General Questions

1. What services and resources are available to faculty and departmental administrators?

• Funding Information
• Proposal Preparation & Processing,
• Award Negotiation & Acceptance,
• General Financial Accountability
• Effort Reporting
• Facilities & Administrative (F&A) Costs
• Program Income
• Space Survey
• Conflict of Interest

2. How do I locate my sponsored projects officer (SPO), sponsored projects accountant (SPA), or other ORSPA contacts?

You can find your ORSPA and department contacts by using that tool at this link: https://pride2.asu.edu/orspacontacts/

3. What's your FedEx shipping address?

For timely delivery, FedEx packages should be addressed using the name of the person, "ASU", the person's department, and their building and room number. Federal Express, UPS, and other carriers use the PO Box system for ASU. The drivers know this system so it is appropriate to use:

 

 

 

Staff Member's Name
ASU ORSPA
PO Box 873503
Building Room Number
Tempe, AZ 85287-3503

The street address is not necessary but if it is insisted upon, use the administrative office address:

Staff Member's Name
ASU ORSPA
1120 S Cady Mall
Interdisciplinary B, Room 163
Tempe, AZ 85287

You can also use the street address of any other building on campus, if known.

It is also appropriate to use the shipping and receiving address information. Remember the package may not arrive in the same timely manner you expect from FedEx. Once they deliver to shipping and receiving it is out of their hands and final delivery depends on the ASU Mail Services schedule.

Arizona State University Main Receiving
1711 S. Rural Road
Rural & Vista Del Cerro Rds
Building Room Number (Staff Member’s Name)
Tempe, AZ 85287

 

 

 

 

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 Opportunity Development

1. Who coordinates limited submission announcements?

Contact Deborah Ash Goode at (480) 727-7961.

2. Where can I find out about the ASU Expertise Database System and Community of Science (COS)?

Arizona State University has contracted with Community of Science (COS) to build a web-based expertise system for ASU. The ASU expertise system is an excellent source for chairs and deans to facilitate multidisciplinary collaboration. All members of the ASU community can search profiles from ASU and other participating institutions to find others with shared interests.

Search ASU Expertise for a collaborator on campus.

Search COS Expertise (by institution, keyword, researcher name, etc.) for a collaborator from another COS-participating institution.

Need help searching COS Expertise? See COS's FAQs.

ASU Liaison to COS

Contact Deborah Ash Goode at (480) 727-7961.

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 Proposal Preparation & Processing

1. Where do I locate proposal budget information on Facilities and Administration costs (F&A), cost sharing, etc.?

           See the Proposal Budget Information page.

2. Where do I locate ASU's standard institutional information for completion of sponsor forms?

The ASU Standard Institutional Information Numbers form may be useful to you. You can also access the form directly.

3. Who is designated as the authorized institutional representative?

Deborah Shaver, Director of Research Administration

4. How do I know when I should have a sponsored agreement versus a personal consulting agreement?

You should always use a sponsored agreement when the resources of the university are used to complete all or part of the scope of work. In most cases, a personal consulting agreement is appropriate when you are performing work on your own time, outside of the contractual commitment to the university.

5. What is the institutional policy on matching funds and cost sharing?

The policy can be found here: http://www.asu.edu/aad/manuals/rsp/rsp506-03.html

6. What is the difference between cost sharing and infrastructure support?

The difference is significant to the university. Cost sharing is a legally binding condition for accepting sponsor's funding. In contrast, infrastructure support represents an investment in resources needed to conduct research.

Cost sharing:

• requires extensive documentation;
• must be reported to the sponsor;
• is included in the calculation of the Facilities & Administrative (F &A) rate;
• is a key component in all external audits of the university; and,
• if cost sharing cannot be met as required, it results in a loss of sponsor funding.

