Revised External OER COMPLIA

• Terms of Award – Section IIIo 45 CFR Part 74 or 92 - HHS rules and requirements that govern the administration of grants o NIH Grants Policy Statement GPS – policy requirements that

Diane Dean, Director

Kathy Hancock, Assistant Grants Compliance Officer

• OMB Circular A-21 (2 CFR Part 220) - Educational Institutions

• OMB Circular A-122 (2 CFR Part 230) – Non-Profits

• OMB Circular A-87 (2 CFR Part 225) – State/Local Governments

• 45 CFR Part 74, Appendix E - Hospitals

• 48 CFR Subpart 31.2 (FAR) – For-profits

• Foreign institutions comply with the applicable cost principles

depending on the type of organization

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

http://www.gpoaccess.gov/cfr/index.html

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• Establishes principles for determining

costs applicable to grants, contracts, and other agreements

• OMB Circular A-110 – relocated to 2 CFR Part

215 - Uniform Administrative Requirements for Grants and Agreements with Universities, Hospitals and Other Non-Profit

Organizations (domestic and foreign)

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o Matching or Cost sharing

o Accounting for program income

o Revision of budget and program plans

• In general, OMB Circular A-133 requires a State

government, local government, or non-profit

organization (including institutions of higher

education) that expends $500,000 or more per year under Federal grants, cooperative agreements,

and/or procurement contracts to have an annual

audit by a public accountant or a Federal, State, or local government audit organization.

• Foreign and Commercial (for-profit) organizations

are subject to audit provisions contained in 45 CFR 74.26(d) and the NIH Grants Policy Statement (GPS).

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Summary of Applicable Regulations Grantee Type Administrative

Requirements Cost Principles Audit Requirements

State & Local

Governments A-102 (45 CFR Part 92) A-87(2 CFR Part 225) A-133

for the grantee NIH GPS, uses 45 CFR Part 74.26(d)

Health

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• Terms of Award – Section III

o 45 CFR Part 74 or 92 - HHS rules and

requirements that govern the administration of grants

o NIH Grants Policy Statement (GPS) – policy

requirements that serve as the terms and conditions of NIH awards (latest version 10/01/11)

o Program legislation

o Appropriation acts

o Program regulations

42 CFR Part 52 - Grants for Research Projects

• Special Terms and Conditions – Section IV

• Only applied to a particular grant for cause

• Shown on the Notice of Award (NoA) after Section III

– Institute and/or Center specific terms of award

• Funds usually are not restricted in the Payment

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• A The Principal Investigator

• B The Departmental Administrator

• C The Department Chair

• D The Institution

• Requires that:

o Separate account is established for each project

o Program Income is identified and accounted for

• Requires that:

with

 NoA Terms and Conditions

 NIH Grants Policy Statement

 Salary Cap / Rate Limitation

 Cost Accounting Standards

 OMB Circulars

o ALL expenses are appropriately documented

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• Requires that:

o Actual expenses are periodically compared with budget

o Actual expenses are accurate, i.e., reasonable, allocable,

allowable and consistently charged

o Mischarges are corrected in a timely manner (cost transfers)

o Prior approvals are obtained when required

o Subrecipient expenses are monitored – (Grantee’s

responsibility to monitor expenses)

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• Actual expenses should be compared at least

monthly to the budget to ensure:

o Total funds on the grant have not been exceeded

o Total funds are used appropriately

o Total funds for any cost category have not been exceeded if restricted on the NoA

• Actual expenses should be reviewed to

ensure they are accurate and allowable

o Reasonable (including necessary)

o Allocable

o Consistently applied

o Conforms to any limitations or exclusions

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• A cost may be considered reasonable if the

nature of the goods or services acquired or applied reflect the action that a prudent

person would have taken under the

circumstances prevailing at the time the

decision to incur the cost was made.

• Dr Grant needed a specialized microscope

for his research supported by an NIH grant from the National Cancer Institute When

deciding on the model that would best suit his needs, he received several price quotes

on various models that were all within the

same general price range However, one

microscope in particular appealed to him – it met all of the necessary specifications plus many additional features Although it was

about $8,500 more than the others, he

ordered it

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• A cost is allocable to a specific grant if it is

incurred solely in order to advance work

under the grant and is deemed assignable, at least in part, to the grant.

