Research Administration Forum
November 18, 2014
Agenda
• Uniform Guidance – Dick Seligman
• Responsibilities for Safeguarding ITAR – Export
Information – Adilia Koch
• Conflict of Interest Issues – Grace Fisher-Adams
• Audit Updates – Estella Venegas
• Technical Services and Facilities Use Activities –
David Mayo
Uniform Guidance
Dick Seligman
Associate Vice President,
Research Administration
Uniform Guidance Update
• “Uniform Administrative Requirements, Cost Principals,
and Audit Requirements for Federal Awards”
• 2 CFR 200
• Now known as the “Uniform Guidance” or the “UG”
• What is the UG?
• When was it issued?
• When does it apply to Caltech?
• To what will it apply?
• What don’t we know?
Selected UG Topics for Comment
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Direct Charging of Administrative and Clerical Costs
Charging Computing Devices to Sponsored Projects
Cost Sharing
Documenting Salary and Wage Charges to Federal
Awards
Participant Support Costs
Visa Costs
Subrecipient Indirect Cost Rates
Payment of Subrecipient Invoices
Closeouts
Direct Charging of Administrative
and Clerical Costs
Old Rule (OMB Circular A-21):
Normally treated as indirect costs
Exceptions for “Major Projects”
Lots of debate about what constitutes a “major project”
Direct Charging of Administrative
and Clerical Costs
New Rule (UG):
Normally treated as indirect costs.
BUT, administrative and clerical costs can be charged
as a direct cost on a grant
IF the administrative and clerical staff are integral to
the project;
Direct Charging of Administrative
and Clerical Costs
New Rule (UG) (cont.):
IF the individual(s) involved can be specifically
identified with the project;
IF the administrative and clerical costs are identified in
the budget and described in the budget justification
section of the proposal; and
Direct Charging of Administrative
and Clerical Costs
New Rule (UG) (cont.):
IF the administrative and clerical costs were not
included in the proposal budget, the PI obtains prior
written approval from the sponsor.
Note: The PI should justify these costs on the basis of
the administrative and clerical costs being integral to
the project.
What is “integral”?
“Integral” is not defined in the UG or in any other federal
regulations, as far as we know.
The Oxford Dictionary defines integral as:
“Necessary to make a whole complete;
essential or fundamental”
Charging Computing Devices to
Sponsored Projects
• Costs must be allocable and allowable
• BUT, the computing devices do not have to be
solely dedicated to the award that is being
charged
Cost Sharing
UG principles on Cost Sharing:
• Voluntary committed cost sharing is not expected in
federal research proposals
• Voluntary committed cost sharing cannot be used as a
factor in the merit review process
• Mandatory cost sharing is still allowed, if required by
the sponsor and described in the solicitation
Cost Sharing
UG principles on Cost Sharing (cont.):
• Most federally-funded research projects should have
some level of committed faculty (or senior researcher)
effort charged to the award or paid by the grantee
[Note: Faculty effort committed to the project but not charged to
the project is Voluntary Cost Sharing.]
The UG’s principles do not require any change in how
Caltech currently tracks, monitors, or reports cost sharing.
Voluntary committed cost sharing is still strongly
discouraged.
Documenting Salaries and Wages
Charged to Federal Awards
• UG does not mention “time and effort reporting”
• UG does require that recipients have an after-the-fact
system in place that documents salary and wage charges
to federal awards.
• Caltech’s Payroll Distribution Confirmation (PDC)
system requires faculty and other PIs paid from federal
awards to certify their PDCs twice each year.
• Caltech’s PDC system meets the UG requirements. No
changes are anticipated.
Participant Support Costs
UG: “Participant support costs means direct costs for items
such as
– Stipends
– Subsistence allowances
– Travel allowances
– Registration Fees
paid to or on behalf of participants (but not employees) in
connection with conferences or training projects.”
Participant Support Costs are not subject to indirect costs.
