Transcript DRAW - McLean Hospital Research Community

Departmental Research
Administrators Workgroup (DRAW)
January 17, 2012
deMarneffe 132
Agenda

Announcements

Revised Research Core Policy Updates on
F12 New Processes – Natalie Nguyen

NIH Updates – Raquel Espinosa

McLean Balance Sheet Analysis FY11 –
Raquel Espinosa
Announcements
PI & Administrators Survey
Purpose: understand how tasks and
responsibilities are assigned to staff and identify
PI’s in need of grant administrator support.
Due to email issues we have extended the deadline to
January 27th.
Separate emails were sent to Administrators and PI’s. If you or
your PI have not received it, please let us know!
JE Training Course
When: 01/24/2012, 3-4:30 pm
Where: de Marneffe 218
Feel free to invite
administrative
staff!!
Course Description:
This program provides a General Overview of Cost
Transfers and instructions for creating Journal
Entries using data from Document Direct, PeopleSoft
or Insight. Overview topics include definitions,
causes, descriptions of different transfer types and
audit trail data. Focus is provided on justifications
and how to improve them.
Insight Questionnaire
The Insight Committee group is requesting
feedback from the administrators (initially) in
an effort to improve Insight usability.
Please take a few minutes to complete the
survey:
https://www.surveymonkey.com/s/BRPPL98
Due January 19th!
DOD Reminder

For all DOD awards:
–
If there are any changes to animal or human
subjects protocols associated with the award,
those changes MUST BE submitted to and
approved by the DOD prior to starting the revised
work.
–
IACUC or IRB approval is not sufficient until the
DOD has also approved.
DRAW
Highlights of the revised Research Cores Policy
Updates on FY12 New Processes
Natalie Nguyen, Associate Director
January 17, 2012
Policy Statement
 It is the policy of Partners HealthCare (Partners) that all research
core facilities which directly charge users for goods and services
must document that user fees charged are allowable, reasonable
and allocable in relation to the cost of goods or services provided.
 All research core facilities are required to have an approved
business plan and user fee analysis in order to operate. User fees
should include, at the minimum, the direct costs of providing the
core service, and where applicable, an additional overhead
component.
 Core facilities that process charges to federally sponsored awards
for goods and/or services are subject to government regulations
concerning service centers and are responsible for developing user
fees in accordance with this policy and government regulations.
Definitions
 NIH’s Definition: Core facilities can be defined as centralized
shared resources that provide access to instruments,
technologies, services, as well as expert consultation and
other services to scientific and clinical investigators. The
typical core facility is a discrete unit within an institution and
has dedicated personnel, equipment, and space for
operations. In general, core facilities recover their cost of
providing service in the form of user fees that are charged to
an investigator’s funds, often NIH or other federal grants. (Taken
from the NIH’s FAQs to Explain Costing Issues for Core Facilities, DRAFT)
 Partners’ Definition: A core facility is a discrete unit organized
to provide specific goods and/or services on a fee-for-service
basis to users within the Partners research community and its
collaborators. (Partners Research Cores Policy)
90 approved Partners cores fall within 3 categories
Research Core Facility
(~69 cores + 6 minis)
Research Support Core
(Administrative, Supply,
Lab Support)
(~14 cores)
• Scientific, technical and consultative services or
products
• Fee-for-service model: direct cost (+ indirect costs for
non-Partners users)
• Shared post-award administrative support and/or
other common expenses (e.g., general supplies,
equipment service contracts, etc)
• Serves primarily investigators of a single department
or several labs within a department
• User fees are based on an allocation methodology
• Highly complex and/or specialized services
Specialized Service Facility
(1 – CCM)
• Must receive institutional designation as an SSF
• User fees include both direct and allocable indirect
costs
Types of Core Customers
 Researchers within the core’s institution
Ex: PIs at BWH, MGH, etc.
 Researchers from external or non-Partners institutions
Ex: PIs at MIT, Harvard University, University of Vermont, etc.
 Industry and commercial entities
Ex: Pharmaceutical companies, biotech companies, etc.
Q: How do you determine who is internal versus external?
A: It depends on where the funding is coming from to pay for the core
services.
Internal: Partners PI paying with Partners-administered fund
External: Partners PI and non-Partners PI paying with non-Partners fund; other
AMCs and non-profits; industry
Q: Is there a difference in user fees if you’re internal or external?
A: Absolutely! Internal fees are set at direct costs only. External user fees
include an overhead component. Fees charged to industry users may
include additional mark-up.
User Fee Calculation: Direct & Indirect
Type of User
Source of Payment
Type of Fee
(user fee component)
Indirect Cost Impact
Internal PI
(PHS & entities)
PHS administered
research fund
Internal User Fee
(direct cost only)
User pays indirect cost at the
F&A rate associated with the
fund
Internal PI
(PHS & entities)
Check payment/Wire*
External User Fee –
AMC/Non-profit
(direct cost + indirect cost
component)
User may pay indirect at the
institution issuing payment
External
AMC/Non-profit
(including
International)
Check payment/Wire*
External User Fee –
AMC/Non-profit
(direct cost + indirect cost
component)
User may pay indirect at the
institution issuing payment
Industry/For-profit
(including
International)
Check payment/Wire*
External User Fee –
Industry/For-profit
(direct cost + indirect cost
component)
N/A
*Additional banking fees may apply for wire transfers
Does your department plan to start a core facility?
 Your facility qualifies if it:



