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Follow up discussions on cost sharing. Office of Research Administration September 10, 2009. Today’s topics. Lessons learned since implementation of companion awards Overview of cost sharing For awards resulting from proposals submitted on or after April 1, 2008:

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Follow up discussions on cost sharing

Follow up discussions on cost sharing

Office of Research Administration

September 10, 2009


Today s topics
Today’s topics

  • Lessons learned since implementation of companion awards

  • Overview of cost sharing

  • For awards resulting from proposals submitted on or after April 1, 2008:

    • Setting up companion awards

    • Cost sharing resulting from post award deviations

    • Funding and final review of cost sharing


Lessons learned
Lessons Learned

  • Update on the process from the Divisions

    • Set up one Salary Cap project # per PI for salary cap monitoring

  • Update on the process from PA

    • Number of companion awards set up so far

      • 12 Cost sharing companion PTAs

      • 57 Salary cap companion PTAs:

    • Unanticipated problems

      • CIT cost share customer name was not used

    • Voluntary cost sharing and overhead recovery

      • So far only one award

    • Main award will not be activated until cost share funding source information is available


Cost sharing overview
Cost Sharing - Overview

  • Portion of research cost that is not borne by the sponsor

    • Primarily required by federal sponsors

    • Pledge can be % of total project costs or a fixed amount

    • Obligation must come from GB, Endowment, discretionary or other non federal

  • Federal regulations require recording and tracking in the financial system

    • Cost shared expenses

    • Faculty effort variations

    • NIH salary cap


Cost sharing overview1
Cost Sharing - Overview

  • Only allowable direct costs can be cost shared

    • Faculty salaries/benefits

    • Non faculty salaries/benefits

    • GRA assistantships and tuition

    • Equipment and M&S

    • Other direct costs


Cost sharing overview2
Cost Sharing - Overview

  • Types of cost sharing (CS)

    • Mandatory (requires tracking via CS PTA)

      • Required under sponsor eligibility criteria

      • Sponsor imposed cap on salary

    • Voluntary Committed (requires tracking via CS PTA including unrecovered overhead)

      • PI offered in proposal

    • Voluntary Uncommitted (does not require tracking)

      • PI cost shared during life of award

  • References:

    OMB Circular A-110, Subpart C.23, Post Award Administration, Cost sharing, http://www.whitehouse.gov/omb/circulars/a110/a110.html#23

    OMB, M-01-06, Memorandum for The Heads of Executive Departments And Establishments, Clarification of OMB A-21 Treatment of Voluntary Uncommitted Cost Sharing and Tuition Remission Costs

    http://www.whitehouse.gov/omb/memoranda/m01-06.html


Cost sharing overview commitments reported on the daf
Cost Sharing - OverviewCommitments reported on the DAF


Cost sharing companion awards
Cost Sharing - Companion Awards

  • At acceptance of the award*

    • OSR

      • Provides PTA create information

      • Requests cost share funding source/s

    • Division

      • Submits request for main and companion PTAs

      • Provides cost share funding source/s to OSR

    • OSR activates main PTA only after receiving cost share funding source information

  • *Same process applies to “At Risk” PTAs


Cost sharing companion awards1
Cost Sharing - Companion Awards

  • Naming convention for companion awards

    • Mandatory and voluntary cost sharing = ZOACS.XXXXX

      • Z - so this PTA always appears last on PTA listings/reports

      • OACS = Other Activities Cost Sharing

      • XXXXX – Should be the same as Caltech award number

    • Salary cap = <Sponsor Prefix>SAL.XXXXX

      • Example: NIHSAL.12345; or subaward: USCSAL.12345

  • When setting up companion PTA (including salary cap), select “CIT Cost Share” for Funding Source Name



Salary cap companion pta example
Salary Cap Companion PTA Example

  • Create one salary cap project # with indefinite end date per faculty/PI using PI initials: XXX.SALCAP

