PHS FCOI, OMB Proposed Guidance, and Sequestration, Oh My!

1. PHS FCOI, OMB Proposed Guidance, and Sequestration, Oh My! Pamela A. Webb pwebb@umn.edu

2. PHS FCOI Updates • GOOD NEWS! • NIH has confirmed that Grants.Gov section headers = intentional definitions • University may decide who is and isn’t an “investigator” independently of whether they are in a senior/key person section of a Grants.Gov form

3. SPA’s Position (effective 5/9/13): • Considered to be an “investigator”: • UMN PI(s) - mandatory • Subaward PIs - mandatory • Senior/key personnel – default position is “yes” • If the person is designated on the proposal as “senior/key” but your investigator believes this person does not meet the definition of “investigator”, document in your files and send to your GA an explanation for why this person meets the definition of senior/key but is NOT an investigator. Note that this may be challenged in an audit/NIH review. SPA reserves the right to question such explanations (failure to file a REPA is not an acceptable reason.) • Consultants or significant contributors do NOT meet the definition of an “investigator” unless you tell us they do • You need to ask your PIs if these people meet the definition of investigator - “someone responsible for design, conduct or reporting of the research”

4. NIH Definitions: • Senior/Key Personnel: all individuals who contribute in a substantive, meaningful way to the scientific development or execution of the project, whether or not salaries are requested. Consultants should be included if they meet this definition. (Biosketch required, % effort required, paid or unpaid) • Other Significant Contributor: individuals who have committed to contribute to the scientific development or execution of the project, but are not committing any specified measurable effort (in person months) to the project. Consultants should be included if they meet this definition. (Biosketch required, no % effort allowed) • Consultant: An individual or entity who provides professional advice or services for a fee, but normally not as an employee of the engaging party. (No biosketch, no % effort allowed)

5. What to do with the answer for Consultants/Significant Contributors: • NO, THIS PERSON IS NOT AN INVESTIGATOR • Record the “no” answer in your departmental grant file • No other action is needed • YES, THIS PERSON IS AN INVESTIGATOR • Ask them if THIS consulting work is covered under their disclosure at their home institution. If yes, treat the same as you would a subaward (FCOI clearinghouse review, or Form 1 and if needed, Form 2) • If THIS consulting work is not covered under their home institution disclosure, or if they are an independent party • Obtain a Form 2 disclosure from that person • Note the PRF (e.g. in the comments box) that the consultant named [insert name here] is an investigator and a Form 2 is attached

6. Preliminary! Still sleuthing! Proposed Changes in Federal Research Guidance (A-81)

7. Comments Due by 11:00 p.m. on June 2, 2013 Submit comments to: "regulations.gov" under Docket Number OMB-2013-0001

8. Purpose of Change • Combine 8 circulars into a single consolidated set of federal guidance • A-21, A-110 and A-133 superseded • Respond to input received for regulatory improvements submitted last year • Improve efficiency & transparency • Reduce fraud, waste and abuse • Achieve best program outcomes while ensuring financial integrity

9. Component Parts 241 pages! • Subchapter A – General Provisions • Subchapter B – Pre-award Requirements • Subchapter C – Federal Award Notice • Subchapter D – Inclusion of Terms and Conditions in Federal Award Notice • Subchapter E – Post Federal Award Requirements • Subchapter F – Cost Principles • Subchapter G – Audit Requirements • Subchapter H - Appendices A-110 A-110 A-21 A-133

10. What changes might research administrators and researchers care about?

11. Funding Opportunity Announcements Generally Positive • Must be available and open for submission for at least 30 days • Unless a different period is required by statute or exigent circumstances as dictated by the agency head • Requires a standard format

12. Award Notices Positive • Create a unique, government-wide identifier number for each award • Terms and conditions are spelled out

13. Cost-Sharing Positive • Voluntary Committed Cost-Sharing is not expected and is not to be used as a factor in the review of applications.

14. Role of Students Negative • Eliminates language recognizing the dual role of students (research and training is inextricably linked) • Will ask for this desirable language to be restored.

15. F&A Rates Impact Uncertain • Deviations from federally negotiated rates only allowed when • Exceptions are provided in statute or regulation • Agency Head has approved a deviation • OMB is notified

16. Progress/Financial Reporting Negative • New requirement to relate financial data to performance accomplishments whenever practicable (including unit cost data) • Agencies should provide clear performance goals, indicators, and milestones expected • May lead to new reporting burdens and financial accountability measures

17. Admin and Clerical Costs Mixed • Salaries of admin and clerical staff allowable as a direct charge when: • individuals involved can be specifically identified with the project or activity; • are integral to the project • such costs are explicitly included in the budget; • the costs are not also covered in indirect costs

18. Project Management Costs Positive • Charges to federal awards may include ... developing and maintaining protocols (humans, animals, etc.), managing substances/chemicals, managing and securing project-specific data ..

19. Mixed Salary/Effort Reporting • Effort Reporting – Elimination of examples of acceptable systems allows room for other models as does possibility that reports can be integrated with a payroll system; allows “responsible person” to certify;

20. Mixed Salary/Effort Reporting • Requires consistent definition of a full-time workload in order to qualify for extra service pay • Must apply to all employees in a given class (not just federally-funded employees.) • Supplementation amount is commensurate with the base pay rate and amount of additional work performed • Inserts new obligation to review budget estimate quarterly

21. Dependent Care during Travel • Dependent care costs that are the direct results of the individual’s travel requirement for the federal award and are only temporary during the travel period are allowable. • If used, must be available regardless of fund source

22. Computing Devices <$5K Positive • Allowable as supplies cost for devices that are essential and allocable, but not solely dedicated to the performance of the Federal award

23. Subrecipients Mixed • Explicit obligation of the prime to honor subrecipient’s federally negotiated F&A rate • Subrecipients without negotiated rate can have an automatic 10% F&A rate • Federal agency can impose their own documentation requirements on grantees to verify how they determined that a transaction is a subaward v. vendor • Audit threshold raised to $750K (from $500K) • More prescriptive requirements on subrecipient monitoring • Primes may be able to use federal audit management decisions

24. Sequestration

25. Federal agencies to their grantees: • “You might be cut this year.” • “Or not” • “Before the end of the year, we will let you know”

26. New Information from NIH • NIH Guide Notice and IC Plans • http://grants.nih.gov/grants/guide/notice-files/NOT-OD-13-064.html • http://grants.nih.gov/grants/financial/index.htm#strategies • No change to the existing salary cap • No change in NRSA stipend levels • FY13 research and non-research continuation awards previously cut to 90% may see some partial restoration (but not likely back to 100%) • FY14 and beyond out-year commitments not being reduced • Likely fewer competing awards made in FY13 but the average size of awards will be targeted to be at FY12 levels.  • No out-year inflationary increases (same as the present policy)