Transcript   Division of Grants Compliance and Oversight Office of Policy for Extramural Research Administration, OER National Institutes of Health, DHHS NIH Regional Seminar –

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
Division of Grants Compliance and Oversight
Office of Policy for Extramural Research Administration, OER
National Institutes of Health, DHHS
NIH Regional Seminar – Baltimore, MD – May 2015
Diane Dean, Director
Kathy Hancock, Assistant Grants Compliance Officer
Joel Snyderman, Assistant Grants Compliance Officer
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• Cost Principles
• Administrative
Standards
• Audit Requirements
• Grant Award Basics
• Award Restrictions
• Responsibilities
• Accounting Basics
2
• Monitoring Basics
• Subrecipient
Monitoring
• Other Cost
Considerations
• NIH Financial
Reporting Basics
• Closeout
• As part of a larger Federal effort to increase efficiency and
reduce waste, on December 26, 2013, the Office of Management
and Budget (“OMB”) published a series of significant reforms
to the Government’s policies relating to grants and cooperative
agreements. 2 CFR Part 200
• This Final Uniform Guidance (2 CFR Part 200) consolidates and
supersedes the eight OMB circulars (A-21, A-50, A-87, A-89, A102, A-110, A-122, and A-133).
• These new federal regulations became effective for new federal
awards and new funding for existing awards on or after Dec 26,
2014.
• For more information on 2 CFR Part 200 see:
https://www.federalregister.gov/articles/2013/12/26/201330465/uniform-administrative-requirements-cost-principles-andaudit-requirements-for-federal-awards#sec-200-20
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• On December 19, 2014, HHS published in the Federal
Register, an Interim Final Rule (45 CFR Part 75)
adopting OMB’s final guidance in 2 CFR Part 200 with
certain amendments, based on existing HHS
regulations, to supplement the guidance as needed for
the Department.
• HHS made this interim final rule effective on
December 26, 2014.
o However, HHS will consider and address comments received
within 60 days of the date the interim final rule was published
in the Federal Register.
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Cost Principles:
o 45 CFR Part 75, Subpart E (§ 75.400- § 75.476)
• Institutions of Higher Education (IHE), State, Local
Governments and Indian Tribes, and Non-profit
Organizations
o 45 CFR Part 75, Appendix IX
• Hospitals
o 48 CFR Subpart 31.2 (Federal Acquisition
Regulation):
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• For-profit Institutions
• Establishes principles for determining
costs applicable to grants, contracts, and
other agreements
• Direct costs
• F&A/indirect costs
• Selected items of cost
o allowable/unallowable costs
o time and effort reporting
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• 45 CFR Part 75, Subpart C – Preaward
Federal Award Requirements and
Contents of Federal Awards
(§ 75.200- § 75.217)
• 45 CFR Part 75, Subpart D – Post Federal
Award Requirements (§ 75.300- § 75.391)
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Prescribes:
•
•
Preaward requirements
Postaward requirements
Also includes requirements for:
o
o
o
o
o
o
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•
•
•
•
Payment
Matching or Cost sharing
Accounting for program income
Revision of budget and program plans
Non-Federal audits
Allowable costs
Financial management systems standards
Property standards
Procurement standards
Reports and records
o 45 CFR 75.501: States and Local
Governments, Institutions of Higher
Education, and Non-Profit Organizations,
including Non-Profit Hospitals
o 45 CFR 75.501(h) through (k): For-profit
Hospitals and For-Profits Organizations
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o NIH Grants Policy Statement: Foreign
Organizations follow same requirements
as For-Profit Organizations
All NIH grant recipients that expend $750,000 or
more within a year in Federal awards are subject
to an audit requirement.
o
Applicable to Non-Federal Entity Fiscal Years
Beginning on or after 12/26/2014.
• Audits are due within the earlier of 30 days after
receipt of the auditor’s report(s) or 9 months after
the end of the recipient’s audit period.
• Recipients delinquent in submitting audits risk
the imposition of sanctions and potential loss of
Federal funds.
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Summary of Audit Requirements
Recipient
Type
Source of Audit
Requirement (NonFederal Entity Fiscal
Years Beginning Prior
.
