Pre-Award

1
Policy Training Program for the Lifecycle of an
Account
Pre-Award
Presented by Kim Dixon Dani Garamvolgyi
Content Experts Kim Dixon, Dani Garamvolgyi, Rob
Dimmitt, Debbie Horton Liz Rulli
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Course Content

• Objectives
• Introduction
• Proposal Issues
• Cost Identification
• Facilities Administration Costs
• Cost Sharing
• Mission Metrics
• Resources

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Course Objectives

• Upon completion of this course you will
• Understand proposal issues
• Understand cost identification
• Understand why we have FA costs
• Understand why we cost share
• Understand the mission and metrics of the
  University

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Proposal Issues

• Why do we need a proposal?
• Represents an offer by Purdue University
• Ensure that scope of work is clearly identified
• What should a proposal include?
• State work or service performed
• Identification of responsible parties who will
  perform work
• Budget for the scope of work

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Proposal Issues

• Why do we need academic approval?
• All proposals must have endorsement of
  responsible parties
• At Purdue this responsibility has been delegated
  to Sponsored Program Services (SPS)
• Incorporated into a legal binding agreement
  between sponsor and the University

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Proposal IssuesRoles

• Principal Investigators Co-Investigators
• Budget
• Technical content
• Quality
• Adherence to sponsor guidelines
• Proposal Submission Form questions (including
  Yes/No questions regarding confidential
  information, space, and equipment)

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Proposal IssuesRoles

• Department Heads Center Directors
• Certify academic soundness of project
• Compatibility of project with Investigators other
  commitments
• Availability of space and facilities
• Cost Sharing committed by Department/Center
• Project is in keeping with Department/Center and
  University objectives

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Proposal IssuesRoles

• Department Heads Center Directors cont.
• Budget is properly costed
• Management of conflict of interest
• Unlike circumstances are documented

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Proposal IssuesRoles

• Deans
• Determine appropriateness
• Confirms resources are available
• Budget is properly costed
• Unlike circumstances are documented

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Proposal IssuesRoles

• Business Office
• Review sponsor guidelines
• Submit proposal notification form to SPS Pre
  Award Services
• Prepare budget using COEUS
• Ensure COEUS budget matches sponsor budget and
  budget justification
• Check for cost sharing and prepare necessary
  forms

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Proposal IssuesRoles

• Business Office (continued)
• Ensure Subcontract Statement of Work, budget, and
  budget justification are received and approved by
  PI
• Ensure proper proposal formatting and electronic
  submission are used per sponsor guidelines
• Ensure proper academic and business office
  signatures are obtained
• Forward completed proposal package, including
  required copies to SPS Pre Award Services

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Proposal IssuesRoles

• Sponsored Program Pre Award Services
• Ensure compliance with applicable laws,
  regulations and University rules
• Work with VP for Research to review compliance
  issues (ex. regulatory, export control, COI)
• Submit proposals on behalf of Purdue

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Proposal Issues

• Why obtain academic certification?
• PSF provides compliance assurances
• PSF provides information regarding accompanying
  proposal
• PSF provides assurances that University and
  Federal guidelines are fulfilled
• Questions on the PSF pertain to the technical
  scope of the work

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Proposal Issues

• Why should the BO not certify proposals?
• These individuals do not have knowledge of the
  technical aspects of the proposal
• Business office and PI should be available during
  proposal submission process so issues can be
  resolved before proposal leaves the University

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Proposal Issues

• Why review and follow sponsor guidelines?
• Business office, PI, SPS are responsible for
  reading and understanding the sponsor guidelines
• Ensure university is in compliance with sponsor
  guidelines
• Failure to follow guidelines may cause proposal
  to be returned without review by sponsor
• Ensure using most current version Read
  guidelines more than once
• Review for allowable FA rates, mailing
  addresses, budget restrictions, required forms,
  submission method, and deadlines (including time
  of day)

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Proposal Issues

• Why document subcontracts with the proposal?
• PI is responsible for certifying statement of
  work and budget from subcontract are reasonable
  and accurate
• Subcontractors must submit to Purdue a statement
  of work and proposed budget for their portion of
  the work including institutions authorized
  signature (which is included with Purdues
  proposal)

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Proposal IssuesDiscussion Topic

• A proposal is received in SPS with a subcontract
  to University of Kentucky. The statement of work
  provided is very generic and does not list
  specific deliverables.
• After the project has been awarded and the first
  reporting period completed, the investigator at
  the University of Kentucky only provides a one
  page report that does not cover all the sponsor
  requirements.
• How could this have been prevented?

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Proposal Issues

• What is a conflict of interest (COI)?
• When a faculty or staff member receives personal
  financial reward from his/her University position
  in a manner which may bias the individuals
  judgment or compromise his/her ability to carry
  out the contractual obligation for teaching,
  research, administrative, and service
  responsibilities

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Proposal Issues

• Why do COIs need to be identified?
• Sponsors may require notification
• Purdue is required to manage COIs
• What is the Business Offices role?
• To ensure PI discloses COI on PSF
• What is the Department Heads role?
• Identify possible faculty COIs
• Refer COIs to Bill Baitinger or Voichita Dadarlat

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Proposal IssuesDiscussion Topic

• Professor Smith is submitting a proposal to NSF
  with a subcontract to ABC Corp included. You are
  aware the Professor Smith is a part owner in ABC
  Corp.
• Is this a conflict of interest?
• What are the responsibilities of the Business
  Office? SPS?

