Introduction to Grants and
Contracts: What is Research
Administration at AU?
Presented September 12, 2013
Purpose
The Research Administration Certification program
is a comprehensive training and certification
program designed to assist AU departmental and
school/college level staff with research
administration and/or grant/contract development
and management responsibilities. The RAC program
will provide pertinent information to enable
participants to effectively manage sponsored awards.
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Topics to be Covered
Session 1: Introduction to Grants and Contracts
Session 2: Pre-Award Issues
Session 3: Grants Management: Pre-Award Topics 1
Session 4: Grants Management: Pre-Award Topics 2
Session 5-8: Post-Award Topics (Financial
Management I & II, Systems Overview and
Research Compliance)
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Certification
• This training series will include a quiz on
each section.
• Online or instructor-led attendance for all
eight (8) sessions and successful completion
of all quizzes will lead to a Research
Administration Certificate.
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Topics to be Covered Today
I. What is a sponsored program?
II. The elements of research administration
III. What regulations govern sponsored awards?
IV. How are grants managed at AU?
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I. What is a Sponsored
Program?
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A Sponsored Program is an
externally funded project involving:
• Research
• Training
• Technical Assistance
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A Sponsored Award can be:
• Individual
Award payable directly to the individual, such as some fellowships;
individual is responsible for administration and for any tax liabilities;
AU can administer individual award with approval of sponsor but
reserves the right not to.
• Institutional
Award payable to AU; AU administers award on behalf of PI. If AU
receives an institutional award, all of the institutional rules governing
awards apply.
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Sponsored Program Funding
(Award) Mechanisms
• Grant: A grant is a provision of assistance to an
organization in support of an activity proposed by the
organization.
• Contract: A contract is a procurement of goods or services
provided by the university for the benefit of the sponsor.
Acceptance and performance of a sponsored contract
award must be consistent with the university’s mission.
• Cooperative Agreement: An assistance mechanism in
which the sponsor and grantee work together to achieve a
mutual purpose.
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Why Does This Distinction
Matter?
1. Different rules apply (to be explained in
more detail later)
2. Different relationship with sponsor
3. Different expectations with respect to
deliverables
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Grant
Cooperative
Agreement
Contract
Purpose
Assistance
Assistance
Procurement
Award
Instrument
May be short, and
refer to general
conditions
Similar to grant
Typically long and
detailed
Equipment Title
Grantee
Varies
Varies
Sponsor
Involvement
Typically less
Can be substantial
Typically more
Budget Flexibility More flexible
More restrictive
More restrictive
Financial Terms
Usually cost
reimbursable
Usually cost
reimbursable
Usually fixed price
Publications
Usually no
restrictions
Usually no
restrictions
Typically prior
review required
Patent Rights
Generally liberal
May be more
complicated
Specified in
contract
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II. The Elements of Research
Administration
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The Goals of Research
Administration
• Stewardship: Effective and responsible
management of sponsor/university/taxpayer funds
• Support: Provision of administrative and financial
support to the Principal Investigator in managing
the project
• Compliance: Ensuring sponsor’s, federal, and
university polices and procedures are followed-- ,
to reduce or minimize institutional risk, exposure
and non-compliance.
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General Components of
Research Administration
• Proposal Development
• Award Negotiation and Set-Up
• Award Management and Administration
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Components of Research Administration
• Proposal Development:
– Finding potential funding sources
– Budget development to provide resources needed to accomplish
project
– Assistance with completing required forms (institutional
information)
– Coordination among university offices to ensure that the institution
is aware of and agrees to the commitments that are being made on
its behalf (i.e. proposal routing)
– Compliance with proposal requirements
– Collaboration agreements, certifications & assurances
– Electronic research administration – proposal systems
– Proposal submission
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Components of Research Administration
• Award negotiation and set-up:
– Review of grant or contract terms and conditions, in
conjunction with PI and other offices
– Negotiation with sponsor of problematic terms
– Coordination of award signature
– Set-up of unique account for each grant or contract
– Start-up meeting with PI, school, GCA
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Components of Research Administration
• Award management and administration:
–
–
–
–
Financial administration
Subcontract management
Liaisons with sponsor
Electronic research administration – reporting
and management systems
– Reporting
– Research Compliance
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III. What Regulations Govern
Awards?
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Regulations, Rules and Policies
Come from Various Places
•
•
•
•
AU policies
Federal regulations such as OMB circulars
Sponsor-specific policies and guidelines
Award-specific terms and conditions
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1. AU Policies
• AU policies must be followed in addition to
other regulations specified by grantor.
• Even if other regulations are followed, a
deviation from AU rules can be seen as a
violation.
• Sample AU rules cover conflict of interest,
cost transfers, travel, and procurement.
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2. Federal Regulations:
OMB Circulars
• Office of Management and Budget developed rules that
govern federal grants.
• Different rules apply to different types of institutions;
colleges and universities have their own.
• Generally, these apply to all grants and cooperative
agreements from federal agencies
• Because of the need for consistent treatment of federal and
non-federal sponsors, most grant-related policies derive
from the OMB circulars.
