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Introduction to CaltechResearch Administration

Urmila Bajaj, Director of Project Accountingurmila.bajaj@caltech.edu; x2585

David Mayo, Director of Sponsored Researchdavid.mayo@caltech.edu; x6219

Overview

Research at CaltechResearch Administration at CaltechPolicies Affecting the Administration of ResearchProposals at CaltechAwards at CaltechRoles and ResponsibilitiesConclusion

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Research at Caltech

Caltech’s Mission

To expand human knowledge and benefit society through research integrated with education. We investigate the most challenging, fundamental problems in science and technology in a singularly collegial, interdisciplinary atmosphere, while educating outstanding students to become creative members of society.

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Caltech Staffing

Professorial Faculty: ~300Other Faculty: ~320Postdocs: ~600Graduate Students: ~1,220 Undergraduates: ~910Staff: ~2,650JPL: ~5,200

Caltech Budget

Expenditures for FY2008:~$578M

Instruction/academic support: ~$235MResearch ~$231MOther ~$112M

JPL~$1,772M

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10 year with Inflation Chart

Award Funding by Sponsor Chart

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Proposal Submissions Chart

Success Rates Chart

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Research Administration at Caltech

Office of Research Administration

Richard SeligmanAssociate Vice President for

Research Administration

Urmila BajajDirector of Project Accounting

Mika WaltonAssistant to the AVP

David MayoDirector of Sponsored Research

Adilia KochDirector of Export Compliance

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Project Accounting

Financial tracking/reporting, incl. cost sharingCost transfersAccounts receivable (e.g., invoicing sponsors)Financial Closeout and AuditPayroll Distribution ConfirmationsFinancial Compliance (e.g., allowable costs)Collaborate on:

TrainingDevelopment and implementation of campus policies affecting research administration

Export Compliance

Overall Institute compliance with federal import and export regulationsAdvise Institute on…

Award terms that restrict Caltech researchImport/Export activities that require special approvalsEquipment and technologies that may be restrictedTravel that may require special approvalsVendors/Sponsors with whom we may not do business

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Office of Sponsored Research

Proposal review and submissionAward negotiation and executionAward account setup (PTA) Interpretation of award terms and federal policyModifications to existing awards (e.g., NCE)Collaborate on:

Institute complianceTrainingDevelopment and implementation of campus policies affecting research administration

Other units that directly support Caltech’s research administration enterprise…

Office of Technology Transfer (OTT)Office of General Counsel (OGC)Procurement ServicesProperty ServicesAudit Services and Institute Compliance (ASIC)Cost StudiesOffice of the ProvostEnvironmental Health and Safety (EHS)Divisions!!!

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Policies Affecting Research

Caltech Faculty Handbook, Chapter 7

Sponsored ResearchEligibility to be a PIFreedom to PublishOwnership of IPUse of FacilitiesGrant/Contract versus GiftRequirement for DAFInternal ApprovalsUse of Research Subjects

Also…Misconduct in ScienceClassified WorkConflict of InterestPatents & CopyrightsFaculty Consulting

http://provost.caltech.edu/faculty_handbook.html

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Other Caltech policies that may impact the administration of research

Cost Sharing on Sponsored ProjectsCost Transfers to Federally Funded AwardsExport Compliance PolicyFabrication PolicyPayroll Distribution Confirmation PolicySubcontracts and Subrecipient Monitoring PolicyTravel Policy

http://www.researchadministration.caltech.edu/policies

Federal

OMB Circulars (grants and cooperative agreements)A-21 – Cost Principles for Educational Institutions

A-110 – Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, andOther Non-Profit Organizations

A-133 – Audits of States, Local Governments, and Non-Profit Organizations

Federal Acquisition Regulations (contracts)

Individual Agency RegulationsSpecific Award Terms

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Circular A-21 “Cost Principles for Educational Institutions”

Allowable/UnallowableAllocable/ReasonableDirect/IndirectDetermination and application of indirect cost ratesDefinition of selected cost itemsCost Accounting Standards (e.g., consistent treatment)Examples of Major Projectshttp://www.whitehouse.gov/omb/circulars/a021/a21_2004.aspx

Circular A-110 “Uniform Administrative Requirements for Grants and Agreements…”

Standards forProposal Development and SubmissionAward AdministrationProperty ManagementProcurement System

Reporting (technical, financial; records retention)

TerminationCloseout

http://www.whitehouse.gov/omb/circulars/a110/a110.aspx

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Circular A-133 “Audits of States, Local Governments and Non-Profit Orgs.

