cost share business process glynis l. sherard, director, sra marcia black, assistant director, orpa...

Cost Share Business Process Glynis L. Sherard, Director, SRA Marcia Black, Assistant Director, ORPA Kyle Burkhardt, Senior ERA Manager, ORPA

Agenda Review Cost Share Basics Cost Sharing Systems Overview Proposal Award Converted Awards Data cleanup Assignment Journals Charging & Managing Cost Sharing IW Reports Appendix 2

Review Cost Share Basics 3

KEY DEFINITIONS Cost sharing is when a portion of the total cost of a sponsored project or program is paid by the University rather than the sponsor and represents a binding obligation of the University. Mandatory if it is required by the sponsor as a condition of the award. Voluntary if it is offered by the PI when no mandatory cost sharing requirements exist, or is in excess of mandatory cost sharing requirements. 4

Review Cost Share Basics KEY DEFINITIONS Cash contributions: The recipients cash outlay, including the outlay of money contributed to the recipient by third parties. In-kind contributions: Non-cash contributions in the form of real property, equipment, supplies, and other expendable property, and the value of goods and services benefitting and specifically identifiable to the project or program. 5

Review Cost Share Basics ALLOWABLE COST SHARE EXPENDITURES Must satisfy all of the following criteria: Verifiable from the official University records; Not previously used as cost share for another project (the same cost share expenditures cannot be used for multiple projects); Necessary and reasonable for proper and efficient accomplishment of the project; Allowable under the terms of the award; Conforms to other provisions of OMB Circular A-110, or Uniform Guidance as applicable;OMB Circular A-110 Incurred during the effective dates of the grant or during the pre-award phase when authorized by the sponsor; and Not paid by the federal government under another award. 6

Review Cost Share Basics UNALLOWABLE COST SHARE EXPENDITURES Costs considered unallowable by the University or by the sponsor;unallowable by the University or by the sponsor Costs considered unallowable under OMB Circular A-21 or Uniform Guidance as applicable;OMB Circular A-21 Salary amounts exceeding a regulatory salary cap (e.g., National Institutes of Health); University facilities such as laboratory space. PIs should not commit the use of facilities OR existing equipment as cost sharing, but rather characterize as "available for the performance of the sponsored agreement at no direct cost to the project." 7

Review Cost Share Basics SOURCE OF FUNDS The PI is responsible for identifying all sources of funds for cost sharing of direct costs. The PI may NOT utilize funds from another federal award as the source of cost sharing, except as authorized by statute. The PI may utilize funds from non-federal awards as the source of cost sharing ONLY when specifically allowed by the non-federal sponsor. Cost-sharing is typically funded by tuition subsidy, gifts, endowment income, operating budgets, or other department designated funds. Unrecovered indirect costs or F&A can only be included as cost share with the prior approval of the Federal awarding agency 8

Proposal Stage 9

1. The PI should confer with the Chair and/or Dean regarding a cost-share strategy to meet the sponsors requirements. 2. The PI or department should then contact ORPA well in advance of the proposal deadline to discuss the specifics of the proposal and to determine the sources of funds to meet this requirement. 3. ORPA will forward all voluntary cost sharing requests to the Dean for Research for approval in advance of the proposal submission. 4. After this determination has been made, the proposal is submitted to ORPA. 10

Proposal Stage Yes = Mandatory No = Voluntary COST SHARING IN PROPOSAL APPROVAL PROCESS Does the sponsor require cost sharing? 11

Proposal Stage UNIFORM GUIDANCE IMPACT (all federal proposals submitted and new federal awards issued on or after 12/26/14) Subpart D Post Federal Award Requirements 200.306 Cost sharing or matching Under Federal research proposals, voluntary committed cost sharing is not expected. It cannot be used as a factor during the merit review of applications or proposals, but may be considered if it is both in accordance with Federal awarding agency regulations and specified in a notice of funding opportunity. 12