        Infrastructure support:

• is reimbursable by the sponsor in the F&A recovery rate;
• requires documentation by department/college, but not by OPRSA
• does not require extensive documentation;
• is not reported to the sponsor;
• does not place sponsor funding at risk; and,
• generally is not audited

 

 

 

 

7. How do I determine when an expenditure is cost sharing or infrastructure?

Direct cost items that are not funded by the sponsor are by definition cost sharing. Facilities & administrative (indirect) items are institutional support. (For more information on  the differences between direct and F&A items see RSP 508-01: Charging Direct and Facilities & Administrative Costs to Sponsored Projects.) For example, a research study requires a new personal computer to process survey results. The researcher will use the computer on the research study and for e-mail in general. Because the computer is used non-project activities, it is by definition infrastructure support. However, if the proposal the specifies the university will purchase one Dell X-390 with a cost of $5,500 for tabulating survey results, it will be considered cost sharing.

To avoid turning infrastructure support into cost sharing do not insert F&A costs into proposal budgets and budget justifications.

8. Under what circumstances are instructional programs considered sponsored projects?

Most instructional programs are funded by tuition or by program income.  Instructional programs are considered sponsored projects when they are offered outside of the standard tuition funded approach.  Instructional programs may also be considered sponsored if deliverables are required (e.g. curriculum development, a research report on the teaching experience) or when there are unusual contract terms (e.g. requirements of a foreign sponsor/partner).  When in doubt, always consult with your Sponsored Projects Officer.

9. How do I know if it's a grant or a contract?

An integral factor in the budgeting process is the type of award (e.g., grant, contract, cooperative agreement) that will be issued in the event that the proposal is successful. Certain costs that are acceptable for grants and cooperative agreements are not reasonable costs for contracts. As an example, travel to conferences is an acceptable and even desirable cost for a grant since attendance at professional conferences helps to further the overall grant goals of expanding the public knowledge base. However, for a contract, conference-related travel might not be considered germane to the accomplishment of contract requirements and be of no interest to the sponsor. Another example is publication costs; generally speaking, costs associated with disseminating research results via professional publications are not usually relevant to contracts.

Another area of concern is the purchase of capital equipment. For the most part, sponsoring agencies for grants not only authorize the purchase of such equipment, but allow the University to retain title to the equipment, even after grant termination. However, most contracting activities discourage or forbid the purchase of capital equipment and in cases where the purchase is authorized, title to the equipment usually will reside with the sponsor.

Clearly, determining the type of anticipated award plays a significant part in the budget development process. Generally speaking, most federal granting agencies and private non-profit foundations will award grants, and most other federal sponsors and for-profit companies will issue contracts. However, there are instances when a typical granting agency, such as PHS, may issue a solicitation for a contract; and another agency such as DARPA may solicit and fund a project through a granting agency. So, before theassumption is made, read the solicitation or program announcement. If in doubt, contact your ORSPA site officer for a determination.

10. How do I request Supplemental Pay on a Sponsored Project?

Fill out the Justification and Approval for Intra-university Consulting Pay form (ORSPA 310).

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 Award Negotiation & Acceptance

1. What if a sponsor asks me to sign a non-disclosure or confidentiality agreement?

It is almost always inadvisable for a faculty member to sign a confidentiality agreement because such an agreement may have serious consequences for such things as publications and intellectual property. If necessary to close a deal, then the University will consider signing a confidentiality clause on behalf of the faculty member when such a clause is limited to the proprietary information of the Sponsor and the use of such information is not necessary for the publication or verification of the research results.

2. How do I know when I should have a sponsored agreement versus a personal consulting agreement?

One should always use a sponsored agreement when the resources of the University are used to complete all or part of the scope of work. In most cases, a personal consulting agreement is appropriate when one is performing work on his or her own time, outside of the contractual commitment to the University.

3. What is the institutional policy on matching funds and cost share?

See the policy at: http://www.asu.edu/aad/manuals/rsp/rsp506-03.html

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General Financial Accountability

1. Do I have to monitor my sponsored account?

Yes. As Project Director you are responsible for insuring that only allowable costs related to your project are charged to the sponsored account set up to reflect the spending on your project.

2. How do I monitor my sponsored account activity?

As Project Director, you will receive a packet of financial and payroll information each month that details all transactions processed against your account that month. You may also monitor financial activity throughout the month by accessing your account on-line in the Advantage financial system.

