1. 1 Sponsored Programs AdditionalReviewSteps

2. 2 Sponsored Program Section Content How to Identify a Sponsored Program Types of Costs Review Budget to Actual Actions required 30 days prior to and at the end of a grant period. List/Reference to Unique Aspects of Sponsored Programs

3. 3 Sponsored Program Section Objectives To be able to readily identify a sponsored program project in the Integrated System To understand Direct vs Indirect (F&A) costs and how to review each To understand actions required 30 days prior to and at the end of a grant period. To gain a general understanding of resources related to the specific restrictions and reporting required for sponsored programs.

4. 4 Sponsored Program Award Prefixes GANational Science Foundation - Letter of Credit GBDepartment of Energy – Letter of Credit GCDepartment of Health & Human Services – Letter of Credit GDNASA, Langley – Letter of Credit GECenter for Innovative Technology – Letter of Credit GFFoundations GGGovernment (non-Letter of Credit) GHNational Endowment for Humanities – Letter of Credit GIIndustry GJNational Endowment for the Humanities (VA Foundation for the Humanities) – Letter of Credit GKEnvironmental Protection Agency – Letter of Credit GLDepartment of Commerce (National Oceanic Atmospheric Administration) – Letter of Credit GMDepartment of Education – Letter of Credit GNNASA, Headquarter – Letter of Credit GOOther GPNASA, Goddard – Letter of Credit GQDepartment of Energy, Chicago – Letter of Credit GRNASA, Glenn – Letter of Credit GSState

5. 5 Types of Costs Direct Costs –Costs that provide direct benefit to a sponsored project’s scientific or technical scope of work. Facility and Administrative (F&A) or Indirect Costs –The negotiated F&A rate is applied to the direct costs to add the cost of space, utilities, office supplies, and other essential infrastructure ‘overhead – type expenses.

6. 6 Direct Costs Just like costs reviewed on non-sponsored program awards –Salary –Wages –OTPS types of costs Need to ensure costs are ‘allowable’

7. 7 Review Direct Costs Can the cost be specifically identified with a project with relative ease and with a high degree of accuracy? Is the cost allowed by all terms and conditions governing a particular award? Is the documentation sufficient to validate the relationship between the expenditure and the purpose of the award?

8. 8 F&A Costs (Indirect Costs) F&A will be charged to all qualifying direct costs charged to your sponsored project. How do you determine the rate applied to your sponsored project? –Run the Discoverer report called IS.FM_Indirect Cost Rate Schedules

9. 9 Review Budget to Actual Have expenditures exceeded the budget? –Check that both Direct and F&A expenditures are in-line with the budget categories?

10. 10 30 Days prior to end of Grant Period If appropriate and at the request of the PI, file necessary paperwork with OSP to set up new preliminary account. At PI request, file necessary paper work with OSP for no cost extensions. If project is in deficit, take actions to clear deficit. Notify OSP Accountant (Project Manager) of any remaining cost overruns.

11. 11 Sponsored Programs Appendix of Reference Materials

12. 12 Sponsored Programs Reference Appendix Content Notice of Award Federal Regulations How is your award funded? Cost Sharing Direct Costs Cost Transfers Retro Cost Transfers F&A Costs Subcontracts Required Actions

13. 13 Know your grant! Review Sponsors Notice of Award (NOA) and the OSP NOA. –Verify that all data on both are accurate Direct & Indirect (F&A) dollar amounts Begin, End, and Close dates Verify Grant dollar Amount is the same as the budget Verify F&A / Indirect Cost rate is correct Familiarize yourself with the Terms and Conditions Know whether award has cost-sharing or not

14. 14 Additional Regulations Know which Federal and Institutional regulations and policies apply. http://www.virginia.edu/sponsoredprograms/ http://www.virginia.edu/sponsoredprograms/ All Federal Grants are governed by costing accounting standards stated in the Federal OMB Circular A-21. http://www.virginia.edu/sponsoredprograms/ casguidelines.pdf

15. 15 How is your award funded? Event Based Billing –Sponsor invoiced based on a particular event (eg, time period, specific event such as a holding a clinical trial, etc) Cost Based Billing –Sponsor invoiced at the end of each period based on actual costs incurred during the preceding period.

16. 16 Cost Sharing When UVA Contributes money or items of value toward the cost of the project Might be required by the sponsor or may be ‘voluntary’ on the part of the institution More than a nominal Amount More commonly found on grants and cooperative agreements than on contracts

17. 17 Methods of Cost Sharing Effort – percentage of Salary & Wage for specified individuals – fringe benefits Cash (direct expenditure costs) –Equipment –Un-recovered Facilities and Administrative Costs F&A Costs

18. 18 Incurred Direct Costs Must Be: Allowable –Under the provisions of the Circular AND under the terms of the particular award. Allocable –The project must directly benefit from the expense. Reasonable –In that a “prudent person’ would have paid the same price.

19. 19 Direct Costs: What to look for Have expenditures been incurred during the allowed period? Are all expenditure allocable? Are there unallowable expenditures? Has cost sharing happened where appropriate?

20. 20 Cost Transfers Governed by the same costing principles as direct costs: –Allowable –Allocable –Reasonable UVA policy: Section VIII.8-20 of UVA Procedures http://www.virginia.edu/finance/polproc/proc/8- 20.html#top http://www.virginia.edu/finance/polproc/proc/8- 20.html#top –Requires knowledge and approval of PI –OSP responsible for approving or rejecting

21. 21 Retro Cost Transfers Applies to transfer of any grant expenditures over 90 days old, including labor distribution or awards where the end/cose date is in the past. Complete OSP Retro Request Form and send to osp-retro-request@virginia.edu Requires OSP retro approval number UVA policy: Section VIII.8-21 of UVA Procedures http://www.virginia.edu/finance/polproc/proc/8- 21.html http://www.virginia.edu/finance/polproc/proc/8- 21.html –Requires knowledge and approval of PI –OSP responsible for approving or rejecting

22. 22 F&A Costs Basic rates: –On-Grounds Research –On-Grounds Public Service –Off-Grounds Research –Off-Grounds Public Service Two basic types: –Total Direct Costs (TDC) –Modified Total Direct Costs (MTDC) NOTE: Add web-site link

23. 23 Review Indirect Costs (F&A) –F&A accrued each day on which there are applicable direct cost expenditures. –Cumulative, that is, one F&A calculation for all expenditures on a given day.

24. 24 What to look for Were correct Expenditure Types used on subcontract invoices? –Svcs, Subcontracts, Sponsored Program [first $25,000 each subaward] –Svcs, Subcontracts, OSP, No F&A [all payments above the $25,000 thresh hold]

25. 25 Actions at end of Grant Period If cost sharing on the award – file report with OSP. ( Note:NOA T&C may dictate more frequent reporting of Cost Sharing information) Clear out all commitments Make sure all POs are finally closed Make sure all Sub Contractor invoices have been received and paid. Make sure all p-card expenditures are included. If project is in deficit, take actions to clear deficit.