1. Research Administration Forum November 18, 2014

2. Agenda Uniform Guidance – Dick Seligman Responsibilities for Safeguarding ITAR – Export Information – Adilia Koch Conflict of Interest Issues – Grace Fisher-Adams Audit Updates – Estella Venegas Technical Services and Facilities Use Activities – David Mayo

3. Uniform Guidance Dick Seligman Associate Vice President, Research Administration

4. Uniform Guidance Update “Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards” 2 CFR 200 Now known as the “Uniform Guidance” or the “UG” What is the UG? When was it issued? When does it apply to Caltech? To what will it apply? What don’t we know?

5. Selected UG Topics for Comment Direct Charging of Administrative and Clerical Costs Charging Computing Devices to Sponsored Projects Cost Sharing Documenting Salary and Wage Charges to Federal Awards Participant Support Costs Visa Costs Subrecipient Indirect Cost Rates Payment of Subrecipient Invoices Closeouts

6. Direct Charging of Administrative and Clerical Costs Old Rule (OMB Circular A-21): Normally treated as indirect costs Exceptions for “Major Projects” Lots of debate about what constitutes a “major project”

7. Direct Charging of Administrative and Clerical Costs New Rule (UG): Normally treated as indirect costs. BUT, administrative and clerical costs can be charged as a direct cost on a grant IF the administrative and clerical staff are integral to the project;

8. Direct Charging of Administrative and Clerical Costs New Rule (UG) (cont.): IF the individual(s) involved can be specifically identified with the project; IF the administrative and clerical costs are identified in the budget and described in the budget justification section of the proposal; and

9. Direct Charging of Administrative and Clerical Costs New Rule (UG) (cont.): IF the administrative and clerical costs were not included in the proposal budget, the PI obtains prior written approval from the sponsor. Note: The PI should justify these costs on the basis of the administrative and clerical costs being integral to the project.

10. What is “integral”? “Integral” is not defined in the UG or in any other federal regulations, as far as we know. The Oxford Dictionary defines integral as: “Necessary to make a whole complete; essential or fundamental”

11. Charging Computing Devices to Sponsored Projects Costs must be allocable and allowable BUT, the computing devices do not have to be solely dedicated to the award that is being charged

12. Cost Sharing UG principles on Cost Sharing: Voluntary committed cost sharing is not expected in federal research proposals Voluntary committed cost sharing cannot be used as a factor in the merit review process Mandatory cost sharing is still allowed, if required by the sponsor and described in the solicitation

13. Cost Sharing UG principles on Cost Sharing (cont.): Most federally-funded research projects should have some level of committed faculty (or senior researcher) effort charged to the award or paid by the grantee [Note: Faculty effort committed to the project but not charged to the project is Voluntary Cost Sharing.] The UG’s principles do not require any change in how Caltech currently tracks, monitors, or reports cost sharing. Voluntary committed cost sharing is still strongly discouraged.

14. Documenting Salaries and Wages Charged to Federal Awards UG does not mention “time and effort reporting” UG does require that recipients have an after-the-fact system in place that documents salary and wage charges to federal awards. Caltech’s Payroll Distribution Confirmation (PDC) system requires faculty and other PIs paid from federal awards to certify their PDCs twice each year. Caltech’s PDC system meets the UG requirements. No changes are anticipated.

15. Participant Support Costs UG: “Participant support costs means direct costs for items such as – Stipends – Subsistence allowances – Travel allowances – Registration Fees paid to or on behalf of participants ( but not employees) in connection with conferences or training projects.” Participant Support Costs are not subject to indirect costs.

16. Participant Support Costs Before the UG: NSF was the only agency that recognized the concept of Participant Support Costs and included that category in their award budgets. Under the UG: The concept of Participant Support Costs will apply to all federal agencies and will largely follow the NSF model.

17. Visa Costs UG allows short-term travel visa costs as direct costs on federal awards. UG does not identify specific types of visas that constitute “short-term travel visas.” UG does not allow costs for immigration visas as direct costs on federal awards.

18. Subrecipient Indirect Costs Rates Subrecipients that have federally negotiated indirect rates should use those rates in proposals and awards. Subrecipients that do not have federally negotiated indirect cost rates are permitted to receive a de minimis indirect cost rate of 10%.

19. Payment of Subrecipient Invoices Invoices received from subrecipients must be paid within 30 calendar days of receipt of the invoice UNLESS the prime award recipient believes that the request for payment is improper Remember: The PI must approve all subrecipient invoices prior to payment

20. Award Closeout UG Requirement: Awards must be closed out within 90 days of the end date of the award This includes submission of all reports, including – Technical – Financial – Property – Patent

21. Award Closeout The UG also places more pressure on federal agencies to promptly perform their closeout procedures in a timely manner. This will add to the pressure for Caltech to meet the 90 day closeout requirement.