3. What is the Fly America Act? Do I have to do anything special when traveling to a foreign country?

Air travel funded with U.S. Government funding must be booked on a United States of America flagged air carrier. For a list of allowable air carriers, see http://dms.dot.gov/reports/domagnt.pdf. If you choose to fly a non US flagged air carrier, contact your Sponsored Project Officer (SPO) prior to booking the flight. Your SPO will determine if you meet one of the extremely restrictive exceptions in the Act.

4. How do I know when I should have a sponsored agreement versus a personal consulting agreement?

One should always use a sponsored agreement when the resources of the University are used to complete all or part of the scope of work. In most cases, a personal consulting agreement is appropriate when one is performing work on his or her own time, outside of the contractual commitment to the University.

5. Does ASU have to receive the funds from the sponsor before I can start spending out of the account?

No. Once the account is established, spending can begin. ORSPA accounting will follow up to secure the funds.

6. What is the institutional policy on matching funds and cost share?

See the policy at: http://www.asu.edu/aad/manuals/rsp/rsp506-03.html

7. How can I set someone up on payroll for less than six months without affecting their benefits eligibility? When is someone considered benefits eligible?

Best Practice: Arizona Board of Regents (ABOR) defines "regular" vs. "temporary", instead of "benefits eligible" vs. "non-benefits eligible". ASU obtained the definition language and practice from Department of Administration and ABOR. See the definition for regular employee found in section 002 of the SPP manual.

Generally employees on a temporary appointment, or temporary funding, for less then six months would not be extended benefits even if they work 100% FTE. However, there is a manual process in place to use if needed to override this automatic "6-month rule" payroll process. The HPR should be completed using the 'regular' and 'full time' indicators. This will reflect that they are in fact benefits eligible. However, because of the start and stop dates, a NOTE will have to be made on the HPR which states that "the positions are technically less than six months, but the employees are benefits eligible". Otherwise, Human Resources would believe that the regular and full time codes are incorrect.

8. What is a SPET (formerly SET) and CTR?

SPET: Sponsored Payroll Expense Transfer for payroll (salary) transactions (where a sponsored account is involved in the transfer from/to local and/or state accounts). Formerly known as a Sponsored Expense Transfer (SET).

CTR: Cost Transfer Request of non-salary or non-payroll transactions (where a sponsored account is involved in the transfer from/to local and/or state accounts).

9. Does the University have policies that prohibit personal use of university property and resources, including those purchased with sponsored projects funds? If so, who is responsible for restricting personal use?

Best Practice: University policy prohibits personal use of university property and resources. This includes supplies, equipment and other resources purchased with sponsored projects funds. Refer to

http://www.asu.edu/aad/manuals/pcs/pcs902.html

http://www.asu.edu/aad/manuals/PCs/pcs505.html

All employees are responsible for complying with these polices. Failure to do so can result in disciplinary action, including termination and/or criminal prosecution.

Org Managers are responsible for restricting the personal use of university resources. If personal use does occur, the org manager must ensure that ASU is reimbursed for resources committed to personal use.

10. What happens to any residual balance once a sponsored project under a fixed price agreement ends?

University policy is that there should be little or no residual on a fixed price agreement. However, if there is a balance once the project is over, ASU will first book F&A on expenses or budget, whichever is greater at the fully negotiated rate. Any existing cost overruns on other accounts belonging to the specific investigator will also be net out. This process is to discourage residual balances in an effort to have the investigator properly budget and fully utilize funds provided for all project costs. Next, the balance is transferred to a local discretionary departmental account based on information provided by the Chair of the Department (not the investigator). Refer to http://www.asu.edu/aad/manuals/rsp/rsp509-03.html.

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Effort Reporting

Return to the Effort Reporting site

1. What is effort reporting?

Effort reporting is ASU's method of verifying that faculty, students, and staff who work on sponsored projects complete their commitment to sponsors. Previously, effort reports were called "Activity Distribution Reports" or "ADR's". Reporting occurs "after the fact". Reports use payroll and cost sharing data as a starting point.