Cost Sharing Systems Overview 13

Documentation 14

Cost Sharing Systems Overview 15

Proposals Pre- and Post-Prime Similarities & differences 16

Proposal Pre-Prime vs. Post-Prime Budget Pre-Prime Dept entered cost sharing budget into Coeus Pre-Prime Budget items Cost sharing amounts Post-Prime Dept enters cost sharing budget into Coeus Post-Prime Budget items Cost sharing amounts 17

Coeus cost sharing budget Item without F&A 18

Coeus cost sharing budget Item with F&A Coeus calculates F&A on cost sharing, regardless of if the sponsor will allow F&A to be used toward the university commitment. Unchecking Apply box generates positive underrecovery: Box must stay checked 19

Coeus cost sharing budget Period screen Pre- and post-Prime Coeus calculates F&A on cost sharing, regardless of if the sponsor will allow F&A to be used toward the university commitment. 20

Proposal Cost Sharing Distribution After entering cost sharing for all budget items, the cost sharing must be distributed. 21

Proposal Cost Sharing Distribution Pre vs. Post-Prime Pre-Prime Fiscal Year Amount Source (mandatory Coeus field) 3 digit Dept # or 7 digit PG # Including Subrecipient & Third Party In-Kind Support 600 Provost Science Funds 680 DFR 970 AR Tuition 670 F&A or Unrecovered F&A Post-Prime Fiscal Year Amount Source (mandatory Coeus field) 5 digit Dept # Including Subrecipient & Third Party In-Kind Support 51005 Provost Science Funds 51700 DFR 40000 AR Tuition 51701 F&A or Unrecovered F&A 22

Proposal Cost Sharing Distribution 23

Coeus Proposal Notes Pre- and Post-Prime Budget screen: Budget items and cost Equipment has $60k in cost sharing Travel has $20k in cost sharing Commitments screen: Amounts and Dept 2 depts are contributing cost sharing No connection between Budget items and Dept in Coeus. How much is each dept contributing for each budget item? 24

Proposal Post-Prime What about Fund? Coeus has no place for Fund If Fund is entered next to the Dept #, Coeus cant print the Coeus cost sharing forms Maybe Coeus programmers can reprogram the forms Use the Cost Sharing Commitment Form to record Fund 25

Proposal Post-Prime Dept & Fund are blank on the Form for the following* Subrecipient Third Party In-Kind Support F&A or unrecovered F&A (if the sponsor allows it to be included toward the cost sharing commitment) *Coeus requires a Dept #; the Form does not There is no Dept & Fund for these cost sharing sources. 27

Coeus Cost Sharing Narratives Upload the Cost Sharing Commitment Form as narrative type cost sharing For Provost, DFR, third party in- kind support or subrecipient sources, upload Cost Sharing Commitment Letters as narrative type cost sharing 28

Proposal Stage Coeus Pre-Prime in CoeusPost-Prime in Coeus Enter cost sharing budget items Enter cost sharing distribution Upload cost sharing commitment letters Upload cost sharing commitment letters for Provost, DFR, third party in-kind support & subrecipient sources Fill out Cost Sharing Distribution Form and upload it into Coeus narrative 29

Responsibilities at Proposal Stage Coeus 30

Awards Pre- and Post-Prime Similarities & Differences 31

Award Pre-Prime New award with cost sharing (since summer 2010) Award set up in Coeus Created child account for the cost sharing - Fund 30 Internal Cost Sharing sponsor for the Fund 30 32

Award Commitment Pre-Prime Cost sharing commitment for the length of the entire award Cost sharing type (not budget item) Year Source of the cost sharing (7 digit PG # or 670 if sponsor allowed F&A or Unrecovered F&A) Destination - Fund 30 Amount Comments Commitment printed on the NOA 33

Pre-Prime NOA 34

Award Budget Pre-Prime No cost sharing budgets were ever entered in Coeus Money and End Dates tab was for sponsor funding only Cost sharing expenses tracked off line 35