Charges a fee for goods or services
Has $50,000 or greater of annual expenses
Provides services to 5 or more PIs
 New cores must:






Obtain approval from Department Chief
Draft a business plan
Perform a cost analysis to set fees at cost
Identify start-up funds that will fund up to 50% of the identified annual
shortfall upon opening the core, and annually thereafter during the
start-up period (first three years of operation). The start-up funds will
be used to fund the remaining 50% of the identified shortfall plus any
additional cost overrun at the end of each 12-month period during the
start-up period.
Identify a guarantor account to be used for future deficits
Receive the approval of the Department Chief, the RCFO and the Sr.
VP for Research
Budgeting: New and Existing Cores
 All cores are required to have an annual review of core
finances, including an updated operating budget and
user fees approved by the RCFO. (Cores Policy paragraph 8.1)
 New Cores:
 During the business planning process will lay out a 3 year
budget. Depending on time of year when the core is opened,
RCFO will assess financial status and determine if the core will
take part in the annual budgeting process or wait for the
following year.
 Existing Cores
 Required to submit a budget on an annual basis that will be
reviewed and approved by the RCFO
Budgeting: Annual Budget Process
 Timeline:





Mid-April: Volume data due to RCFO
Late-April: Trainings held on completing the budget template
First BD in May: Pre-populated budget templates sent to cores
Last BD in May: Budget templates due to RCFO
June – September: RCFO reviews and confirms budgets and
user fees
 October 1: New fees go into effect
Budgeting Reminders: General Pricing Principles
 Fees should not discriminate against any individual or group
of users
 Charges should be on actual costs (direct and indirect) and
actual usage
 Depreciation should be included for equipment purchased
with non-federal funds
 Surpluses should be used to lower user fees, reinvest in the
core or pay back the guarantor account or start-up fund
 Deficits (excluding bad debt) should be included in the
operating budget to be recovered through the user fees
 Subsidies can be applied to charge lower fees
 Fees should be reviewed, updated and published on an
annual basis
Department: Management of Core Facilities

Operational management
 Develop internal SOP’s regarding the provision of services

