March 11, 2014
1:30 – 2:10
1
Agenda
Introduction and Approach
1:30 – 1:35
Current Research Administration Landscape
1:35 – 1:45
Award Lifecycle - Idea to Award
1:45 – 2:05
Questions
2:05 – 2:10
2
Objectives
Goal
Develop a high-level understanding of the sponsored award
lifecycle and best practices to enable efficient pre and post award
operations
Approach
Provide a brief background of the award lifecycle, importance of
sound monitoring by both central and department offices and
insight into the risks of poor research administration
management
3
Current Research Administration Landscape
4
 Large investments in facilities
 Super Circular!
 Pressure
 Reduce administrative cost
 Increased Complexity
 Volume of activity
 Scrutiny
 Accountability
5
NIH Budget by Year1
45
40.9
40
Billions ($)
35
27.7
30
25
20
15
32
29.2
13.7
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
10
NIH Budget
Doubling
Post
Doubling
Era
Including
ARRA
1.
The American Association for the Advancement of Science (AAAS)
2.
Kaiser, Jocelyn, “Darwinism vs. Social Engineering at NIH.” Science Magazine, Volume 334 11 November 2011
3.
http://news.sciencemag.org/funding/2014/01/u.s.-science-agencies-get-some-relief-2014-budget
6
Success Rates by Year
35%
30%
25%
20%
15%
Series 1
32%
18%
20%
Applications and Awards by Year
60,000
50,000
40,000
30,000
20,000
10,000
0
Applications
Awards
Sources: NIH Office of Extramural Research
http://www.report.nih.gov/award/success/Success_ByActivity.cfm
7
Sources: CSU Financial Services
8
Recoveries from Financial Penalties
6
Billions ($)
5
4
3
2
1
0
2007 2008 2009 2010
Investigative Receivables
2011
Audit Receivables
Source: Department of Health and Human Services Office of the Inspector General Semiannual Report to Congress 2007-2011
http://oig.hhs.gov/reports-and-publications/archives/semiannual/index.asp
9
Areas of Current Compliance Emphasis
Fiscal
Research
• Cost Transfers
• Animal subject protections (IACUC)
• Clinical Trial Billing
• Human subject protections (IRB)
• Cost sharing
• Conflicts of interest
• Direct charging practices
• Environmental health & safety
• Effort reporting
• Export Controls
• Financial reporting
• Invention disclosure & reporting
• Program income reporting
• Scientific overlap
• Recharge centers
• Scientific misconduct
• Subrecipient Monitoring
• Other support
• Unallowable costs
10
University A
Misuse federal funds
$32 million
University K
Questioned Costs HHS/OIG Audit
$2.4 million
University B
Inflated research grant costs
$15.5 million
University C
Effort Certification & Direct
Costs
$11.5 million
University J
Effort Certification
$2.7 million
University I
Costing Issues Self-Reported
$3.25 million
Significant
Audits/Settlements
University H
Effort Certification & Clinical
Research Billing
$3.4 million
University G
Clinical Research Issues
$4.4 million
University D
Mischarging federal grants
$7.6 million
Foundation E
Mischarging federal grants
$6.5 million
University F
Committed Time/Effort
$5 million
11
How can an institution stay ahead of the trends and
remain compliant?
Begin by understanding the award lifecycle and
the requirements to support successful research
administration
12
The Award “Lifecycle”
From Idea to Award
13
Post-Award
Pre-Award
Locate
Funding &
Develop
Proposal
Proposal
Review &
Institutional
Approval
Additional
Funding
Sponsor
Reports &
Close-out
Proposal
Submission
Funded:
Award’s
Terms &
Conditions
Tracking
&
Accounting
Spend
Money
&
Purchasing
Not Funded:
Reviewer’s
Comments
& Resubmit
Establish
Project
Accounts &
PI Briefing
14
Post-Award
Pre-Award
Locate
Funding &
Develop
Proposal
Proposal
Review &
Institutional
Approval
Additional
Funding
Sponsor
Reports &
Close-out
Proposal
Submission
Funded:
Award’s
Terms &
Conditions
Tracking
&
Accounting
Spend
Money
&
Purchasing
Not Funded:
Reviewer’s
Comments
& Resubmit
Establish
Project
Accounts &
PI Briefing
15
Typical Proposal Elements
Other Project
Information
Key Personnel and
Qualifications
Institutional Compliance
and Assurances
Project/ Performance
Site Locations
Demographic Info
Proposal
Package
Budgets and Budget
Justification
16
Common Budget Elements
Travel
Subcontracts &
Consultants
Personnel Costs
Supplies
Budget
Development
Facilities &
Administrative
Costs
Equipment
Other Costs
Alteration &
Renovation Costs
17
Post-Award
Pre-Award
Locate
Funding &
Develop
Proposal
Proposal
Review &
Institutional
Approval
Additional
Funding
Sponsor
Reports &
Close-out
Proposal
Submission
Funded:
Award’s
Terms &
Conditions
Tracking
&
Accounting
Spend
Money
&
Purchasing
Not Funded:
Reviewer’s
Comments
& Resubmit
Establish
Project
Accounts &
PI Briefing
18
Managing an award
Post-Award
Pre-Award
Locate
Funding &
Develop
Proposal
Proposal
Review &
Intuitional
Approval
Additional
Funding
Sponsor
Reports &
Close-out
Proposal
Submission
Funded:
Award’s
Terms &
Conditions
Tracking
&
Accounting
Spend
Money
&
Purchasing
Not Funded:
Reviewer’s
Comments
& Resubmit
Establish
Project
Accounts &
PI Briefing
19
Regulations Governing Sponsored Research
 OMB Circular A-21: principles for determining costs applicable to grants,
contracts, and other agreements with educational institutions
 OMB Circular A-110: standards for obtaining consistency and uniformity
among federal agencies in the administration of grants to and agreements
with institutions of higher education, hospitals, and other non-profit
organizations
 OMB Circular A-133: standards for obtaining consistency and uniformity
among federal agencies for the audit of organizations expending federal
awards
20
Cost Principles- A 21
Term
Definition
Allowable
Items not restricted by federal regulations (such
as OMB A-21) or the specific grant
Reasonable
Allocable
Treated
Consistently
Goods or services acquired and amount
involved reflect an action a “prudent person”
would have taken
Benefits the project that was charged
Like costs in similar instances need to be treated
consistently throughout the institution
Costs that do not meet these standards should not be paid for by the project
21
How can an institution stay ahead of the trends and
remain compliant?
1. Stay current with compliance issues/topics in research
administration
2. Understand the complexities/challenges of research
administration at your institution
3. Build an infrastructure that will support research
administration in your institution
22
Thank you!
Nate Haines (nhaines@huronconsultinggroup.com)
Alison Sanders (asanders@sfsu.edu)
23