2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 1

Research Administration 101 & Hot Topics

Nate HainesManaging Director, Huron Consulting

Alison SandersDirector- Office of Research and Sponsored Programs

San Francisco State University

March 11, 20141:30 – 2:10

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 2

Agenda

Introduction and Approach 1:30 – 1:35

Current Research Administration Landscape 1:35 – 1:45

Award Lifecycle - Idea to Award 1:45 – 2:05

Questions 2:05 – 2:10

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 3

Objectives

Develop a high-level understanding of the sponsored award lifecycle and best practices to enable efficient pre

and post award operations

Provide a brief background of the award lifecycle, importance of sound monitoring by both central and

department offices and insight into the risks of poor research administration management

Goal

Approach

Current Research Administration Landscape

42 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 5

Volume of activity

Increased Complexity Scrutiny

Large investments in facilities

Accountability

Pressure

Reduce administrative cost

Super Circular!

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 6

10

15

20

25

30

35

40

45

$13.7

$27.7$29.2

$40.9

$32.0

NIH Budget by Year1Bi

llions

($)

1. The American Association for the Advancement of Science (AAAS)2. Kaiser, Jocelyn, “Darwinism vs. Social Engineering at NIH.” Science Magazine, Volume 334 11 November 20113. http://news.sciencemag.org/funding/2014/01/u.s.-science-agencies-get-some-relief-2014-budget

NIH Budget Doubling

Post Doubling

Era

Including ARRA

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 7

15%25%35%

32%20%

18%

Success Rates by Year Seri...

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

010,00020,00030,00040,00050,00060,000

Applications and Awards by YearApplicationsAwards

Sources: NIH Office of Extramural Research http://www.report.nih.gov/award/success/Success_ByActivity.cfm

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 8

Sources: CSU Financial Services

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 9

2007 2008 2009 2010 20110

1

2

3

4

5

6

Recoveries from Financial Penalties

Investigative ReceivablesAudit Receivables

Bill

ions

($)

Source: Department of Health and Human Services Office of the Inspector General Semiannual Report to Congress 2007-2011http://oig.hhs.gov/reports-and-publications/archives/semiannual/index.asp

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 10

Areas of Current Compliance Emphasis

Fiscal • Cost Transfers• Clinical Trial Billing• Cost sharing• Direct charging practices• Effort reporting• Financial reporting• Program income reporting• Recharge centers• Subrecipient Monitoring• Unallowable costs

Research • Animal subject protections (IACUC)• Human subject protections (IRB)• Conflicts of interest• Environmental health & safety• Export Controls• Invention disclosure & reporting• Scientific overlap• Scientific misconduct• Other support

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e

Significant Audits/Settlement

s

University AMisuse federal funds

$32 million University BInflated research grant

costs$15.5 million

Foundation EMischarging federal

grants$6.5 million

University FCommitted Time/Effort

$5 million

University GClinical Research

Issues$4.4 million

University ICosting Issues Self-

Reported $3.25 million

University K Questioned Costs HHS/OIG

Audit$2.4 million

University CEffort Certification & Direct

Costs$11.5 million

University HEffort Certification & Clinical

Research Billing$3.4 million

University DMischarging federal

grants$7.6 million

University JEffort Certification

$2.7 million

11

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 12

How can an institution stay ahead of the trends and remain compliant?

Begin by understanding the award lifecycle and the requirements to support successful research

administration

The Award “Lifecycle”From Idea to Award

132 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 14

Sponsor Reports &Close-out

Tracking&

Accounting

Spend Money

&Purchasin

g

Locate Funding &

Develop Proposal

Establish Project

Accounts & PI

Briefing

Proposal Submissio

n

Proposal Review &

Institutional Approval

Not Funded:

Reviewer’s

Comments &

Resubmit

Funded:Award’s Terms &

Conditions

Pre-AwardPost-Award

Additional Funding

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 15

Sponsor Reports &Close-out

Tracking&

Accounting

Spend Money

&Purchasin

g

Locate Funding &

Develop Proposal

Establish Project

Accounts & PI

Briefing

Proposal Submissio

n

Proposal Review &

Institutional Approval

Not Funded:

Reviewer’s

Comments &

Resubmit

Funded:Award’s Terms &

Conditions

Pre-AwardPost-Award

Additional Funding

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 16

Proposal Package

Demographic Info

Project/ Performance Site Locations

Key Personnel and Qualifications

Other Project InformationInstitutional

Compliance and AssurancesBudgets and Budget

Justification

Typical Proposal Elements

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 17

Facilities & Administrative

Costs

Alteration & Renovation

Costs

BudgetDevelopmen

t

Personnel Costs

Equipment

Subcontracts & Consultants

Supplies

Travel

Other Costs

Common Budget Elements

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 18

Sponsor Reports &Close-out

Tracking&

Accounting

Spend Money

&Purchasin

g

Locate Funding &

Develop Proposal

Establish Project

Accounts & PI

Briefing

Proposal Submissio

n

Proposal Review &

Institutional Approval

Not Funded:

Reviewer’s

Comments &

Resubmit

Funded:Award’s Terms &

Conditions

Pre-AwardPost-Award

Additional Funding

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 19

Sponsor Reports &Close-out

Tracking&

Accounting

Spend Money

&Purchasin

g

Locate Funding &

Develop Proposal

Establish Project

Accounts & PI

Briefing

Proposal Submissio

n

Proposal Review & Intuitional Approval

Not Funded:

Reviewer’s

Comments &

Resubmit

Funded:Award’s Terms &

Conditions

Pre-AwardPost-Award

Additional Funding

Managing an award

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 20

Regulations Governing Sponsored Research

OMB Circular A-21: principles for determining costs applicable to grants, contracts, and other agreements with educational institutions

OMB Circular A-110: standards for obtaining consistency and uniformity among federal agencies in the administration of grants to and agreements with institutions of higher education, hospitals, and other non-profit organizations

OMB Circular A-133: standards for obtaining consistency and uniformity among federal agencies for the audit of organizations expending federal awards

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 21

Cost Principles- A 21

Costs that do not meet these standards should not be paid for by the project

DefinitionItems not restricted by federal regulations (such as OMB A-21) or the specific grantGoods or services acquired and amount involved reflect an action a “prudent person” would have takenBenefits the project that was charged

Like costs in similar instances need to be treated consistently throughout the institution

Term

Allowable

Reasonable

Allocable

Treated Consistent

ly

2 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e 22

How can an institution stay ahead of the trends and remain compliant?

1. Stay current with compliance issues/topics in research administration

2. Understand the complexities/challenges of research administration at your institution

3. Build an infrastructure that will support research administration in your institution

Thank you!

Nate Haines (nhaines@huronconsultinggroup.com)

Alison Sanders (asanders@sfsu.edu)

232 0 1 4 F O A / P SS O A C S U B u s i n e s s C o n f e r e n c e