22. Stay tuned for further developments

23. Responsibilities for Safeguarding ITAR – Export Controlled Information Adilia Koch Director of Export Compliance Office

24. Export Control Restrictions on Technical Data Who’s Responsible? We’re All in it Together. The PI is primarily responsible for making sure his or her project team is in compliance with the ITAR, export control safeguards, but everyone is ultimately responsible: Caltech as an institution, all researchers, faculty and staff working or managing a controlled project. Why? It’s the Law.

25. Export Control Restrictions on Technical Data The Regulations Transfers of export controlled information or items that reveal technical data cannot be transferred to foreign persons without an export license or other authority or exception from the U.S. State or Commerce Department. What happens if Caltech does not comply? It can result in a civil violation, and in some instances, it can result in a criminal violation, loss of funding from key government agencies, or reputational loss.

26. How do you identify an export controlled project? How do you know your PI’s project is “export controlled;” meaning export controlled information, hardware or software will be transferred to the PI and his or her research team?

27. How do you identify an export controlled project? Your PI’s project may be “export controlled” when it is subject to a: Technology Control Plan Bona Fide Exception Memorandum has been signed (authorized exception from licensing requirements under the ITAR to allow foreign persons access to controlled technical data), subject to recordkeeping requirements. Rationale email sent from CEC to PI advising the PI that the project is “ export controlled.” IMSS IT Secure Data is required for the project’s technical data. Vice Provost Approval was obtained in order to receive export controlled items on campus. Export license filed for the PI’s project or foreign person working on the project’s activities.

28. How do you identify an export controlled project? Your PI’s project may be “export controlled” when it is subject to a: Technology Control Plan Bona Fide Exception Memorandum has been signed (authorized exception from licensing requirements under the ITAR to allow foreign persons access to controlled technical data), subject to recordkeeping requirements. Rationale email sent from CEC to PI advising the PI that the project is “ export controlled.” IMSS IT Secure Data is required for the project’s technical data. Vice Provost Approval was obtained in order to receive export controlled items on campus. Export license filed for the PI’s project or foreign person working on the project’s activities.

29. How do you identify an export controlled project? Your PI’s project may be “export controlled” when it is subject to a: Technology Control Plan Bona Fide Exception Memorandum has been signed (authorized exception from licensing requirements under the ITAR to allow foreign persons access to controlled technical data), subject to recordkeeping requirements. Rationale email sent from CEC to PI advising the PI that the project is “ export controlled.” IMSS IT Secure Data is required for the project’s technical data. Vice Provost Approval was obtained in order to receive export controlled items on campus. Export license filed for the PI’s project or foreign person working on the project’s activities.

30. How do you identify an export controlled project? Your PI’s project may be “export controlled” when it is subject to a: Technology Control Plan Bona Fide Exception Memorandum has been signed (authorized exception from licensing requirements under the ITAR to allow foreign persons access to controlled technical data), subject to recordkeeping requirements. Rationale email sent from CEC to PI advising the PI that the project is “ export controlled.” IMSS IT Secure Data is required for the project’s technical data. Vice Provost Approval was obtained in order to receive export controlled items on campus. Export license filed for the PI’s project or foreign person working on the project’s activities.

31. How do you identify an export controlled project? Your PI’s project may be “export controlled” when it is subject to a: Technology Control Plan Bona Fide Exception Memorandum has been signed (authorized exception from licensing requirements under the ITAR to allow foreign persons access to controlled technical data), subject to recordkeeping requirements. Rationale email sent from CEC to PI advising the PI that the project is “ export controlled.” IMSS IT Secure Data is required for the project’s technical data. Vice Provost Approval was obtained in order to receive export controlled items on campus. Export license filed for the PI’s project or foreign person working on the project’s activities.

32. How do you identify an export controlled project? Other clues that may indicate export controls: JPL or defense contractor involvement or funding. Department of Defense, NASA, Department of Energy Information contains restrictive marking language or PI has been notified that the information is “export or ITAR controlled.”

33. Institutional Safeguards: Protection of Export Controlled Data Technology Control Plans – A TCP is a document that explains the steps the PI and his/her research team must take to safeguard any controlled data that is received by the research team on campus. Safeguards ensure that only authorized foreign persons have access to the export controlled information or items. IMSS Secure Server to store restricted data. – All ITAR controlled information must be stored in a secure server with access controls. – This allows data to be stored worry-free by the divisions. Go to this IMSS link to get more information or to get secure server implemented: [https://imss.caltech.edu/help/safeguarding-export-controlled-data]https://imss.caltech.edu/help/safeguarding-export-controlled-data

34. Institutional Safeguards: Protection of Export Controlled Data Recordkeeping Requirements – Transfers of controlled data must be recorded. IMSS Secure Server helps you do that. Authorization Requirement – International Traffic In Arms Regulations (ITAR) requires that anyone using an ITAR exemption, must follow certain recordkeeping procedures. Not doing so may result in a violation.