• When Dr Grant’s microscope finally arrived,

he found that equipment funds for his

National Cancer Institute grant were fully

expended Since the microscope was for use

on an NIH grant, he decided to charge the

cost to another one of his NIH grants that

was funded by the National Eye Institute

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• Grantees must be consistent in assigning

costs to cost objectives

• Costs may be charged as either direct costs

or F&A costs, depending on their identifiable benefit to a particular project or program

• All costs must be treated consistently for all

work of the organization under similar

circumstances, regardless of the source of

funding.

• Dr Grant’s lab was running low on office

supplies and postage stamps Since he

couldn’t wait any longer for his institution to provide the supplies, he purchased them

and charged them to his NIH grant account

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• A cost is allowable if it is reasonable, allocable and

conforms to the cost principles and the sponsored agreement AND is not prohibited by law, regulation

or term of award.

• This type of allowability conformance with

limitations and exclusions as contained in the terms and conditions of award including those in the cost principles—varies by type of activity, type of

recipient, and other characteristics of individual

awards.

• Dr Grant decided to host a very important

Departmental meeting at his home and serve beer and pizza hoping that everyone would attend The purpose of the meeting was to discuss changes in NIH grants policy, which affected the work of the entire Department Therefore, he decided to charge the cost of the beer and pizza to his grant, especially

since he was providing the use of his home

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• Must be well documented

• Must be made within 90 days from

the time error was discovered

Other Cost Considerations

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• NIH Grants Policy Statement defines actions

requiring NIH prior approval.

• Some prior approval actions affecting cost include

the following:

o Carryover of funds (if required-see Section III of

NoA)

o Incurrence of preaward costs greater than 90 days

o Deviation from award terms and conditions

o Activities disapproved or restricted as a condition of

award

• For a complete listing of prior approval

requirements see:

http://grants.nih.gov/grants/policy/nihgps_2011/nihgps _ch8.htm#prior_approval_requirements

• Requests for carryover of funds should be

signed by Authorized Representative.

• Request must be sent to GMO and include:

o Detailed budget by direct cost category with F&A cost information (base and rate) If personnel

costs are requested, include

 a detailed breakdown of personnel costs

 base salary

 salary requested

 effort to be spent on the project

o A scientific justification for the use of funds

o The reason for the unobligated balance

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Federal Financial Report (FFR)(SF-425)

Expenditure Data

• Timely - Must adhere to submission deadlines:

o Annual – (Non-SNAP Awards)

 FFR submitted for each budget period no later than 90 days after the end of the calendar quarter (CQ) in which the budget period ended

 Budget period ends 1/31/2011 – FFR due 6/30/11

(90 days after the end of the CQ of 3/31/11)

o Final (End of Competitive Segment) – (SNAP and Non-SNAP Awards)

 FFR submitted within 90 days following the end of the project period

(SNAP – Streamlined Non-competing Award Process)

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• FFRs should be submitted accurately

• Reported expenses and program income must

agree with institutional accounting records

• Routine Revisions to correct FFRs are not

appropriate

• Any revisions must be submitted in the same format

as the original submission

For example: If the original report was submitted as a

Financial Status Report (FSR)(SF-269), the revised report must be submitted as an FSR

• Information and NIH Guide Notices related to

• Failure to submit timely final reports may affect future funding to the

organization

o Final Federal Financial Report (FFR) SF-425 Expenditure Data

o Final Invention Statement and Certification

o Final Progress Report

• Final Reports are due within 90 days of the end of grant support.

• Grantee must ensure there are no discrepancies between final FFR

expenditure data (in eRA Commons) and FFR cash disbursement data in the Payment Management System

April 2, 2008, NIH Announces New Centralized Processing Center for Receipt of Grant

Closeout Documents and Reminds Grantees of Required Closeout Reports for NIH Assistance Awards

http://grants.nih.gov/grants/guide/notice-files/NOT-OD-08-061.html

June 17,2005, NIH Announces New Closeout Feature in the eRA Commons and

Reminds Grantees of Required Closeout Reports for NIH Assistance Awards

http://grants2.nih.gov/grants/guide/notice-files/NOT-OD-05-051.html

Whenever you are contemplating a

significant postaward change, and you are uncertain about the need for prior approval, consult in advance with: in advance

• The Notice of Award (terms and conditions)

• Your Office for Sponsored Research/Projects

• NIH awarding component Grants

Management Officer/Specialist

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Diane Dean, Director, Division of Grants Compliance and Oversight diane.dean@nih.gov