New Award Process                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                            (example)Adobe Acrobat plug-in required

 

Setting up a new award and following it to duration is a vital part of a Contract Managers responsibility. We will address the process of setting up and reviewing a new award in the outline that follows.

  I.  Actual Award Notice  (example)

• Check " College " and " Department "
• Check "Project Title"
• Check "Amount of This Action" and " Total Funding to Date"
• Check "Total Anticipated Funding" if applicable
• Check "Current Budget Period" and "Total Anticipated Project Period"
• Note whether it is "New", "Renewal", "Supplement" or "Continuation" (example)
• Note the comments section of the award notice. Important information such as incremental funding, modifications, NCE, etc...will be listed here
• Continuations, etc... will now even list who the Fiscal Manager is and the funding source (Federal, State, Industry)
• New Award Notice Flow: Sponsored Programs & Regulatory Compliance Services (SPARCS) > Contracts and Grants (C&G) > College (COE-ORA) > Department - Contract Manager
• Even though a PI may be notified that an agency is going to fund a proposal, the referenced flow above cannot take place until the agency sends an award to the SPARCS office.
• If there is an immdiate need to appoint a grad student or begin the research, then a "pre-award" is a viable option. (scroll down to item X.  Pre Award Account)
 

II.  Check budget to budget in Wolf Reports

• Print Report 2 and Report 5 in Web On-Line Financial (WOLF) Reports and make sure all categories match the budget that was enclosed with the award notice (example).
• Pay close attention to salaries in Summer Salary (1116) item III) and Release Time (1118) item IV) object codes.
• If there is an error with the budget, simply send an email to the Fiscal Manger ("SpecCD" code on the WOLF Report) in Contracts and Grants affiliated with the project. Inform him/her of the correction that needs to be made.
• Check to see if your grant contains fabricated assets. Fabricated equipment is defined as an item of equipment that is built or assembled from individual parts by a PI and/or other sponsored project personnel, an internal shop or an external shop. Equipment associated with, but not an integral part of, a fabrication must be considered separately and not included as part of fabrication costs. Any subsequent modifications to the equipment or replacement of individual parts after the original fabrication do not qualify as equipment unless the subsequeent modification/replacement itself costs $5K or more and extends the useful life of the equipment. Fabrication is normally started and completed with a single project period.

 

• Roles and Responsibilities: is is the Contract Manager responsibility to review the project for fabrication piror to making a request to the Fiscal Manager in Contracts and Grants. The Fiscal Manager is responsible for confirming that fabrication exists and the account should be coded prior to forwarding to Management for coding.
  • Questions to answer when reviewing a project for fabrication of equipment:
    • Was fabricated equipnment clearly stated in the proposal/award/budget?
      • If not, What is being fabricated?
      • How does it relate to the project?
      • Is agency approval needed?
      • Is a rebudget needed?
    • Is this an instance where a single piece of equipment is created through extensive construction or assemblage?
    • Is it a simply connection of components together in a system?
    • Can the items listed operate on a stand-alone basis?
    • Will the item have an aggregate cost of $5K or more?
    • Will the individual parts be reported in the financial system as "equipment" by using a 5XXXX account code?
    • Will the item be recorded as capital equipment in the University's asset system (CAMS)?
• Final Review Process: Projects coded as fabricated equipment must have a CAMS number listed on the close-out/reconciliation. The CAMS number should be confirmed. If a CAMS number is not listed, follow-up with your PI/CAMS person is needed. Was the fabrication completed or needed? If not, all items under $5K will need to be moved to supplies or other appropriate account code.
• Note the code defined by the "Eq Cd" on the WOLF Report:
  •  Code "W"    Fabricated $5,000 Inventory Required (Sponsor Requires reporting)
  •  Code "X"     Fabricated $5,000 No Inventory Required (Sponsor doe not require reporting)
  •  Code "Z"     No Equipment
  •  Code "Y"     Equipment

 