  • Create salary cap award for each discrete award: <sponsor prefix>SAL.XXXXX

    • When submitting create request, use “CIT Cost Share” for Funding Source Name

  • Salary cap project is linked to CIT salary cap award, NIHSAL.12345

  • CIT salary cap PTA is linked to the main PTA by the funding source award #


Salary cap calculation example
Salary Cap Calculation-Example

  • Professor Vincent’s base salary is $251,800, which exceeds the NIH cap of $196,700 (effective Jan,’09). He commits to and spends 20% of his time on NIH.12345, 30% on NIH.67890, and 50% on GB PTA3.

    • % of salary allowed on NIH.12345 = (196,700/251,800)*20%= 15.6%

    • % of salary allowed on NIH.67890 = (196,700/251,800)*30%= 23.4%

      • Over-the-cap portion of the salary must be charged to two companion salary cap PTAs

        • 4.4% to NIHSAL.12345

        • 6.6% to NIHSAL.67890


Cost sharing resulting from post award deviations
Cost Sharing-Resulting from post award deviations

  • Deviations from committed effort of key personnel may require cost sharing (from ITD Balance Report)

    • If salary charged is < % of effort committed in the awarded budget & the reduction is > 25%, then either:

      • the PI did not work at the level committed

        • Requires sponsor approval OR

      • the PI did not charge all of the effort to the project and the difference is voluntary cost sharing

        • Requires ZOACS companion award

        • Requires PI to cover the unrecovered F&A


Cost sharing resulting from post award deviations1
Cost Sharing-Resulting from post award deviations

  • If salary charged is < % effort committed in awarded budget & the reduction is < 25%, then either:

    • the PI did not charge all of the effort to the project, the difference becomes voluntary “committed” cost share

      • Requires ZOACS companion award

      • Requires PI to cover unrecovered F&A OR

    • the PI did not perform at the committed level of effort and the reduction needs to be formally documented, via progress report (NIH, NSF) or written notification to PA


Voluntary committed cost sharing resulting from post award deviations
Voluntary Committed Cost Sharing-Resulting from post award deviations

  • Example 1: PI committed 10% effort, charged 8% salary to the award and indicated 10% effort on the PDC report

    • 2% difference is voluntary committed cost sharing

    • Requires ZOACS companion award

  • Example 2: PI committed 10% effort, charged 8% salary to the award, and certified PDC for 8% effort commensurate with payroll

    • 2% difference is voluntary committed cost sharing

    • Requires ZOACS companion award

  • Example 3: PI committed 10% effort, charged 8% salary to the award and certified PDC for effort commensurate with 8% pay; but indicated 15% in the progress report submitted to sponsor (NIH, NSF)

    • 2% difference between committed effort and payroll distribution is voluntary committed is cost sharing

    • Requires ZOACS companion award

      *Note: the remaining 5% (difference between effort committed and declared in the progress report) is voluntary uncommitted cost sharing and will not require a ZOACS companion award



Cost sharing funding cost sharing pta s
Cost Sharing - ReportFunding Cost Sharing PTA/s

  • Project Accounting notifies divisions & then:

    • Debits funding source PTA/s

      • Expenditure type-Cost Share Trfs Out GB

      • Expenditure type-Cost Share Trfs Out Non GB

    • Credits cost share PTA/s

      • Expenditure type-Cost Share Trfs In GB

      • Expenditure type-Cost Share Trfs In Non GB

  • Cost share PTA/s will always have zero budget


Cost sharing final review
Cost Sharing - Final Review Report

  • Project Accounting:

    • confirms cost sharing commitment is met

      • ZOACS expenditures = cost share commitment

    • verifies faculty effort from ITD Balance reports

      • Faculty effort = % on main award + % on ZOACS

    • requests new CS PTA/s for after-the-fact cost sharing situations

      • faculty salary is < committed/reported level of effort

      • reports cost sharing expenditures to sponsor