Office of Grants and Sponsored Research Basics of Grants Administration Coastal Carolina University

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Office of Grants and Sponsored ResearchBasics
of Grants AdministrationCoastal Carolina
University
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Training Agenda

• 100 p.m. Welcome and Introduction
• 130 p.m. Belinda Pope, HREO
• 230 p.m. Break
• 245 p.m. Tammy Holt, Grants Accounting
• 330 p.m. Bruxanne Hein, Grants
• 415 p.m. Questions and Answers
• 430 p.m. Session Ends

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Who We Are

• Dr. Valgene Dunham
• Interim Associate Provost for Grants and
  Sponsored Research
• FCCP C312 843-349-6542 e-mail
  dunham_at_coastal.edu
• Bruxanne E. Hein
• Grants Contracts Administrator
• FCCP C308 843-349-2918 e-mail
  bruxanne_at_coastal.edu
• Arline Cookie Elston
• Grants Administrative Assistant
• FCCP C310 843-349-2219 e-mail
  aelston_at_coastal.eduu
• Tammy Holt
• Grants Accountant
• EMS 232 843-349-2100 e-mail tammy_at_coastal.edu

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Where We Are

• The Office of Grants and Sponsored Research is
  located in the Foundation and Community
  Partnerships Building on Highway 501.

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What We Do

• Assists faculty and staff with preparation and
  submission of proposals
• Provides faculty with information on grant
  opportunities, funding sources and grant writing
  assistance
• Strives to create increased faculty interest in
  grants to support research, training and public
  service activities.
• Monitors and provides assurances of all federal
  and state regulations pertinent to grant
  eligibility and grants-related financial
  transactions
• Insures proper compliance, accountability and
  reporting to granting agencies.

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How We Do It

• Information on funding opportunities
• Proposal Development Assistance
• Conducts workshops and help sessions
• Recognition of faculty efforts
• Staff attends workshops and conferences to keep
  up-to-date with rapidly changing grants
  regulations and policies

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OGSR Web Site Features

• www.coastal.edu/grants
• Latest Opportunities
• Links to state, federal and private funding
  agencies
• GrantTalk newsletter
• Handbook for Principal Investigators
• Internal Grants
• Important information about CCU
• NEW! In-depth information on Proposal Writing and
  Preparation, Research Compliance, Intellectual
  Property, and more!

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Important CCU Info

• Information about CCU commonly required on grant
  applications
• Federal ID Numbers (EIN, DUNS etc)
• Districts for Federal and State elected officials
• Current Fringe Benefit and FA Cost rates
• Travel reimbursement information

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Personnel Issues

• Belinda Pope, HREO

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Financial Issues

• Tammy Holt, Office of Grants Accounting
• http//www.coastal.edu/campuspayment/grants/

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Pre-Award Issues

• Pre-Award Spending is any spending incurred by
  the PI in advance of the award start date.
  Pre-award spending is only allowed when a sponsor
  authorizes such spending in writing. Most
  government grant sponsors allow pre-award
  spending within the 90 days prior to the start of
  the award if the advanced funding is necessary
  for the effective and economical conduct of the
  project. However, other sponsors limit or do not
  allow pre-award costs. The University policy,
  contract, or award letter will specify if
  pre-award expenses are allowed.
• CATCH If the award does not materialize or the
  start date of the project is delayed the award
  will not cover the expenses incurred and the
  Principal Investigator will most likely have to
  pay for the expenses from his or her unrestricted
  funds. Pre-award expenditures are made at the
  PIs own risk!

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Pre-Award Issues

• Federal and state requirements place restrictions
  on the total amount of time available for
  research, service and instructional activities.
  Overload is specifically described in the Faculty
  Manual. In general, combined individual effort
  on grants and contracts and all other activity
  cannot exceed 100.
• If a grant involves human subjects, animals, or
  biohazardous materials, the PI must obtain IRB
  approval prior to submitting/ beginning the
  funded research. Although most federal agencies
  no longer require approval at the time the
  proposal is submitted, you need to seek immediate
  approval when you know that your grant is going
  to be funded. CCUs IRB MUST have at least two
  weeks to review a submission. Additionally, you
  need to be aware that some sponsors will not
  process a proposal without IRB approval.

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Post-Award Issues

• OGSR accepts the award.
• Grants Accounting sets up an account for the
  project at the request of OGSR.
• OGSR will issue a Notice of Award to be sent to
  the PI, Dean, Grants Accounting, Media Relations
  and any other required departments.
• The PI conducts the research, spends the funds in
  accordance to sponsor requirements.
• OGSR and/or Grants Accounting notifies the PI of
  close-out dates.
• The PI submits its final technical report, Grants
  Accounting submits the final financial report.
  All numbers match, the account is audited and
  closed. The PI publishes its paper and moves on
  to other projects.
• In a perfect world this is how a grant proceeds!