• Meal Exemptions: check to see if there is an email from Contracts & Grants concerning "Meal Exemptions" (two types: per diem is exempt and per diem is NOT exempt). 
  • New Form required to request meal exemptions.  This form must be signed by the Principal Investigator (PI), the Contract Manager and the College (ORA).  You can scan in the form with the appropriate signatures and email it Pat Hayes, Director (cc Rosette Tavolacci, Assistant Director). They will print, review, sign and email directly to Contracts and Grants (C&G) with a copy to you.  
  • The current per diem rates can be found at: NCSU Policies, Regulations & Rules: Subsistence Allowances

 

III.  Check for Summer Salary (SS) (1116)

Per a past audit finding for NCSU as Summer Salary is closely scrutinized by our own internal auditors.

• OMB Circular A-21: allows that charges for work performed by faculty members on sponsored agreements during the summer months will be determined for each faculty member at a rate not in excess of the base salary divided by the period to which the base salary relates. During the summer, a nine-month (academic year) EPA employee may work for NC State in teaching, research, extension, or some combination of these activities. An individual may earn up to a total of 33.33% of their nine-month salary across these areas.
• If the SS is from National Science Foundation (NSF) funds, please ensure it is not greater than twoninths (2/9) 2 months) from all NSF-funded and NSF flow-through grants (NSF Salaries & Wages) i Policies).  NOTE: This is the responsibility of each individual department/unit within Engineering.
• Pay close attention to the time frame for which you are paying SS. If it is for a complete 3 months, then ask yourself

  Is the faculty member going to take a day off during this 3 month time frame?

  Is the faculty member teaching in addition to his/her research?

• If the answer is yes to either question, then you can not charge a complete 3 months.
• Sponsored Awards often provide varying policies on what is allowable for summer salary from a specific project. It is important to always be familiar with the agency specific guidelines regarding salaries, specifically the amount of summer salary allowable for any given time period.
• Checking now will help you when it comes time to prepare summer salary sheets (click here for fillable PDF)
• Summer Salary is prepared for: Summer Earnings for Nine-Month EPA Employee
  •   May 16-31
  •   June 1-30
  •   July 1-31
  •   August 1-15
• Once the SS (additional pay) form is sent to Virginia Teachey, she will give to Pat Hayes/Rosette Tavolacci to review and approve for all ledger 5 accounts.

• You should only provide SS when it is called for in the agency approved budget or when we have prepared a ePAR requesting SS and the agency has approved it.
• To avoid the college from denying your request, please make sure you have addressed the following, if not, this will only delay your faculty member getting paid.
• Is the person you are requesting the SS for listed on the award notice or mentioned in the budget/budget justification? You can not pay SS for someone not working on the project either in the original proposal or via a post award action.

• Are the dates of the request within the budget period of the project? Remember "budget period" and "project period" are two different things.

• Is the SS being requested available in the 1116 object code either in the original proposal or via a post award action?

• Does the overall salary category have sufficient funds? Even if it appears there are funds in the 1116 object code, but the overall salary category is in the negative, the SS will not be approved
• If you have an ePAR pending approval for a SS action, please note such on the form.
• If there is a continuation or supplemental proposal pending in RADAR, note such on the form.

Research Administration will also not approve SS

• that is not in object code 1116. If you need to rebudget to move money into this category, then prepare a ePAR as instructed in item 4 above.
• when the project number referenced is in the negative in direct costs.
• Even if it appears there are funds in the 1116 object code, but the overall salary category is in the negative
• If the overall project is in the negative
• Click Here for Additional "Things to Remember"

                                     

