Managing a Scientific LaboratoryFinancial Management and Budgeting

Start-up Funds Nichole Phillips

Director of Research AdministrationViterbi School of Engineering

Budgeting for Proposals Sabrina Feeley

Director of Research AdministrationDornsife College of Letters, Arts and Sciences

Managing your Grant Award Janet Stoeckert

Director of Research AdministrationKeck School of Medicine

Start-Up FundsGetting your Lab Started

Nichole PhillipsDirector of Research Administration

Viterbi School of Engineeringnicholep@usc.edu

Start-up Package1. Resources a university makes available for research support

2. Office and lab space

3. Housing/Moving Expenses

4. Lab equipment, computers and software

5. Technician and/or other staff support

6. Salary Support for course buyout or summer effort

7. Supplies

8. Travel

Negotiating a Start-up Package1. During the process of discussing an offer is when to put the dollar

values on your needs

2. Offer time is the time “you have the most leverage than you will have for years when joining a faculty”

3. Be prepared - part of the job search process is completing an assessment of your minimum requirements to get your research up and running

Negotiating a Start-up Package

4. Research current salary information

5. Keep in mind only the department chair or dean can make commitments to you

6. Be collaborative on ways to get expensive items

7. Be sure to get commitments in writing

Hard Money vs. Soft Money

1. Hard Money refers to guaranteed funds you receive from the university

2. Can be part of your start-up package or other discretionary funding

3. Quasi- hard money include various types of internal funding the university may provide to assist in jump starting your research

• Zumberge Individual Research Grant -http://research.usc.edu/for-investigators/funding/usc/zumberge/

Hard Money vs. Soft Money

4. Soft Money refers the funds you receive from sponsors

5. Funding you competed for with deliverables

Start-up Funds & Your Lab1. All or a portion of your start-up funds may be made available in an account for you to manage

2. Spending limits/requirements. a. Were these addressed in your offer letterb. Work with your department or the school regarding any

specific policy

3. Think strategically when setting up your lab a. Start-up funds will be the basic funds available while

acquiring grant fundingb. What are the items required to launch your lab

Staffing your lab1. Staffing

a. Are they part of your start-up fundsb. What type of Staff do you need

• Post-doc• Lab Technician• Graduate Research Assistant

2. Keep in mind a. Time for trainingb. Time for mentoring

Resources

1. http://serc.carleton.edu/NAGTWorkshops/careerprep/jobsearch/negotiating.html

2. http://chronicle.com/article/The-Right-Start-Up-Package-/45611/

3. http://research.usc.edu/for-investigators/funding/usc/

Budgeting for ProposalsAugust 22, 2013

Sabrina FeeleyDirector of Research Administration

Dana and David Dornsife College of Letters, Arts and Sciences

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Goals

Gain an understanding of:• Identifying Funding Opportunities• Why Prepare a Budget?• Budget Elements• Budget Justification• Cost Sharing• Compliance• Submitting Your Proposal

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Identifying Funding Opportunities- solicitation, RFP, program announcement, BAA

On-line Information Systems:Sponsored Programs Information Network (SPIN)FedBizOpps.gov – Federal OpportunitiesPivot Community of Science (COS)ResearchResearch.comGrants.govSponsor Websites

Read carefully and thoroughly!

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Why Prepare a Budget?

Definition of a Budget:

A categorical list of anticipated project costs that represent the Principal Investigator's best estimate of the funds needed to support the work described in a proposal.

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Function of a Budget•The budget estimates, as realistically as possible, the cost of completing the objectives identified in the proposal. •The sponsor will use the budget details to determine whether the proposal is economically feasible and realistic. •The budget provides a means to monitor the project's financial activities over the life of the project.•Many sponsors (especially government agencies) provide either a form or a format for the budget. It is imperative to follow the agency's instructions explicitly.

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Impacts on Budget Planning

Sponsor’s Budgetary RestrictionsType of Sponsor (federal, non-federal, international)Project Period – Phases/Option YearsTask BudgetsTypes of personnel appointments (faculty, research staff, postdoc, student)Fringe Benefit CostsSub Awardees and CollaboratorsLocation of Project (on or off campus)Facilities and Administration Costs

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Go through your project narrative and make a list of everything that will have to be paid for.