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Post-Award Issues

• You have been awarded but the budget was
  increased or reduced, and you need to revise your
  budget.
• Pre-Award spending may take a large amount of
  your budget. Additional university resources are
  needed to conduct the project.
• The PI will have to renegotiate and/or adjust the
  parts of the project such as subcontracts,
  material, travel expenses, supplies, etc.
• Your senior personnel is no longer
  available/willing to conduct the project or have
  moved to another institutions. You may have to
  change or increase the effort of other senior
  personnel effort has been increased. CCU will
  have to approve and changes in the
  time-commitment, which may conflict with other
  previous commitments.
• A subcontractor may be unable to participate in
  the project if the funds have been reduced.
• Your FA costs have been decreased by more than
  25 and additional in-kind and/or matching funds
  are required.
• Solution negotiation! Thats why we have a grant
  proposal and not a contract! Once you receive
  your award and you verify the need for adjustment
  please contact the OGSR to start the negotiation
  process.
• CATCH Negotiations need to start in the
  beginning of the project. If a PI waits until the
  last month of the project to point out
  discrepancies between the proposal and award the
  sponsor is unlikely to negotiate terms
  conditions.

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Post-Award Issues

• All grants/contract/subcontracts must be reviewed
  and approved by OGSR and, if necessary, by risk
  management and legal departments. OGSR needs to
  ensure that
• Terms and conditions that negatively affect the
  University or that are inconsistent with the
  State or CCUs guidelines have been removed
• Legal issues such as applicable state law,
  venue, insurance, indemnification, etc. have been
  addressed in accordance with SC Law
• SC State Restrictions have been taken into
  consideration
• Changes in scope of work and/or in the budget are
  acceptable
• Billing issues
• Procurement issues.
• Program and/or policy changes within CCU may
  impact the project. CCU will require further
  review and possible declination of the award.
• CCU reserves the right to decline any award.
  Before an award can be accepted, a formal notice
  and/or agreement binding the sponsor to pay the
  costs of the grant must have been received and
  approved by the university.

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Funding Issues

• The most common misconception in research is the
  idea that because the project was developed by
  the PI, that the funds awarded by the sponsor
  belong to the PI, when in fact the money is
  awarded to the University. So how does CCU
  receive the money?
• Grants expenditures basics
• Cost-reimbursable The PI spends the funds
  through a University account. The University
  bills the sponsor and the sponsor reimburses CCU
  for those funds that were spent.
• Fixed price All costs are allowable and the
  money is generally paid up front.
• Completion or Task Completion The PI completes
  pre-determined phases or milestones and the
  sponsor pays for that portion of the work.
• Fee for service. More common in contractual
  arrangements. Fee for service can be measured by
  task, hour, etc.
• Please remember that all awards are accepted by
  CCU. CCU is the steward of the money and the
  responsible party if any project funds are
  mismanaged.

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What You Need to Know on Spending

• Allowable Costs - Almost all sponsors put
  restrictions on what can and cant be purchased
  with grant funds. These vary from grant to grant
  and there are significant differences between
  requirements of federal and non-federal sponsors.
  Federal Grants require that a cost be determined
  and reported in accordance with accepted
  accounting principles. For general grant
  conditions, see OMB Circular A-21 and A-122.
• Also, a PI must be able to demonstrate that
  charges can be directly tied to the unique needs
  of the project. For example, a generic computer
  would not be allocable. A special software to be
  used exclusively for project needs would be
  allowed. In addition, other costs such as
  communication costs, conferences, equipment,
  travel, etc. may be considered as unallowable if
  the sponsor determines that said costs were not
  directly related to the project.
• Except as provided by Federal Law, an allowable
  cost cannot be included as a cost or used to meet
  cost sharing or matching requirements of any
  other Federal award in either the current or a
  prior period, not prohibited under State or local
  laws or regulations, and be accorded consistent
  treatment. (i.e., direct versus indirect costs)
• Reasonableness of costs a charge must reflect
  the price range that a prudent individual would
  pay for the item or service.
• Consistency All charges must be consistent with
  university standards. For example, you cannot
  pay students an excessive amount because they are
  grant supported. Their pay must fall within the
  consistent patterns of compensation on the
  campus.
• BE ADEQUATELY DOCUMENTED. In case of doubt ask
  for guidance !!! University guidelines on
  procurement can be found on the CCU website
  http//www.coastal.edu/procurement/

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What You Need to Know on Budgets

• Some sponsors allow for great flexibility in
  budgets as long as the project is appropriately
  managed, however, some will place restrictions on
  these lines and how you may move money between
  them.
• How do you know? Check with the OGSR or Grants
  Accounting. This information also appears on the
  Notice of Award.
• Does this means that as long as the my account is
  in the black I can spend the money? No!!! Over
  expense can bring a world of problems. The best
  way to do it is to re-budget within the grant
  guidelines.
• Why is this a problem? Over expense in one
  category may affect the fringe benefit line or
  alter the Indirect Cost line sometimes this
  wont be apparent until the end of the grant, not
  to mention that if the sponsor elects to keep the
  budget as it is someone will have to absorb the
  cost of over expense.
• The PI needs to see and approve all transactions
  for example, the office doesnt approve
  timesheets or see when a purchase order has been
  modified.
• Once the PI approved the expenses Grants
  Accounting process the invoices in accordance
  with the grant guidelines.
• Please remember that budget flexibility is not a
  synonym for budget creativity!!!!