Participant Support Costs
Before the UG: NSF was the only agency that recognized
the concept of Participant Support Costs and included that
category in their award budgets.
Under the UG: The concept of Participant Support Costs
will apply to all federal agencies and will largely follow the
NSF model.
Visa Costs
UG allows short-term travel visa costs as direct costs on
federal awards. UG does not identify specific types of visas
that constitute “short-term travel visas.”
UG does not allow costs for immigration visas as direct
costs on federal awards.
Subrecipient Indirect Costs Rates
Subrecipients that have federally negotiated indirect rates
should use those rates in proposals and awards.
Subrecipients that do not have federally negotiated indirect
cost rates are permitted to receive a de minimis indirect cost
rate of 10%.
Payment of Subrecipient Invoices
Invoices received from subrecipients must be paid within
30 calendar days of receipt of the invoice
UNLESS the prime award recipient believes that the
request for payment is improper
Remember: The PI must approve all subrecipient invoices
prior to payment
Award Closeout
UG Requirement: Awards must be closed out within 90
days of the end date of the award
This includes submission of all reports, including
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Technical
Financial
Property
Patent
Award Closeout
The UG also places more pressure on federal agencies to
promptly perform their closeout procedures in a timely
manner.
This will add to the pressure for Caltech to meet the 90 day
closeout requirement.
Stay tuned for further developments
Responsibilities for
Safeguarding ITAR – Export
Controlled Information
Adilia Koch
Director of Export Compliance Office
Export Control Restrictions on
Technical Data
Who’s Responsible? We’re All in it Together.
• The PI is primarily responsible for making sure his
or her project team is in compliance with the ITAR,
export control safeguards, but everyone is
ultimately responsible: Caltech as an institution, all
researchers, faculty and staff working or managing
a controlled project.
Why? It’s the Law.
Export Control Restrictions on
Technical Data
The Regulations
• Transfers of export controlled information or
items that reveal technical data cannot be
transferred to foreign persons without an
export license or other authority or exception
from the U.S. State or Commerce Department.
What happens if Caltech does not comply?
• It can result in a civil violation, and in some
instances, it can result in a criminal violation,
loss of funding from key government agencies,
or reputational loss.
How do you identify an
export controlled project?
• How do you know your PI’s project is “export
controlled;” meaning export controlled information,
hardware or software will be transferred to the PI
and his or her research team?
How do you identify an
export controlled project?
• Your PI’s project may be “export controlled” when it
is subject to a:
• Technology Control Plan
• Bona Fide Exception Memorandum has been signed
(authorized exception from licensing requirements under the
ITAR to allow foreign persons access to controlled technical
data), subject to recordkeeping requirements.
• Rationale email sent from CEC to PI advising the PI that the
project is “export controlled.”
• IMSS IT Secure Data is required for the project’s technical
data.
• Vice Provost Approval was obtained in order to receive
export controlled items on campus.
• Export license filed for the PI’s project or foreign person
working on the project’s activities.
How do you identify an
export controlled project?
• Your PI’s project may be “export controlled” when it
is subject to a:
• Technology Control Plan
• Bona Fide Exception Memorandum has been
signed (authorized exception from licensing
requirements under the ITAR to allow foreign persons
access to controlled technical data), subject to
recordkeeping requirements.
• Rationale email sent from CEC to PI advising the PI that the
project is “export controlled.”
• IMSS IT Secure Data is required for the project’s technical
data.
• Vice Provost Approval was obtained in order to receive
export controlled items on campus.
• Export license filed for the PI’s project or foreign person
working on the project’s activities.
How do you identify an
export controlled project?
• Your PI’s project may be “export controlled” when it
is subject to a:
• Technology Control Plan
• Bona Fide Exception Memorandum has been signed
(authorized exception from licensing requirements under
the ITAR to allow foreign persons access to controlled
technical data), subject to recordkeeping requirements.
• Rationale email sent from CEC to PI advising the PI that the
project is “export controlled.”
