Sponsored Programs

1. Sponsored Programs Additional Review Steps

2. Sponsored Program Section Content • How to Identify a Sponsored Program • Types of Costs • Review Budget to Actual • Actions required 30 days prior to and at the end of a grant period. • List/Reference to Unique Aspects of Sponsored Programs

3. Sponsored Program Section Objectives • To be able to readily identify a sponsored program project in the Integrated System • To understand Direct vs Indirect (F&A) costs and how to review each • To understand actions required 30 days prior to and at the end of a grant period. • To gain a general understanding of resources related to the specific restrictions and reporting required for sponsored programs.

4. Sponsored Program Award Prefixes

5. Types of Costs • Direct Costs • Costs that provide direct benefit to a sponsored project’s scientific or technical scope of work. • Facility and Administrative (F&A) or Indirect Costs • The negotiated F&A rate is applied to the direct costs to add the cost of space, utilities, office supplies, and other essential infrastructure ‘overhead – type expenses.

6. Direct Costs • Just like costs reviewed on non-sponsored program awards • Salary • Wages • OTPS types of costs • Need to ensure costs are ‘allowable’

7. Review Direct Costs • Can the cost be specifically identified with a project with relative ease and with a high degree of accuracy? • Is the cost allowed by all terms and conditions governing a particular award? • Is the documentation sufficient to validate the relationship between the expenditure and the purpose of the award?

8. F&A Costs (Indirect Costs) • F&A will be charged to all qualifying direct costs charged to your sponsored project. • How do you determine the rate applied to your sponsored project? • Run the Discoverer report called IS.FM_Indirect Cost Rate Schedules

9. Review Budget to Actual • Have expenditures exceeded the budget? • Check that both Direct and F&A expenditures are in-line with the budget categories?

10. 30 Days prior to end of Grant Period • If appropriate and at the request of the PI, file necessary paperwork with OSP to set up new preliminary account. • At PI request, file necessary paper work with OSP for no cost extensions. • If project is in deficit, take actions to clear deficit. • Notify OSP Accountant (Project Manager) of any remaining cost overruns.

11. Sponsored Programs Appendix of Reference Materials

12. Sponsored ProgramsReference Appendix Content • Notice of Award • Federal Regulations • How is your award funded? • Cost Sharing • Direct Costs • Cost Transfers • Retro Cost Transfers • F&A Costs • Subcontracts • Required Actions

13. Know your grant! • Review Sponsors Notice of Award (NOA) and the OSP NOA. • Verify that all data on both are accurate • Direct & Indirect (F&A) dollar amounts • Begin, End, and Close dates • Verify Grant dollar Amount is the same as the budget • Verify F&A / Indirect Cost rate is correct • Familiarize yourself with the Terms and Conditions • Know whether award has cost-sharing or not

14. Additional Regulations • Know which Federal and Institutional regulations and policies apply. http://www.virginia.edu/sponsoredprograms/ • All Federal Grants are governed by costing accounting standards stated in the Federal OMB Circular A-21. http://www.virginia.edu/sponsoredprograms/casguidelines.pdf

15. How is your award funded? • Event Based Billing • Sponsor invoiced based on a particular event (eg, time period, specific event such as a holding a clinical trial, etc) • Cost Based Billing • Sponsor invoiced at the end of each period based on actual costs incurred during the preceding period.

16. Cost Sharing • When UVA Contributes money or items of value toward the cost of the project • Might be required by the sponsor or may be ‘voluntary’ on the part of the institution • More than a nominal Amount • More commonly found on grants and cooperative agreements than on contracts

17. Methods of Cost Sharing • Effort • percentage of Salary & Wage for specified individuals • fringe benefits • Cash (direct expenditure costs) • Equipment • Un-recovered Facilities and Administrative Costs • F&A Costs

18. Incurred Direct Costs Must Be: • Allowable • Under the provisions of the Circular AND under the terms of the particular award. • Allocable • The project must directly benefit from the expense. • Reasonable • In that a “prudent person’ would have paid the same price.

19. Direct Costs: What to look for • Have expenditures been incurred during the allowed period? • Are all expenditure allocable? • Are there unallowable expenditures? • Has cost sharing happened where appropriate?

20. Cost Transfers • Governed by the same costing principles as direct costs: • Allowable • Allocable • Reasonable • UVA policy: Section VIII.8-20 of UVA Procedures http://www.virginia.edu/finance/polproc/proc/8-20.html#top • Requires knowledge and approval of PI • OSP responsible for approving or rejecting

21. Retro Cost Transfers • Applies to transfer of any grant expenditures over 90 days old, including labor distribution or awards where the end/cose date is in the past. • Complete OSP Retro Request Form and send to osp-retro-request@virginia.edu • Requires OSP retro approval number • UVA policy: Section VIII.8-21 of UVA Procedures http://www.virginia.edu/finance/polproc/proc/8-21.html • Requires knowledge and approval of PI • OSP responsible for approving or rejecting

22. F&A Costs • Basic rates: • On-Grounds Research • On-Grounds Public Service • Off-Grounds Research • Off-Grounds Public Service • Two basic types: • Total Direct Costs (TDC) • Modified Total Direct Costs (MTDC) NOTE: Add web-site link

23. Review Indirect Costs (F&A) • F&A accrued each day on which there are applicable direct cost expenditures. • Cumulative, that is, one F&A calculation for all expenditures on a given day.

24. What to look for • Were correct Expenditure Types used on subcontract invoices? • Svcs, Subcontracts, Sponsored Program [first $25,000 each subaward] • Svcs, Subcontracts, OSP, No F&A [all payments above the $25,000 thresh hold]

25. Actions at end of Grant Period • If cost sharing on the award – file report with OSP. (Note:NOA T&C may dictate more frequent reporting of Cost Sharing information) • Clear out all commitments • Make sure all POs are finally closed • Make sure all Sub Contractor invoices have been received and paid. • Make sure all p-card expenditures are included. • If project is in deficit, take actions to clear deficit.