2. Why do we need a new system for effort reporting?

The new system has the following benefits:

• Need for paper eliminated
• Automated electronic routing
• Electronic signatures
• Automated email notifications
• Operates within PeopleSoft and gets data from PeopleSoft
• If payroll for the period changes after certification, form automatically regenerates

2. Why is effort reporting necessary?

The federal government's Office of Management & Budget (OMB) publishes Circular A-21, which requires that institutions develop a mechanism to determine or confirm how individuals actually expend effort during a specified time period. These effort reports must be performed on a regular schedule and must be certified by individuals who have first-hand knowledge of 100 percent of the employee's compensated activities. In most cases, that would be the employee or the employee's direct supervisor.

4. Why is effort reporting required?

Federal regulations issued by the Office of Management & Budget (OMB) require employees performing work on sponsored agreements to certify university work efforts as a distribution of 100% of total compensated time worked. ASU has chosen the After-the-Fact effort reporting method described in Section J.10.c.(2) of OMB Circular A-21 to meet the requirement for certifying effort on sponsored project agreements.

5. What is included in the 100% of total compensated time worked?

The 100% of total compensated time and effort encompasses all activities performed for the university.

Examples of activities included in the 100% measure are teaching classes, working on committees, conducting research, writing reports and articles, proposal preparation activity, participating in seminars, consulting with colleagues and graduate students, and attending meetings and conferences.

Intra-University Consulting as described in ACD 510-04 is an example of incidental work paid by the university which is excluded from effort reporting certification. Also excluded from the 100% measure of effort is consulting not associated with the university as disclosed in a Notification of Consulting or Other Remunerative Arrangement.

6. My Graduate Research Assistant’s appointment is 50% FTE, but the Effort Report says that 100% of her salary came from the grant. Is this correct?

This is one of the most common misconceptions about effort on sponsored projects. Regardless of your appointment percent or the number of hours you work, your 100% effort equals all the activities for which you are compensated by the university -- your total ASU effort. Effort Reporting is not based on a 40-hour work week.

Examples:

• If you have a half-time job, your 100% effort corresponds to everything you do for that job. So, for you, 0.50 FTE = 100% ASU Effort.

• If you work 80 hours a week, your 100% effort corresponds to all the activities for which ASU compensates you during that time. In this case, 80 hours = 100% ASU effort

 

 

 

 

7. How precise a measure is appropriate when reporting effort?

It is recognized that the nature of the work and the workload involved at academic institutions, varies and is often interrelated. Therefore, it is appropriate that reliance is placed on reasonably accurate approximations and a degree of tolerance in measuring project related effort is acceptable.

OMB has also recognized that it would be punitive to require faculty and senior researchers to document effort percentages “volunteered” in excess of proposed efforts.     OMB issued an effort reporting clarification indicating that faculty and senior researchers’ sponsored work efforts in excess of proposed levels (referred to as volunteered     uncommitted cost share) do not have to be captured on effort reports.

8. How has effort reporting changed from the paper Activity Distribution Reports (ADRs) to the new Effort Reporting in Peoplesoft?

Beginning in FY2008 the review and certification of effort on sponsored projects at. ASU takes place in an Effort Reporting application within PeopleSoft. Some of the changes and features of the new Effort Reporting application include:

• Forms routed, certified, and stored electronically--no need for printing paper forms for departmental files.

• Elimination of paper distribution with email notification.

• Elimination of requirement to split effort by activity type (instruction, organized research, public service, departmental administration, etc.).

• Hourly employee effort reports certified every two pay periods (13 times a year).

• Exempt employee effort reports certified 3 times a year following the close of the Fall, Spring, and Summer academic periods.

• Effort reports for Student hourly and Graduate Assistant appointments routed via the workflow to the Principal Investigator (PI) for certification of student’s efforts on the sponsored project.

• Certification required only on sponsored project pay and cost share commitments—not on non-sponsored project activities.

• Ability to drill into and review detail of payroll transactions occurring during the effort period.
  

