What s a grant What s a contract An introduction

What’s a grant, What’s a contract; An introduction to Sponsored Programs Jan 6, 2011

Sponsored Programs • Vincent (Bo) A. Bogdanski • • Office of Sponsored Programs Colorado State University bo. bogdanski@colostate. edu 970 491 5574

Why are you here? • Heard there would be good food • Prepare for cocktail party with professors • Decided three hours here was better than three hours shopping • Don’t have a life

Sponsored Programs • Sponsored programs are projects supported by non-university (external) funds that are awarded as a result of an application submitted to a potential sponsor by the institution on behalf of a faculty or staff member.

Question? • Are all Sponsored Programs initiated by the Federal government?

Sponsored Programs (some indicators) • • • Formal sponsor application guidelines; Restrictions on the use of funds; Specific and limited program period; Specified performance or outcomes; Specified use of program outcomes or data; Required fiscal and/or programmatic reports.

Sponsored Programs are not: • Direct payments to individuals, such as faculty consulting, honorarium and sabbatical support; • Student financial aid and scholarship (except through training award); • Gifts and bequests to the university; • Donations of equipment or property.

Question? • Can there be a sponsored program with internal institution funds?

The Process • • • Proposal Negotiation Award The work Closeout

Agency Specific Guides (Grants and Cooperative Agreements) • • • Broad Area Announcement, BAA Request for Proposal, RFP Request for Quotes, RFQ Solicitation Unsolicited Proposal

The proposal • • • A written submission The science or work Budget Specified time period Specific proposal requirements Terms and conditions

Question? • Who can sign a proposal?

OMB Circular A-110 • • • Assistance Awards only Sets maximum allowable conditions Budget revisions Cost sharing defined Defines property disposition and handling Technical and financial reporting

OMB Circular A-110 • Assistance Awards only ( A public good) • Standards for consistency and uniformity among federal agencies for grants and agreements with institutions of higher ed, hospitals, and other non-profits • Recipients shall apply the provisions of this Circular to subrecipients that are passed through or awarded by the primary recipient, if such subrecipients are covered by this Circular • Does not apply to contracts administered under procurement laws or regulations

Question? • Can the for-profit arm of a private company issue a grant or cooperative agreement?

OMB Circular A-110 • Sets maximum allowable conditions • “Federal awarding agencies shall not impose additional or inconsistent requirements, except as provided in Sections __. 4, and __. 14 or unless specifically required by Federal statute or executive order”

OMB Circular A-110 • Budget and Budget revisions (Section. 25) • Estimate at the time of the proposal • Changes in budget • Change in scope • Change in key personnel • Absence of PI for three months • 25% increase or decrease in effort • As designated by funding agency

OMB Circular A-110 • Cost sharing defined (Section 23) • Part of budget • Within the project period • Verifiable • Non-Federal • Necessary for project • Allowable under cost principals

Question? • Which are cost sharing? • 10% unpaid (by grant) committed effort • Use of a microscope purchased last year • Department of Defense project performing similar work • Christmas party paid from gift funds • Reimbursed use of personal vehicle

OMB Circular A-110 • Defines property handling and disposition (. 30 -. 37) • • • Real property Federal owned property Equipment Supplies and expendable equipment Intangible property • Intellectual property including copyright

OMB Circular A-110 • Technical and financial reporting (. 50 -. 53) • “performance reports shall not be required more frequently than quarterly or, less frequently than annually” • “recipient shall not be required to submit more than the original and two copies of performance (or financial) reports”

OMB Circular A-21 • Cost Principles for Federal Grants and Contracts • All Federal Agencies that sponsor awards • A guide for fixed price agreements

OMB Circular A-21 • The four factors • Allocable and; • Allowable and; • Consistent and; • Reasonable

Allocable • Incurred solely to advance the work under that agreement or • In proportion to benefit for two or more projects (or accounts) • Not to fund overruns on other projects • Not for “reasons of convenience”

Question • Are computer purchases allocable?

Allowable • Section ‘J’ of OMB circular A-21 • Remember • Allowable is NOT the only criteria • Allowable does not necessarily mean direct cost

Question? • Name something that would be unallowable as a expense to a sponsored program.