to 12/26/2014)
Source of Audit
Requirement (NonFederal Entity Fiscal
Years Beginning
On/After 12/26/2014)
Where to Submit
Audit Reports
State & Local
Governments
OMB Circular A-133
45 CFR 75.501
Federal Audit Clearinghouse
(See contact information in NIH GPS
Part III)
Institutions of
Higher Education
OMB Circular A-133
45 CFR 75.501
Federal Audit Clearinghouse
(See contact information in NIH GPS
Part III)
Non-Profits,
including non-profit
hospitals
OMB Circular A-133
45 CFR 75.501
Federal Audit Clearinghouse
(See contact information in NIH GPS
Part III)
For-Profits,
including for-profit
hospitals
45 CFR 74.26(d)
45 CFR 75.501(h) through
75.501(k) and 45 CFR 75.215
National External Audit Review
Center
(See contact information in NIH GPS
Part III)
Foreign
Organizations
NIH Grants Policy Statement
(same as For-Profits)
NIH Grants Policy
Statement (same as ForProfits)
National External Audit Review
Center
(same as For-Profits, see contact
Summary of Federal Requirement References
Recipient Type
State & Local
Governments and
Indian Tribes
Institutions of Higher
Education
Non-Profits
Hospitals
For-Profits
Foreign Organizations
Administrative
Requirements
Cost Principles
Audit Requirements
45 CFR Part 75, Subpart E
45 CFR Part 75,
Subpart C – PreFederal Award
Requirements and
Contents of Federal
Awards §75.200§75.217
AND
45 CFR Part 75,
Subpart D – Post
Federal Award
Requirements
§75.300-§75.391
See also §75.416 and §75.417
45 CFR Part 75, Subpart E
See also §75.418 and §75.419
45 CFR Part 75, Subpart F
at §75.501
Also applicable to nonprofit Hospitals
45 CFR Part 75, Subpart E
45 CFR Part 75, Appendix IX
FAR 31.2
(48 CFR Subpart 31.2)
45 CFR Part 75, Subpart F
at §75.501 (h)-(k) and
§75.215
Also applicable to forprofit Hospitals
Same as above depending on
type of institution
Per NIH GPS use
45 CFR Part 75.501 (h)-(k)
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• Terms of Award – Section III
o 45 CFR Part 75 – 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
• Special Terms and Conditions – Section IV
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• 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
Management System
• Restricted funds must be tracked by grantee to
ensure compliance
o EXAMPLE of Award Restriction: Funds may not be
used to purchase equipment without the written prior
approval of the NIH awarding component.
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• A. The Principal Investigator
• B. The Departmental Administrator
• C. The Department Chair
• D. The Institution
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• Requires that:
o Separate account is established for each project
o Program Income is identified and accounted for
by project
o Program Income is used in accordance with the
appropriate alternative, i.e.,




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Additive
Deductive
Combination
Matching
• Requires that:
o Expenses are charged in accordance
with:
 NoA Terms and Conditions
 NIH Grants Policy Statement
 Including addenda in effect as of the beginning date of the
budget period
 Salary Cap / Rate Limitation
 Cost Accounting Standards
 Federal regulations
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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 – (Recipient’s
responsibility to monitor expenses)
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• Actual expenses should be compared 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
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• 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.
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• 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 $10,000 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.
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• 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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• Recipients 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 like
circumstances, regardless of the source of
funding.
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• 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.
• Conformance varies by type of activity, type of
recipient, and other characteristics of individual
awards.
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• 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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• Used to correct:
o Erroneous charges
o Unreasonable charges
o Unallocable charges
o Inconsistently applied charges
o Unallowable charges
• Must be well documented
• Must be made within 90 days from
the time error was discovered
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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 pre-award 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 NIH prior approval
requirements see:
o NIH GPS 8.1.2 Prior Approval Requirements
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• 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 1/31/2015 – FFR due 6/30/15
(90 days after the end of the CQ of 3/31/15)
o Final (End of Competitive Segment) – (SNAP and Non-SNAP
Awards)
 FFR submitted within 120 days following the end of the project period
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(SNAP – Streamlined Non-competing Award Process)
• FFRs should be submitted accurately
• Reported expenses and program income
must agree with institutional accounting
records
• Routine Revisions to correct FFRs are not
appropriate
• Information and NIH Guide Notices related to
Financial Reporting:
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See FFR (SF425) Instructions for NIH Grantees
available at http://grants.nih.gov/grants/forms.htm
• Failure to submit timely reports may affect future funding to the
organization;
• Documents are due within 120 calendar days of the period of
performance end date:
– Final Federal Financial Report (FFR) SF-425 Expenditure Data
(submitted through eRA Commons);
– Final Inventions Statement & Certification;
– Final Progress Report;
• Recipients must ensure there are no discrepancies between the final
FFR expenditure data (in eRA Commons) and the FFR cash
transaction data in the Payment Management System.
• New HHS policy requires NIH to initiate unilateral closeout
procedures—i.e., closeout without receipt of acceptable reports—
within 180 days of the period of performance end date if the recipient
has not submitted an acceptable report for each required final report.
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(See NOT-OD-14-084)
Recipients are strongly encouraged to submit
closeout documents electronically through the
eRA Commons; However,
• Centralized office accepts receipt of all nonfinancial, paper-based closeout documents;
o Final Progress Report;
o Final Invention Statement and Certification.
• If not using eRA Commons Closeout Module, mail
closeout documents to:
NIH Centralized Processing Center
6705 Rockledge Drive, Suite 5016, MSC 7986
Bethesda, MD 20892-7986 (for regular or US Postal Service
Express mail)
Bethesda, MD 20817 (for other courier/express mail only)
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Whenever you are contemplating a
significant postaward change, and you are
uncertain about the need for prior approval,
consult in advance with:
• 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
[email protected]
301-435-0949
Kathy Hancock,
Assistant Grants Compliance Officer
[email protected]
301-435-1962
Joel Snyderman, Assistant Grants Compliance Officer
[email protected]
301-594-0524
[email protected]