Conducting your Scholarly Work

Finding Sponsors, Preparing and Submitting Proposals, Accepting and Managing Awards

Office of Grant and Contract ServicesJanuary 24, 2009

Introductions

Winnie EnnengaDirector of Grant and Contract Services

Winnie.Ennenga@nau.edu

Bobbie UrsinSenior Grant and Contract Administrator

Bobbie.Ursin@nau.edu

Cindy JudgeGrant and Contract Administrator

Cindy.Judge@nau.edu

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Workshop Goals

• Understand the context within which research and other sponsored activities are conducted at NAU.

• Identify best practices and strategies for identifying sponsors and funding opportunities, preparing and submitting proposals, and managing sponsored projects.

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What is the context for sponsored activities at NAU?

How do we distinguish sponsored projects from other externally funded activities?

Who are the primary individuals and offices with responsibilities for sponsored projects?

What is a sponsored project?

• A sponsored project is any externally funded research, instruction, service, or scholarly activity binding the University to a defined scope of work or set of objectives that provides a basis for sponsor expectations. – Sponsored projects are always managed

by the University.

What is a sponsored project?

• A gift or donation is a voluntary and usually irrevocable transfer of money, services or property from a donor without any expectation of or receipt of direct economic benefit or provision of goods or services from the recipient.

• All gifts to NAU are administered through the NAU Foundation.

Who can be a Sponsor?

• Individuals, non-profit foundations or organizations, for-profit companies, and federal, state, local or tribal government entities.

• Private sector entities may act as either donors or sponsors depending on how the funds are conveyed, but awards from governmental entities are ALWAYS considered sponsored projects.

Who are the main players and what are their responsibilities?

• Principal Investigator (PI)

• Chair and Dean

• Vice President for Research

• Office of Grant and Contract Services (OGCS)

• Regulatory and fiscal compliance offices

Principal Investigator

• Identify a potential sponsor or funding opportunity

• Prepare the proposal and provide the required certifications

• Conduct and complete the technical work, including required reports

• With assistance from the department/unit, manage the project in accordance with sponsor, University, ABOR, and applicable local, state, and federal laws and regulations

Chair and Dean

• Certify that each has reviewed and approves the proposal submission, and concurrence with the representations made by the PI and/or the department

• Approve the proposed level of effort, and commit to provide the identified cost share or other resources

• Confirm the project fits the mission and contributes to the attainment of department and college goals

Vice President for Research

• Technology transfer/intellectual property protection

• Regulatory compliance

• Research support services

• Internal research awards

• Institutional cost share or match

• Indirect cost and/or tuition waivers

Regulatory Compliance

• Institutional Review Board (IRB)• Institutional Animal Care and Use Committee

(IACUC)• Radiation Safety Committee (radioisotopes

and radiation-emitting equipment)• Institutional Biosafety Committee (IBC)• Toxic chemicals• Waste management• Responsible Conduct of Research• Compliance with Import/Export Regulations

Office of Grant and Contract Services

• OGCS is the central administrative office responsible for authorizing and submitting proposals for extramural funding.

• After a proposal has been submitted, OGCS negotiates and accepts the award and provides non-financial administrative oversight of the funded project.

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Office of Sponsored Projects Services (SPS)

• The Office of Sponsored Projects Services (SPS) is responsible for financial accounting and fiscal oversight of sponsored projects, including monitoring budgets and accounting records, preparing financial reports and invoices, and award closeout, working with PIs and departmental/unit managers.

Best Practices and Strategies

Finding Sponsors

Preparing and Submitting Proposals

Managing Awards

Finding Sponsors

Finding Sponsors

• Subscribe to electronic funding services

• Use NAU funding database

• Utilize internet resources

• Attend professional conferences

• Serve on agency review panels

• Review agency funding patterns

NAU Resources

• SPIN – (Sponsored Programs Information Network) is a searchable funding opportunities database

• SMARTS (SPIN Matching and Researcher Transmittal System) matches keywords to opportunities listed in SPIN and e-mails opportunities directly to you. SMARTS will only send opportunities that match your keywords.

