Sponsored Programs at Penn Establishing The Project Environment

Communication & Support Consistent and open communication with the PI concerning Consistent and open communication with the PI Special Terms and Conditions / Restrictions Prior Approvals for costs not in original budget: Travel Subcontracts Monitoring Subcontracts Extensions / Continuations Technical and Progress Reports Non-Competing Continuations Invention and Patent Reports

Payroll Identify personnel that are to be paid on award Review proposal and award documents Confirm distribution amounts and effort levels Be mindful that distribution stop date should match the fund end date Salary encumbrances calculate through the current budget end date or distribution stop date Be aware of any effort or salary cap limitations on award

Procurement and Purchases BEN Buys Commodity Matrix https://cms.business-services.upenn.edu/purchasing/making-purchases/purchasing-basics/commodity-matrix.html Helps to identify purchasing method: PDA (non-PO) Purchase Order P-Card Competitive Bids Required on purchases over $5,000 unless vendor is a Penn Contract Supplier or a part of the Penn Marketplace PI or PI Delegate Approval for all purchases All purchases should be allowable, allocable, and reasonable Should verify budget availability before purchasing Buy American on federal awards when possible

Cost Sharing The specific portion of the project or program costs that is not funded by the sponsor: Mandatory: costs which are either required by the terms of the award that the University must contribute toward the project Voluntary Uncommitted: cost associated with a project and not funded by the sponsor, nor identified in the proposal or in any other communication to the sponsor as a commitment of the University In Kind / Matching: requirement of some sponsored projects that grant funds be matched in some proportion with non-sponsored project funds. Can come in the form of actual cash or “in-kind” contributions Tracking Cost Share: A separate five fund will be established to charge cost sharing expenses It is the responsibility of the department to complete revenue journals to offset the costs of the cost share Same allowability rules that exist for the sponsored funded portion of the award apply to the cost sharing component

Program Income Gross income earned that is directly generated or earned as a result of sponsored activity, such as: Revenue from sale of tissues samples harvested from project Tickets to conference or symposium funded with sponsor awarded dollars Methods of Program Income Additive – income is added to sponsor commitment Deductive – income used to reduce sponsor commitment Matching – income used to finance portion of departmental commitment Tracking Program Income Program income earned from external entities must be deposited in Object Code 4620 Program income earned from fees, good, and services done for another University department should be recorded under Object Code 5347 If the anticipated program income is over $5K then a separate five fund should be set up to track program income expenses

Equipment Tangible, nonexpendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit If equipment is purchased across funding sources and the itemized cost per fund is less than $5,000 for each fund it should still be charged using an equipment object code Must be necessary for project purposed and utilized during the award period Not to be purchased at the end of the awarded period Be sure to follow sponsor’s equipment disposition guidelines – title can either be held by Penn or the sponsor In most cases with NIH grant funding the title will stay with Penn Contracts (both Federal and Non-Federal) have project specific terms and conditions. Be sure to review your NOA thoroughly for equipment dispositions guidelines

Computers and Peripherals ff Computers and Peripherals Machines used to acquire, store, analyze, process, and publish date and other information electronically, including accessories for printing, transmitting, and receiving, or storing electronic information Computing device is considered a supply if the acquisition cost is less than $5K, regardless of the useful life length According to the UG, computing devices can be charged as a direct cost if considered essential and allocable, but not solely dedicated to the project. Essential and allocable are determined by reviewing the following: Device included in original proposal with justification Device is necessary for the performance of the projects Project will be negatively impacted by not purchasing the device Cost is reasonable and directly beneficial to the project

ff Consultants Evaluate if the person will be acting as a consultant, employee, or subcontractor using the C-12 Independent Contractor Determination & Certification Form http://www.finance.upenn.edu/comptroller/forms/#Tax Document the work and role of the consultant to ensure that work s/he is completed is charged to the correct award Be sure that a copy of the consultant agreement is on file Review sponsor guidelines to ensure if prior approval is needed or if there is a cap on what consultant rates will be reimbursed by the sponsor

ff Service centers A department or functional unit within a department which performs specific service for a fee, such as: Machine Shop Cell Sorting Facilities Animal Care Service Center rates are reviewed and adjusted on an annual basis based off of profits or losses from the previous fiscal year Charge grant funding sources periodically with a mass journal across all ORGs and Funds PI and BA should review service center charges regularly to ensure that the correct account number is being charged and if the services are still be utilized by the project