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Managing a Scientific Laboratory Financial Management and Budgeting Start-up Funds Nichole Phillips Director of Research Administration Viterbi School.

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Presentation on theme: "Managing a Scientific Laboratory Financial Management and Budgeting Start-up Funds Nichole Phillips Director of Research Administration Viterbi School."— Presentation transcript:

1 Managing a Scientific Laboratory Financial Management and Budgeting Start-up Funds Nichole Phillips Director of Research Administration Viterbi School of Engineering Budgeting for Proposals Sabrina Feeley Director of Research Administration Dornsife College of Letters, Arts and Sciences Managing your Grant Award Janet Stoeckert Director of Research Administration Keck School of Medicine

2 Start-Up Funds Getting your Lab Started Nichole Phillips Director of Research Administration Viterbi School of Engineering

3 Start-up Package 1.Resources a university makes available for research support 2.Office and lab space 3.Housing/Moving Expenses 4.Lab equipment, computers and software 5.Technician and/or other staff support 6.Salary Support for course buyout or summer effort 7.Supplies 8.Travel

4 Negotiating a Start-up Package 1.During the process of discussing an offer is when to put the dollar values on your needs 2.Offer time is the time “you have the most leverage than you will have for years when joining a faculty” 3.Be prepared - part of the job search process is completing an assessment of your minimum requirements to get your research up and running

5 Negotiating a Start-up Package 4.Research current salary information 5.Keep in mind only the department chair or dean can make commitments to you 6.Be collaborative on ways to get expensive items 7.Be sure to get commitments in writing

6 Hard Money vs. Soft Money 1.Hard Money refers to guaranteed funds you receive from the university 2.Can be part of your start-up package or other discretionary funding 3.Quasi- hard money include various types of internal funding the university may provide to assist in jump starting your research Zumberge Individual Research Grant - investigators/funding/usc/zumberge/

7 Hard Money vs. Soft Money 4. Soft Money refers the funds you receive from sponsors 5.Funding you competed for with deliverables

8 Start-up Funds & Your Lab 1.All or a portion of your start-up funds may be made available in an account for you to manage 2.Spending limits/requirements. a.Were these addressed in your offer letter b.Work with your department or the school regarding any specific policy 3.Think strategically when setting up your lab a.Start-up funds will be the basic funds available while acquiring grant funding b.What are the items required to launch your lab

9 Staffing your lab 1.Staffing a.Are they part of your start-up funds b.What type of Staff do you need Post-doc Lab Technician Graduate Research Assistant 2.Keep in mind a.Time for training b.Time for mentoring

10 Resources 1. gotiating.html 2. 3.

11 Budgeting for Proposals August 22, 2013 Sabrina Feeley Director of Research Administration Dana and David Dornsife College of Letters, Arts and Sciences

12 BUDGET | 12 Goals Gain an understanding of: Identifying Funding Opportunities Why Prepare a Budget? Budget Elements Budget Justification Cost Sharing Compliance Submitting Your Proposal

13 BUDGET | 13 Identifying Funding Opportunities - solicitation, RFP, program announcement, BAA On-line Information Systems: Sponsored Programs Information Network (SPIN) – Federal Opportunities Pivot Community of Science (COS) Sponsor Websites Read carefully and thoroughly!

14 BUDGET | 14 Why Prepare a Budget? Definition of a Budget: A categorical list of anticipated project costs that represent the Principal Investigator's best estimate of the funds needed to support the work described in a proposal.

15 BUDGET | 15 Function of a Budget The budget estimates, as realistically as possible, the cost of completing the objectives identified in the proposal. The sponsor will use the budget details to determine whether the proposal is economically feasible and realistic. The budget provides a means to monitor the project's financial activities over the life of the project. Many sponsors (especially government agencies) provide either a form or a format for the budget. It is imperative to follow the agency's instructions explicitly.