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NAU Resources

• “Leveraging the Internet” http://www.research.nau.edu/OGCS – Includes links to public domain websites

providing funding information, targeted funding opportunities, funding alert subscriptions

– “Best practices” for using the internet to find funding opportunities

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Public Domain Websites

• Duke University, for example, publishes a Funding Alert Newsletter– http://www.ors.duke.edu/funding-newsletter

(click on current weekly posting)

• Arts & Humanities Community Development

• Curriculum Development Environmental and Life Sciences

• Graduate and Postdoctoral Funding Health Sciences

• International Opportunities Multidisciplinary

• Physical Sciences and Engineering Social Sciences

Subscription Services

• My NSF, National Science Foundation– http://www.nsf.gov/mynsf/

• National Institutes of Health Listserv– http://www.grants.nih.gov/grants/guide/

listserv.htm

• GrantsNet: Undergraduate Science Training Education– http://www.grantsnet.org/

funding_news_alert.cfm

Federal Opportunities

• Grants.gov contains opportunities in 21 categories in excess of $400 billion in annual awards: www.grants.gov

• Agency websites also list funding opportunities

• The Federal Register is the official daily publication for rules, proposed rules, and notices of Federal agencies and organizations: www.gpoaccess.gov/fr

ARRA Funding Opportunities

• American Recovery and Reinvestment Act (ARRA) of 2009– All ARRA funding opportunities are listed

on grants.gov• http://www07.grants.gov/search/

search.do;jsessionid=?mode=CATSEARCH&fundActivity=RA

– Agency websites also are required to list ARRA opportunities

Preparing Proposals

What is a proposal?

• A proposal is a request for funding that includes all the information necessary to describe project plans, staff capabilities and funds requested. – Concept Papers, Letters of Inquiry, and

Pre-proposals may not require institutional endorsement

– Full Proposals are officially approved and submitted by the University on behalf of a principal investigator

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Review the Program Announcement

• Program description

• Eligibility requirements

• Agency Contacts

• Review process

• Proposal deadline and submission requirements

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Avoid

Surprises!

Writing the Proposal: Pre-award issues with post-award consequences

• Subrecipients: – Are proposed collaborators financially

stable, able to comply with flow-down provisions, committed in writing?

• Consultants

• Compliance issues (IACUC, IRB, IBC)

• Budget restrictions and/or cost-share/match requirements

• Health or safety concerns27

Writing the Proposal: Pre-award issues with post-award consequences

• Space considerations

• Continuing obligations after termination

• Special restrictions or requirements involving – intellectual property – publication– proprietary information – data ownership

• Faculty release time/workload issues

• Foundation proposals

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Preparing the Budget

Budget Development

• Resources

• Source for cost estimates

• Proposed start date

• Project duration

• Sponsor requirements/restrictions

• Deliverables

• Format

Direct and Indirect Costs

• Direct Costs– Costs easily identified and quantified,

which related directly to the project

• Indirect Costs/F&A– Costs which cannot be precisely identified

and quantified to a specific project

Direct Costs

• Salaries and Wages

• Employee-Related Expenses (ERE)

• Equipment

• Travel

• Trainee Support/Participant Support

• Other Costs

• Consultants

• Subcontracts

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Indirect Costs

• Office Supplies

• General Purpose Equipment

• Administrative Support

• Utility Costs

• Space Usage

• Other Institutional Resources

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Salaries and Wages

• NAU personnel– Actual salary/wage– Effort may be academic and/or summer– Future budget years

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Employee-Related Expenses (ERE)

• Health and Dental Insurance

• Life insurance

• Disability insurance

• FICA and Medicare Taxes

• Unemployment insurance

• Retirement

• Fringe benefit (ERE) rate calculator:http://www.research.nau.edu/OGCS/forms.html

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Equipment

• NAU defined equipment – unit cost of greater than $5,000 and useful life of at least one year– Special purpose equipment– General purpose equipment

– Unallowable unless approved in advance by the sponsor

• Use the sponsor’s definition if one is given

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Travel

• Transportation– Airfare, taxis, car rental, etc.

• Lodging

• Per Diem– Meals– Incidentals

• AZ State Rates: http://www.gao.state.az.us/publications/SAAM/Supp_I_trvrates-012308.pdf

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Trainee Support /Participant Support

• Trainee Support – tuition, registration fees, student health insurance, student travel

• Participant Support – subsistence allowances, travel allowances and registration fees paid to or on behalf of participants in connection with participation in a project or meeting

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Other Direct Costs

• Supplies and Materials

• Communication Costs

• Miscellaneous

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Consultants

• Experts - specialized knowledge and skills

– Not AZ university employee

– Advise and/or provide services

– Evaluators

– Presenters

• Review sponsor guidelines for restrictions or maximum daily rates

• Review NAU Purchasing Policy, Guide to Using Independent Contractors

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Subcontracts

• Transfer of scientific or programmatic efforts through an agreement to another organization

• Subcontractor’s proposal includes statement of work, detailed budget, period of performance, key personnel

• Sole Source Justification vs. Bid

• Cost analysis, plan for subrecipient monitoring, etc.