9. Where are the activity categories in the new Effort Reports?

There is no longer a functional activity reporting requirement. Instead, reliance is placed on the NACUBO function coding of the sponsored account where the effort is certified. Additionally, using this residual category, we subsequently determine the F&A cost activities (e.g. departmental administration) through an alternative methodology. The information being collected which is most important on the Effort Report is the percentage of time an employee spends on each sponsored project during the designated Effort Reporting period.

10. Who receives Effort Reports?

The system will generate an Effort Report for all faculty, researchers, post-docs, graduate assistants, hourly student employees, staff, and other ASU employees who are paid from sponsored projects or have cost sharing obligations. The system automatically determines Effort Reporting recipients based on payroll records and cost sharing commitments. Effort reports are initially routed to the Department Effort Administrator (DEA) for initial review and further distribution.

11. How is an Effort Report generated?

The Effort Report contains an estimated effort distribution for the effort period that are based on an individual’s sources of pay, cost sharing commitments, and salary in excess of the NIH salary cap. The certifier can agree with or correct the estimated effort distribution depending on actual effort on sponsored projects during the effort reporting period.

Since the system uses an After-the-Fact effort reporting methodology, changes to the apportionment of the salaries and wages already paid and charged to specific accounts are accomplished with Payroll Redistributions processed in PeopleSoft HCM.

Cost sharing commitments entered into the Effort Reporting commitment module are based on the obligated award period and percent of effort indicated on the Cost Sharing Requirements Approval Form (305), a.k.a. “the green sheet”. Only commitments for the obligated budget period are entered. Future cost sharing commitments beyond the original obligated budget period must be included with the award modifications in order for the commitment to be pre-populated in the Effort Reporting commitment module.

Congress legislatively mandates a provision limiting the direct salary that an individual may receive under an NIH grant, cooperative agreement or applicable contract to a rate of no greater than Executive Level I of the Federal Executive Pay Scale. For FY2008, Public Law 110-161: Consolidated Appropriations Act, 2008 restricts the amount to $191,300. See http://grants1.nih.gov/grants/policy/salcap_summary.htm for a summary of past salary caps, the most recent cap, and a link to the recent notice and guidance on the proportion of salary above the cap that results in a cost sharing commitment on any related NIH sponsored project effort.

12. When are Effort Reports distributed?

Federal regulations require a minimum frequency for effort certification depending on the employee groupings of professorial, professional staff, or other employees. To meet these requirements, effort reporting periods are more frequent for Non-Exempt employees (those subject to overtime rules) than for the professorial and professional staff identified as Exempt employees. Although federal regulations allow bi-weekly time sheets containing effort distribution to be used as an alternative to effort report certification for Non-Exempt employees, ASU currently must certify this effort through effort reporting since the payroll system is not capturing and displaying payroll distribution by account on the time sheets employees complete and sign.

Non-Exempt employee (classified staff subject to overtime) and hourly student Effort Reports are distributed following every two pay periods (13 times a year) if paid from or providing effort to fulfill cost sharing commitments on sponsored projects.

Exempt employee (faculty, GRAs, GTAs, professional staff, etc.) Effort Reports are distributed three times a year following the close of the Fall, Spring, and Summer academic periods if paid from or providing effort to fulfill cost sharing commitments on sponsored projects.

The effort reporting periods will vary depending on the end dates of the PeopleSoft bi-weekly payroll cycle which are different from year-to-year.

Exempt employee effort reporting period example:

12/31/2007 – 05/18/2008 Period 1: Spring Effort

05/19/2008 – 08/24/2008 Period 2: Summer Effort

08/25/2008 – 12/28/2008 Period 3: Fall Effort

In general the standard fiscal year appointment is July 1 – June 30 and the academic appointment is August 16 – May 15. Due to the bi-weekly payroll cycle, effort reports for academic employees may contain a portion of the Summer effort during the Spring report, Fall effort in the Summer report, and Winter Intersession effort in both the Fall and Spring report.

