F INANCING PHYSICAL ASSETS AT UNIVERSITIES THROUGH UTC PROGRAM (and other) FEDERAL GRANTS Amy Stearns, USDOT/OST-R

1. FINANCING PHYSICAL ASSETS AT UNIVERSITIES THROUGH UTC PROGRAM (and other) FEDERAL GRANTS Amy Stearns, USDOT/OST-R University Transportation Centers Program Grants Manager June 4, 2014

2. SCOPE • This presentation reflects what Federal grant regulations say in general about grants. • Specific references to UTC Program grants are noted where applicable.

3. WHICH TYPE OF FEDERAL GRANT DO YOU HAVE? Construction Grant • construction grants = complex • expanded compliance aspects • increased oversight because of high $ amount • research grants are rarely for construction • UTC Program grants are not • NSF/NOAA/DOD award a few Operational Grant • research grants are customarily operational • UTC Program grants are this type

4. CONSTRUCTION GRANT

5. CONSTRUCTION GRANT Although UTC Program grants are not for construction, points UTCs should note about construction grants: • major facility improvements are generally considered to be construction (discussion follows about minor facility alterations) • university F&A rates applied to UTC Program grants may include some construction-related costs beneficial to overall institution

6. OPERATIONAL GRANT

7. OPERATIONAL GRANT • Physical assets include items that are necessary for the grantee to accomplish the purpose of the grant. • May generally include: • permanent research equipment • laboratory or other specialized research facilities such as a test track • workspace alterations to house research equipment/facilities

8. OPERATIONAL GRANT, cont’d • Under UTC Program grants that have a statutory education/technology transfer mission, necessary physical assets may also include: • permanent education, workforce development, or technology transfer equipment • specialized teaching facilities such as a computer-equipped classroom or video-conference room • workspace alterations to house education or technology transfer equipment/facilities

9. TREATING PHYSICAL ASSETS UNDERAN OPERATIONAL GRANT

10. TREATING PHYSICAL ASSETS UNDERAN OPERATIONAL GRANT Permanent Equipment • defined as having useful life of more than one yearand costing $5,000 or more • purchase requires prior approval by grantor agency • above these thresholds, Federal grant regulations don’t distinguish between a $5,000 item and a $500,000 one • common sense: higher cost = better documentation • if equipment is used by more than one grant, split costs appropriately

11. TREATING PHYSICAL ASSETS UNDERAN OPERATIONAL GRANT, cont’d Specialized Facilities • generally are a combination of technological tools and physical space, customized to perform a particular task or function • such facilities are likely a key component of grant so would have been described in proposal – check with grantor agency to see if proposal language is sufficient for approval • if facilities are used by more than one grant, split costs appropriately

12. TREATING PHYSICAL ASSETS UNDERAN OPERATIONAL GRANT, cont’d Workspace Alterations • generally are services obtained in order to adapt existing space to a new purpose • alterations often are not identified at time of proposal, so check with grantor agency for approval • if workspace being altered is used by more than one grant, split costs appropriately

13. TREATING PHYSICAL ASSETS UNDERAN OPERATIONAL GRANT, cont’d ADDITIONAL IMPORTANT NOTES: • Non-Federal Funds: Federal grant requirements for the purchase and use of physical assets are the same whether the assets are paid with Federal or non-Federal matching funds. • University Oversight: purchase and use of physical assets is an area that attracts auditors’ attention, so we recommend early involvement of Sponsored Research office

14. Questions? Amy Stearns USDOT/OST-R/UTC Program amy.stearns@dot.gov phone 202/366-4957