Presentation on theme: "Departmental Research Administrators Workgroup (DRAW)"— Presentation transcript:
1Departmental Research Administrators Workgroup (DRAW) January 17, 2012deMarneffe 132
2AgendaAnnouncementsRevised Research Core Policy Updates on F12 New Processes – Natalie NguyenNIH Updates – Raquel EspinosaMcLean Balance Sheet Analysis FY11 – Raquel Espinosa
3Announcements PI & Administrators Survey Purpose: understand how tasks and responsibilities are assigned to staff and identify PI’s in need of grant administrator support.Due to issues we have extended the deadline to January 27th.Separate s were sent to Administrators and PI’s. If you or your PI have not received it, please let us know!
4Feel free to invite administrative staff!! JE Training CourseFeel free to invite administrative staff!!When: 01/24/2012, 3-4:30 pmWhere: de Marneffe 218Course Description: This program provides a General Overview of Cost Transfers and instructions for creating Journal Entries using data from Document Direct, PeopleSoft or Insight. Overview topics include definitions, causes, descriptions of different transfer types and audit trail data. Focus is provided on justifications and how to improve them.
5Insight Questionnaire The Insight Committee group is requesting feedback from the administrators (initially) in an effort to improve Insight usability.Please take a few minutes to complete the survey:https://www.surveymonkey.com/s/BRPPL98Due January 19th!
6DOD Reminder For all DOD awards: If there are any changes to animal or human subjects protocols associated with the award, those changes MUST BE submitted to and approved by the DOD prior to starting the revised work.IACUC or IRB approval is not sufficient until the DOD has also approved.
7DRAW Highlights of the revised Research Cores Policy Updates on FY12 New Processes Natalie Nguyen, Associate Director January 17, 2012
8Policy StatementIt is the policy of Partners HealthCare (Partners) that all research core facilities which directly charge users for goods and services must document that user fees charged are allowable, reasonable and allocable in relation to the cost of goods or services provided.All research core facilities are required to have an approved business plan and user fee analysis in order to operate. User fees should include, at the minimum, the direct costs of providing the core service, and where applicable, an additional overhead component.Core facilities that process charges to federally sponsored awards for goods and/or services are subject to government regulations concerning service centers and are responsible for developing user fees in accordance with this policy and government regulations.Cores operate similar to a small business, with a few caveats:Dedicated lab/bench space, equipment, and personnelRequired to have an approved business plan and user fee/cost analysisDocument user fees charged are allowable, reasonable and allocable in relation to the cost of goods or services providedOperate on a revenue neutral model – set user fees at cost (or less) for federal usersFollow applicable Federal Cost Principles and institutional policies & guidelines
9DefinitionsNIH’s Definition: Core facilities can be defined as centralized shared resources that provide access to instruments, technologies, services, as well as expert consultation and other services to scientific and clinical investigators. The typical core facility is a discrete unit within an institution and has dedicated personnel, equipment, and space for operations. In general, core facilities recover their cost of providing service in the form of user fees that are charged to an investigator’s funds, often NIH or other federal grants. (Taken from the NIH’s FAQs to Explain Costing Issues for Core Facilities, DRAFT)Partners’ Definition: A core facility is a discrete unit organized to provide specific goods and/or services on a fee-for-service basis to users within the Partners research community and its collaborators. (Partners Research Cores Policy)
1090 approved Partners cores fall within 3 categories Research Core Facility(~69 cores + 6 minis)Scientific, technical and consultative services or productsFee-for-service model: direct cost (+ indirect costs for non-Partners users)Research Support Core(Administrative, Supply, Lab Support)(~14 cores)Shared post-award administrative support and/or other common expenses (e.g., general supplies, equipment service contracts, etc)Serves primarily investigators of a single department or several labs within a departmentUser fees are based on an allocation methodologyWhen should a core become a Specialized Service Facility?Material effect on the institution’s F&A rateOperating cost upwards of $5MSpace costs upwards of $2MSpecialized Service Facility(1 – CCM)Highly complex and/or specialized servicesMust receive institutional designation as an SSFUser fees include both direct and allocable indirect costs
11Types of Core Customers Researchers within the core’s institutionEx: PIs at BWH, MGH, etc.Researchers from external or non-Partners institutionsEx: PIs at MIT, Harvard University, University of Vermont, etc.Industry and commercial entitiesEx: Pharmaceutical companies, biotech companies, etc.Q: How do you determine who is internal versus external?A: It depends on where the funding is coming from to pay for the core services.Internal: Partners PI paying with Partners-administered fundExternal: Partners PI and non-Partners PI paying with non-Partners fund; other AMCs and non-profits; industryQ: Is there a difference in user fees if you’re internal or external?A: Absolutely! Internal fees are set at direct costs only. External user fees include an overhead component. Fees charged to industry users may include additional mark-up.