People, consumables, publications, equipment, conference travel, collaborators…

Do not forget to review sponsor guidelines for any restrictions or special guidance.

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Budget ElementsCompensation

SalaryFringe Benefits (Federal & Non-Federal)Wages

Materials and SuppliesEquipmentTravelPublicationSub Awards or Consultants Other Direct CostsFacilities & Administration Costs (Indirects or Overhead)

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Budget JustificationExplains: • why each cost is essential to performing project• how project costs were estimated• any special circumstances• what each person will contribute to project,

12 month versus 9 month faculty• lab and animal costs• equipment needs – include quotes

USC Research - Current Rate Agreement - June 26, 2012http://research.usc.edu/dcg/proposal-development/rates-at-a-glance/

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Budget justifications should answer the questions a skeptical reviewer would ask.

Make a persuasive case for investing in you and your team.

It is important to include budget justifications since they can be essential for surviving an audit.

Cost SharingWhen federal or agency regulations require that the institution share in the cost of sponsored research projects, the institution contribution is referred to as “cost-sharing.”

In general, cost sharing and matching represents that portion of project or program costs not borne by the sponsor (generally the federal government).

Cost sharing can be voluntary or mandatory (that is, required by means of a statute or law), and can take the form of either cash or in-kind contributions.

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USC Policy - Cost Sharing http://policies.usc.edu/p2admOpBus/cost-sharing.pdf

Individual school policies.

Be sure all appropriate institutional approvals are secured prior to submission.

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ComplianceOMB Circular A-110 – Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations. Federal cost accounting standards, are a series of federal regulations, detailed in OMB Circular A-21, which stipulate how educational institutions administer the financial aspects of grant management.

Costs must be reasonable, allowable, allocable and consistent.

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If any of the following are involved, institutional review boards may be required:

-Human Subjects-Human Embryonic Cells-Animal Subjects-Radioactive Materials-Biohazardous Materials

Conflict of Interest-diSClose-HHS Required COI Training

Responsible Conduct of Research (RCR)

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Submitting your proposal

Route proposal package for approval• Internal paperwork – Proposal Approval Record (PAR)• Sponsor paperwork – Have the right forms been filled

out correctly?

Research Administrators and Department of Contracts and Grants (DCG) will assist with review and submission.

Do not wait until last minute…Submit early!!

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Wrap-up

Read the funding opportunity!

Prepare your budget• Does the budget reflect reasonable costs for the project?• Is the budget justification in line with the project narrative?• Are there unallowable costs in the budget?• Can you complete the scope of work on this budget?

Review and finalize all aspects of your proposal.

Submit early and wait for it to be awarded!

Managing Your Grant AwardAugust 22, 2013

Janet StoeckertDirector, Research Administration

Keck School of Medicine

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Gain an understanding of:• Types of Grants• Award versus Spending Plan• Budget Management & Monitoring• Award Close Out

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Goals

Congratulations! You have a grant award!

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Types of Grant Awards

• Grant – Transfer of money, services, or anything of value

to recipient to accomplish a public purpose– No substantial involvement with sponsor

• Cooperative Agreement– Transfer funds to recipient to accomplish a public

purpose– Substantial involvement between sponsor and

recipient

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Types of Grant Awards

• Contract– Acquisition of property or services for benefit or

use of sponsor• Purchase Order

– Fixed priced for a product or service– Other (IPA)

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Types of Grant Awards

Grant or Gift?

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Grant or Gift?Proposed work binds the

Institution to a specific line of scholarly or scientific inquiry

Includes work statement or the testing of specific hypotheses, methodologies or validation of particular approaches

There is a specific commitment regarding the level of personnel effort or items of output, or specific performance targets as a condition of funding

A line item budget detailing expenditures by activity, function.

Project period must be adhered to as a condition of funding

Detailed fiscal reporting is required at intervals during the course of the work or at the end of the project.