• IMSS IT Secure Data is required for the
project’s technical data.
• Vice Provost Approval was obtained in order to receive
export controlled items on campus.
• Export license filed for the PI’s project or foreign person
working on the project’s activities.
How do you identify an
export controlled project?
• Your PI’s project may be “export controlled” when it
is subject to a:
• Technology Control Plan
• Bona Fide Exception Memorandum has been signed
(authorized exception from licensing requirements under
the ITAR to allow foreign persons access to controlled
technical data), subject to recordkeeping requirements.
• Rationale email sent from CEC to PI advising the PI that the
project is “export controlled.”
• IMSS IT Secure Data is required for the project’s technical
data.
• Vice Provost Approval was obtained in order
to receive export controlled items on campus.
• Export license filed for the PI’s project or foreign person
working on the project’s activities.
How do you identify an
export controlled project?
• Your PI’s project may be “export controlled” when it
is subject to a:
• Technology Control Plan
• Bona Fide Exception Memorandum has been signed
(authorized exception from licensing requirements under
the ITAR to allow foreign persons access to controlled
technical data), subject to recordkeeping requirements.
• Rationale email sent from CEC to PI advising the PI that the
project is “export controlled.”
• IMSS IT Secure Data is required for the project’s technical
data.
• Vice Provost Approval was obtained in order to receive
export controlled items on campus.
• Export license filed for the PI’s project or
foreign person working on the project’s
activities.
How do you identify an
export controlled project?
• Other clues that may indicate export controls:
• JPL or defense contractor involvement or funding.
• Department of Defense, NASA, Department of
Energy
• Information contains restrictive marking language or
PI has been notified that the information is “export or
ITAR controlled.”
Institutional Safeguards: Protection
of Export Controlled Data
• Technology Control Plans
– A TCP is a document that explains the steps the PI
and his/her research team must take to safeguard
any controlled data that is received by the research
team on campus. Safeguards ensure that only
authorized foreign persons have access to the export
controlled information or items.
• IMSS Secure Server to store restricted data.
– All ITAR controlled information must be stored in a
secure server with access controls.
– This allows data to be stored worry-free by the
divisions. Go to this IMSS link to get more
information or to get secure server implemented:
[https://imss.caltech.edu/help/safeguarding-export-controlled-data]
Institutional Safeguards: Protection
of Export Controlled Data
• Recordkeeping Requirements
– Transfers of controlled data must be recorded. IMSS
Secure Server helps you do that.
• Authorization Requirement
– International Traffic In Arms Regulations (ITAR)
requires that anyone using an ITAR exemption, must
follow certain recordkeeping procedures. Not doing
so may result in a violation.
How can you help?
 Help your researchers and PI comply with the
recordkeeping requirements.
 Make sure your faculty or researcher is placing all
export controlled information in the IMSS Secure
Server Folder.
How can you help?
 Contact CEC if:
– The Project Team anticipates a scope change.
– The project is export controlled and a foreign person will
need to access controlled information or work on the
project.
– Controlled information is inadvertently disclosed to a
foreign person.
– Secure data is breached – hacking incident, stolen laptop
or memory devices, etc.
– The foreign person’s status changes to US permanent
residency, US citizenship or foreign person is no longer
employed by Caltech.
Contacts
Adilia F. Koch
Director, Caltech Export
Compliance Office
adilia.koch@caltech.edu
(626) 395-4469
(626) 529-6415 (cell)
Chris Catherasoo
Export Compliance
Technical Specialist
Jennifer Wong
Export Compliance Analyst
chris.catherasoo@caltech.edu
jennifer.wong@caltech.edu
(626) 395-3679
(626) 395-2558
(626) 421-9635 (cell)
International Shipments
Export Compliance Office
export@caltech.edu
(626) 395-2641 ● (626) 395-3144 (fax)
Website:
http://export.caltech.edu
Conflict of Interest
Disclosures
Grace Fisher-Adams
Director of Research Compliance
Conflict of Interest Disclosures
(Reporting Financial Interests)
Conflict of Interest Disclosures
(Reporting Financial Interests)
Annual Financial Interest Disclosure
This Year/Status
Differences between sponsors?