Financial management





Remain revenue neutral
Track AR
Ensure only allowable and appropriate expenses are charged to the core
Perform a monthly variance analysis comparing actual expenses and volume to
budget
Billing practices
 Use current approved and published fees
 Obtain customer’s research fund number and expiration date & point of request
for service
 Ensure timely billing/recording of internal charges via journal entry
 Ensure the billing of overhead to external customers is that the prescribed policy
rate
 Invoice users on a monthly basis and only after the services have been rendered
 Retain key documents for at least 5 years: business plan, cost analysis, new
fund application, financial reports, correspondences, service price sheets,
invoices
Policy Primer: Top 10
1. Follow a revenue neutral model; +/- 15% breakeven status
2. Allocate costs for Service X to the users of Service X
3. Administrative/lab support cores: use unrestricted fund to pay
for services provided to K awards or other awards exempt from
admin costs
4. Depreciate (i.e. include equipment depreciation in user fees)
only those pieces of equipment purchased by Partners nonfederal funds
5. Surplus? Reinvest in core or lower user fees. Deficit? Cover
using guarantor account or raise user fees.
6. Bill monthly to avoid lost revenue due to expired funds
7. Use only fees approved by the RCFO when invoicing customers
8. Invoice and bill only after services are rendered
9. Keep a log of customers’ fund numbers and expiration dates
10. Retain invoices for at least 5 years
R&R: Core Business Manager/Dept. Admin
Rolling basis:
 Monitor customer’s payments for invoices (accounts receivable) and inform
the core facility director/PI of delinquent accounts (> 90 days overdue)
 Monitor changes to service volume, user fees, personnel, equipment
purchases, etc.
 Submit purchase orders, payments for accounts payable
 Maintain all core facility records for monitoring review and A-133 audit
Monthly:
 Verify billing is accurate, complete, timely and adequately documented
 Invoice users and submit journal entries by the 15th business day of the
month
 Review revenue postings are correct and reconcile with billing log/journal log
 Review expenses to assure they are correctly allocated as stated in the
approved budget including core facility personnel (correct percent effort),
supplies, and other expenses
 Assist the core facility director/PI with the review of the fund cash balance
R&R: Core Business Manager/Dept. Admin
Annually:
 Assist Core Director/PI in reviewing budget/user fee analysis and
submissions to RCFO for review
Incidental:
 Coordinate with core director and the RCFO on the formulation and
execution of deficit resolution plan
Key processes implemented in past two years and in FY12
 Annual budget and user fee review and approval
 Journal review process and cost transfer of previously
billed core charges
 New core revenue journal for internal billing (FY12)
 PeopleSoft Billing module for external billing (FY12)
Need Attention from DA: funds requiring further review as
part of monthly JE review process
As department administrators, you may be contacted by either the core
or the RCFO for the following issues with funds used to pay for core
services:

Outreach to department administrators by the core
 Non-research sundries, PO funds and hospital cost centers
 Funds past their project end date
 Inactive/invalid fund numbers

Outreach to department administrators by the RCFO
 Research sundries or other non-federal awards in deficit and over budget
 Federal awards in their final project year that are in deficit and over budget

