPS • TO SUBSCRIBE, SEND AND EMAIL TO VONFANGE@EMAIL.ARIZONA.EDU • CLOSED LISTSERV

26. QUESTIONS?