Sponsored Research Financial Management: Current Pre and Post-Award Issues

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Fundamentals of Sponsored Research
Administration The American Experience
John Carfora, Ed.D. Cand. Director, Research
Administration, Boston College Denise Wallen,
Ph.D. Director, Research Development Services,
The University of New Mexico EARMA, Paris,
France, June 2006
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Management for research is the provision of a
nourishing climate, sound policies, supporting
services of various kinds, financial systems, and
organizational arrangement that will help
research flourish in a university. (Raymond J.
Woodrow, Management for Research In U.S.
Universities, 1978)
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Julie Norris (2006) Recognizing the
difference between management of and
management for research highlights the elements
of a successful modern sponsored programs
administration office. Flexibility Responsivenes
s Patience Knowledge Attention to
detail Communication skills Timeliness Pro-acti
vity
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Organizational Models What is the Sponsored
Research Office (SRO)?? Various
nomenclatures -- SRO, Office of Sponsored
Programs, Office for Research Administration,
Office of Grants Contracts, Role to is
support the research mission of the institution
-- stewardship, management, oversight Two core
central administration areas pre-award and
post-award.
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Pre-Award Functions Funding identification
assistance and proposal submission Award
acceptance and ensuring compliance with sponsor
and institutional policies Mediating award
process with sponsor to ensure university
research policies are adhered to and terms and
conditions are acceptable Research development
and proposal development Electronic grants
administration/information system support
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Post Award Functions Monitoring expenses
allowable, allocable and reasonable Reporting
project expenses Invoicing sponsor Collecting
income and posting Monitoring spending against
budget Completing the final financial report
Closing-out award Reporting to university
management
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OSP Interactions across University
Campus Central Office has interactions with
business office, research administrators at the
college/division and department levels,
university development office and foundation
College level research administrators obtain
signature approvals, monitor accounts, work with
department staff Department level research
administrators have day-to-day management of the
award, work closely with PI in proposal preparatio
n (budget, assurances), work with Central office
post award transactions cost-transfers,
etc. These interactions present Challenges of
working together Clarifying roles and
responsibilities Defining interrelationships
among key players
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OSP Organizational Models Four General Paradigms
(Elizabeth Mora, Harvard, 2006) Traditional
Model Hybrid Model Integrated Model Fully
Integrated Model
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Staff Skills Requirement General staff
competencies knowledge of sponsor policies
regulations financial or accounting
skills knowledge of institutions financial
grants management systems communication
skills attention to detail Pre-Award
Experience bachelor or advanced degree -
liberal arts, law, business years of
experience vary with level - e.g 5-10
-Senior Post-Award Experience accounting,
audit, insurance, banking background
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Sample work flow in OSP Organized around
sponsor (NSF) - allows for high degree of
specialization but has PI working with multiple
administrators Organized around PI department --
allows for mixed portfolio which is of greater
interest. Balancing portfolios to accommodate
workflow Complexity of award Sponsor
difficulty Expertise of college/dept staff and
PI Difficulty of portfolio (e.g. industry
sponsored awards) Volume of portfolio

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Risk Areas for the Institution Transactional
Risk Allowable cost allocable to the
award Specific-sponsor Risk Compliance with
specific agency-imposed conditions Institutional
Risk Ensuring basic compliance with internal
controls, understanding of responsibilities by
all parties
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Sample Staff PI Training Need To assure
quality and state-of-art knowledge. Remain
current in rapidly changing world. NCURA -
professional development training thru
conferences, workshops, teleconferences, web
casts Fundamentals (Spon. Programs) Pre-
Post-Award Conferences Export Control,
Security Mandatory Grants Management
Training pre- post-award, audit, face-to-face,
web-based Compliance Training IRB, IAUCUC,
HIPAA

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Electronic Research Administration Searching
for funding Electronic proposal
submission Reporting Proposal development and
writing workshops Monthly Topical Training and
Networking e.g. Research Administrators
Network
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Working with University Development
Offices Different culture of Sponsored Research
Office (SRO) and University Development
Office Gift vs. Grant vs. Contract Foundation
grants often require long-term relationship
building Need to coordinate between offices to
assure success Need to share funding report
information Value of coordinating training and
outreach efforts
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Related Activities Integration of research and
economic development Federal relations and
establishing priorities for funding Relations
with peer institutions Infrastructure support
for multidisciplinary teaming and project
development
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Working in the International Domain Richeys
List Adapted from two John B. Richey articles
Crafting Contracts for International Projects.
SRA Journal. Vol 25, Number 3, Winter,
1993. Budgeting for International Projects
In-Country Business Operations and Long-Term
Residential Assignments. SRA Journal, Vol 25,
Number 4, Spring, 1994.