IV.  Check for Release Time (RT) (1118)

• July 2008 - Memo from Danny Humphrey
• Prepare release time sheets (click here for fillable PDF)
• There are two release time periods:
•   Fall of current academic year:        (08/16/xx--12/31/xx) 
•   Spring of current academic year    (01/01/xx--05/15/xx)
• Turn in release time sheets to Pat Hayes / Rosette Tavolacci (by email or campus mail box 7901), who will review, approve and give to Connie Reno, Assistant Dean for Personnel and Administration, COE Business & Finance to enter into the system.
• You should only provide RT when it is called for in the agency approved budget or when we have prepared a Prior Approval Request (ePAR) requesting RT and the agency has approved it. Note: while awaiting agency approval, COE-ORA will approve the RT if the department head signs that they acknowledge responsibility if the rebudget is denied.
• If you have a multi-year project where all the RT has been given to the project up front, you will want to prorate the amount given for each fiscal year as to account for the faculty members effort for the life of the project.
• Remember that RT affects a faculty members effort. If you make adjustments to RT after it has posted the account, you will want to make sure the effort report is adjusted accordingly.
• ORA will not approve RT that is not in object code 1118.  If you need to rebudget to move money into this category, then prepare a ePAR as instructed in item 4 above.
• ORA will not approve RT when the project number referenced is in the negative in direct costs.

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V.  Cost Sharing (CS)

• Check award for any cost sharing of Effort, Non-Salary Modified Total Direct Cost (MTDC), Equipment & Tuition, Contracts and Grants, Subcontractors, Third Party/Other or Multiple Accounts Under Prime.
• If effort, set up TEARS report under CS setup in TEARS web-based system via NCSU Administration Portal (Employment Administration). TEARS User's Manual (modified July 2008)
• Be sure and track any other cost sharing on the project. Keep a cost sharing spreadsheet, which will help you keep track of department, college and university commitments. Note: Third Party cost sharing needs to be confirmed using letterhead of Industry signed by responsible party.  Cost Sharing & TEARS Checklist
• At times you will receive a Cost Sharing Confirmation from the college that requires you to complete, sign and return within 30 days (example). As a reminder, confirmations for projects that are renewed, continued or supplement received, the amount on the confirmation represent cumulative planned cost share to date. On salaries, estimate the current year and gather previous years, if applicable, from TEARS. Also, be sure to include fringes in your estimate.
  • Please note that once the effort reports have been created you should be using the "Cost Sharing Yearly Report" to obtain the total for the fiscal year NOT the "Cost Sharing Report," which is used to obtain the monthly total. The "Cost Sharing Yearly Report" dollar amounts are updated to reflect changes to the effort reports up until we close the system for a given period, therefore they have the most accurate totals. The yearly report also gives you the total amount for all employees, including Grads, if you run it by typing the SL-5 ID into the "To Acct Cd" field. The totals on the "Cost Sharing Report" are point in time totals (ie. the totals are as of the day the report was created after the applicable pay period) and do not update so they are not as accurate. You must also run separate reports to obtain totals for monthly employees and Grads when running the "Cost Sharing Report."
  • Here is an example of the process for reporting the final cost sharing amount for effort from TEARS:
    • Project Period is 10/1/2002 to 9/30/08
    • You need to run the "Cost Sharing Yearly Report" for fiscal years 2003, 2004, 2005, 2006, 2007, & 2008. In addition, you need to run the "Cost Sharing Report" for fiscal year 2009, period 3. (If Grads were cost shared you need to run a separate "Cost Sharing Report" to obtain the total to include for them.) Add the totals of all the reports and this is the total amount of effort cost shared on the project.
    • If you have questions please feel free to call Danny Humphrey, Assistant Director, Systems & Compliance with The Office of Contracts and Grants: Phone: 919-515-8011 or by email: danny_humphrey@ncsu.edu
•  Cost Sharing Confirmations in regards to the Effort component only:
• Cost Sharing Confirmations are to be cumulative from the beginning of the project. Typically, we receive a cost sharing confirmation form for each budget period. For example, if a project is for 5 years, then we should have 5 cost sharing confirmations. The final one should be cumulative for all 5 years.
• Pay close attention to each cost sharing confirmation and each budget period it pertains too. On occasion, a faculty member will actually receive academic year salary for certain years and not for others. On the years he/she does not receive academic year salary, you would want to create a TEARS record and fill out the cost sharing confirmation form.
• If a TEARS period has closed and been archived and you determine there should have been cost sharing of effort, you will have to complete an After the Fact memo. These are not to be reflected on the cost sharing confirmation, as they are a % only. These will accompany the form or can be sent separately to my attention. Special Note: you will not report After the Facts on the closeout cost sharing either.
• You should not be using Salary Distribution to gather effort dollars for your cost sharing confirmation form or your closeout cost sharing. If you are setting up a new record in TEARS, you will do so, then you will manually calculate the effort by taking 1% of the annual salary and then applying the appropriate fringes. If you are setting up a continuation record in TEARS, simply modify the existing TEARS record. You will run the fiscal year or monthly cost sharing report for the previous period and then manually calculate the new period and add the two (or three, etc..) together and that amount goes on the cost sharing confirmation record.
• After the Fact Memo: if a cost sharing set up was not done and the period is closed, you will have to do an After the Fact Memo and this is not listed on the cost sharing confirmation.
• The 1 % rule is actually the minimum required, but not the absolute rule. A PI can decide to expend more effort on a project and that is completely acceptable.
• Remember the effort portion of the cost sharing confirmation form and the TEARS system is used to capture a PI's effort on a project that he/she is not receiving any academic year salary on or to capture any cost sharing of effort that was disclosed to the agency/sponsor as a firm commitment.