New Award Post-Prime New award with cost sharing since 7/1/14 Award set up in PS Grants A separate project is not created for cost sharing. Why not? Sponsor budget and cost sharing budget can be included in one PS project budget One more Chartstring to remember Reports in IW would have to be run twice Once to see the sponsors dollars and/or budget Once to see the cost sharing dollars and/or budget 36

New Award Post-Prime Both the cost sharing commitment and cost sharing budget for the entire length of the award are entered in PS Grants Regardless of how the sponsor funds award Cost Sharing Commitment Types by Fiscal Year, source Dept, Fund, amount Cost Sharing Budget Budget items by Dept, Fund, amount Not by year Cost Sharing Commitment and Cost Sharing Budget Appear on the NOA, and other IW reports Charging is done to the Cost Sharing Chartstring 37

Cost Sharing Process at the Award Stage If the cost sharing commitment changed between proposal and award, the Dept must submit the updated commitment form to the GCA Otherwise the cost sharing commitment form uploaded to Coeus proposal is ok Dept fills out and submits Cost Sharing Budget Form to the GCA GCA reviews Commitment and Budget Forms Award Specialist enters the commitment and budget into PS Grants The commitment and budget prints on the NOA NOA is sent to Dept, PI, SRA 38

New Award Post-Prime Rules Amounts Commitment and budget reflect all years of cost sharing, regardless of how the sponsor funds the award Fund Fund is the always the same for the commitment and the budget Dept Commitment Dept is the source of the cost sharing What about Dept for budget? 39

New Award Post-Prime Rules Each award has at least one project, and each project has a project owning dept Could be Depts Main Dept # (ends in 00) 23000: APC - Applied & Comp Math Could be subdept in Dept hierarchy 25402: ELE Research 26021: WWS - Ctr Res Chld Welbng 25807: PSM - MIRTHE Center 40

New Award Post-Prime Rules Cost sharing budget Dept is the project owning dept, and cost sharing dollars are moved by Assignment Journal from the source to the project owning Dept, Project, and Activity except: Faculty AY salary & benefits are not moved Dept # MUST be the Contributing Depts Main # (ends in 00) since it is linked to the A0000 teaching budget, which cannot be reallocated to a sub-dept Dept might not be the project owning dept Fund is A0000 AR Tuition is not moved Dept # is the project owning dept Fund is A0000 41

New Award Post-Prime Rules Subrecipient, Third Party In-Kind Support, F&A and Unrecovered F&A appear in the commitment but not in the budget (tracked offline) Why not? There is no Dept or Fund # for them 42

Commitment/Budget Dept/Fund chart SourceCommitment Dept*Budget Dept**Commitment & Budget Fund Provost Science Funds51005Project Owning DeptA0003 SEAS Science Funds25000Project Owning DeptA0003 DFR51700Project Owning DeptCommitment and budget Fund should match AR Tuition40000Project Owning DeptA0000 Faculty AY Salary & Benefits Contributing Depts Main # (ends in 00) A0000 Subrecipient Third Party In-Kind Support Blank on Form (Proposal Lead Unit # in Coeus) Not included in PS Budget (Tracked offline) Blank commitment Not included in budget F&A Unrecovered F&A Blank on Form (51701 in Coeus) Not included in PS Budget (Tracked offline) Blank commitment Not included in budget *Coeus Cost Sharing Distribution, Commitment Form, NOA Commitment **Budget Form, NOA Cost Sharing Budget 43

Multiple Depts Contributing Source examplesCommitment Dept Budget DeptBudget Fund 23800-Physics2380023500Same as committed 23500-Chemistry23500 Same as committed Example: Physics and Chemistry have cost sharing on Chemistrys award, and they are each contributing cost sharing from their main dept. The project dept is chemistry, 23500. 44

Main dept & subdepts in hierarchy are contributing cost sharing Source examplesCommitment Dept Budget DeptBudget Fund 24400 PNI Main Dept2440024415Same as committed 24407 PNI Scully Center2440724415Same as committed Example: PNIs main dept 24400 and one of its subdepts 24407 are contributing cost sharing to a project. The project owning dept 24415 PNI-Real-Time Imaging. 45

