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Successful Pre- and Post-Award Collaborations Start with Good Proposals and Agreements Nancy Daneau, Office of Sponsored Programs Joanne Goldstein and.

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Presentation on theme: "Successful Pre- and Post-Award Collaborations Start with Good Proposals and Agreements Nancy Daneau, Office of Sponsored Programs Joanne Goldstein and."— Presentation transcript:

1 Successful Pre- and Post-Award Collaborations Start with Good Proposals and Agreements Nancy Daneau, Office of Sponsored Programs Joanne Goldstein and Michael Miller, Sponsored Programs Accounting

2 What we’ll cover today…. Common issues that arise during proposal development and award negotiation that impact our post-award colleagues Solutions for the pre-award administrator to be proactive and pre-empt problems How to coordinate and manage the process to facilitate effective project management and foster good relationships

3 Budget Development “hot potatoes” Identify Cost Categories: Unidentified Costs – May cause overruns on the award Institution shares in cost of research effort – May require sponsor approval for rebudgeting Holds up post-award invoicing and financial reporting – Bottom line: Not in the budget? Ask. Personnel Costs: Proposal vs. Expenditures – Reports of time and effort are certified – Bottom line: Reporting = Audits = Findings

4 Budget Development “hot potatoes” (cont’d)… Itemize Costs Correctly: Follow the Rules – Salary vs. Stipend Stipends not allowable on research grants, only on training/ fellowship grants Employer/employee relationship = salary Trainee/fellow entitled to living allowance = stipend Consider immigration status in allowability – Must be US citizen or permanent resident (green card) to receive stipend – Materials & Supplies vs. Equipment Threshold for capital equipment = $3,000 at NYU, with a useful life of at least 1 year F&A rate applied to materials and supplies, but NOT to capital equipment items

5 Budget Development “hot potatoes” (cont’d)… – Travel: domestic vs. foreign Domestic: in-state or out-of-state Foreign: allowable with prior approval, certain restrictions apply Know basis/rates for reimbursement – Use NYU per diems or actuals, not combination of both! – Understand need for detailed meal receipts, not just credit card slips – Subawards vs. subcontracts Difference between the “big S” and the “little s” – Programmatic effort (“big S”) vs. goods and services (“little s”) Impact on F&A/indirect cost recovery on federally funded projects – F&A assessed on only the first $25K of the “big S” – F&A assessed on full amount of “little S” Flow-down of prime award terms and conditions required for “big S”, not for little “s” Subrecipient monitoring required for “big S”, not for “little s”

6 Budget Development “hot potatoes” (cont’d)… Pieces needed for the “big S” – Subawardee budget, Statement of Work (SOW), institutional approvals – Impact if not on file or request to issue Sub not initiated internally Late issuance Late start of work by collaborator Late invoicing and payment Late reporting – Impacts the progress of the overall effort – Remember, your institution as prime recipient is ultimately responsible for conduct of the work and meeting sponsor requirements!

7 Budget Development “hot potatoes” (cont’d)… Are costs allowable, allocable, reasonable, consistently treated? – Sponsor guidelines – OMB Circular A-21 – Institutional Rules Are costs direct or F&A/indirect? – Direct: costs identifiable to a specific project – Indirect: costs incurred as part of overall operations Ex: Direct vs. Administrative (F&A) costs – Salaries and wages of clerical/administrative staff generally *unallowable* as direct Ex: General office supplies, unallowable as direct charges Exception: meet the test of “major project” as defined in Exhibit C of A-21 Application/treatment of costs should be consistent

8 Cost Sharing “hot potatoes” Most institutions’ policies, written or not: – No cost sharing unless mandated/required by sponsor Voluntary committed cost sharing – Faculty/key personnel time and effort stated but not fully charged to the sponsored award Must be tracked and reported upon Has negative impact on F&A/indirect cost recovery – Indirect Cost Waivers Does the difference between NYU’s federally negotiated rate and the reduced rate you agree to accept on the award represent cost sharing? – Only if feds approve and only applies to federal awards

9 Budget Development Hints and Tips Project the future: Look toward reality – Ask the question: What will it take to do this project? – Work budget backward starting with total costs – Compare reality with proposed budget – Plan so that every dollar is utilized to PI and institution’s best advantage: ask every question to get the full cost impact from your PI

10 Budget Development Hints and Tips Impacts of poor planning: – Loss of direct cost funding available to the project – Loss of F&A/indirect cost recovery – Disallowances Open communication reduces potential for: – Excessive, inappropriate, or late cost transfers – Manual adjustments – Disallowances – Revised invoices/financial reports – Audit findings – Loss of expanded authorities or letter of credit drawdown eligibility

11 Award Terms & Conditions “hot potatoes” Period of Performance dates – Effective date vs. execution date – Funding authorizations Budget periods Incremental funding Supplemental funding – Impacts allowability of expenditures Rebudgeting – Institutional policy – Sponsor policy/prior approval requirements – Impacts ability to get reimbursed and project planning

12 Award Terms & Conditions “hot potatoes” (cont’d)… Invoicing – Format and documentation Standard Sponsor specifies, non-standard with back up documentation required (negotiate!) – Tied to award type Cost reimbursement (CR) or fixed price (FP) – Frequency CR: in arrears monthly, quarterly, semi-annually, annually FP: up-front, per milestones reached, at completion Combination: tied to progress or deliverables