Consistent • Disclosure statement (DS-2) • Cost accounting standards • University policy and practice

Reasonable • Prudent person test • Under these specific circumstances • Multiple individuals would probably make the same decision

OMB Circular A-133 • Procurements: • Subrecipients vs. Vendors • Subrecipient monitoring

Question? • Subrecipient or Vendor? • Colorado College does some research. • Colorado College does data analysis. • Colorado College collects samples

Agency Specific Guides (Grants and Cooperative Agreements) • National Science Foundation (NSF) • Proposal and Award Policies and Procedures Guide (PAPP) Jan, 2011 • Cooperative Agreement General Conditions (CA-1) • Public Health Service (PHHS/NIH) • Grant Policy Statement

Agency Specific Guides (Grants and Cooperative Agreements) • Department of Defense (DOD) • Department of Defense Grant and Agreement Regulations (DODGAR), Do. D 3210. 6 R • Service Grant General Conditions • National Aeronautics and Space Administration (NASA) • Grant and Cooperative Agreement Handbook • Department of Education (DEPT ED) • Education Department General Administrative Regulations (EDGAR)

FAR Issues and Clauses • Federal Acquisition Regulation (FAR) Overview • Procurement Awards only • Title 48 of the CFR • Chapter 1 • Chapters 2 -99 • Allowable cost and payments • 52. 216 -7 with Paragraph 31. 3 give A-21

FAR Issues and Clauses • Intellectual Property • Rights in Data • Special Works • Patent clauses • Security Requirements • Classified work • Publication restrictions

FAR Issues and Clauses • Stop Work Orders • Terminations • Cost and Fund Limitations • Limitation of Cost • Limitation of Funds

FAR Issues and Clauses • Other issues: • Property clause 52. 245 -1 with Alt II • Small Business Subcontracting • Certificate of Current Cost or Pricing Data

Other Policies and Issues • Institutional Signatures • Representations and Certifications • Export Control Issues

Other Policies and Issues • Institutional Review Board, IRB • Institutional Animal Care and Use Committee, IACUC • Conflict of Interest/Conflict of Commitment • Classified, Sensitive and Propriety • Misconduct in Science

Question? • Compliance requirement? Which one? • Survey of CSU employees by Athletic Department • Use of bees • Professor’s son owns catering business • Accusation of plagiarism

Negotiating Federal Awards • • • With the Contracting Officer With the Program Manager With the Principal Investigator With your boss With other support offices at your University

Budget Issues • Effort Reporting versus Hours • % of effort • labor hour contract, time and material • Employment versus Fellowship • Fringe Benefits • Composition of rate • Actual versus Negotiate • Consultants, Employees, or Subcontractor • Additional Compensation

Question? • Can your employee be paid by your institution under a consultant agreement? • Professor X helps colleague in Department with a Sponsored Program on Saturday. How does the Department compensate?

Budget Issues • Travel • Institution policy • Justification • Foreign Travel, pre-approval • Equipment or Supplies • “fabricated” equipment

Budget Issues • Tuition and fees • Your policy • Training grant • Clerical salaries, office supplies, telephone equipment, memberships, postage • Unusual circumstances • Consistent with DS-2

Budget Issues • Facilities and Administrative costs (F&A) (also known as indirect or overhead) • Not to be confused with fees or profit • These are real and actual costs associated with the sponsored activity • If not recovered through the sponsored project agreement, they must be paid by the institution

Question? • What are the restrictions imposed on Colleges, Department, and PI’s when expending recovered (paid by sponsor) F&A funds?

Post Award Issues • • • Limitation of Funds/Limitations of Costs Start/End Dates Pre-award spending No cost Extensions Options and Special Provisions Terminations • For Cause • For Convenience

Post Award Issues • Changes: • In scope • In budget • Of PI/institution • In effort (limited to key people)

Reporting Requirements • Technical • Frequency and Format • Financial • Consistent with accounting procedure • Frequency • Spend rates

Reporting Requirements • Property • Ownership • Government furnished • Frequency • Patents • Small Business Plan (294 and 295) • Hazardous Substance

Question? • A PI moves to another University. Can they take all the equipment purchased under different sponsored programs to continue his research at the new University?

The End