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Indirect Costs

• NAU Rate Agreement– Modified Total Direct Costs (MTDC) base

excludes equipment, tuition remission, scholarships and fellowships, and subcontract costs > $25,000

– Different rates for research, instruction, and “other” sponsored activity

– http://www.research.nau.edu/OGCS

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Indirect Costs

• Rates Effective July 2008

MTDC: Modified Total Direct Costs– Research: On Campus: 48.5% MTDC– Instruction: On Campus: 51.2% MTDC– Other Sponsored Activities: 28.6% MTDC– Off Campus: 26.0% MTDC

• MTDC excludes equipment, capital expenditures, tuition remission, rental costs of off-site facilities, scholarships and fellowships, and includes only the first $25,000 of each subcontract

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Budget Justification

• Detailed explanation of budget items

• Discuss budget items including– Special administrative and/or clerical costs– Special equipment needs– Consultants and subcontractors

Provide sufficient detail to justify need

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Submitting Proposals

Process Overview

• Early Proposal Notification Form

• OGCS Number Assignment

• Proposal Approval Form (PAF)

• Financial Disclosure Form

• OGCS Review, Approval and Mailing

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Are you writing a proposal?

• Submit Early Proposal Notification Form

• OGCS Number Assignment

Proposal Approval Form (PAF)

• Initiated by PI

• PI obtains appropriate approval signatures

• Incomplete PAFs may result in submission delays

• PAF is required for new and continuation proposals, and revised proposals with substantial changes.

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Proposal Approval Form (PAF)

– PI is responsible for securing regulatory approvals

• Some sponsors allow “just in time” submission at the award stage; others require complete documentation as part of the proposal. Check proposal guidelines and/or discuss with GCA.

• Contact the appropriate NAU compliance office for guidance about necessary forms.

– http://www.research.nau.edu/compliance.html

– Investigators’ Financial Disclosure Form– Subcontract Documents

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Proposal Approval Form (PAF)

• Cost Sharing– Required Cost Share– Voluntary Committed Cost Share– Third Party Cost Share– Tuition and Indirect Cost Waivers

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Proposal Review

• Grant and Contract Administrator (GCA) reviews to determine: – Compliance with University policies– Compliance with sponsor requirements– Inclusion of all required forms– Confirm NAU statistical information– Completeness and accuracy of the

proposal documents

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Proposal Submission

• GCA obtains authorizing official signature and/or approval to submit electronically

• The proposal is submitted per the agency guidelines– Electronic– Paper and/or CD– Both

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Accepting and Managing the Award

PI Responsibilities

• Conduct and manage the scope of work

• Hire and manage project personnel

• Authorize, review and monitor financial transactions

• Technical/Scientific reporting

• Coordinate subcontractor activities

• Communicate with program officer

• Understand and comply with sponsor requirements/regulations

Department/Unit Responsibilities

• Provide necessary administrative staff– Procurement

– Payroll

– Travel

• Monitor spending

• Review and oversee financial transactions for allowability (sponsor, state, federal, NAU)

• Coordinate actions with OGCS and SPS

Department and College

• Provide administrative staff to assist with procurement, payroll, travel, and other financial transactions, as well as assist with interpretation of financial data in the NAU Advantage system.

College Responsibilities

• Review and authorize award actions including pre-award or at-risk accounts, no-cost time extensions, etc.

• Identify unrestricted fund sources, when necessary, to cover matching requirements, overdrafts, or disallowances

• Assure that the project is completed in compliance with sponsor requirements.

SPS Responsibilities

• Establish account and oversee all financial transactions

• Assure that transactions are reasonable, allowable and allocable

• Understand regulations relating to each award

• Prepare and submit financial reports

• Monitor sub-recipients/subcontractors

• Prepare and certify property reports and other closeout materials

OGCS Responsibilities

• Negotiate terms and conditions of awards• Interpret sponsor, federal, state and NAU

regulations • Authorize the establishment of a sponsored

project account• Issue subrecipient agreements• Advise PI, department/unit, college and SPS

on post-award requirements• Authorize or request sponsor approval of

award modifications• Liaison with sponsor

Federal Regulations Applicable to Educational Institutions

Cost requirements for federal awards

• Charges to federal awards must comply with Office of Management and Budget (OMB) Circular A-21: Cost Principles for Educational Institutions:– Government will pay its “fair share” of

direct and indirect costs– Some costs are specifically Unallowable– Costs must be Reasonable, Allocable and

Allowable, and treated Consistently

Costs Must be Reasonable

• A prudent person would pay this amount

• The timing of the purchase is in line with the objectives of the project

• Consistent with NAU policy

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Costs Must be Allocable to the Project

• Required to conduct the work of a specific project

• Can be assigned to the project with a high degree of accuracy

• Directly benefit the project

• If the cost only partially benefits the project, it must– Have a documented allocation plan– Be charged in proportion to the benefit

Costs Must be Allowable

• Comply with NAU policies

• Comply with sponsor policies and/or restrictions

• Comply with state and federal laws and regulations

Costs Must be Allowable

• If an allowable cost is one that IS eligible for reimbursement by the federal government, then

• An unallowable cost is one that IS NOT eligible for reimbursement by the federal government.