Auditor standards (how & what to audit)Auditee standards (what to track and to provide)Subrecipient monitoring standards

http://www.whitehouse.gov/omb/circulars_a133_a133/

Proposals at Caltech

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Lifecycle of a Proposal/Award

Pre-Award Post-AwardDevelopment

Agency

Review

(6-9 mos)

Project Period

1stBudgetPeriod

2ndBudgetPeriod

3rdBudgetPeriod

NoCost

Extension

Revised Budget

Submit Renewal /

Competing-Continuation

Closeout

Final Reports

Submit Proposal

Pre-Award CostsAward

Award

Apply

Find/ExploreAdminister/Monitor(Project Accounting)

Perform(Principal Investigator)

Technical Close(Principal Investigator)

Financial Close(Project Accounting)

Progress Report

Progress Report

Proposal Process

PI prepares proposal, assisted by division staffOSR reviews proposal for:

Consistency with sponsor formatting requirementsBudget was prepared using correct rates and represents all of the anticipated project costsCommitments are consistent with Caltech policies

OSR submits proposal on behalf of CaltechSponsor reviews proposal and, if successful…

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Proposal Process (cont.)

OSR receives award from sponsor and reviews for consistency with Caltech policies; if necessary, OSR negotiates terms of award, coordinating with appropriate Institute personnelOSR executes award on behalf of CaltechDivision submits PTA setup requestOSR establishes PTA and distributes notice to campus that award is active in the financial system

Policies that apply to the proposal process

Faculty Handbook, Chapter 7 Cost Sharing on Sponsored ProjectsFabrication PolicyExport Compliance PolicyInstitutional Base Salary PolicySubcontracts and Subrecipient Monitoring PolicyOMB Circular A-21OMB Circular A-110

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Most common award negotiation issues

Restrictions on publicationRestriction on inclusion of foreign nationalsOwnership of intellectual propertyPayment termsInsurance and indemnification requirements

Awards at Caltech

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Lifecycle of a Proposal/Award

Pre-Award Post-AwardDevelopment

Agency

Review

(6-9 mos)

Project Period

1stBudgetPeriod

2ndBudgetPeriod

3rdBudgetPeriod

NoCost

Extension

Revised Budget

Submit Renewal /

Competing-Continuation

Closeout

Final Reports

Submit Proposal

Pre-Award CostsAward

Award

Apply

Find/ExploreAdminister/Monitor(Project Accounting)

Perform(Principal Investigator)

Technical Close(Principal Investigator)

Financial Close(Project Accounting)

Progress Report

Progress Report

Acceptance of the award means...

Caltech has a fiduciary obligation to manage the funds in a responsible manner; the sponsor often sets the minimum standards for what “responsible” means

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Policies that apply to the administration of awards

Business Expense GuidelinesCost Sharing on Sponsored ProjectsCost Transfers to Federally Funded AwardsFabrication PolicyExport Compliance PolicyPayroll Distribution Confirmation PolicySubcontracts and Subrecipient Monitoring PolicyTravel Policy

Policies that apply to the administration of awards (cont.)

OMB Circular A-21OMB Circular A-110OMB Circular A-133Award terms and conditionsFederal, state and local laws

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What must Caltech do to administer a federal award?

Financial OversightCosts are allowable/allocable/reasonable and appropriately documentedSubawardee performance is acceptableCost transfers are timelyProgram Income is tracked and reportedCost sharing is tracked and reportedPIs’ committed effort is trackedFinancial reporting is accurate and timelyAward closeout timely

What must Caltech do to administer a federal award? (cont.)

Programmatic OversightProposed goals and objectives are adhered toTechnical reports are submitted in a timely mannerProgram officer is made aware of key events in the progress of the researchInventions resulting from the project are disclosed in a timely manner

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What can be charged to a federal award?

Any cost that is allowable and allocable andreasonable.

Allowable – means that the cost is not specifically disallowed somewhere (the key is knowing all of the places one must look where it might be prohibited…)Allocable – means that the cost benefits and furthers the goals and objectives of the awardReasonable – means that, given a similar situation, a reasonable person would make the same decision to charge that cost

Roles and Responsibilities

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The PI’s responsibilities…

Proposal SubmissionProject is consistent with Caltech’s missionPersonnel, space and other resources are securedCommitments of cost sharing are securedInternal approvals have been secured

Award ManagementAdhering to all terms and conditions of the award, as well as all other policies that may apply

The Division

Provides administrative support to assist the PI in the day-to-day fulfillment of his responsibilities.The Chair’s signature on the DAF affirms that all of the PI’s responsibilities will be fulfilled

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Research Administration

Quality control and consistency across campus with regard to financial complianceInteracting with sponsor in financial mattersInterfacing directly with auditorsProviding assistance to Division personnel, and directly to PI

Conclusion