BLOUSTEIN SCHOOL POLICY Plicy Name: Pst-Award Prcedure fr Grants and Cntracts Date: December 6, 2007 The fllwing is the prcedure t be fllwed nce a grant r cntract has been awarded frm an utside spnsr. Receipt f Award The award dcument is received frm the utside spnsr in the frm f a cntract, a memrandum f agreement, r a memrandum f understanding. If this dcument is an award letter, and nt a cntract, the PI shuld request the spnsr t submit a cntract t Rutgers ASAP. If the spnsr des nt have a standard cntract, the PI shuld infrm the Schl Business Office, and arrangements will be made fr Rutgers t send ut the University s standard cntract t the spnsr. Cntract Negtiatin A cntract specialist frm the Office f Research and Spnsred Prgrams (ORSP) r the Office f Crprate Liaisn and Technlgy Transfer (OCLTT), (depending n the funding surce) handles the review/negtiatin prcess. The Business Office serves as the pint f cntact with ORSP (r OCLTT) during the negtiatin prcess and fllws up as apprpriate, keeping the PI infrmed f the status f the cntract. The cntract is signed by an authrized fficial f the University. Mst ften this authrized fficial is smene frm ORSP r OCLTT. Large dllar amunt cntracts require the signature f the University s Senir Vice President fr Administratin and CFO. Blustein Schl faculty and staff are nt authrized fficials f the University, and therefre are nt authrized t sign cntracts. Getting an Accunt Number The University receives the fully-executed cntract (signed by bth Rutgers and the spnsr). The University file is released frm ORSP (r OCLTT) t the Divisin f Grant and Cntract Accunting (DGCA) fr the assignment f a grant accunt number. The Business Office receives a printed Ntice f Award. A cpy f the Ntice f Award is given t the business manager respnsible fr the accunt, r t the PI if the accunt is managed by the Business Office. Page 1 f 4
Getting an Accunt Number (cnt d) The Ntice f Award is reviewed fr accuracy by the business manager respnsible fr the accunt and the Schl Business Office, with particular attentin paid t the start and end-dates, the prject directr name, the ttal budgeted amunt, the F&A Csts budgeted amunt, the F&A Csts base, and the sectins labeled Special Cnditins and Matching Requirements/Cst Sharing. Grant Management - General The PI begins t charge expenses in accrdance with the spnsr-apprved budget nce the grant accunt number has been established. The PI is respnsible fr managing the budget f his/her grant in additin t managing the technical aspect f the prject. The business manager f the center managing the grant (r the Schl Business Office) keeps the PI infrmed f the financial status f the grant accunt. Financial infrmatin shuld be prvided t the PI quarterly, thugh mnthly financial reprts are preferred, and shuld be the nrm as the grant nears cmpletin. One methd f ding this is t prepare an actual vs. budget spreadsheet fr the PI s review based n infrmatin cntained in the University s mnthly reprts and the Schl s internal shadw system, FACS. An example f this type f spreadsheet is prvided in Attachment A. Prject supplies and services shuld be btained thrugh the Rutgers Purchasing Department, and where required, by a cmpetitive bid prcess. As a general rule, administrative and clerical salaries, telephne csts, pstage, ffice supplies, and memberships shuld nt be charged directly t Federal and State f New Jersey awards. If these csts are t be charged, they must be explicitly budgeted fr, and must be specifically identifiable with the prject. Fr mre detailed infrmatin, visit the DGCA website at http://pstaward.rutgers.edu/omba21_changes.htm It