13 Award Terms & Conditions “hot potatoes” (cont’d)… Payment terms – Upon execution/initiation – Fixed schedule of installments – Milestone payments – Upon completion/termination – Withholding of percentage or amount – Net 30 days standard – Non-standard can impact institution’s cash flow Remember, revenue is generated based on expenditures NOT representative of cash on hand or payments made by sponsor – Consider institution’s cash outlay and outstanding A/R

14 Award Terms & Conditions “hot potatoes” (cont’d)… Deliverable/Reporting Requirements – Technical Progress Final – Financial SF 269, SF 270, and SF 272 for fed grants Sponsor specified forms Timeframe for submission – Cost Sharing Sponsor specified format for documentation Letters from 3 rd party contributors School/dept to certify that cost share requirement met

15 Award Terms & Conditions “hot potatoes” (cont’d)… – Property/Equipment Annually and/or At completion – Invention Upon internal disclosure At completion – Timely report submission impacts A/R, relationship between central offices with responsibility/oversight and PI/institution’s reputation with sponsor Delinquent reports = potential for sponsors to withhold funding on *all* awards Label your institution as “not responsible”; can impact future competitions

16 Award Terms & Conditions “hot potatoes” (cont’d)… Problematic Terms and Conditions/Clauses Publication – Restrictions and prior approval requirements – Impacts ability to disseminate research results Export controls – Acceptance of controlled or proprietary technology, items covered by EAR/ITAR – Restrictions on hiring foreign students – Impact: Loss of fundamental research exclusion Intellectual property – Internal invention disclosures – Disclosure to sponsor – Impacts: loss of ability to file provisional patents, legal battles over inventorship if proper disclosures not made

17 Award Terms & Conditions “hot potatoes” (cont’d)… Early Termination/Stop Work Orders – Coverage for non-cancellable commitments – Notifications – Account “suspension” by SPA changing the end date – Reconciliation of account(s) – Settlements and repayment to sponsor if necessary Legal terms (indemnification, venue, governing law, etc.) – Require legal counsel review/approval – PI consent?

18 Award Terms & Conditions “hot potatoes” (cont’d)… Compliance – Human/animal subjects – Conflict of Interest – Committee review/approvals – Institutional policies: cost transfers, business expense, purchasing, etc. – Impacts level of risk to the PI, dept, institution

19 Award Classification “hot potatoes” Award instrument – Grant, contract, subaward, subcontract Award type – Cost reimbursement, fixed price, gifts (restricted and unrestricted) Sponsor type – Federal, state, city, county, commercial/ private, non-profit

20 Award Classification “hot potatoes” (cont’d)… Proper identification integral to: – Account set-up (“at-risk” or upon receipt of executed award) – Consistency re: data warehouse – Precedence (gift vs. grant, GRIFTS) – Integrity of financials (OMB A-110) – Audited financial statements (OMB A-133) Impact on consistency and accuracy: – Internal reporting – External reporting – A-133 reporting – Cost accounting standards

21 Account Set-Up “hot potatoes” Single PI Multiple PI’s – One account shared or separate accounts for each? – PI’s from different departments/divisions – Access? – Controls? Budget years vs. cumulative project period – Separate accounts? – Carry forward Automatic? Prior approval required?

22 Account Set-Up “hot potatoes” (cont’d)… Interest Earned – Return to sponsor? – Use toward the project? – For use at institution’s discretion? Tracking Reporting Interest Income – Tracked separately from revenue Program Income – Route to SPA; deposited to deferred revenue, – SPA increases project budget – User fees: deposit against same cost center where expense incurred Reimbursements from 3 rd parties – deposit against line expense was incurred Cost sharing – Need to establish program/project – Identify cost share funding – Post expenditures accordingly – Certify once obligation met

23 Pre-award keys to success Training: – PI’s: ask them the same questions for each proposal; explain your expectations and it will become habitual – Faculty Assistants: understand the relationship between the PI and his/her assistant and ally yourself with both – Share all training opportunities with anyone who works in the process Serve the Greater Good: – Explain the impacts on the institution for a poorly planned budget – Remind your team that what serves the institution helps everyone

24 Pre-award keys to success (cont’d)… Get to know your neighborhood: – Meet and talk with all members of the community in the process during the lull – Knowing who does what and who can help during a crisis will help Do what works for you: – If logic doesn’t work, resort to emotion – even guilt – If you are a teacher, teach; if you are a listener, listen – use your skills to advance the process Patience and planning will go a long way!

25 Building the bridge with post-award Building allies between pre-award and post-award: – Serve as the primary point of contact/gatekeeper between the PI, dept and the post-award team (too many cooks in the kitchen….) – Learn about and anticipate the needs of your post-award counterparts – Educate your post-award counterpart on the specifics of each project – Communicate often, even when you think it insignificant or not in their “realm” – Keep people apprised of your expectations – Interact regularly, not solely when there are fires to be put out – Utilize them as the resource they are for your PI’s or dept – Maintain your sense of humor!

26 Building the bridge with post-award (cont’d)… Understand award terms and conditions so you can negotiate the best deal for all the players Realize sponsor restrictions and special requirements; negotiate to standardize when it makes sense and is possible Accept differences between the variety of sponsors and awards; there is no cookie cutter solution Job security: A day in the life of a research administrator is never without a new twist!

27 Resources….Links Business Expenses, Expense Reimbursement policies – Cost Transfer Interim Guidelines: – Purchasing Policies, including Purchasing Card – Asset Management Procedures & Forms – OSP Policies & Procedures including NYU Policy on Distinguishing Between Gifts and Sponsored Awards –

28 Questions/Comments? Contact info. for follow-up questions: – Nancy Daneau, – Joanne Goldstein, – Michael Miller, Thanks for joining us!


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