VI.  Recommended Account Folders

• Contract Folder: Award File, a Budget File with Wolf Reports print outs and a Cost Sharing File
• Pending Folder (unpaid vouchers)
• Paid Folder: file by oject code or by mounth of reconciliation. Just have a system in place that works for your department.
• For Salaries it is recommended to keep a copy of the appointment papers.

VII.  Annual/Progress Reports

• Please note in the contract the due date for annual progress reports and final technical reports.
• Please send reminders to PI's concerning these due dates.
• Failure to comply with annual progress reports and final technical reports not only affects future funding for the department and college, but for the entire University.
• Delinquent Status - you will be notified by the college research office that has been notified by Debbie Hunt in SPARCS and the sponsor.

 

VIII.  Federal Checklist

• Lets you see what actions require agency or university approval (i.e. no cost extensions (NCE), rebudgeting, change in PI, etc).
• Received with most federal and federal flow through grants/awards
• Two Types:
•   NSF (National Science Foundation) (example)
•   Federal or Federal flow through agencies/sponsors (example)

IX.  Subcontracts

• ePAR requesting a subcontract
• Sub Award Action Request Form (click here for a fillable DOC form) This form is attached to the ePAR.
• Can possibly take a while to be awarded
• You will use this form to establish all subcontracts and to modify existing subcontracts (additional funding, time, etc...)

X.  Pre Award Account

Pre Awards and Awards are one in the same. A Pre Award and an Award share the same SPS number and the same project number. A Pre Award simply allows the PI to begin the work while the contract is being negotiated and ironed out. Once we receive the official award, the status on the project number is changed from pre to award.

For example. Suppose a PI has a proposal for $50,000 and he requests a pre award for $5,000 to begin the work while the contract is being finalized. Once the official award is in place, then the project is set to the award status with a budget in place of $50,000. That $5,000 pre award is part of the $50,000.

• Send your requests for pre award account to Pat Hayes/Rosette Tavolacci who will then enter the request in RADAR (click here for fillable PDF) required by COE.
• Documentation indicating status of pending award: from Sponsor and PI
• An existing PINS proposal must be in place.
• The COE-ORA will request this in RADAR and will include the email address of the Contract Manager and the PI.
• Please note that if the award fails to materialize, the department or unti will be responsible for all costs incurred on the pre-award account.

 

XI.  New Award Meeting

• Can be arranged for the faculty member, department staff, college representative. and university official.
• Dept. should work through the college (Patrick Hayes, Director (carbon copy Rosette J. Tavolacci, Assistant Director) to arrange these meetings
• Will cover such issues as Federal Regulatory Checklist, Cost Sharing requirements and Technical Reporting requirements.
• These meetings have proven to be very successful for Civil, Computer Science, IES and Mechanical Engineering.