13. What is the Effort Reporting workflow?

Level 1: ORSPA reviews form for any high-level data issues.
Level 2: Department Effort Administrator (DEA) reviews and releases forms to the certifier.
Level 3: Certifier applies electronic signature to the Effort Report.
Level 4: Department Effort Administrator makes any payroll adjustment or cost sharing adjustment request and then approves.
Level 5: ORSPA closes the form and locks the workflow.

If a payroll distribution or notification of a cost sharing commitment occurs after certification at Level 3, the form will be regenerated and cycle through the process as a new sequence. The original sequence(s) are saved for audit purposes.

14. When should Effort Reports be certified and the workflow completed?

Prompt review, certification, and correction of an employee’s paid and unpaid (cost sharing) commitment to a project is essential. Each time you certify effort, you do so for a specific period of performance. The time during which you certify effort is called the certification window. Each certification window is opened by ORSPA a month or more after its corresponding period of performance. Each time the certification window is opened, you have 45 days to certify the effort for the corresponding period of performance. Academic employees who are unavailable during the summer to approve their effort statements online when the Spring effort reports are distributed will need to need to review and certify them immediately upon their return in the Fall. In the event that effort reports for pay on sponsored accounts are not certified, the Department Effort Administrator (DEA) will be required to remove the payroll from the sponsored project account.

Since the online Effort Reporting system in PeopleSoft is new in FY2008, it is being incrementally rolled out in June 2008. It is expected that certification of effort reports may not be as timely as what will be required in the future. However, after we have processed a department’s initial group of effort reports, the timeliness described in the preceding paragraph will be followed. We will be in regular communication with the departments to make sure any concerns or circumstances which arise are addressed.

15. Who at ASU must certify effort?

Effort on a sponsored project of Graduate Assistants and hourly student employees is certified by the lead Principal Investigator (PI) for that project. All other employees with cost sharing commitments and/or pay on sponsored projects are required to certify their own Effort Reports.

16. Why do I have to certify the Effort Report myself? Can’t my Business Manager or Research Advancement staff do this for me?

Federal regulations for "after the fact activity records" requires that confirmation of the effort on Effort Reports be signed by the employee, principal investigator, or responsible official(s) using suitable means of verification that the work was performed. Having first-hand knowledge of the work performed and the ability to make a reasonable estimate of the effort expended on each sponsored project is key to fulfilling this requirement. Best practices indicate that having the employee certify their own record is preferred. Additionally, at ASU and other institutions, Graduate Assistants are typically certified by the project PI who is aware of the efforts provided on their projects by their graduate students. Business Manager or Research Advancement staff typically do not have the required first-hand knowledge or suitable means of verifying that the work was performed on particular projects.

17. What happens if I don’t certify my effort report in a timely manner?

If your effort is not certified within the date parameters specified, the Vice President for Research and Economic Affairs has instructed ORSPA not to process any pending proposals or set up any awards/award increments for you.

18. What are the risks of not complying with OMB Circular A-21’s effort reporting requirement?

Federal awards represent the majority of ASU’s sponsored project grant and contract award activity. Salary expense represents the largest direct cost component included in the budgets of sponsored projects. Paying salaries with federal funds requires an institution to have an effort reporting system that provides records on how individuals participating in federally funded sponsored agreements actually spend their time. It is incumbent upon institutions receiving federal funding to maintain accurate and auditable systems and records. In recent years, the federal government has become very active in reviewing the effort reporting requirement. It is currently a specific audit focus in federal audit plans. As evidenced below, federal audit disallowances can result in large audit disallowances and financial penalties for institutions. Additionally, criminal charges may be brought against an individual certifying to falsified effort. Some of the recent cases of audit disallowances are:

• Northwestern University paid $5.5 million to settle issues related to problems with effort reporting, on a contracts and grants base of $325 million;

• South Florida returned $4.1 million to the federal government to settle a number of charging issues, including effort reporting;

• University of California paid a total of $2.1 million to settle an NIH salary cap limitation disallowance for the period July 1, 1995 through June 30, 2002.