Cost transfer for previously billed core charges
 Completing the Request to Transfer Core Charges form including 90 day
justification and required signature from requestor when a fund management
issue or any other issue for which the customer is responsible
Insight View of core expenses
Expense Details tab
Insight View of core expenses
Transaction Details tab
Core Charge Transfer Request & Journal Process
1.
DA reviews fund and identifies core charge that needs to be transferred to
another project
2.
DA reviews list of Cores’ journal contacts lists (contains core facility
acronyms) and contacts the Core’s administrator (i.e. person that submits
core revenue journal)
3.
DA fills out the Core Charge Transfer Request Form (will be posted on RM
Website this week) including over 90-day justification questions then sends
to Core administrator to complete the rest of the required information
4.
Core administrator completes the form and sends to Cores JE mailbox
5.
Cores Analyst reviews request for completeness; prepares the JE and
posts to general ledger
Core Charge Transfer Template Completion
Step 1. DA reviews fund under Insight “Financial Details” tab and identifies core charge that
needs to be transferred to another project
Journal Id
Description
Fund Number
Account Number
Amount
Posted By
SC02SJ956
CCIB_120511_ZORN,E_1011534
216032
SC02SJ956
CCIB_120511_ZORN,E_1011534
216032
951250
$187.20
11/30/2011
951250
$221.25
11/30/2011
SC02SJ956
CCIB_120511_ZORN,E_1011382
216032
951250
$100.00
11/30/2011
Step 2. DA reviews Cores’ journal contacts list and contacts the Core’s administrator
https://resadmin.partners.org/RM_Home/Forms/Tools_Resources/Core/FTR-ToolsCores-ViewAll.aspx
Step 3. DA completes Core Charge Transfer Request Form and sends to Core’s administrator
https://resadmin.partners.org/RM_Home/Forms/Alphabet/Core%20Charge%20Txfr%20Request.xls
Nam e of subm itter:
Chief Code:
Date of subm ission:
Nam e of Research Core:
Core fund # (Core use only):
Blair Tram e
52EA
12/19/2011
CCIB DNA Core
216338
RA Approval:
________________________
For each core charge you wish to m ove to a different fund, please provide the following inform ation.
Each separate journal line requires a separate entry below.
Tra nsfe rs re que ste d be yond 90 da ys re quire justifica tion; se e Colum n O.
Journal ID
SC02SJ956
SC02SJ956
SC02SJ956
Accounting Date
11/30/2011
11/30/2011
11/30/2011
Am ount
Journal Line Description
$
187.20 CCIB_120511_ZORN,E_1011382
$
221.25 CCIB_120511_ZORN,E_1011534
$
100.00 CCIB_120511_ZORN,E_1011534
Fund # to be
Credited
216032
216032
216032
New Fund # to
be Charged
216034
216034
216034
Core Charge Transfer Request: Over 90 Days Justification
Core Charge Transfer Justification: Over 90 Days
Not required for transfers moving core charges from a sponsored project to an institutional or unrestricted fund.
Why are you requesting that the above core charges be moved from one fund to another?
Explain why the core charges are allocable to the project to which you wish to move them.
Why wasn't the transfer requested within 90 days as defined by the PHS Cost Transfer Policy?
What action has been taken to avoid the need for a late cost transfer in the future?
Requestor's Signature: _________________________________________________
Date: _______________
Requestor's Name: ____________________________________________________