35. How can you help?  Help your researchers and PI comply with the recordkeeping requirements.  Make sure your faculty or researcher is placing all export controlled information in the IMSS Secure Server Folder.

36. How can you help?  Contact CEC if: – The Project Team anticipates a scope change. – The project is export controlled and a foreign person will need to access controlled information or work on the project. – Controlled information is inadvertently disclosed to a foreign person. – Secure data is breached – hacking incident, stolen laptop or memory devices, etc. – The foreign person’s status changes to US permanent residency, US citizenship or foreign person is no longer employed by Caltech.

37. Contacts Adilia F. Koch Director, Caltech Export Compliance Office adilia.koch@caltech.edu (626) 395-4469 (626) 529-6415 (cell) Chris Catherasoo Export Compliance Technical Specialist chris.catherasoo@caltech.edu (626) 395-3679 (626) 421-9635 (cell) Jennifer Wong Export Compliance Analyst jennifer.wong@caltech.edu (626) 395-2558 International Shipments Export Compliance Office export@caltech.edu (626) 395-2641 ● (626) 395-3144 (fax) Website: http://export.caltech.edu

38. Conflict of Interest Disclosures Grace Fisher-Adams Director of Research Compliance

39. Conflict of Interest Disclosures (Reporting Financial Interests)

40. Annual Financial Interest Disclosure This Year/Status Differences between sponsors? What happens with a proposal when there is no disclosure? What happens with a proposal when there is a positive (yes, financial interest) disclosure? How do I keep proposals or, more importantly, funding from being delayed? Does disclosure impact subawards?

41. Audit Updates Estella Venegas Assistant Director Post-Award Administration

42. Audit Update DCAA Audits PwC Audits Agency Audits

43. Technical Service & Facilities Use Activities David Mayo Director of Sponsored Research

44. Concepts Facilities Use: When a non-Caltech entity wishes to enter Caltech-owned facilities and will be paying for that access. Technical Services: When a non-Caltech entity wishes to engage the services of a Caltech person or facility and will be paying for those services, but the non-Caltech entity will not enter Caltech-owned facilities in relation to the provided services.

45. Concepts Sponsored Research: When a non-Caltech entity wishes to collaborate with Caltech researchers and will fund the work. Independent Consulting – When a non-Caltech entity wishes to engage directly with a Caltech employee outside the scope of their Caltech duties. Must be approved by Division Chair. No other Caltech personnel, facilities or resources may be utilized.

46. Concepts Or, looked at another way, if money is coming in to Caltech in order to pay for Caltech to do something: – Provide Access = Facilities Use – Make something or do something = Technical Services – Collaborate = Sponsored Research If there will be any collaborative exchange between Caltech personnel and the non-Caltech entity, then the activity must be treated as Sponsored Research.

47. Facilities Use/Technical Services Technical Services/Facilities Use activities require completion of an Information Form (in lieu of a DAF) which asks specific questions to ensure compliance with Caltech policies (e.g., no collaboration, COI, etc.); – PI eligibility rules do not apply – There can be no gift made for Technical Services/Facilities Use – All agreements are negotiated/approved/signed by OSR (David Mayo)

48. Facilities Use/Technical Services Based upon Info Form, OSR will send agreement to “customer” and negotiate terms. OSR will assign a control number (FUSE-TSA- FY??-???) to each approved agreement. If federally funded (even via subaward), financial piece will be distributed to and managed by Post Award Accounting (Award Summary will be issued). If privately funded, financial piece will be distributed to and managed by G&E Accounting; once agreement is distributed, work with your regular G&E Accounting contact for PTA setup. Note that a control number is required for deposit of funds to a G&E Accounting-managed agreement.

49. What about Overhead? On- or off-campus overhead will apply in all of these cases, except where the facilities to be used are not research facilities (e.g., conference space, electronics shop, etc.). Other than the above, any exception to the application of overhead must be approved by the Provost.

50. What about JPL? If JPL will fund a collaboration (e.g., sponsored project or instrument development), then it is funded as a Research IA (overhead applies) If JPL desires Technical Services/Facilities Use, then it is funded as a Service IA (overhead applies)

51. What about JPL? Research IAs are handled via IAMS, and they require the same forms/ approvals as for any other sponsored project (e.g., DAF, eligibility) Service IAs are handled differently – They require a JPL Interdivisional Authorization Request Form to be completed (this is in lieu of a DAF) – They are handled directly by Post Award Administration (send all request forms to Stella Venegas (estella.venegas@caltech.edu)) PAA must verify Caltech salary and benefits rates (JPL will not pay unverified rates) PAA will forward Request Form to JPL who will issue a Service IA Caltech’s PI eligibility requirements do not apply

52. Questions??

53. Thank you for coming! Today’s slides will be available at our website: http://researchadministration.caltech.edu/training