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Follow up discussions on cost sharing Office of Research Administration September 10, 2009.

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Presentation on theme: "Follow up discussions on cost sharing Office of Research Administration September 10, 2009."— Presentation transcript:

1 Follow up discussions on cost sharing Office of Research Administration September 10, 2009

2 Today’s topics Lessons learned since implementation of companion awards Overview of cost sharing For awards resulting from proposals submitted on or after April 1, 2008: – Setting up companion awards – Cost sharing resulting from post award deviations – Funding and final review of cost sharing

3 Lessons Learned Update on the process from the Divisions – Set up one Salary Cap project # per PI for salary cap monitoring Update on the process from PA – Number of companion awards set up so far 12 Cost sharing companion PTAs 57 Salary cap companion PTAs: – Unanticipated problems CIT cost share customer name was not used – Voluntary cost sharing and overhead recovery So far only one award – Main award will not be activated until cost share funding source information is available

4 Cost Sharing - Overview Portion of research cost that is not borne by the sponsor – Primarily required by federal sponsors – Pledge can be % of total project costs or a fixed amount – Obligation must come from GB, Endowment, discretionary or other non federal Federal regulations require recording and tracking in the financial system – Cost shared expenses – Faculty effort variations – NIH salary cap

5 Cost Sharing - Overview Only allowable direct costs can be cost shared – Faculty salaries/benefits – Non faculty salaries/benefits – GRA assistantships and tuition – Equipment and M&S – Other direct costs

6 Cost Sharing - Overview Types of cost sharing (CS) – Mandatory (requires tracking via CS PTA) Required under sponsor eligibility criteria Sponsor imposed cap on salary – Voluntary Committed (requires tracking via CS PTA including unrecovered overhead) PI offered in proposal – Voluntary Uncommitted (does not require tracking) PI cost shared during life of award References: OMB Circular A-110, Subpart C.23, Post Award Administration, Cost sharing, OMB, M-01-06, Memorandum for The Heads of Executive Departments And Establishments, Clarification of OMB A-21 Treatment of Voluntary Uncommitted Cost Sharing and Tuition Remission Costs

7 Cost Sharing - Overview Commitments reported on the DAF

8 Cost Sharing - Companion Awards At acceptance of the award* – OSR  Provides PTA create information  Requests cost share funding source/s – Division  Submits request for main and companion PTAs  Provides cost share funding source/s to OSR – OSR activates main PTA only after receiving cost share funding source information  *Same process applies to “At Risk” PTAs

9 Cost Sharing - Companion Awards Naming convention for companion awards – Mandatory and voluntary cost sharing = ZOACS.XXXXX  Z - so this PTA always appears last on PTA listings/reports  OACS = Other Activities Cost Sharing  XXXXX – Should be the same as Caltech award number – Salary cap = SAL.XXXXX Example: NIHSAL.12345; or subaward: USCSAL When setting up companion PTA (including salary cap), select “CIT Cost Share” for Funding Source Name

10 Cost Sharing Companion PTA Example

11 Salary Cap Companion PTA Example Create one salary cap project # with indefinite end date per faculty/PI using PI initials: XXX.SALCAP Create salary cap award for each discrete award: SAL.XXXXX – When submitting create request, use “CIT Cost Share” for Funding Source Name Salary cap project is linked to CIT salary cap award, NIHSAL CIT salary cap PTA is linked to the main PTA by the funding source award # PROJECT ABC.SALCAP CIT AWARD NIHSAL FUNDING SOURCE AWARD NUMBER R CIT AWARD USCSAL FUNDING SOURCE AWARD NUMBER P CIT AWARD NIHSAL.U54C02 FUNDING SOURCE AWARD NUMBER U

12 Salary Cap Calculation-Example Professor Vincent’s base salary is $251,800, which exceeds the NIH cap of $196,700 (effective Jan,’09). He commits to and spends 20% of his time on NIH.12345, 30% on NIH.67890, and 50% on GB PTA3. – % of salary allowed on NIH = (196,700/251,800)*20%= 15.6% – % of salary allowed on NIH = (196,700/251,800)*30%= 23.4% Over-the-cap portion of the salary must be charged to two companion salary cap PTAs – 4.4% to NIHSAL – 6.6% to NIHSAL.67890

13 Cost Sharing-Resulting from post award deviations Deviations from committed effort of key personnel may require cost sharing (from ITD Balance Report) – If salary charged is 25%, then either: the PI did not work at the level committed – Requires sponsor approval OR the PI did not charge all of the effort to the project and the difference is voluntary cost sharing – Requires ZOACS companion award – Requires PI to cover the unrecovered F&A

14 Cost Sharing-Resulting from post award deviations – If salary charged is < % effort committed in awarded budget & the reduction is < 25%, then either: the PI did not charge all of the effort to the project, the difference becomes voluntary “committed” cost share – Requires ZOACS companion award – Requires PI to cover unrecovered F&A OR the PI did not perform at the committed level of effort and the reduction needs to be formally documented, via progress report (NIH, NSF) or written notification to PA

15 Voluntary Committed Cost Sharing- Resulting from post award deviations Example 1: PI committed 10% effort, charged 8% salary to the award and indicated 10% effort on the PDC report – 2% difference is voluntary committed cost sharing – Requires ZOACS companion award Example 2: PI committed 10% effort, charged 8% salary to the award, and certified PDC for 8% effort commensurate with payroll – 2% difference is voluntary committed cost sharing – Requires ZOACS companion award Example 3: PI committed 10% effort, charged 8% salary to the award and certified PDC for effort commensurate with 8% pay; but indicated 15% in the progress report submitted to sponsor (NIH, NSF) – 2% difference between committed effort and payroll distribution is voluntary committed is cost sharing – Requires ZOACS companion award *Note: the remaining 5% (difference between effort committed and declared in the progress report) is voluntary uncommitted cost sharing and will not require a ZOACS companion award

16 Cost Sharing – Post award effort monitoring ITD Balance Report

17 Cost Sharing - Funding Cost Sharing PTA/s Project Accounting notifies divisions & then: – Debits funding source PTA/s Expenditure type-Cost Share Trfs Out GB Expenditure type-Cost Share Trfs Out Non GB – Credits cost share PTA/s Expenditure type-Cost Share Trfs In GB Expenditure type-Cost Share Trfs In Non GB Cost share PTA/s will always have zero budget

18 Cost Sharing - Final Review Project Accounting: – confirms cost sharing commitment is met ZOACS expenditures = cost share commitment – verifies faculty effort from ITD Balance reports Faculty effort = % on main award + % on ZOACS – requests new CS PTA/s for after-the-fact cost sharing situations  faculty salary is < committed/reported level of effort  reports cost sharing expenditures to sponsor


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