is imprtant t nte that if a significant deviatin frm the budget is anticipated, the PI shuld submit a written request t the spnsr fr apprval f a mdificatin t the budget. Spnsr apprval shuld be btained prir t incurring the unbudgeted expense(s). The definitin f significant varies frm cntract t cntract, thugh a general guideline is line-item budget variances greater than 10% f the budgeted amunt need spnsr apprval. N-cst extensin requests shuld be submitted t the spnsr fr apprval at least 60 days prir t the grant end-date when it is anticipated that the wrk will nt be cmpleted by that end-date. The prcedure fr requesting budget mdificatins and n-cst extensins is dcumented separately. Page 2 f 4
Grant Management General (cnt d) The PI is slely respnsible fr submitting the apprpriate technical reprts t the spnsr n a timely basis. Cpies f all technical reprts shuld be prvided t the Schl Business Office (an electrnic cpy if fine, particularly if the reprt is a large ne). The timely submissin f these reprts is imprtant, as quite ften, spnsrs will refuse t pay invices fr expenses incurred because they have nt received the PI s technical reprt. The Schl Business Office shuld be ntified if a technical reprt is ging t be late. Grant Management - Subcntracts n Grants Subcntracts are issued t nn-rutgers entities t perfrm specific task(s) related t the prject. A purchase rder is established fr the subcntract, which includes the fully executed agreement, a statement f the wrk being perfrmed by the subcntractr, and an itemized budget fr that wrk. Subcntracts require a PI at the subcntractr entity. Invices frm the subcntractr shuld be submitted in the detailed frmat utlined in the subcntract agreement. These invices must be certified (signed) by an authrized fficial f the subcntractr entity, and als by the PI at the subcntractr entity. Subcntractr invices shuld be apprved by the Rutgers PI prir t payment. Rutgers PIs are respnsible fr verseeing the wrk f the subcntractrs, and shuld make sure that subcntractrs submit their invices in the prper frmat, in a timely fashin, and n a regular basis s that the spnsr is paying fr the subcntractr s wrk as it is being dne, and als t facilitate the timely clseut f the award at its end-date. Invices t Spnsrs Invices fr csts incurred are sent t the spnsr by the Divisin f Grant and Cntract Accunting (DGCA). Invicing is usually dne quarterly, based n expenses psted t the University s general ledger. Sme grants are inviced mnthly, and sme are inviced accrding t a predetermined schedule based n the cmpletin f prject tasks. The frequency f invicing is specified in the cntract. Cllectin f unpaid invice amunts is the respnsibility f DGCA, thugh ccasinally PIs are asked t fllw up persnally n amunts that are past-due. Grant Accunt Clse-ut Center business managers are respnsible fr wrking clsely and prfessinally with the DGCA grant accuntant t insure a timely clseut f the grant. Page 3 f 4
Grant Accunt Clse-ut (cnt d) It is imprtant that the business manager cnfirms the ttal expenses f the grant, making sure that his/her ttal expenses amunt agrees with the amunt determined by the grant accuntant in DGCA. The prper way t d this is t review the grant accuntant s final spreadsheet fr the accunt and make sure that it agrees with his/her numbers. This cnfirmatin shuld be dne in a timely manner in rder t facilitate the preparatin f the final invice t be sent t the spnsr by DGCA. If yu are still receiving mnthly Rutgers printuts fr a grant several mnths after the final expenses have been recnciled, yu shuld check with the grant accuntant in DGCA t make sure that there isn t