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Check-List

• Who are the parties to the general agreement?
  Considerations national sovereignty
  power-sharing, etc.
• Statement-of-Work
• Principals and Scientific/Program Direction
• Contract Employees / Independent Contractors

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Check-List

• Subcontracts (remember that period during which
  funds may be spent can differ from the work
  period).
• Cost Considerations
• Fees for Extraordinary Service
• Settling-in Costs
• Make Ready Costs
• Saturday/Sunday Pay
• Hardship Pay
• Cost-of-Living (COL) Adjustments
• Dependent Travel
• Education Allowances

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Check-List (Continued)

• Medical Evacuations
• Evacuations During Civil Disturbances
• Insurance
• Payment
• Letter-of-Credit
• Payment in US Dollars / Other Currency
• Tax Considerations
• Accounting and Auditing
• Reports and Reporting
• Warranties (nothing is warranted)
• Termination
• Arbitration and Applicable Law

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Check-List (Continued)

• Property
• Intellectual Property
• Force Majeure
• Publications
• Facilities
• Transportation of Personal Items (freight
  forwarder service company fees)
• Storage Costs of Items Not Shipped
• Expediter Costs for Clearing Shipments
• Home Leave per Institutional Policy
• Rest and Recuperation Leave

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Check-List (Continued)

• Temporary Residences
• Maintenance Agreements
• Insurance (Driving/Auto, Household, Liability)
• License and Fees (Driving. Work Permit, etc)
• Spare Parts/Componentrs (Computers, Autos, etc)
• Medical Examinationsand Vaccinations
• Orientation to Country Culture
• Language Training
• Currency Exchanges Banking Charges

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Check-List (Continued)

• Airport and Travel Taxes or Fees
• Indirect Costs
• Severability
• Notices
• Confidentiality
• Modifications
• Assignments
• Publicity
• Independent Contractors
• Export Controls
• Other Important Factors Considerations

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Summary and Conclusion

• Expectations and Realities A Discussion

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Resources Web Resources

• Richey, John B. (1993). Crafting Contracts for
  International Projects. SRA Journal, Vol 25, No.
  3, Winter.
• Eckert, Janice L. (1996). Preparing to Manage an
  International Project. SRA Journal, Vol. 28, No.
  1-2, Summer/Fall.
• Richey, John B. (1994). Budgeting for
  International Projects In-Country Business
  Operations and Long-Term Residential Assignments.
  SRA Journal, Vol 25, No. 4, Spring.
• McConnaughay, Philip J. (2002) The Scope of
  Autonomy in International Contracts and its
  Relation to Economic Regulation and Development.
  Columbia Journal of Transnational Law, Vol. 39.
• Hatley, Josephine B. (1999). Entering the New
  era International Research Administration Asian
  Development bank Technical Assistance Proposal
  and Contract. SRA Journal, Vol. 31, No. 2,
  Summer/Fall.

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Selected Resources Web Resources

• Office of Inspector General, USAID. (June 2003).
  Guidelines for Financial Audits Contracted by
  Foreign Recipients.
• Argon, J.K. (1994). Subcontracting With Private
  Funds. Washington, DC National Council of
  University Research Administrators.
• Erickson, S. (1994). Subagreements Under Federal
  Prime Awards. Washington, DC National Council
  of University Research Administrators.

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On-Line Resources

• Grants to Foreign Institutions, International
  Organizations, and Domestic Grants with Foreign
  Components (see link for handy chart, Exhibit 2)
• http//grants1.nih.gov/grants/policy/nihgps_2003/
  NIHGPS_Part12.htm_Toc54600260
• Public Policy Requirements and Objectives
  (located under Part II Terms-General, see Public
  Policy Requirements)
• http//grants2.nih.gov/grants/policy/nihgps_2003/
  NIHGPS_Part4.htm