• Any cost designated as unallowable cannot be used as cost sharing.

“Unallowable” Charges to Federal Awards

• Alcohol• Charitable contributions• Entertainment costs• Advertising and public

relations costs• Fines and penalties• Gifts and flowers• Transfers to cover

overspending on other sponsored awards

• Fundraising• Lobbying• Student activities• Memorabilia,

promotional materials• Cash donations to other

parties• Memberships in social,

dining, or country clubs

Requirement for Consistency

• Costs must be reasonable, allocable, and allowable

• A-21 also requires costs to be treated consistently as either Direct or Indirect (F&A) costs

• Costs “normally” treated as F&A may be charged directly ONLY if needed for a different purpose and circumstance.

Different Purpose and Circumstance

• Costs that are normally treated as F&A that are going to be charged directly to a sponsored project must be– Readily and accurately identified with the

project– Required because the project is a “major

project or activity”– Budgeted and fully justified in the proposal– Documented again at the time of purchase

Costs Normally Considered F&A by A-21

• Administrative and clerical salaries and fringe benefits

• Hazardous waste disposal

• Membership dues• Office supplies• Personal computers

• Postage and shipping

• Proposal preparation

• General-purpose software

• Telephone and fax service (basic costs)

Administrative and Clerical Salaries and Benefits

• OMB A-21 has special rules for administrative & clerical effort, which is normally considered F&A – Certain types of tasks are considered

Allocable– Must be able to identify/track time with high

degree of accuracy

Allocable and Allowable Administrative Tasks

• Extensive data manipulation

• Making complex travel arrangements

• Organizing large workshops and conferences

• Managing extensive field operation logistics

• Coordinating with distant subcontractors

• Administering a major research operation

• Preparation and production of manuals and large reports, books and monographs

• Coordination and communications for teams of investigators from a number of institutions.

Administrative Requirements for Federal Awards: OMB Circular A-110

• Pre-award requirements

• Post-award requirements

• Property standards

• Procurement standards

• Reports and records

• Termination and enforcement

• After-the-award requirements

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Audit Requirements for Federal Awards: OMB Circular A-133

- Audits of States, Local Governments, and Non-Profit Organizations- Single audit requirements- Audit of pass-through funds- Subrecipient monitoring- Compliance auditing

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Case Study

Case Study:

• Professor Smith has received an NSF grant to “Develop a digital database of plants of the Colorado Plateau.”

• Professor Smith would like to charge these items to the project:– A computer system costing $7,000

– Materials for his course “Plants of AZ”

– $1,500 for travel to a botany conference in Italy

– $13,500 for a 50% FTE administrative asst.

Cost #1: $7,000 Computer

• REASONABLE? What are the cost details?– Computer is part of a system that includes a

specialized scanner to digitize antique photos on glass plates.

• ALLOCABLE? How will the computer be used?.– Computer is itemized and justified in the budget

and is necessary for the project.

• ALLOWABLE? – Award terms and conditions state that “This grant

is made in response to the proposal submitted…”

Cost #2: Materials for “Plants of AZ” class

• REASONABLE?– $200 for 100 students meeting 9 times

• ALLOCABLE? What is the project about?– Project is on Plants of the Colorado Plateau– Course is on Plants of AZ– Is the course related to the database work of the

project?

Cost #3: Travel to conference in Italy

• REASONABLE?– $1,500 for five-day conference

• ALLOCABLE?– Project is for plants of the Colorado Plateau and

the proposed conference is on Plants– Travel was budgeted and justified in the proposal

“to present database to scientific community.”– Are you traveling for any other purpose?

• ALLOWABLE?– Terms and conditions do not restrict foreign travel.

Cost #4: 50% Administrative Assistant

• REASONABLE?– Salary and fringe are within salary and grade range for

administrative assistant

• ALLOCABLE?– Administrative assistant was budgeted in the proposal to

assist with digitizing images and database entry

• ALLOWABLE?– Normally F&A but may be allowable, if it meets the test

of different purpose and circumstance.

• Different Purpose and Circumstance?– Labor to digitize images and manage database will

require extensive effort above and beyond what would normally be expected for this position.

Case Study Conclusions:

• $7,000 computer– Reasonable, Allocable and Allowable with

documentation

• Course materials– Reasonable but NOT Allocable

• Foreign travel:– Reasonable, Allocable and Allowable with

documentation of direct benefit to the project.

• Administrative Assistant– Reasonable, Allocable, Allowable and meets the test of

different purpose and circumstance with documentation of direct benefit to the project.

Discussion

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ogcs@nau.edu

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