What happens with a proposal when there is no
disclosure?
• What happens with a proposal when there is a
positive (yes, financial interest) disclosure?
• How do I keep proposals or, more importantly,
funding from being delayed?
• Does disclosure impact subawards?
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Audit Updates
Estella Venegas
Assistant Director
Post-Award Administration
Audit Update
• DCAA Audits
• PwC Audits
• Agency Audits
Technical Service &
Facilities Use Activities
David Mayo
Director of Sponsored Research
Concepts
• Facilities Use: When a non-Caltech entity wishes to
enter Caltech-owned facilities and will be paying for that
access.
• Technical Services: When a non-Caltech entity wishes to
engage the services of a Caltech person or facility and
will be paying for those services, but the non-Caltech
entity will not enter Caltech-owned facilities in relation
to the provided services.
Concepts
• Sponsored Research: When a non-Caltech entity wishes
to collaborate with Caltech researchers and will fund the
work.
• Independent Consulting – When a non-Caltech entity
wishes to engage directly with a Caltech employee
outside the scope of their Caltech duties. Must be
approved by Division Chair. No other Caltech personnel,
facilities or resources may be utilized.
Concepts
• Or, looked at another way, if money is coming in to
Caltech in order to pay for Caltech to do something:
– Provide Access = Facilities Use
– Make something or do something = Technical
Services
– Collaborate = Sponsored Research
• If there will be any collaborative exchange between
Caltech personnel and the non-Caltech entity, then the
activity must be treated as Sponsored Research.
Facilities Use/Technical Services
• Technical Services/Facilities Use activities require
completion of an Information Form (in lieu of a DAF)
which asks specific questions to ensure compliance with
Caltech policies (e.g., no collaboration, COI, etc.);
– PI eligibility rules do not apply
– There can be no gift made for Technical
Services/Facilities Use
– All agreements are negotiated/approved/signed by
OSR (David Mayo)
Facilities Use/Technical Services
• Based upon Info Form, OSR will send agreement
to “customer” and negotiate terms.
• OSR will assign a control number (FUSE-TSAFY??-???) to each approved agreement.
• If federally funded (even via subaward), financial
piece will be distributed to and managed by Post
Award Accounting (Award Summary will be
issued).
• If privately funded, financial piece will be
distributed to and managed by G&E Accounting;
once agreement is distributed, work with your
regular G&E Accounting contact for PTA setup.
Note that a control number is required for deposit of
funds to a G&E Accounting-managed agreement.
What about Overhead?
• On- or off-campus overhead will apply in all of these
cases, except where the facilities to be used are not
research facilities (e.g., conference space, electronics
shop, etc.).
• Other than the above, any exception to the application of
overhead must be approved by the Provost.
What about JPL?
• If JPL will fund a collaboration (e.g., sponsored project
or instrument development), then it is funded as a
Research IA (overhead applies)
• If JPL desires Technical Services/Facilities Use, then it is
funded as a Service IA (overhead applies)
What about JPL?
• Research IAs are handled via IAMS, and they require the
same forms/ approvals as for any other sponsored
project (e.g., DAF, eligibility)
• Service IAs are handled differently
– They require a JPL Interdivisional Authorization
Request Form to be completed (this is in lieu of a
DAF)
– They are handled directly by Post Award
Administration (send all request forms to Stella
Venegas (estella.venegas@caltech.edu))
• PAA must verify Caltech salary and benefits rates
(JPL will not pay unverified rates)
• PAA will forward Request Form to JPL who will
issue a Service IA Caltech’s PI eligibility
requirements do not apply
Questions??
Thank you for coming!
Today’s slides will be available at our website:
http://researchadministration.caltech.edu/training