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2(a). OMB Circular A-21 – Cost
Principles for Educational Institutions
• a.k.a. 2 CFR 220, available at:
http://www.whitehouse.gov/omb/circulars_a021_2004/
• Key topics:
– Considerations on allowability of costs (to be discussed
in detail at later session; examples include travel,
alcohol, personnel)
– Rules for determining and applying Facilities &
Administrative (F&A) costs (a.k.a indirect costs)
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2(b), OMB Circular A-110 –
Administrative Requirements
• a.k.a. 2 CFR 215, available at:
http://www.whitehouse.gov/omb/circulars_a110/
• Key topics:
– Standard institutional certifications;
– Financial management (cost share, program income,
etc.)
– Property management and procurement;
– Reporting and record retention;
– Closeout
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2(c), OMB Circular A-133 – Audits of
States, Local Governments, and Non-Profit
Institutions
• a.k.a. 2 CFR 215, available at:
http://www.whitehouse.gov/sites/default/files/omb/assets/a
133/a133_revised_2007.pdf
• Purpose: To establish the guidelines for conducting a
single annual audit of expenses on federal awards.
• Applicability: Mandatory for all organizations expending
more than $500,000 annually in federal awards.
• Scope: Reviews not only actual expenses but also
institutional policies, practices, and compliance.
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2(D), Federal Acquisition Regulation (FAR)
The FAR is the primary regulation for use by all Federal Executive agencies in
their acquisition of supplies and services via contract award.
Became effective on April 1, 1984, and is issued within applicable laws under the
joint authorities of the Administrator of General Services, the Secretary of
Defense, and the Administrator for the National Aeronautics and Space
Administration, under the broad policy guidelines of the Administrator, Office of
Federal Procurement Policy, Office of Management and Budget.
Limits agency acquisition regulations to those necessary to implement FAR
policies and procedures within an agency.
Provides for coordination, simplicity, and uniformity in the Federal acquisition
process.
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3. Sponsor-Specific Policies and
Guidelines
• Funders often have general regulations that
apply to all of their grants, such as:
–
–
–
–
NSF Award and Administration Guide
NIH Grants Policy Statement
Office of Justice Programs Financial Guide
State Department Standard Terms and
Conditions
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4. Award-Specific Terms
• Every sponsored award should include, or
incorporate by reference, at least the following key
elements:
–
–
–
–
–
Purpose;
Total amount awarded;
Start and end date;
Payment terms;
Reporting requirements.
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4. Award-Specific terms
• Other common elements are:
–
–
–
–
–
Detailed budget;
Intellectual property clause;
Key contacts;
Termination clause;
Deliverable schedule.
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5. Order of Precedence
Any inconsistency in the award terms is generally resolved by
giving precedence in the following order:
Award Terms
& Conditions
Program
Guidelines
Agency Rules
OMB Circular
Applicable Statutes and Laws
*Subject to institutional policies. Institutional policy governs if more restrictive.
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IV. How Are Awards Managed at AU?
Breakdown of responsibilities among key
individuals/offices:
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1. Principal Investigator (PI)
• Overall project management;
• Overall financial responsibility (except
reporting - GCA does financial reporting.);
• Hiring of project staff;
• Coordination with OSP on contractual
issues;
• Programmatic reporting.
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2. School/Unit
• Financial administration and support;
• Processing and approval of expenditures and HR
actions;
• Ensuring that PIs have the physical resources
promised and that they have the ability to carry
out the award;
• Tracking of cost share commitments.
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3. Office of Sponsored Programs
• Contractual relationship with sponsor on behalf of
AU;
• Preparation of subcontracts;
• Negotiation of major changes to existing awards,
such as no-cost extensions, re-budgeting, or
change of scope.
• Preparation of project briefs to communicate new
awards and major changes.
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4. Grants and Contracts Accounting
(GCA)
•
•
•
•
Financial reporting;
Invoicing;
Liaison with auditors;
Time and effort certification.
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Next Time: Session Two
Proposal-Related Issues
October 10, 2013, 10:00-12:00 (Butler Boardroom)
• Topics to be covered:
–
–
–
–
–
–
–
–
Proposal preparation
Budgeting
Pre-award agreements (teaming agreements, nondisclosure, etc.)
Certifications
Contract terms
Proposal routing
Electronic research administration
Pre-award compliance
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How to Register for the Next Session(s)
Instructor-Led Session:
1.
2.
3.
4.
5.
6.
In ASuccessfulU, access the learning module by clicking on the 'Learning' tab from the
'Home' drop down menu
In the Search catalog bar, type "RAC" or part of the title of the course(s) you are
interested in and hit enter/go
In the search results, you will find each RAC course listed individually and/or the entire
RAC curriculum (for those who want to register for all 8 sessions consecutively)
Clicking 'View Course Dates' will show the upcoming class time - to register, click the
'Register' link at the right of the screen
Click 'Confirm' to confirm your registration
Your registration is now confirmed and these courses will now be on your learning plan
Online Session:
1. Follow steps 1-3
2. You will see within the description the dates in which each online course will be available
for viewing
3. To "pre-register“, hover your mouse over the title of the course and click on 'Add to
Learning Plan'
4. You should now see these courses on your learning plan. You will be notified once the
online courses are available for viewing.
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Quiz
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