16 BUDGET | 16 Impacts on Budget Planning Sponsor’s Budgetary Restrictions Type of Sponsor (federal, non-federal, international) Project Period – Phases/Option Years Task Budgets Types of personnel appointments (faculty, research staff, postdoc, student) Fringe Benefit Costs Sub Awardees and Collaborators Location of Project (on or off campus) Facilities and Administration Costs

17 BUDGET | 17 Go through your project narrative and make a list of everything that will have to be paid for. People, consumables, publications, equipment, conference travel, collaborators… Do not forget to review sponsor guidelines for any restrictions or special guidance.

18 BUDGET | 18 Budget Elements Compensation Salary Fringe Benefits (Federal & Non-Federal) Wages Materials and Supplies Equipment Travel Publication Sub Awards or Consultants Other Direct Costs Facilities & Administration Costs (Indirects or Overhead)

19 BUDGET | 19 Budget Justification Explains: why each cost is essential to performing project how project costs were estimated any special circumstances what each person will contribute to project, 12 month versus 9 month faculty lab and animal costs equipment needs – include quotes USC Research - Current Rate Agreement - June 26, 2012

20 BUDGET | 20 Budget justifications should answer the questions a skeptical reviewer would ask. Make a persuasive case for investing in you and your team. It is important to include budget justifications since they can be essential for surviving an audit.

21 Cost Sharing When federal or agency regulations require that the institution share in the cost of sponsored research projects, the institution contribution is referred to as “cost-sharing.” In general, cost sharing and matching represents that portion of project or program costs not borne by the sponsor (generally the federal government). Cost sharing can be voluntary or mandatory (that is, required by means of a statute or law), and can take the form of either cash or in-kind contributions. BUDGET | 21

22 USC Policy - Cost Sharing Individual school policies. Be sure all appropriate institutional approvals are secured prior to submission. BUDGET | 22

23 BUDGET | 23 Compliance OMB Circular A-110 – Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations. Federal cost accounting standards, are a series of federal regulations, detailed in OMB Circular A-21, which stipulate how educational institutions administer the financial aspects of grant management. Costs must be reasonable, allowable, allocable and consistent.

24 BUDGET | 24 If any of the following are involved, institutional review boards may be required: -Human Subjects -Human Embryonic Cells -Animal Subjects -Radioactive Materials -Biohazardous Materials Conflict of Interest -diSClose -HHS Required COI Training Responsible Conduct of Research (RCR)

25 BUDGET | 12 Submitting your proposal Route proposal package for approval Internal paperwork – Proposal Approval Record (PAR) Sponsor paperwork – Have the right forms been filled out correctly? Research Administrators and Department of Contracts and Grants (DCG) will assist with review and submission. Do not wait until last minute…Submit early!!

26 BUDGET | 26 Wrap-up Read the funding opportunity! Prepare your budget Does the budget reflect reasonable costs for the project? Is the budget justification in line with the project narrative? Are there unallowable costs in the budget? Can you complete the scope of work on this budget? Review and finalize all aspects of your proposal. Submit early and wait for it to be awarded!

27 Managing Your Grant Award August 22, 2013 Janet Stoeckert Director, Research Administration Keck School of Medicine 27

28 Gain an understanding of: Types of Grants Award versus Spending Plan Budget Management & Monitoring Award Close Out 28 Goals

29 Congratulations! You have a grant award! 29

30 Types of Grant Awards Grant – Transfer of money, services, or anything of value to recipient to accomplish a public purpose – No substantial involvement with sponsor Cooperative Agreement – Transfer funds to recipient to accomplish a public purpose – Substantial involvement between sponsor and recipient 30

31 Types of Grant Awards Contract – Acquisition of property or services for benefit or use of sponsor Purchase Order – Fixed priced for a product or service – Other (IPA) 31

32 Types of Grant Awards Grant or Gift? 32

33 Grant or Gift? Proposed work binds the Institution to a specific line of scholarly or scientific inquiry Includes work statement or the testing of specific hypotheses, methodologies or validation of particular approaches There is a specific commitment regarding the level of personnel effort or items of output, or specific performance targets as a condition of funding A line item budget detailing expenditures by activity, function. Project period must be adhered to as a condition of funding Detailed fiscal reporting is required at intervals during the course of the work or at the end of the project. Any unexpended funds must be returned to the sponsor at the end of the project. 33