 

XII.  Prior Approval (PAR)

• Now Electronic  <click here for web site>    User Instructions (example)   Process for a ePAR for our college: (example)
• Same principles apply as in the paper version. Must provide proper and adequate justification. In an effort to move things through the PAR System as quickly as possible, it is requested that you upload justifications as a Word document if at all possible.  Account Code Listing for Entering Budgets, plus Questions to ask yourself or items to specifically review on PAR
• Access to the system is granted thru the College Research Office. Please contact Patrick Hayes, Director  or Rosette J. Tavolacci, Assistant Director. This is only for Bookkeeper or Department Head access.
• PI's are granted access based on when they receive a ledger 5 award. This is automatic through the Financials system at the onset of an award.
• If your PI or administrator is absent, a department can contact the College office to initate the PAR on their behalf, bypassing the PI, bookkeeper and Department Head approval. This will only be done in extreme circumstances.
• F&A Calculation: Current rates / formula used:

(+) Equipment/Tuition (Student Aid) = (-) overhead

(-) Equipment/Tuition (Student Aid) = (+) overhead

*Total Admustment to Equipment/Tuition (Student Aid)

 Current Overhead Rate or Rate Used in Award (i.e. 47.5%=1.475; 47%=1.47; 46%=1.46; 9.5%=1.095)

*$ amount from above and submtract from Total Adjustment = Overhead

 

XIII. Establishing a Segment off a Prime (example): Segments (those internal to NCSU) and subs(those external to NCSU) can only be requested once the Prime project number has been established with a

• University accepted award.(pre awards do not count) These requests start in the prime project holders department.
• If you are requesting a segment, you have to complete the BA148 (Format: WORD/PDF) and attach this to the ePAR system along with a budget to match the amount. The budget must be in align of the prime. The OUC you list on the BA148 must be that of the unit/department receiving the segment.
• If you are requesting subcontracts, then you must complete the subaward request/modification form and attach it to the par system along with all the necessary documentation such as SOW, budget, justification, cv's and letter of intent.
• Prepare the BA148 and a budget for the requested amount.
• Initiate an ePAR and attach the BA148 and the budget.
• This must be requested by the College or Department who is the owner of the prime award.

XIV. Participant Support Costs:

• Effective January 1, 2008, all NSF awards that involve participant support will have a segment established for these costs.
• This will allow the costs charged to be readily identified with ease as particpant support costs.
• This will be done automatically by C&G at the onset of a NSF award.
• The College strongly recommends that each department create a segment for all other non-NSF projects that contain participant support costs.

 

XV. Export Controls Management (SPARCS web site: http://www.ncsu.edu/sparcs/export/) Awareness and Training Programs at NC State, Procedures and Practices, Non-Sponsored Research Export Control Systems at NC State,

        Federal Rules, Regulations and Laws and Other Reference Materials and Current Events

• Look closely at your contracts for any exceptions regarding export controls.
• Foreign Nationals is an issue recently brought to the attention of the college.
• Please contact Richard Best, Export Controls Compliance Officer in SPARCS for more details concerning export controls.
• Richard will be conducting training on this issue for Engineering.

Three often mis-understood facts about export controls: to view the full contents of the letter sent February 2008, by John Gilligan, Vice Chancellor for Research and Graduate Studies, Charles Leffler, Vice Chancellor for Finance and Business and Larry Nielsen, Provost and Executive Vice Chancellor click "Open Letter on Export Controls"

• Export controls not only apply to sending materials, items or information to other countries, but to the transfer of such materials, items and information to foreign nationals within the United States – this means to your foreign graduate students, post docs and colleagues. Export controls may also be applicable to the visual inspection of controlled technology by foreign nationals.
• The penalties for export control violations are both civil and criminal in nature and may be applied to you personally as well as the institution under certain circumstances. These penalties include up to ten years imprisonment and fines reaching as high as $1,000,000 per violation.
• Acceptance of any “side-deal” restrictions on what you publish as a result of your research is not only a violation of university policy but erodes and often destroys the fundamental research exclusion. You will be personally liable for such violations of the export control regulations.