12User Fee Calculation: Direct & Indirect Type of UserSource of PaymentType of Fee(user fee component)Indirect Cost ImpactInternal PI(PHS & entities)PHS administered research fundInternal User Fee(direct cost only)User pays indirect cost at the F&A rate associated with the fundCheck payment/Wire*External User Fee – AMC/Non-profit(direct cost + indirect cost component)User may pay indirect at the institution issuing paymentExternal AMC/Non-profit(including International)Industry/For-profitExternal User Fee – Industry/For-profitN/A*Additional banking fees may apply for wire transfers
13Does your department plan to start a core facility? Your facility qualifies if it:Charges a fee for goods or servicesHas $50,000 or greater of annual expensesProvides services to 5 or more PIsNew cores must:Obtain approval from Department ChiefDraft a business planPerform a cost analysis to set fees at costIdentify start-up funds that will fund up to 50% of the identified annual shortfall upon opening the core, and annually thereafter during the start-up period (first three years of operation). The start-up funds will be used to fund the remaining 50% of the identified shortfall plus any additional cost overrun at the end of each 12-month period during the start-up period.Identify a guarantor account to be used for future deficitsReceive the approval of the Department Chief, the RCFO and the Sr. VP for Research
14Budgeting: New and Existing Cores All cores are required to have an annual review of core finances, including an updated operating budget and user fees approved by the RCFO. (Cores Policy paragraph 8.1)New Cores:During the business planning process will lay out a 3 year budget. Depending on time of year when the core is opened, RCFO will assess financial status and determine if the core will take part in the annual budgeting process or wait for the following year.Existing CoresRequired to submit a budget on an annual basis that will be reviewed and approved by the RCFO
15Budgeting: Annual Budget Process Timeline:Mid-April: Volume data due to RCFOLate-April: Trainings held on completing the budget templateFirst BD in May: Pre-populated budget templates sent to coresLast BD in May: Budget templates due to RCFOJune – September: RCFO reviews and confirms budgets and user feesOctober 1: New fees go into effect
16Budgeting Reminders: General Pricing Principles Fees should not discriminate against any individual or group of usersCharges should be on actual costs (direct and indirect) and actual usageDepreciation should be included for equipment purchased with non-federal fundsSurpluses should be used to lower user fees, reinvest in the core or pay back the guarantor account or start-up fundDeficits (excluding bad debt) should be included in the operating budget to be recovered through the user feesSubsidies can be applied to charge lower feesFees should be reviewed, updated and published on an annual basis
17Department: Management of Core Facilities Operational managementDevelop internal SOP’s regarding the provision of servicesFinancial managementRemain revenue neutralTrack AREnsure only allowable and appropriate expenses are charged to the corePerform a monthly variance analysis comparing actual expenses and volume to budgetBilling practicesUse current approved and published feesObtain customer’s research fund number and expiration date & point of request for serviceEnsure timely billing/recording of internal charges via journal entryEnsure the billing of overhead to external customers is that the prescribed policy rateInvoice users on a monthly basis and only after the services have been renderedRetain key documents for at least 5 years: business plan, cost analysis, new fund application, financial reports, correspondences, service price sheets, invoices
18Policy Primer: Top 10Follow a revenue neutral model; +/- 15% breakeven statusAllocate costs for Service X to the users of Service XAdministrative/lab support cores: use unrestricted fund to pay for services provided to K awards or other awards exempt from admin costsDepreciate (i.e. include equipment depreciation in user fees) only those pieces of equipment purchased by Partners non-federal fundsSurplus? Reinvest in core or lower user fees. Deficit? Cover using guarantor account or raise user fees.Bill monthly to avoid lost revenue due to expired fundsUse only fees approved by the RCFO when invoicing customersInvoice and bill only after services are renderedKeep a log of customers’ fund numbers and expiration datesRetain invoices for at least 5 years
