1. Short-Form Proposals A Review Primer
US DHHS / ASAM / PSC / FMS / DCA

2. What is a Short-Form Proposal & Who Can Use It?
OMB Circular A-21, Section H., Simplified method for small institutions
Total direct cost under Federal awards does not exceed $10M annually
Where Federal cognizant agency approves institutions that exceed $10M

3. Basic Review Steps Verify that a rate is (still) needed
Proposal is complete
Proposal reconciles to Financial Statement
Verify Math
Confirm treatment of paid absences and other fringe benefits
Review prior negotiations file
Review indirect cost pool
Review direct cost base
Determine if there are any significant anticipated changes which would affect the negotiation

4. What’s the difference? Short-Form Long-Form
Single institution-wide rate for all sponsored activities
Single pool, single base
Sponsored projects administration part of general administration
Departmental administration limited to 20% of dean’s and dept. heads
No cap on administration
Choice of S&W or MTDC base
Separate rates for major sponsored activities
Multiple pools with multiple allocation and rate calculation bases
Sponsored projects administration allocated to sponsored projects only
Departmental administration allocated on dept.-by-dept. basis; 3.6% faculty allowance
26% administration cap
MTDC base only

5. Advantages Easy to prepare
Costs come directly from Financial Statements with minor reclassifications and adjustments
Less documentation
No on site reviews
Minimal or no review if rate is reasonable and consistent with prior years

6. Disadvantages Single institution-wide rate for all sponsored programs
Sponsored projects administration costs are part of General Administration
Generally results in a lower F&A cost recovery

7. INITIAL PROPOSAL IS HHS THE COGNIZANT AGENCY? IS AN F&A RATE NEEDED?
-Are only Federal Awards 8.0% Training
Grants?
-Are only Federal Awards Limited to Less Than Full F&A Rate?

8. REQUIREMENTS NEED TO SUBMIT: -F&A Proposal
-Audited Financial Statements
-Organization Chart
-Copies of Initial Federal Awards
-Copy of Fringe Benefit Policies
-Description of Administrative Functions

9. F&A COSTS
THOSE COSTS THAT ARE INCURRED FOR COMMON OR JOINT OBJECTIVES AND THEREFORE CANNOT BE IDENTIFIED READILY AND SPECIFICALLY WITH A PARTICULAR SPONSORED PROJECT, AN INSTRUCTIONAL ACTIVITY, OR ANY OTHER INSTITUTIONAL ACTIVITY.

10. DIRECT COSTS DIRECT COSTS ARE THOSE COSTS:
-THAT CAN BE IDENTIFIED SPECIFICALLY WITH A PARTICULAR SPONSORED PROJECT, AN INSTRUCTIONAL ACTIVITY, OR ANY OTHER INSTITUTIONAL ACTIVITY, OR
-CAN BE DIRECTLY ASSIGNED TO SUCH ACTIVITIES WITH A HIGH DEGREE OF ACCURACY

11. Proposal Development F/S cost categories: F&A P cost categories:
Instruction
Research
Public service
Student services
Scholarships & fellowships
Auxiliary enterprises
Academic support
Institutional support
Operations & maintenance
Instruction
Research
Public service
Student services
Scholarships & fellowships
Auxiliary enterprises
Computer center
Other direct costs
Operations & maintenance
Depreciation/Use Allowance
General administration
Library
Departmental administration

12. Unallowable Costs vs. Unallowable Activities
Unallowable Costs should be eliminated from the F&A computation
Unallowable activities should be treated as direct costs and therefore included in the base for the development of the F&A rate.

13. Unallowable Costs vs. Unallowable Activities (UA)
Capital Expenditures, Equipment
Entertainment
Fund Raising (UA)
Student Activities, Commencement, Registrar
Bad Debts
Alumni Affairs (UA)

14. OMB Circular A-21 Unallowable Costs
Section
J.1.f.
J.2.
J.3.
J.4.
J.6.
J.8.f.(2)
J.9.
J.11.
J.12.a
Cost Item
Advertising and public relations costs
Alcoholic beverages
Alumni/ae activities
Bad debts
Commencement and convocation costs
Tuition benefits for family members
Contingency provisions
Defense and prosecution costs
Depreciation/use allowance of Federal-funded assets

15. OMB Circular A-21 Unallowable Costs (cont.)
Section
J.13.b.
J.17.
J.18.
J.19.
J.20.
J.21.d.
J.21.f.
J.22.b.
J.22.c.
Cost Item
Donations and contributions made by institution
Executive lobbying costs
Fines and penalties
Goods or services for personal use
Housing and personal living expenses
Uninsured actual losses
Insurance against defects
Organized fund raising
Investment counsel and staff

16. OMB Circular A-21 Unallowable Costs (cont.)
Section
J.24.
J.25.
J.28.d. & e.
J.37.b. & c.
J.42.
J.45.
Cost Item
Lobbying
Losses on other sponsored agreements or contracts
Memberships, subscriptions and prof. activity costs
Recruiting costs
Selling and marketing
Student activity costs

17. F&A Cost Pool
Consisting of expenditures (excluding capital items and other costs specifically identified as unallowable) which customarily are classified under the following titles or their equivalents:

18. F&A Cost Pool General administration and general expenses
Operation and maintenance, depreciation and use allowance (after appropriate adjustment for costs applicable to other institutional activities)
Library
Departmental administration expenses, which will be computed as 20 percent of the salaries and expenses of deans and heads of departments

19. General Administration and General Expenses (GA)
General executive and administrative offices
Excludes costs of student administration and services, student activities, student aid, and scholarships
SWCAP
Excludes unallowable costs
College Work Study
Eliminate Federal share of wages (80%)

20. Operations & Maintenance
Eliminate O&M costs applicable to other institutional activities (OIA) in accordance with A-21, Paragraph H.2.b.(2)
Some grantees don’t identify O&M separately in the financial statements

21. Depreciation Reconcile to the Financial Statements
Includes the portion related to costs of the institution’s buildings, capital improvements to land and buildings, and equipment
Adequate property records must be maintained
Exclude: cost of land, cost borne by the Federal Government, cost used for matching
Do not claim depreciation for OIA, Assets Under Construction, or Unused Assets

22. Library
Audio-visual costs, if included here, allowed at 25% (75% goes into base)
Audio visual center costs are considered Instruction related, and thus go in Base
All costs less rare & museum-type books
Credit for library fines

23. Departmental Administration
Limited to 20% of the S&W and expenses of academic deans & department heads
Effort reports are not needed to support DA costs
DA will come from unrestricted funds

24. Direct Cost Base Salaries and wages Modified total direct cost
Must include costs of unallowable activities, e.g., fundraising, investment management, alumni activities, public relations

25. MTDC BASE INCLUDES SALARIES AND WAGES FRINGE BENEFITS
MATERIALS AND SUPPLIES
SERVICES
TRAVEL
SUBAWARDS (UP TO $25K PER SUBAWARD)

26. MTDC BASE EXCLUDES EQUIPMENT CAPITAL EXPENDITURES
CHARGES FOR PATIENT CARE
TUITION REMISSION
RENTAL COSTS
SCHOLARSHIPS & FELLOWSHIPS
SUBAWARDS IN EXCESS OF $25K

27. TYPES OF RATES
PROVISIONAL
FINAL
PREDETERMINED