Any unexpended funds must be returned to the sponsor at the end of the project.

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Review Award Document & Spending Profile

• Scope of Work• Time table• Budget and Cost Sharing • Reporting Requirements• Compliance Requirements• Clauses

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Review Award Document & Spending Profile• Sponsor may request reduction in budget

Scope of work should be reduce accordingly• Sponsor may agree to full budget but only

allocate (incrementally fund) a portion of funding for specific time-frame – How can budget be adjusted to

accommodate funding• Sponsor may reduce funding if expenses do

not match budget 35

Budget Management & Monitoring

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Spending

What is my grant account number?

• Notification of Award via Kuali Coeus (KC)• Notififction of Account and budget via Kuali

Financial System (KFS) • Obtain Access to Account in Financial System

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Budget Management & Monitoring

• Encumbrance known expenses—Personnel– Subcontracts– Large Dollar Volume Expenses– Independent Contractors – Reoccurring – Maintenance of encumbrances

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Budget Management & Monitoring

• Review Projections– No less than quarterly– Review for abnormally high or low burn rate of

funds

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Sample Projection

Account Status Report (ASR)

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• Replace with new sample

Financial Compliance

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Costs Must Be . . .

Allowable - Must conform to regulations - Must conform to any exclusions contained in the sponsored agreement - May be an appropriate institutional expense but not allowable on a sponsored project

Allocable - Necessary to the project - Directly benefits the project - NOT determined by fund availability

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Costs Must Be . . .

Reasonable - What “prudent person” would pay in like circumstances - Necessary? - Advance the scope of work? - Consistent with established policies & practices?

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Certifying Effort

• After-the-fact confirmation of effort• Demonstrates that salaries charged to

sponsored projects or to cost sharing reasonably reflects effort performed

• Way for government and other sponsors to verify salary charges to grants

• Required by institution policy and OMB Circular A-21

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Effort Certification - How do you certify?

• eCert: On-line web-based

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Charging Effort to Grants

• % Effort should reasonably reflect actual effort spent

• Include cost shared effort subsidized by Department, School, Institution

• Take into account sponsor’s salary cap if applicable

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How much effort can you charge?• Faculty effort on grants should usually not

exceed 90-95%• Effort towards teaching, committee work,

preparing new grant proposals may not be charged to grants

• Exceptions are reviewed by Office of Financial Analysis

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Cost Transfers

• Institutional Policy– “The first step in

charging costs is to be certain that the initial charge is appropriate.”

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Cost Transfers

• Sponsored Projects Accounting (SPA) reviews and approves cost transfer

• Processed within 90 days – Attach detailed justification and supporting

documentation– PI and Administrator sign off

• Over 90 days– Attach detailed justification and supporting

documentation– PI, Administrator, Manager and Director sign off

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Close Out of Award

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Grant is Completed

Close Out of Award• Close outstanding encumbrances• Ensure no outstanding charges• Programmatic/Technical reports submitted• Personnel Expirations

– Notify project staff as soon as possible

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Close Out of Award• Data Retention and Access

– Provide reasonable access– Retain for 7 years after final reporting

or publication– Retain financial records 3 years after

audit resolution– Don’t forget to shred!

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Grant Transfers

• PI notifies administration of transfer• Review sponsor requirements• Estimate balance remaining• Prepare relinquishment statement• Final financial statement to sponsor prior

to transfer to new institution

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Moving?

Summary

• Review your grant award with your Department or School for terms and conditions, scope, awarded budget, discuss spending plan

• Review budget and projections at least quarterly

• Inform your administrator if you wish to change to make changes to personnel effort, purchases, subawards, or need to transfer expenses

• Stay current on compliance requirements55

Questions?

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Thank you!

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Nichole PhillipsViterbi School of Engineering

nicholep@usc.edu

Sabrina FeeleyDornsife College of Letters Arts and Sciences

slf@dornsife.usc.edu

Janet StoeckertKeck School of MedicineJanet.stoeckert@usc.edu