19R&R: Core Business Manager/Dept. Admin Rolling basis:Monitor customer’s payments for invoices (accounts receivable) and inform the core facility director/PI of delinquent accounts (> 90 days overdue)Monitor changes to service volume, user fees, personnel, equipment purchases, etc.Submit purchase orders, payments for accounts payableMaintain all core facility records for monitoring review and A-133 auditMonthly:Verify billing is accurate, complete, timely and adequately documentedInvoice users and submit journal entries by the 15th business day of the monthReview revenue postings are correct and reconcile with billing log/journal logReview expenses to assure they are correctly allocated as stated in the approved budget including core facility personnel (correct percent effort), supplies, and other expensesAssist the core facility director/PI with the review of the fund cash balance
20R&R: Core Business Manager/Dept. Admin Annually:Assist Core Director/PI in reviewing budget/user fee analysis and submissions to RCFO for reviewIncidental:Coordinate with core director and the RCFO on the formulation and execution of deficit resolution plan
21Key processes implemented in past two years and in FY12 Annual budget and user fee review and approvalJournal review process and cost transfer of previously billed core chargesNew core revenue journal for internal billing (FY12)PeopleSoft Billing module for external billing (FY12)
22Need Attention from DA: funds requiring further review as part of monthly JE review process As department administrators, you may be contacted by either the core or the RCFO for the following issues with funds used to pay for core services:Outreach to department administrators by the coreNon-research sundries, PO funds and hospital cost centersFunds past their project end dateInactive/invalid fund numbersOutreach to department administrators by the RCFOResearch sundries or other non-federal awards in deficit and over budgetFederal awards in their final project year that are in deficit and over budgetCost transfer for previously billed core chargesCompleting the Request to Transfer Core Charges form including 90 day justification and required signature from requestor when a fund management issue or any other issue for which the customer is responsible
23Insight View of core expenses Expense Details tab
24Insight View of core expenses Transaction Details tab
25Core Charge Transfer Request & Journal Process DA reviews fund and identifies core charge that needs to be transferred to another projectDA reviews list of Cores’ journal contacts lists (contains core facility acronyms) and contacts the Core’s administrator (i.e. person that submits core revenue journal)DA fills out the Core Charge Transfer Request Form (will be posted on RM Website this week) including over 90-day justification questions then sends to Core administrator to complete the rest of the required informationCore administrator completes the form and sends to Cores JE mailboxCores Analyst reviews request for completeness; prepares the JE and posts to general ledger
26Core Charge Transfer Template Completion Step 1. DA reviews fund under Insight “Financial Details” tab and identifies core charge that needs to be transferred to another projectStep 2. DA reviews Cores’ journal contacts list and contacts the Core’s administratorhttps://resadmin.partners.org/RM_Home/Forms/Tools_Resources/Core/FTR-ToolsCores-ViewAll.aspxStep 3. DA completes Core Charge Transfer Request Form and sends to Core’s administratorhttps://resadmin.partners.org/RM_Home/Forms/Alphabet/Core%20Charge%20Txfr%20Request.xls
27Core Charge Transfer Request: Over 90 Days Justification
29Resources Research Cores Team webpage on RM Website: https://resadmin.partners.org/RM_Home/Forms/Tools_Resources/Core/FTR-ToolsCore.aspxResearch Cores Policy:Partners Research Cores Website:Natalie Nguyen, M.P.H., Associate Director, Partners Research Core Facilities(phone)Elaine Zive, M.B.A., Manager, Research Core Facilities for BWH & McLean(phone)Yovani Edwards, Financial Analyst, BWH & McLean Research Core Facilities(phone)
30NIH Updates NIH Policy Statement 2011 Revisions See Research Intranet site:NIH FY12 BudgetThe recently approved Health and Human Services (HHS) Appropriations Bill included a small increase of approximately 1% in the NIH budget. It also included language that reduces the NIH salary cap on extramural grants from Executive Level I, $199,700 in FY11, to Executive Level II, $179,700. More on this to follow….
31McLean Research Quarterly Close Meeting FY 11 Research Balance Sheet Analysis November 16, 2011 31
32MCL Research Balance Sheet Trends – Summary The overall Research Receivable decreased by $1,200K (49%) from Sept FY10. The components of the change are as follows:$ (632)KLOC, Billed A/R and Unbilled A/R$ (837)KGrants Receivable$ KLockbox and Reserve$(1,200)K3232PHS, Research Finance AnalyticsLast Updated 4/15/2017Last Updated 4/15/2017
33MCL Research AR Trends 33 33 PHS, Research Finance Analytics Last Updated 4/15/2017Last Updated 4/15/2017
34MCL Grants Receivable – Cost Transfer Aging 34Last Updated 4/15/2017
35MCL Research AR Trends Days A/R, Billed AR Only: Days A/R, Total Research Receivable (including Grants Receivable, excluding LOC):35Last Updated 4/15/2017
36MCL FY11 Billed AR Rollforward Total Billed AR:Billed Contracts/Subcontracts Detail:36Last Updated 4/15/2017