34 Review Award Document & Spending Profile Scope of Work Time table Budget and Cost Sharing Reporting Requirements Compliance Requirements Clauses 34

35 Review Award Document & Spending Profile Sponsor may request reduction in budget Scope of work should be reduce accordingly Sponsor may agree to full budget but only allocate (incrementally fund) a portion of funding for specific time-frame – How can budget be adjusted to accommodate funding Sponsor may reduce funding if expenses do not match budget 35

36 Budget Management & Monitoring 36 Spending

37 What is my grant account number? Notification of Award via Kuali Coeus (KC) Notififction of Account and budget via Kuali Financial System (KFS) Obtain Access to Account in Financial System 37

38 Budget Management & Monitoring Encumbrance known expenses —Personnel – Subcontracts – Large Dollar Volume Expenses – Independent Contractors – Reoccurring – Maintenance of encumbrances 38

39 Budget Management & Monitoring Review Projections – No less than quarterly – Review for abnormally high or low burn rate of funds 39

40 40 Sample Projection

41 Account Status Report (ASR) 41 Replace with new sample

42 Financial Compliance 42

43 Costs Must Be... Allowable - Must conform to regulations - Must conform to any exclusions contained in the sponsored agreement - May be an appropriate institutional expense but not allowable on a sponsored project Allocable - Necessary to the project - Directly benefits the project - NOT determined by fund availability 43

44 Costs Must Be... Reasonable - What “prudent person” would pay in like circumstances - Necessary? - Advance the scope of work? - Consistent with established policies & practices? 44

45 Certifying Effort After-the-fact confirmation of effort Demonstrates that salaries charged to sponsored projects or to cost sharing reasonably reflects effort performed Way for government and other sponsors to verify salary charges to grants Required by institution policy and OMB Circular A-21 45

46 Effort Certification - How do you certify? eCert: On-line web-based 46

47 Charging Effort to Grants % Effort should reasonably reflect actual effort spent Include cost shared effort subsidized by Department, School, Institution Take into account sponsor’s salary cap if applicable 47

48 How much effort can you charge? Faculty effort on grants should usually not exceed 90-95% Effort towards teaching, committee work, preparing new grant proposals may not be charged to grants Exceptions are reviewed by Office of Financial Analysis 48

49 Cost Transfers Institutional Policy – “The first step in charging costs is to be certain that the initial charge is appropriate.” 49

50 Cost Transfers Sponsored Projects Accounting (SPA) reviews and approves cost transfer Processed within 90 days – Attach detailed justification and supporting documentation – PI and Administrator sign off Over 90 days – Attach detailed justification and supporting documentation – PI, Administrator, Manager and Director sign off 50

51 Close Out of Award 51 Grant is Completed

52 Close Out of Award Close outstanding encumbrances Ensure no outstanding charges Programmatic/Technical reports submitted Personnel Expirations – Notify project staff as soon as possible 52

53 Close Out of Award Data Retention and Access – Provide reasonable access – Retain for 7 years after final reporting or publication – Retain financial records 3 years after audit resolution – Don’t forget to shred! 53

54 Grant Transfers PI notifies administration of transfer Review sponsor requirements Estimate balance remaining Prepare relinquishment statement Final financial statement to sponsor prior to transfer to new institution 54 Moving?

55 Summary Review your grant award with your Department or School for terms and conditions, scope, awarded budget, discuss spending plan Review budget and projections at least quarterly Inform your administrator if you wish to change to make changes to personnel effort, purchases, subawards, or need to transfer expenses Stay current on compliance requirements 55

56 Questions? 56

57 Thank you! 57 Nichole Phillips Viterbi School of Engineering Sabrina Feeley Dornsife College of Letters Arts and Sciences Janet Stoeckert Keck School of Medicine

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