AR Tuition SourceCommitment DeptBudget DeptCommitment & Budget Fund AR Tuition4000023307A0000 Example: The project owning dept is 23307 MOL- Research/Teaching 46

Faculty Academic Year S&B SourceCommitment & Budget Dept Commitment & Budget Fund Faculty Academic Year Salary & Benefits 25400A0000 Electrical Engineering has a research subunit; all their project owning depts are 25402 ELE-Research Faculty AY Salary & Benefits must be the main (ends in 00) dept level and cannot be moved. In this example, the Budget Dept is not the project owning dept 47

Faculty Academic Year S&B Multiple Depts MAE 25100 and CEE 25200 are contributing cost sharing Project owned by 25204 CEE-Research In this example, the Budget Dept is not the project owning dept Source Commitment & Budget Dept Commitment & Budget Fund Faculty Academic Year S&B MAE25100A0000 Faculty Academic Year S&B CEE25200A0000 48

Example: Award Proposal is in 23300-Molecular Biology Award is in a subdept: 23307-MOL Research Award covers two Fiscal Years 49

Example: Commitment Form 50

Example: NOA Cost Sharing Commitment 51

Example: Budget Form If "Faculty Academic Year S&B" or Non-Faculty S&B" is selected on commitment form, the salary and benefits should be broken into two lines in the budget form: the appropriate salary line and a separate benefits line. 53

Example: NOA Cost Sharing Budget 54

Cost Sharing Process After the award is set up in PS Grants, the NOA is sent by the Award Specialist to the Dept, SRA and the PI 56

Converted Awards Cost Sharing Commitments & Budgets 57

Converted Awards CS Commitments Commitments for all converted awards were manually copied from Coeus to PS Active and Closed Status Commitments are for the entire length of the award 43 awards were converted that had Fund 30 child accounts 16 awards were converted that had cost sharing from Fund 20s (pre-Fund 30 days) 58

Converted Award CS Budgets Budgets are for Fund 30s only Budgets for Fund 20s (prior to Fund 30s) tracked offline like they were pre-Prime Converted award status must be Accepted Cost sharing budgets were not added to Closed awards Was any cost sharing money moved before 6/30/14? If yes, SRA provided the budgets for money that was previously moved If no, GCAs reached out to depts to get cost sharing budgets, or Grants Manager sent the budgets to ORPA. Award Specialists entered the cost sharing budgets into PS Grants. 59

Converted Awards & Fund Fund A0016 is for converted awards that had cost sharing dollars moved before 6/30/14 This is because the true source of the cost sharing dollars cannot be traced If cost sharing dollars are moved after 6/30/14 for a converted award, Fund A0016 cannot be used. Fund A0016 cannot be used for any new awards 60

Unresolved converted award situations What if some but not all of the money was moved for an award prior to 6/30/14? Then we do not have the cost sharing budget for all award years Depts will need to move the cost sharing dollars for the remainder following the process for new awards Note: Fund A0016 is not used for moving funding after 6/30/14, even for converted awards 61

Data cleanup for Active Converted Fund 30s and new awards set up after 7/1/14 Adding cost sharing budget for entire award, regardless of how sponsor funds the award Verifying Dept & Fund are correct for Commitment & Budget 62

Assignment Journals 63

Assignment Journals - Roles & Responsibilities Key Roles Assignment journals serve as the primary mechanism for funding cost share commitments Assignment journals provide visibility for source depts. to monitor fund balances Key Responsibilities Source Depts. are responsible for initiating assignment journals to the project owning department upon receipt of the NOA Source Depts. may initiate assignment journals for the entire cost share amount up front or on an incremental basis ORPA is responsible for initiating assignment journals for Dean for Research (DFR) and Provost Science Funds Important: Assignment journals are not applicable to Labor Accounting Distributions for Faculty AY Salary and AR Tuition cost share commitments See Appendix A for more information about assignment journals 64