Res Finance Mgr Approval: ______________________________________________ Date: _______________
New Core Journal Entry Template
Resources
Research Cores Team webpage on RM Website:
https://resadmin.partners.org/RM_Home/Forms/Tools_Resources/Core/FTR-ToolsCore.aspx
Research Cores Policy:
http://resadmin.partners.org/RM_Home/Documents/RMPolicies/Policy-ResearchCores.pdf
Partners Research Cores Website: http://www.partners.org/researchcores/home.asp/
Natalie Nguyen, M.P.H., Associate Director, Partners Research Core Facilities
617-954-9852 (phone)
[email protected]
Elaine Zive, M.B.A., Manager, Research Core Facilities for BWH & McLean
617-954-9851 (phone)
[email protected]
Yovani Edwards, Financial Analyst, BWH & McLean Research Core Facilities
617-954-9863 (phone)
[email protected]
NIH Updates
NIH Policy Statement 2011 Revisions
See Research Intranet site:
http://research.mclean.harvard.edu/PreAward/nihlinks.php.
NIH FY12 Budget
The recently approved Health and Human Services (HHS)
Appropriations Bill included a small increase of approximately
1% in the NIH budget. It also included language that reduces
the NIH salary cap on extramural grants from Executive Level I,
$199,700 in FY11, to Executive Level II, $179,700.
More on this to follow….
McLean Research Quarterly Close Meeting
FY 11 Research Balance Sheet Analysis
November 16, 2011
MCL Research Balance Sheet Trends – Summary
The overall Research Receivable decreased by $1,200K (49%) from Sept FY10. The
components of the change are as follows:
$ (632)K
LOC, Billed A/R and Unbilled A/R
$ (837)K
Grants Receivable
$
Lockbox and Reserve
269K
$(1,200)K
LOC Balance
Billed AR
Unbilled AR
Grants Receivable
Total Debit Balance
Lockbox
Reserve
Total Research Receivable
PHS, Research Finance Analytics
Sep FY11
Jun FY11
Mar FY11
Dec FY11
$460
$505
$339
$981
$2,285
$0
-$1,037
$1,248
$634
$843
$234
$967
$2,678
$0
-$1,138
$1,540
$599
$704
$325
$1,008
$2,636
$0
-$1,192
$1,444
$599
$1,556
$450
$2,196
$4,801
$0
-$1,177
$3,624
Last Updated 4/13/2015
September
FY10
$503
$374
$1,059
$1,818
$3,754
$0
-$1,306
$2,448
% Chg
-9%
35%
-68%
-46%
-39%
0%
-21%
-49%
32
MCL Research AR Trends
Sep FY11
LOC Balance $
Billed AR
Unbilled: To Be Billed next 30 days
Unbilled: After Final Invoice
Unbilled: Past Project End Date
Unbilled: Contract Renewal Pending
Unbilled: Manual Bill
Unbilled: Other Fed / NIH
Unbilled: Other
Unbilled: Temp Bill
Unbilled: Project Costing Variance
Total Unbilled AR
Clinical Trial Billing
Milestone / Non-Standard Billing
NIH Accelerated Spending
Other Accelerated Spending
Renewal Delay
Cost Transfer
Total Grants Receivable
Total Debit Balance $
PHS, Research Finance Analytics
Jun FY11
460 $
505
242
5
(6)
15
61
4
7
11
339
176
27
9
10
99
660
981
2,285 $
Mar FY11
634 $
843
202
(48)
(5)
7
4
74
234
146
36
69
59
30
627
967
2,678 $
Dec FY11
599 $
704
259
(84)
24
(11)
69
9
53
6
325
154
128
29
1
682
1,008
2,636 $
Last Updated 4/13/2015
September $ Chg FY11
FY10
vs. FY10
599 $
1,556
224
(87)
(186)
96
316
90
36
(39)
450
139
108
61
22
1
1,865
2,196
4,801 $
503 $
374
307
(82)
(149)
5
61
428
66
542
(119)
1,059
235
191
39
191
1,162
1,818
3,754 $
(43)
131
(65)
87
143
10
(428)
(62)
(535)
130
(720)
(59)
(164)
(30)
10
(92)
(502)
(837)
(1,469)
33
MCL Grants Receivable – Cost Transfer Aging
Sep FY11
Sep FY10
# of
Project End Date Funds
Deficit
Balance
Project End Date
# of
Funds
Deficit
Balance
Change
Increase
(Decrease) in