a prblem with the clse ut prcess. PI Changes and Grant Transfers If fr any reasn an internal change in the PI n a prject is required, ORSP shuld be ntified f the intended transfer thrugh the submissin f a cmpleted ORSP Internal Grant Transfer Request Mem, signed by bth PIs, as well as by Dean Hughes. In additin, a change in PI request letter shuld be sent t the spnsr ASAP. This request letter shuld be c-signed by an ORSP fficial. If the PI fr a prject is leaving Rutgers and the grant is being transferred t anther institutin, the business manager (r Business Office) shuld wrk with the ORSP grant specialist t facilitate the transfer. If the PI fr a prject is cming Rutgers and the grant is being transferred frm anther institutin, the business manager (r Business Office) shuld wrk with the ORSP grant specialist t facilitate the transfer. Detailed infrmatin n grant transfers is available n ORSP s website. The link is http://rsp.rutgers.edu/plicies/investigatr_transfers.php Page 4 f 4
Attachment A Page 1 f 2 4-2XXXX - US Department f Redundancy Department Knucklehead Study (Prfessr Me Hward) Cntract Dates: January 1, 2007 t June 30, 2008 Paid as f Ttal Budget ACTUAL vs BUDGET REPORT Budget 10/31/2007 Pending Spent Remaining Persnnel: Me Hward, Principal Investigatr $72,000 $41,750 $2,974 $44,724 $27,276 Larry Fine, C-PI 36,000 22,360 1,492 23,852 12,148 Bud Abbtt, Staff Researcher 24,000 14,200 610 14,810 9,190 Lu Cstell, Staff Researcher 12,000 9,150 325 9,475 2,525 Wages f Labr (Stan Laurel) 10,000 7,000 250 7,250 2,750 Wages f Labr (Oliver Hardy) 5,000 3,200 200 3,400 1,600 Student Wages (Jerry Seinfeld) 700 2,972 425 3,397 (2,697) Other Cmpensatin (Chris Rck) 0 3,696 300 3,996 (3,996) Summer Salary (Hward) 15,000 14,558 0 14,558 442 Summer Salary (Fine) 15,000 14,990 0 14,990 10 Graduate Assistant (Gruch Marx) 7,865 7,865 0 7,865 0 Ttal Persnnel $197,565 $141,741 $6,576 $148,317 $49,248 Fringe Benefits 50,229 32,352 1,796 34,148 16,081 Ttal Persnnel/Fringe Benefits $247,794 $174,093 $8,372 $182,465 $65,329 Cmputer Supplies $350 $0 $50 $50 $300 Equipment < $5,000 2,400 2,027 0 2,027 373 Supplies/Prject Supplies 600 779 0 779 (179) Telephnes - Tlls 600 122 45 167 433 Subscriptins 300 0 0 0 300 Memberships 200 105 0 105 95 Printing/Cpy Csts 1,700 820 0 820 880 Pstage 300 0 25 25 275 Travel/Meals 1,000 175 300 475 525 Cnference Registratin Fees 600 0 300 300 300 Student Fees 0 586 0 586 (586) Tuitin Remissin 6,000 5,389 0 5,389 611 Ttal Other Direct Csts $14,050 $10,003 $720 $10,723 $3,327 Facilities and Administrative Csts @ 54.5% * 138,156 96,538 4,955 101,494 36,662 Ttal Csts $400,000 $280,633.76 $14,048 $294,681 $105,319 FOOTNOTE: THIS REPORT IS FOR INTERNAL USE ONLY. IT IS NOT TO BE USED AS AN OFFICIAL UNIVERSITY REPORT. * F&A Csts rate is calculated n Mdified Ttal Direct Csts (MTDC), s F&A is NOT applied t Student Fees r Tuitin Remissin. F&A Csts rate was 54.0% fr FY 2007 (1/1/07 t 6/30/07). Rate increased t 54.5% as f 7/1/2007. MTDC = $107,500 as f 6/30/07. 4-2XXXX Actual vs Budget - Hward.xls 12/6/2007
Attachment A Page 2 f 2 Fringe Benefits Recnciliatin - FY 07 Rate Base Fringe 1200 34.00% 72,020.00 24,486.80 1230 9.00% 5,000.00 450.00 1250 0.00% 2,450.00 0.00 1290 7.50% 2,596.00 194.70 1350 0.00% 0.00 0.00 1500 21.00% 7,865.00 1,651.65 Ttal FY 2007 89,931.00 26,783.15 Fringe Benefits Recnciliatin - FY 08 Rate Base Fringe 1200 32.50% 15,440.00 5,018.00 1230 9.00% 5,200.00 468.00 1250 0.00% 522.00 0.00 1290 7.50% 1,100.00 82.50 1350 0.00% 29,548.00 0.00 1500 19.50% 0.00 0.00 Ttal FY 2008 51,810.00 5,568.50 Ttal 4-2XXXX 32,351.65 4-2XXXX Actual vs Budget - Hward.xls 12/6/2007