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Sponsored ProgramsSponsored Programs

Additional Additional

Review Review

StepsSteps

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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

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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.

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Sponsored Program Award Prefixes

GA National Science Foundation - Letter of Credit

GB Department of Energy – Letter of Credit

GC Department of Health & Human Services – Letter of Credit

GD NASA, Langley – Letter of Credit

GE Center for Innovative Technology – Letter of Credit

GF Foundations

GG Government (non-Letter of Credit)

GH National Endowment for Humanities – Letter of Credit

GI Industry

GJ National Endowment for the Humanities (VA Foundation for the Humanities) – Letter of Credit

GK Environmental Protection Agency – Letter of Credit

GL Department of Commerce (National Oceanic Atmospheric Administration) – Letter of Credit

GM Department of Education – Letter of Credit

GN NASA, Headquarter – Letter of Credit

GO Other

GP NASA, Goddard – Letter of Credit

GQ Department of Energy, Chicago – Letter of Credit

GR NASA, Glenn – Letter of Credit

GS State

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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.

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Direct Costs

Just like costs reviewed on non-sponsored program awards– Salary– Wages– OTPS types of costs

Need to ensure costs are ‘allowable’

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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?

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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

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Review Budget to Actual

Have expenditures exceeded the budget?– Check that both Direct and F&A expenditures

are in-line with the budget categories?

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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.

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Sponsored ProgramsSponsored Programs

Appendix of Appendix of Reference MaterialsReference Materials

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Sponsored ProgramsReference Appendix Content

Notice of AwardFederal RegulationsHow is your award funded?Cost SharingDirect CostsCost TransfersRetro Cost TransfersF&A CostsSubcontractsRequired Actions

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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 amountsBegin, End, and Close dates Verify Grant dollar Amount is the same as the budgetVerify F&A / Indirect Cost rate is correctFamiliarize yourself with the Terms and Conditions Know whether award has cost-sharing or not

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Additional Regulations

Know which Federal and Institutional regulations and policies apply. 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

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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.

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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

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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

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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.

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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?

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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– Requires knowledge and approval of PI – OSP responsible for approving or rejecting

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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– Requires knowledge and approval of PI– OSP responsible for approving or rejecting

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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

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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.

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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]

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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.