# of
Deficit
Funds
Balance
<=9/30/09
2
$
109,876
<=9/30/08
12
$
139,293
-10
$
(29,417)
10/1/09 - 9/30/10
7
$
118,720
10/1/08 - 9/30/09
14
$
85,639
-7
$
33,081
10/1/10 - 9/30/11
20
$
367,978
10/1/09 - 9/30/10
35
$
587,711
-15
$
(219,733)
>=10/1/11
10
$
63,063
>=10/1/10
19
$
349,537
-9
$
(286,474)
Total Cost Transfer
39
$
659,637
80
$
1,162,180
-41
$
(502,543)
Last Updated 4/13/2015
34
MCL Research AR Trends
Accounts Receivable (in thousands)
Sep FY11
Sep FY10
Change
0-30 days $
209
$
181
$
28
31-60 days $
148
$
115
$
33
61-90 days $
64
$
68
$
(4)
91-120 days $
27
$
>121 days $
57
$
26
$
31
TOTAL $
505
$
374
$
131
(16) $
43
Days A/R, Billed AR Only:
($000's)
30
Sep-10
Billed AR $
374
12 Mo Rolling Total Revenue $
Average Daily Revenue
Days AR
3,284
31
Oct-10
$
650
30
Nov-10
$
794
31
Dec-10
$ 1,556
31
Jan-11
$
674
28
Feb-11
$ 1,024
31
Mar-11
$
704
30
Apr-11
$
634
31
May-11
$
638
30
Jun-11
$
843
31
Jul-11
$
593
31
Aug-11
$ 1,065
30
Sep-11
$
505
$
$
$
$
$
$
$
$
$
$ 3,823
$ 4,185
$ 4,290
3,326
$9
42
3,624
$9
71
3,767
$10
80
3,773
4,087
3,644
3,591
3,611
4,084
$10
151
$10
65
$11
91
$10
71
$10
64
$10
64
$11
75
$10
57
$11
93
$12
43
31
Dec-10
31
Jan-11
28
Feb-11
31
Mar-11
30
Apr-11
31
May-11
30
Jun-11
31
Jul-11
31
Aug-11
30
Sep-11
$ 4,202
$ 2,739
$ 2,238
$ 2,037
$ 1,960
$ 2,084
$ 2,044
$ 2,167
$ 2,260
$ 1,825
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Days A/R, Total Research Receivable (including
Grants Receivable, excluding LOC):
($000's)
30
Sep-10
Research Receivable
$
Less LOC & Reserves
12 Mo Rolling Total Revenue
Less 12 Mo LOC draws
Less 12 Mo sundry revenue
Adjusted 12 Mo Revenue
Average Daily Revenue
Days AR
3,251
31
Oct-10
$
3,344
30
Nov-10
$
3,429
$ 37,838
$ 26,524
$ 5,386
$ 11,314
$ 37,245
$ 26,515
$ 5,431
$ 10,730
$ 37,479
$ 26,754
$ 6,000
$ 10,726
$16
200
$15
230
$13
265
37,682
27,095
6,004
10,588
$13
335
37,810
27,284
5,943
10,527
$13
218
38,187
27,548
6,478
10,639
$11
196
38,433
27,217
6,576
11,216
$13
160
Last Updated 4/13/2015
40,354
26,661
6,800
13,693
$19
104
41,462
27,318
6,858
14,144
$20
104
42,230
26,996
7,197
15,234
$22
93
43,108
27,799
7,071
15,309
$23
96
43,605
28,494
6,913
15,111
$22
101
43,544
28,358
7,022
15,186
$22
82
35
MCL FY11 Billed AR Rollforward
Billed
Total Billed AR:
NIH LOC
Balance 9/30/10
$
Contracts /
LOC
Subcontracts
ARRA LOC
8,356
New billing activity
Other Fed
$
-
$
-
$
365,819
Total
$
374,175
25,541,807
3,795,921
253,518
4,390,780
33,982,026
Payments
(25,545,555)
(3,790,582)
(229,008)
(4,184,264)
(33,749,409)
Adjustments
(4,608)
(96,786)
(101,394)
Balance 9/30/11
Billed Contracts/Subcontracts
Detail:
9/30/2010
10/31/2010
11/30/2010
12/31/2010
1/31/2011
2/28/2011
3/31/2011
4/30/2011
5/31/2011
6/30/2011
7/31/2011
8/31/2011
9/30/2011
FY11 Total
$
-
$
5,339
$
24,510
$
475,549
New Billing
$
505,398
Ending
Activity
Payments
Adjustments
Balance
$
$
$
411,313
422,427
705,366
123,992
518,232
227,813
261,072
373,358
431,907
20,726
593,690
300,884
4,390,780
$
(217,340)
(216,659)
(550,632)
(362,148)
(173,191)
(554,225)
(328,996)
(288,410)
(250,772)
(277,733)
(214,186)
(749,972)
$ (4,184,264)
$
(14,197)
3,664
(9,978)
5,484
2,616
(47)
(94,329)
24,977
$
100,810
(115,786)
(96,786)
Last Updated 4/13/2015
365,819
545,595
751,363
909,761
661,627
1,012,152
688,356
620,385
611,004
817,116
560,109
1,040,423
$ 475,549
36
Questions?
Contact
Raquel Espinosa
Phone: 617-855-2868
[email protected]
[email protected]