BMG Update on National F

1
BMG Update on National FA Trendsand Compliance
Issues

• University of Illinois at Urbana-Champaign
• Office of Governmental Costing

2
General Overview

• FA Trends at UIUC
• Research Base
• FA Recoveries
• Current Pending Proposal for UIUC
• FA Trends at National Level
• Council on Governmental Relations (COGR)
• NSF
• Compliance Issues at National Level
• Things that Keep Us Awake
• HHS and NSF OIG Reviews

3
Current FA, Tuition Rates
4
Total FA Recoveries FY06
5
Research
6
Research FA Recoveries FY06
7
FA Rate Trends

• National trend towards leveling rates after many
  years of increasing rates.
• NSF OIG trend analysis
• For period 1964 to 1990 rates went from 20 to
  50
• For period 1997 to 2005 at the top 100 NSF Funded
  universities (only 94 had predetermined)
• 50 had rates increasing at average of 2.53
  percentage points
• 32 had rates decreasing at average of 2.58
  percentage points
• 12 had no change
• Stabilizing at 50 level
• Big Ten
• FY2005 average 49.8
• FY2006 average 50.1
• COGR Survey of FY06 FA Rates for 98 members
• HHS increase by .9 percentage point
• ONR decrease by .3 percentage point
• Average on campus rates are 50.2
• 50 for HHS schools
• 51.3 for ONR schools

8
Current Pending Proposal for UIUC

• Submittal Package December 2006
• Actual Costs Basis
• Projections Basis
• Subject to Audit by Defense Contract Audit Agency
• Campus will make decisions upon Audit

9
Compliance Issues at National Level

• 2006 Cost Accounting Conference - The Top 5
  Things that Keep Me Awake at Night! Panelists
• Florida International Univ., Assoc. Vice
  President for Research
• Univ. of Virginia, Director of Research Admin. -
  Outreach Compliance
• Univ. of Virginia, Assist. Vice President for
  Research Administration
• Emory Univ., Administrator Dept. of Physiology
• University of Illinois Champaign-Urbana,
  Director of Governmental Costing
• Univ. of Virginia, Assist. Vice President for
  Finance
• Medical Univ. of South Carolina, Assoc. Director
  Grants Contracts Accounting
• Univ. of Michigan, Manager - Cost Reimbursement

10
Things that Keep Us Awake

• Do we see a pattern?
• Effort Reporting Awarded Effort vs. Reported
  Effort vs. Other Support
• Effort Reporting it never ends!
• Effort Reporting
• Effort Reporting
• Cost Sharing
• External (OIG) Reviews on the increase
• NSF OIG Review
• Audits
• Proper recording of expenditures
• Cost Transfers
• Point of Allocation getting it right the 1st
  time to avoid cost transfers
• Coding Expenditures
• Financial Reporting
• Data Integrity/Timeliness
• Documentation adequate and complete
• Semi-Entrepreneurs
• Why cant I Charge _____

11
Things that Keep Us Awake

• Costing Issues
• Cost Accounting Standards Issues
• Direct Cost Equivalency direct charging of
  clerical and administrative
• FA Rate Trends
• FA Rate Trends vs. Campus Expectation
• FA, FA, FA
• Service Activities
• Demand for Revenue Generating Activities
• Programmatic Issues
• Reduced NIH Funding
• Electronic Proposals
• Electronic Grant Applications
• Changing Regulations, Changing Interpretations
• Export Controls
• Export Controls Who is Responsible?
• Human Resource/Training Issues
• Outreach to Faculty how to get access to them
  and make it effective?

12
NSF/HHS OIG Audit Plans

• NSF Audit Plans
• Timeliness of Grantee Report Submissions
• Adequacy of grantee monitoring processes
• Cost Sharing
• Effort Reporting at Major Universities (like
  UIUC)
• Sub-recipient monitoring by grantees
• HHS Audit Plans
• Direct Charging Clerical/Administrative Salaries
• Service Activities
• Level of Effort Commitments
• Cost Transfers
• Sub-recipient monitoring

13
Contact Information

• Julie Jarvis
• Director, Office of Governmental Costing
• Phone [phone]
• Email jjarvis_at_uillinois.edu

14
Questions?