F&A Under Recovery

1. F&A Under Recovery RSC June, 2003

2. Base Appropriated Budget Research Public Service Instruction

3. Add Development Research Public Service Development Instruction

4. Add Full-F&A Sponsored Program Sponsored Agreement With Fed Negotiated F&A Recovered Research Public Service Development Instruction

5. Add Less-Than Full F&A Agreement Sponsored Agreement With Less than Fed Negotiated F&A Recovered Sponsored Agreement With Fed Negotiated F&A Recovered Research Public Service Development Instruction

6. Money Flow Research Public Service F&A Recovery Instruction Development

7. Recap • Base Appropriation contributes to sponsored program enterprise • Development efforts contribute to the sponsored program enterprise • Sponsored programs rely on support from base appropriation, development and F&A recovery to survive

8. Facts about Finances • Base appropriation is shrinking • Development funds are not keeping pace • Endowment performance is poor • Overhead recovery is pressured • Retention of overhead recovery is under attack.

9. Solutions? • Grow development enterprise! • Succeed in retention of overhead receipts • Reduce overhead waivers • Concentrate on large ticket programs that can sustain themselves through other means

10. Research Public Service Development Instruction Grow Development, Reduce F&A Waivers

11. Grow Development, Reduce F&A Waivers Research Public Service Development Instruction

12. Stabilize Infrastructure • Development Initiatives are Extraordinarily important • F&A Waivers must be minimized. • Work through budgets • Ascertain if recovery mean’s more project resources than under-recovery • Example • Knee-Jerk Approach to Budgeting • Cash Flow Approach To Budgeting

13. A Common Approach + =

14. A Cash Flow Approach } } Move Travel and Supplies to Salaries } TDC Drops, but wait! 35% of F&A Recovery back to College - Good } Released Salary back to Dept - Good }

15. Some Goals • Reduce Processing Time • Reduce Paper Flow • Digitize Proposal Documents • Report Meaningful Data to Chancellor, VC’s, Deans and OP • Grow Research Enterprise through Rankings

16. Deans and EO’s Retreat • Reduce Paperwork • Reduce Administrative Burden • Reduce cost of administrative process • Equates to do more with less and DO IT BETTER! How? • First analyze the process flow and then during follow on meetings we can discuss how our processes could/should/might/must change

17. Integrity of the Process Itself • First, we must understand the process • Handout and White Board Discussion

18. Reminder on F&A Waiver Requests • There is not a “state rate”! • F&A Waiver requests must be submitted to my attention, by e-mail. Include: • A copy of the budget as an attachment, preferably in Excel format. • Your assessment of the total loss to the institution calculated properly • The reason for the request which must express why the administrative burden associated with this project will be substantially smaller than normal or if not, compelling reasons absorbing the loss is warranted • Requests must originate from the Associate Dean for the College or appropriate designee. • Only those units reporting directly to RGS should send their requests without going through an associate dean for research or dean.