Cost Sharing Type Appears in Budget? Requires Assignment Journal? Faculty AY Salary & BenefitsYesNo AR Tuition committed as CSYesNo SubrecipientNo Third Party In-Kind SupportNo F&ANo Unrecovered F&ANo Anything else?Yes Assignment Journals When are they required? See Appendix A for more information about assignment journals 65

Charging & Managing Cost Sharing 66

Managing Cost Share Balances Whats Available & Where? Use NOA to identify cost share funding sources: External Dept. Sources (via Assignment Journals) Internal Dept. Sources (Charge source directly or Assignment Journals) Converted Fund 30s (via A0016) Inventory of Cost Sharing Sources & Funding Levels Example: $200,000 23300 A0000 10007812 101 $40,000 23307 A0003 10007812 101$50,000 23307 E3456 10007812 101$50,000 23307 A0016 10007812 101$60,000 67

Managing Cost Share Balances Whats Available? Assignment Journals Funds FIN016 Transaction Extract Report (Financial Management Folder) Key Report Elements: Data is by Fiscal Year and not Inception to Date Cost share activity is always included (No option to include or exclude) Includes Revenue from Assignment Journals (4802) Can run by Dept., Fund, Account, Program and Project Excludes A0016 converted balances, but includes expenditures Allows for easier manipulation of data No subtotals Converts easily to excel format for sorting and filtering 68

Managing Cost Share Balances Whats Available? Assignment Journals Funds FIN016 Transaction Extract Report Run report by Project only to identify all revenue and expenses. View Report in Excel format and sorting and filtering capabilities Filter OUT all G Fund chartstrings to isolate the cost share activities Sort and total your revenue and then subtract your total expenses for FY15 and FY16 to determine current available balance. Use this analysis to monitor your revenue and ensure all cost share commitments have been fully funded from the Source Depts. 69

Managing Cost Share Balances Whats Available? A0016 Converted Cost Share Funds 1. Retrieve converted balance from SPR SPR Balance as of 6/30/14 $100,000 2. Use the FIN016 Transaction Extract Report to run by A0016 Fund to identify expenses for each fiscal year always beginning with FY15 FY15 and FY16 Expenses$75,000 3. Subtract the total expenses from the total balance to determine the current available balance Converted Balance$100,000 Less Expenses-$ 75,000 Available Balance$ 25,000 70

Leverage the NOA which provides all cost share chartstrings Develop internal practices for charging cost share expenditures when multiple chartstrings are involved. Run the FIN016 (Transaction Extract Report) on a periodic basis to monitor available balances on cost share funds Factors to Consider: Spend down the converted cost share fund A0016 If feasible, charge against one chartstring at a time Reminder: Cost share expenditures for AR Tuition and Faculty AY Salary are automatically processed via Labor Accounting once in effect. 71 Managing Cost Share Expenditures Multiple Chartstring Challenge

Managing Cost Share Expenditures Budget vs. Actuals Review your Award and Project Summary Reports to monitor your overall expenditures in comparison to the approved cost share budget Pay attention to AR Tuition and Faculty AY Salary expenditures since they are processed in Labor Accounting. Work with your ORPA GCA if there are concerns about meeting your cost share obligations Remember that certain cost share commitments are tracked off-line: Subrecipient Third party In-kind Facilities & Administration Costs (F&A) Unrecovered F&A 72

Charging Cost Share Chartstring Requirements (for non-Labor Accounting Distributions) Cost Share Chartstring (Ex. Capital Equipment over $5k) Department = Project Owning Dept. (Ex. 24415 PNI) Fund = Non G Fund source (Ex. E2345) Account = expense code (Ex. 6551) Program = N/A Project = XXXXXXXX (Ex. 10001234) Activity = 10X (Ex. 101) 73