 

 

 

 

Documentation on how individuals spend time on federally sponsored projects is subject to audit and can result in institutional or individual disallowances. Institutional disallowances can result if:

1. Effort Report was certified by an individual other than the employee or someone who has "first-hand" knowledge of 100 percent of the employee's time;

2. Effort Report does not encompass all of the activities as described in OMB A21 performed by the employee under the terms of their employme

3. Levels of effort reported do not appear reasonable, given the responsibilities of the individual.

 

 

 

 

Individual disallowances can result if:

1. Effort certified on the Effort Report by the individual is found to be falsified;

2. Levels of effort reported do not appear reasonable

 

 

 

 

19. What are some common Effort Report corrections?

The most common Effort Report issues Department Effort Administrator will encounter in their review which will require corrections are:

Incorrect Payroll Distribution Changes to the accounts or amount charged to reflect the actual effort worked during a bi-weekly pay period on a sponsored project are made through PeopleSoft Payroll Redistributions. Payroll Redistributions approved and processed in PeopleSoft post nightly in Effort Reporting.

Incorrect or Missing Cost Sharing Commitments The Department Effort Administrator will create a new case to be addressed by the ORSPA effort reporting team at http://www.asu.edu/go/support/ describing the cost share commitment change. An adjustment due to a reduction or increase in an existing commitment or the addition of a new commitment may also require submitting an updated Cost Sharing Requirements Approval Form (305) substantiating the change in the university’s commitment. Changes to cost sharing commitments are updated in Effort Reporting on a nightly basis.

20. Where can I get more help?

Effort reporting policy and procedure guidance and training videos are provided by ORSPA on the Training portion of our website.

Support for using the Effort Reporting system (security access within PeopleSoft, performance, availability, interpreting content of effort report, correcting pay or cost sharing commitments, navigation within application, etc.) are requested by generating a new CRM (Customer Relationship Management) case at http://www.asu.edu/go/support/

Report critical problems keeping you from using your computing resources to the UTO Help Desk at:

Tempe Campus 480-965-6500

West Campus 602-543-4357

Polytechnic Campus 480-727-1118

Downtown Campus 602-496-6500

21. How do I sign up to be a Department Effort Administrator (DEA)?

1. Go to the website: https://www.asu.edu/go/oasis/AddSecurityRequest/
2. On the login screen, enter your ASURite user ID and password, and click Login.
3. On the Security Request screen:
   1. Enter your ASURite user ID
   2. Click continue
   3. Enter your reason for access. Ex. “I need access as the DEA on sponsored project effort for the following units: B1746, B1310, E0811”
   4. Enter your supervisor’s ASURite user ID.
   5. Click Continue.
4. You should be presented with the option to add roles by clicking the Add Role(s) button.
5. Under Human Capital Management (HR) - Effort Reporting (ER) box (13 boxes down from the top), check the checkbox for the role Dept Effort Administrator. Scroll to the bottom of the screen and click Save and Return
6. You are returned to the security request screen. Your screen will be similar to what is listed below. Click Save and Submit to send the request.

 

 

 

 

22. Where can I get the Effort Reporting brochure?

Effort Reporting brochure.

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Employee Related Expenses (ERE) & Tuition Charges

ERE and Tuition information has been moved to the ERE section of the Proposal Budget Info page.

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Facilities and Administrative (F&A) Costs

1. What are F&A Costs?

Costs associated with providing facilities and administrative support for the conduct of research and other sponsored activities. These costs are not readily identifiable with a particular project or activity but are real, audited costs associated with the infrastructure needed for the general operation of a university and the conduct of its activities. They include costs of operating and maintaining buildings and grounds, equipment, the libraries, and of providing administration at the university, college and department levels.

On the other hand, direct costs are those costs which can be easily identified with a high degree of accuracy with a sponsored project or any other university activity. Direct costs include project related costs such as salaries and wages, personnel benefits, equipment, supplies and services, and travel.

Click here to see the FY 2007 - FY 2011 F&A rate agreement.

