PRESENTATION TO FACILITIES INFORMATION SYSTEM USERS OCTOBER 2013 CORPORATE CONTROLLER’S OFFICE JODY MURAWSKI COST ANALYSIS BEVERLY LIPSKI, BILL RIDGWAY Space VI

It’s that time again…. November 2013 baseline for next Facilities & Administration (F&A) proposal Accurate space data essential to accurate F&A allocations F&A dollars translate to overhead recovery Overhead recovery distribution directly impacts academic budgets

Typical Allocation Model

Your effort is critical…. In updating the Facilities Information System to provide Accurate Complete space data especially because

New F&A software CRIS

F&A classifications Organized Research Sponsored Instruction Instruction Departmental Research Other Institutional Activity Specialized Service Facility Operations and Maintenance General Administration Departmental Administration Sponsored Projects Administration Library Student Services Non-Assignable Auxiliary Applied Research Laboratory/Electro- Optics Center

Organized Research Programs sponsored by external sources  Federal  Non-federal Activity funded internally if project is separately budgeted and accounted for by University under internal application of institutional funds

Sponsored Instruction Funded by  Grant  Contract  Cooperative agreement Includes activities involving training in research techniques (research training)

Instruction Teaching and training activities of the institution except for Sponsored Instruction Teaching/training activity may be offered  On credit or non-credit basis  On degree or non-degree basis  Through regular academic departments or separate divisions such as extension or outreach

Departmental Research Research or scholarly activity financed by institutional funds that is not organized research and not separately budgeted Funding is discretionary and no financial reporting required Includes activities supported by  Start up funds  Non-competitive “seed monies” for general research initiatives

Other Institutional Activities Sponsored activities not considered Sponsored Research or Sponsored Instruction Auxiliary Enterprises as below Activities whose costs are unallowable to sponsored programs such as  Development and fundraising  Public/alumni relations

Specialized Service Facility Costs of institutional services involving use of highly complex or specialized facilities such as electronic computers, wind tunnels, reactors, animal facilities Penn State’s  Animal Resource Program  Materials Characterization Laboratory  Certain ITS activities Classification must have review by and approval of Manager of Cost Analysis

Operations and Maintenance Should not be used by Colleges in determining functional classification of space Space associated with administration, supervision, operations, maintenance, preservation, and protection of University facilities and grounds

General Administration Should generally not be used by Colleges in determining functional classification of space Space associated with administrative offices of the University such as accounting, personnel, purchasing, information centers, etc. that do not relate solely to any major division

Departmental Administration Space used for administrative and supporting services that benefit common or joint departmental activities and do not relate solely to any major activity of department (i.e., instruction or research) Includes  Secretarial and clerical support areas such as office supply rooms, etc.  Conference rooms supporting multiple activities  Space supporting grant and proposal writing, including faculty offices where this occurs

Sponsored Projects Administration Operating units established primarily to administer sponsored projects Includes  Grant and contract administration  Special security  Purchasing  Personnel  Administration  Editing and publishing research reports

Library Should not be used by Colleges in determining functional classification of space Space devoted to operation and administration of library

Student Services Administration Space devoted to administration of student affairs and services to students Includes  Deans of students  Admissions  Registrar  Counseling and placement services  Student advisors  Student health and infirmary services

Non-Assignable Space that is vacant, inactive or under renovation Especially check laboratory space listed as vacant in Facilities Information System Loading docks are non-assignable

Auxiliary Enterprises Should not be used by Colleges in determining functional classification of space Space devoted to activities supported by income derived from services operated primarily to serve students, faculty or staff Includes  Residence halls  Food services  Intercollegiate athletics

Applied Research Laboratory Electro-Optics Center Space occupied by programs and support functions of the Applied Research Laboratory and Electro- Optics Center

What not Who…. Need to ‘tune out’ what the room occupant does outside of the room. Concentrate on what goes on within that space over a period of a year.  A lab which may be used for 100% instruction one semester may be 50% instruction and 50% research the next semester. Over the course of the year this would be allocated as 75%/25% instruction/research.  A faculty member may be teaching 100% during the year, but in his office be advising students or involved in departmental administration (e.g. – Grant writing).

Special concerns…. New hires Employee transfers Employee retirements Employee terminations Changes in faculty activities profiles especially for faculty who were new at time of last snapshot with no sponsored programs  Now likely have one or more sponsored programs  Space would change from departmental research to sponsored research or instruction

Problems…. Graduate student offices Large spaces with mixed use (such dean’s suite with many staff performing variety of activities) Space vacant at time of snapshot Confusion between Departmental Administration and General Administration classifications Disconnects between room type and F&A classification(s) Disconnect between budget and F&A classification

The end…. Thank you for your effort and cooperation Contacts:  Cost Analysis, Elliott Building, Suite 300,  Beverly Lipski, Manager,  Bill Ridgway, Indirect Cost Analyst,  Mike Blehi, Indirect Cost Analyst, Questions?