Pre-Award/Pre-Payment Accounts Research Administrators Meeting October 8, 2009

1. Amy Comer Assistant Director, Grants Administration Janice Grace Director, Industry Relations Meredith Rentz Director, Grants Management Pre-Award/Pre-Payment AccountsResearch Administrators MeetingOctober 8, 2009

2. Agenda • Key Definitions • Pre-Award/Pre-Payment Accounts • Policy and Form Update • Process and Review Criteria • Pros and Cons • Continuation Request • Clarify Purpose • Case Examples of When to Use • Open Discussion

3. Definitions • Non-Profit: federal, foundation, state, association funding including flow through from these sources • For-Profit: industry funding including flow through from industry • Competing: typically occurs every 5 years for federally sponsored grants • Non-Competing: typically refers to SNAP mechanism awards; are 5 years in which only progress report is due • Grant: financial assistance mechanism providing money to an eligible entity to carry out an approved project or activity (usually Investigator Initiated) • Contract: agreement between two or more parties for the doing or not doing of something specified

4. Pre-Award/Pre-Payment Accounts • Used to establish account prior to issuance of non-profit award • Used to establish account prior to first payment in for-profit clinical trials • Secured by non-sponsored funds account • Department responsible for ensuring expenses incurred before award do not exceed requested amount • Department responsible for ensuring regular reviews regarding continuation of account • Department responsible for management of expenses that need to be moved

5. Process: Pre-Award/Pre-Payment Account Requests • Evaluation completed by department • Form completed, signed by Chair and submitted to Office of Research • Evaluation by Office of Research • Office of Research signs, sends form to Controller’s Office • Controller’s Office establishes account based upon the information provided

6. Evaluation Process • Probability of receiving funding is high • Just in Time (JIT) received • Tentative award received • Receive notice that funds will be forthcoming • Executed contract (for-profit clinical trial) • Need to incur expenses before award (non-profit) or payment (for-profit) received • Need to order supplies • Need to get personnel hired

7. Continuation Requests • Used only for non-competitive years of subawards • Requires back up from sponsor • Allows expenses to continue past the end date • Ensures payroll is in the right place and no changes are needed • CO sends list in the spring of those requiring forms to ensure time for Fiscal year rollover • Does not apply to for-profit awards/contracts

8. Pre-Award/Pre-Payment Account: To request or not to request? Pros • Chartfield established • Allows spending to be isolated, auditable • Payroll is placed correctly, allows for effort to be properly accounted for • Allows clinical trial to get started earlier Cons • May have to cover costs later if award is not received • Chair has to sign another form • Department has to monitor

9. Example: Pre-Award Account • Dr. Ara has been told by his program officer at the NIDDK that his R01 proposal will be awarded to him in September. It is July and he wants to start work. Can he?

10. Example: Continuation Account • Dr. Prepared has a grant from Duke which has a grant year of 7/1 thru 6/30. The prime award for Duke is from NIH. It is year 3 of the grant. It is now May and she must get her payroll adjustments completed in June before fiscal year rollover. What do she need to do?

11. Example: Pre-Payment Account • Dr. Apple works closely with Pfizer and they have assured her that the clinical trial contract will be signed off by their legal department as soon as possible. Can she get a chartfield set up now?

12. Open Discussion • Have you used a pre-award/pre-payment account? • What questions do you have of when you should or could use one of these accounts? • What issues have you faced in managing these accounts? • What keeps you from using these accounts?