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What You Need to Know on Budgets

• Budget A PI should consider the budget as a
  financial blueprint designed to help the project
  to meet its goals and objectives. A budget is a
  tool to help ensure that the project is on track.
  Changes in scope, objectives or goals of program
  will affect the budget. Depending on the grant,
  CCU has expanded authority to re-allocate up to
  10 of the budget.
• Personnel Substantial changes in level of
  participation by any personnel have to be
  approved by the PI and by the sponsor.
• Cost sharing Any and all cost sharing must be
  verifiable from CCUs records. Cost sharing is
  considered as necessary for accomplishing program
  objectives thus, all cost sharing has to be
  considered as an allowable cost in accordance to
  the OMB cost principles (OMB Circulars) and grant
  provisions. (i.e. Must not be included as
  contribution for other federally-assisted
  programs)
• In-Kind - In-kind contributions have to be
  documented using the same standards as other
  expenditures, and they must be entered into the
  general ledger and financial reports submitted to
  our sponsors.
• Report Requirements - Why is this a problem?
  Sometimes PIs forget to tell Grants Accounting
  that they have turned in a report or worse,
  sometimes the PI does not turn in a report and
  Grants Accounting cannot send the final invoice
  without that information. Late reports reflect on
  the University. A sponsor may decline to pay if
  the bill comes in too late. Additionally, some
  sponsors are restricting access to new funding
  opportunities if a PI does not deliver a final
  report.

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What You Need to Know on Budgets

• When in doubt ask for help!!! Even experienced
  research administrators may have problems
  navigating a complex budget
• Expenditures past end date
• Keeping up with salaries as encumbrances
• Monitoring expenses on multiple awards
• Reconciling grant budgets
• Unallowable expenses in last month of project
  for example, some sponsors will not allow
  purchase of equipment during the last quarter of
  a grant period
• P Card, phone and postage charges that may be
  posted several weeks after the end of a project
• Monthly Fund Review - The single most important
  thing a PI can do to ensure good financial
  management of a grant is to schedule 30 minutes
  per month to review expenditure activity for the
  previous month. Monthly transaction review
  enables prompt correction of errors. Monthly
  status review enables the PI to assess the
  spending rate. (If 50 of the grant has been
  spent after only 30 of the time has elapsed, the
  spending rate may need to be reduced to enable
  funds to cover the entire project period.
  Alternatively, if 50 of the grant period has
  elapsed and 75 of the funds remain, adjustments
  may be made to devote more resources to the
  project.)

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Subcontracts, Amendments Extensions

• Technically, any subcontractor is bound by the
  same terms and conditions as CCU. Therefore, the
  PI not OGSR or Grants Accounting is
  responsible for the review and approval of any
  invoices submitted by a subcontractor.
• In the event a project changes and you need to
  modify the scope of work and budget of your
  subcontract, an amendment has to be processed by
  OGSR BEFORE Grants Accounting starts paying the
  subcontractor for the revised services.
• CCU reserves the right to decline any invoice
  that is discrepant or not submitted in accordance
  with the budget lines of any approved
  subcontract.
• No-cost extensions can be requested prior to the
  end of an award to obtain additional time to
  complete the work of the study and/or prepare
  technical reports. This also extends the time
  until final financial reports are due. No-cost
  extensions are NOT appropriate to provide time to
  spend down balances left at the end of the grant.
  Granting of no-cost extensions can vary greatly
  between federal and non-federal sponsors. Please
  remember that any no-cost extension will likely
  impact the subcontracts you may have, and it is
  important to submit the OGSR-4 form to the Grants
  Office within at 90 days prior to the end date.

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A Word on Accountability

• CCU holds the PI accountable for the conduct of a
  funded project.
• All financial items must be signed by the PI
  unless he/she has designated someone else.
• Any charges left over OR disallowed by the
  sponsor are the responsibility of department.
• Any time a PI suspects a budget error, the PI
  should contact Grants Accounting and ask for
  assistance.
• PIs and departments are strongly encouraged to
  maintain a mechanism of internal control in order
  to avoid overdrafts on grant accounts.

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Account Close Out

• Close outs should be added to the PIs calendar
  at the beginning of the grant
• PI is responsible for final program reports. The
  schedule for reporting is included on the
  original Notice of Award.
• PIs and their departments should be sure to
  terminate all open personnel actions and p.o.s,
  reconcile open travel requests and
  reimbursements prior to the end date of the grant
  award. No expenditures allowed past end date.

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Unspent Grant Funds

• Grants if CCU was paid in advance, unspent
  funds usually have to be returned to the sponsor
• Contracts If awarded as a fixed price agreement
  and balance remains after deliverables met, a
  residual fund or 17 account may be established
  to continue research or scope of project. 17
  account funds should be spent within two years of
  the end of the grant.
• All other agreements are subject to return of
  unspent funds.
• Some sponsors require notification of unspent
  funds so they can re-appropriate.