1. Sponsored Projects Administration PHS FCOI, OMB Proposed Guidance, and Sequestration, Oh My! Pamela A. Webb pwebb@umn.edu

2. Sponsored Projects Administration PHS FCOI Updates GOOD NEWS! NIH has confirmed that Grants.Gov section headers = intentional definitions –University may decide who is and isn’t an “investigator” independently of whether they are in a senior/key person section of a Grants.Gov form

3. Sponsored Projects Administration SPA’s Position (effective 5/9/13): Considered to be an “investigator”: –UMN PI(s) - mandatory –Subaward PIs - mandatory –Senior/key personnel – default position is “yes” If the person is designated on the proposal as “senior/key” but your investigator believes this person does not meet the definition of “investigator”, document in your files and send to your GA an explanation for why this person meets the definition of senior/key but is NOT an investigator. Note that this may be challenged in an audit/NIH review. SPA reserves the right to question such explanations (failure to file a REPA is not an acceptable reason.) Consultants or significant contributors do NOT meet the definition of an “investigator” unless you tell us they do –You need to ask your PIs if these people meet the definition of investigator - “someone responsible for design, conduct or reporting of the research”

4. Sponsored Projects Administration NIH Definitions: Senior/Key Personnel: all individuals who contribute in a substantive, meaningful way to the scientific development or execution of the project, whether or not salaries are requested. Consultants should be included if they meet this definition. (Biosketch required, % effort required, paid or unpaid) Other Significant Contributor: individuals who have committed to contribute to the scientific development or execution of the project, but are not committing any specified measurable effort (in person months) to the project. Consultants should be included if they meet this definition. (Biosketch required, no % effort allowed) Consultant: An individual or entity who provides professional advice or services for a fee, but normally not as an employee of the engaging party. (No biosketch, no % effort allowed)

5. Sponsored Projects Administration What to do with the answer for Consultants/Significant Contributors: NO, THIS PERSON IS NOT AN INVESTIGATOR –Record the “no” answer in your departmental grant file –No other action is needed YES, THIS PERSON IS AN INVESTIGATOR –Ask them if THIS consulting work is covered under their disclosure at their home institution. If yes, treat the same as you would a subaward (FCOI clearinghouse review, or Form 1 and if needed, Form 2) –If THIS consulting work is not covered under their home institution disclosure, or if they are an independent party Obtain a Form 2 disclosure from that person Note the PRF (e.g. in the comments box) that the consultant named [insert name here] is an investigator and a Form 2 is attached

6. Sponsored Projects Administration Proposed Changes in Federal Research Guidance (A-81) Preliminary! Still sleuthing!

7. Sponsored Projects Administration Comments Due by 11:00 p.m. on June 2, 2013 Submit comments to: "regulations.gov" under Docket Number OMB- 2013-0001 regulations.gov

8. Sponsored Projects Administration Purpose of Change Combine 8 circulars into a single consolidated set of federal guidance –A-21, A-110 and A-133 superseded Respond to input received for regulatory improvements submitted last year Improve efficiency & transparency Reduce fraud, waste and abuse Achieve best program outcomes while ensuring financial integrity

9. Sponsored Projects Administration Component Parts Subchapter A – General Provisions Subchapter B – Pre-award Requirements Subchapter C – Federal Award Notice Subchapter D – Inclusion of Terms and Conditions in Federal Award Notice Subchapter E – Post Federal Award Requirements Subchapter F – Cost Principles Subchapter G – Audit Requirements Subchapter H - Appendices 241 pages! A-21 A-133 A-110

10. Sponsored Projects Administration WHAT CHANGES MIGHT RESEARCH ADMINISTRATORS AND RESEARCHERS CARE ABOUT?

11. Sponsored Projects Administration Funding Opportunity Announcements Must be available and open for submission for at least 30 days –Unless a different period is required by statute or exigent circumstances as dictated by the agency head Requires a standard format Generally Positive

12. Sponsored Projects Administration Award Notices Create a unique, government-wide identifier number for each award Terms and conditions are spelled out Positive

13. Sponsored Projects Administration Cost-Sharing Voluntary Committed Cost-Sharing is not expected and is not to be used as a factor in the review of applications. Positive

14. Sponsored Projects Administration Role of Students Eliminates language recognizing the dual role of students (research and training is inextricably linked) Will ask for this desirable language to be restored. Negative

15. Sponsored Projects Administration F&A Rates Deviations from federally negotiated rates only allowed when –Exceptions are provided in statute or regulation –Agency Head has approved a deviation –OMB is notified Impact Uncertain

16. Sponsored Projects Administration Progress/Financial Reporting New requirement to relate financial data to performance accomplishments whenever practicable (including unit cost data) –Agencies should provide clear performance goals, indicators, and milestones expected May lead to new reporting burdens and financial accountability measures Negative

17. Sponsored Projects Administration Admin and Clerical Costs Salaries of admin and clerical staff allowable as a direct charge when: – individuals involved can be specifically identified with the project or activity; –are integral to the project –such costs are explicitly included in the budget; –the costs are not also covered in indirect costs Mixed

18. Sponsored Projects Administration Project Management Costs Charges to federal awards may include... developing and maintaining protocols (humans, animals, etc.), managing substances/chemicals, managing and securing project-specific data.. Positive

19. Sponsored Projects Administration Salary/Effort Reporting Effort Reporting – Elimination of examples of acceptable systems allows room for other models as does possibility that reports can be integrated with a payroll system; allows “responsible person” to certify; Mixed

20. Sponsored Projects Administration Salary/Effort Reporting Requires consistent definition of a full- time workload in order to qualify for extra service pay –Must apply to all employees in a given class (not just federally-funded employees.) –Supplementation amount is commensurate with the base pay rate and amount of additional work performed Inserts new obligation to review budget estimate quarterly Mixed

21. Sponsored Projects Administration Dependent Care during Travel Dependent care costs that are the direct results of the individual’s travel requirement for the federal award and are only temporary during the travel period are allowable. If used, must be available regardless of fund source

22. Sponsored Projects Administration Computing Devices <$5K Allowable as supplies cost for devices that are essential and allocable, but not solely dedicated to the performance of the Federal award Positive

23. Sponsored Projects Administration Subrecipients Explicit obligation of the prime to honor subrecipient’s federally negotiated F&A rate Subrecipients without negotiated rate can have an automatic 10% F&A rate Federal agency can impose their own documentation requirements on grantees to verify how they determined that a transaction is a subaward v. vendor Audit threshold raised to $750K (from $500K) More prescriptive requirements on subrecipient monitoring Primes may be able to use federal audit management decisions Mixed

24. Sponsored Projects Administration Sequestration

25. Sponsored Projects Administration Federal agencies to their grantees: “You might be cut this year.” “Or not” “Before the end of the year, we will let you know”

26. Sponsored Projects Administration New Information from NIH NIH Guide Notice and IC Plans http://grants.nih.gov/grants/guide/notice-files/NOT-OD-13-064.html http://grants.nih.gov/grants/financial/index.htm#strategies No change to the existing salary cap No change in NRSA stipend levels FY13 research and non-research continuation awards previously cut to 90% may see some partial restoration (but not likely back to 100%) FY14 and beyond out-year commitments not being reduced Likely fewer competing awards made in FY13 but the average size of awards will be targeted to be at FY12 levels. No out-year inflationary increases (same as the present policy)