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Proposal Issues

• Why do we need to review terms and conditions?
• Particularly important with Industrial
  Foundation proposals
• Important because of Intellectual Property (IP)
• Ensure Universitys properties are protected

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Proposal Issues

• What are the differences between gifts, grants,
  contracts and voluntary support?
• Each has its own unique requirements and levels
  of restrictions
• Level of Restrictions
• No Economic Benefit Legal Binding
  documents
• To Sponsor

Legal Binding Documents
No Economic Benefit to Sponsor
Gifts
Voluntary Support
Grant
Cooperative Agreement
Contract
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Cost Identification

• Why is it important to make sure a proposal is
  properly costed?
• Ensure processes and systems are designed in
  accordance with government regulations
• Ensure governmental agencies bear their fair
  share of total project costs
• Ensure consistency in proposal budgeting

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Cost Identification-Discussion Topic

• A clerk in the BO is working on a proposal for
  Professor Miller. Professor Miller requests that
  the fringe benefit default rates included in the
  proposal be changed.
• Is this request appropriate?
• Why or Why not?

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Cost Identification

• Why should we not over-commit key personnel?
• Budgeting 100--are there no other
  responsibilities?
• All activities must be taken into consideration
• Look at commitment across all sponsored projects
• Think about commitments from a PAR perspective
• Review Current Pending

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Cost IdentificationDiscussion Topic

• Professor Brown holds a position of Asst Dean for
  50 CUL (FTE) and full professor of Biology for
  50 CUL. A proposal is submitted with Professor
  Browns position in the deans office with effort
  of 25 included on the project. Professor Brown
  is already committed to two awarded proposal with
  15 effort on each project. Is Professor Brown
  overcommitted in his College of Science position?
  What should you do?

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Cost Identification

• Why track unlike circumstances?
• CAS and OMB Cir. A-21
• When certain situations exist, costs that are
  normally considered an indirect cost may be
  charged as direct costs to federal projects.
• Examplesclerical or administrative salaries,
  office supplies, postage, local telephone or PDN
  charges (must be justified in the budget
  justification)
• Purdue has disclosed how charges will be treated
  (direct or indirect)

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Cost Identification

• Why is a budget not just a budget?
• Expectation is that work will be completed within
  the approved budget guidelines
• May have impact on funding decisions
• We may have to provide back-up documentation to
  support our budget before an award can be made

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Facilities and Administration

• When will Purdue accept limitations on FA?
• Accepted for Not-for-Profit and Foundations
• Mission/goals of these types of organizations are
  to benefit the public well being as a whole
• Director of SPS approves with concurrence of Dept
  Head and Dean
• Why cant Purdue accept limitation on FA for
  For-profit entities?
• FA costs are REAL costs to the University
• If granted, PU would be subsidizing a For-Profit
  entity
• What other terms may be used to describe FA
• Indirect Costs, IDC, or overhead

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Facilities and Administration

• Why are FA waivers required?
• Ensure University has reviewed request
• Ensure full cost recovery
• Can scope be adjusted?
• If we waive FA inappropriately, could jeopardize
  the negotiation of the rate agreement

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Facilities and Administration

• What determines on and off campus?
• Activity needs to be off campus for a full
  semester or summer session
• Facilities portion of the FA rate is not
  charged, reducing the rate (26 represents the
  admin portion of the rate)

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Facilities and AdministrationDiscussion Topic

• Professor Black is going to travel for the summer
  doing research. Hell be attending different
  conferences, etc. He would like the off campus
  rate for the period of his travel.
• Is this an acceptable circumstance for requesting
  the off campus rate?
• Why or why not?

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Cost Sharing

• Why do we cost share?
• Show the Universitys support for the project
• May affect funding decision by sponsor

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Cost Sharing

• Why do we document cost sharing that is committed
  but not required by the sponsor?
• If shown in the proposal in an auditable manner,
  becomes part of the proposal budget
• These resources are necessary to complete the
  scope of work identified in the proposal
• Documentation helps during audit

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Cost Sharing

• What are the different types of Cost Sharing
• Contributed Facilities Administrative Costs
• Voluntary Cost Sharing
• Memo Match
• Single Account Cost Sharing

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Cost Sharing

• Why identify different types of cost sharing?
• Documentation for audits
• Managing commitments
• s vs. s
• Memo Match

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Cost Sharing

• Why does cost sharing have to be an allowable
  sponsor cost to be allowable as cost sharing?
• Cost sharing funds will be treated as though they
  are sponsor dollars
• Cost sharing is viewed by the sponsor as costs
  that could be requested from them but are not and
  are being borne by the university
• CAS and OMB Cir. A-21

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Cost SharingDiscussion Topic

• While reviewing a proposal, the BM notices that
  the investigator has included a statement in the
  budget summary committing 10 of his AY effort.
  He has not requested this effort in the budget.
• Is this an issue? What should the BM do?

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Mission Metrics

• What are the proposal classifications?
• Research, Instruction Extension and Public
  Service
• Why is it important to correctly classify
  proposals?
• Directly tied to universitys missions
• Drives reporting
• Helps gauge activity
• Determines appropriate FA rate in Coeus

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Mission Metrics

• Why is credit split important?
• Credit split on the Proposal Submission Form
  (PSF) and in Coeus directly affects reporting
• Credit splits need to be identified and certified
  by PI and Co-PI
• Why is proposal type important?
• Coeus proposal types http//www.purdue.edu/coeus/g
  uide/modules/propdev/coredata/main/proposaltypes.h
  tml

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Resources

• http//www.purdue.edu/sps/proposals/Welcome.html
  Current Pre-Award Website
• http//www.purdue.edu/Research/vpr/policies/index.
  shtml
• http//www.purdue.edu/coeus/guide/
• http//www.purdue.edu/business/bpnews/