Cost Share Chartstring: Department = Main unit (ends in 00) Fund = A0000 Account = one of the Salary Faculty codes Program = N/A Project = XXXXXXXX Activity = 10X Charging Cost Share Chartstring Requirements (Labor Accounting Distributions Faculty AY Salary) 74

Charging Cost Share- Chartstring Requirements (Labor Accounting Distributions AR Tuition) The Graduate School provides 50% AR tuition subsidy on sponsored research awards that allow full F&A costs which makes it an ideal option for cost sharing purposes. Fifty percent of AR tuition costs will automatically default as university commitment for eligible students when distributions are approved in Labor Accounting. Two rows are automatically system generated in Labor Accounting after the distribution to the G fund and Project is created The first line of the screenshot is initiated by the department and creates the distribution for AR tuition on the G fund and project The LA system creates the second distribution line to cost share 50% of the AR tuition by defaulting to A0000 fund/AC390 program and is denoted by the cost share symbol The LA system also creates the third line to remove 50% of the AR tuition distribution from the G fund and is also denoted by the cost share symbol 75

Cost Share Chartstring (System generated): Department = Project Owning Dept. (LA defaults to same Dept. in G fund chartstring) Fund = A0000 Account = 5602 (Assistants in Research Tuition) Program = AC390 (LA defaults to this program code.) Project = XXXXXXXX Activity = 10X Charging Cost Share Chartstring Requirements (Labor Accounting Distributions AR Tuition) 76

Managing Cost Sharing Manual Exclusions MANUAL EXCLUSION of expenses that automatically default and appear as cost share: Graduate student AR tuition subsidy - when not part of the cost share commitment must be manually excluded from your analysis. NIH Salary Cap overages are unallowable as cost share and must always be manually excluded SRA will also need to exclude these amounts when reporting cost share expenditures to awarding agencies 77

Reports 78

Cost Sharing on Sponsored Research Reports 79

Reports with Include Cost Share box Default is set to not include cost sharing for these reports: Sponsored Award Summary Sponsored Project Summary Sponsored Project Detail 80

FIN021 Sponsored Award Summary 81

FIN022 Sponsored Project Summary 82

FIN050 - Sponsored Project Detail 83

FIN027 Cost Share Commitments 84

FIN025 - NOA 85

Responsibilities at Award Stage 86

Appendix A Creating & Searching for Assignment Journals 87

How to create Assignment Journals 88

Assignment Journals keep the same Fund Assignment Journals that are not approved by the end of the month are automatically deleted No Assignment Journal is needed for AR Tuition and Faculty AY Salary & Benefits 91

Assigning cost sharing to project owning dept (one dept to another dept) From 25100 MAE to 25402 - ELE-Research (Project Owning Dept) 92

Assigning cost sharing to project owning dept (in same dept hierarchy) From 23100 - Astro to 23105 AST-Plasma Physics (Project Owning Dept) 93

How to search Assignment Journals 94

Example The list of assignment journals then appears at the bottom of the screen; click on each to see details. 95

Who initiates the assignment journals? Source Dept. to Project Owning DeptInitiates Assignment Journal From One Dept to Another Dept From Physics to Chemistry Source Dept. From main Dept # to subdept # in the same hierarchy From 24400 PNI-Princeton Neuro Inst. to 24415 PNI-Real-Time Imaging Authorized Dept. Personnel From one subdept to another subdept in the same Dept hierarchy From 24407 PNI-Scully Center to 24415 PNI-Real-Time Imaging Authorized Dept. Personnel SEAS Science FundsSource Dept. Provost Science Funds (A0003)ORPA (Robin) Dean For Research (DFR)ORPA (Robin) AR Tuition (A0000)Not Required Faculty AY Salary & Benefits (A0000)Not Required 96

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cost share business process glynis l. sherard, director, sra marcia black, assistant director, orpa...

Documents

total cost

source of cost sharing

cost sharing of direct

key definitions cost

orpa slide

sponsor costs

award phase

project allowable