2. Can the same type of cost be either a Direct Cost or an F&A Cost?

The Office of Management and Budget (OMB) Circular A-21 requires that costs incurred for the same purpose in like circumstances be treated consistently as either a direct cost or an F&A cost. However, there are special situations in which costs may be incurred for the same purpose but the circumstance is not the same. For example, the salaries of administrative personnel normally would be treated as an F&A cost. However, when these personnel perform project specific activities or extraordinary amounts of routine business activities associated with large projects that involve multiple investigators, they may be direct charged according to the relative time spent on the project.

3. What are the components of F&A rates?

F&A costs are divided into the following components (referred to as cost pools) which support sponsored project and other university direct cost activities:

Facility Costs

• Equipment Depreciation
• Building Depreciation
• Interest (debt financing of building, equipment, & capital improvements)
• Operations & Maintenance of Plant (buildings and grounds)
• Library

 

 

 

 

Administrative Costs

• General Administration (university)
• Department Administration (includes department and college)
• Sponsored Projects Administration
• Student Services Administration

A rate is calculated for each cost pool based on methods prescribed in OMB Circular A-21. The total of these individual cost pools results in a rate that is subject to negotiation and approval of officials from the Department of Health & Human Services (DHHS), our cognizant federal agency.  There is an “off-campus” rate which includes only administrative costs that is calculated for projects conducted in facilities not owned or operated by ASU, which include charges for facility rental as a direct expenditure, and for which more than 50% of the project salaries and wages are for effort conducted in the rental facility. Also, there are separate “on-campus” rates that include both the facility and administrative costs calculated for research, instruction and other sponsored activities.  Each rate is expressed as a percentage of Modified Total Direct Cost (MTDC) which includes all direct costs except equipment, capital expenditures, patient care, tuition remission, rental costs of off-site facilities, scholarships, fellowships, and the portion of subcontracts in excess of $25,000.

 

 

 

 

4. What are the components and rates of ASU's current negotiated F&A agreement?

Predetermined Rates through 6/30/06*:	Organized Research	Instruction	Other Sponsored Activities
General Administration	7.70	5.10	7.80
Department Administration	14.80	14.90	14.90
Sponsored Projects Administration	3.50	.10	3.30
Student Services Administration	0.00	5.90	0.00
Administrative Components —Off Campus Rate:	26.00%	26.00%	26.00%
Equipment Depreciation	5.00	2.50	3.00
Building Depreciation	2.60	3.20	.70
Interest	1.60	2.60	.10
Operation & Maintenance	13.00	8.80	2.80
Library	1.30	14.80	.40
Facility & Admin Components —On Campus Rate:	49.50%	57.90%	33.00%

*Rates based on FY 1999 expenditures.

5. In simple terms, how are F & A rates calculated for sponsored projects?

ASU identifies its F&A costs (i.e., expenditures already incurred) and accumulates those costs in the various F&A cost pools. The F&A costs in each cost pool is then allocated to the direct cost functions of the university (research, instruction, and other sponsored activities) according to methods prescribed in OMB Circular A-21, or alternative methods approved by federal negotiators.

6. How are F&A cost rates negotiated?

ASU submits a formal F&A cost rate proposal to our cognizant federal agency, the Department of Health and Human Services (DHHS). The proposal is based on the most recent fiscal year for which complete cost data is available and is evaluated by DHHS negotiators who represent all federal agencies. The negotiators' role is to determine if ASU has accurately identified its F&A costs and allocated these costs in accordance with the prescribed methods. There are usually some differences in the interpretation of the rate proposal processes which lead to compromises between federal negotiators and university officials in arriving at a final rate agreement. Once this negotiation is concluded, the F&A rate agreement is signed by both DHHS and ASU. Federal negotiators prefer to negotiate rate agreements for multiple years. This type of negotiated rate settlement provides a greater degree of assurance for both the government and university as to the general level of future F&A funding that can be estimated for budgeting purposes.

7. Why do F&A cost rates vary so much from one university to another?

There is no single answer to this question.  Instead, the principal differences result from the following factors:

• The size and intensity of use of a university’s research facilities and buildings is the primary cause for variability of F&A costs.  For example, if two universities have the same direct cost research base and one has twice as many net square feet of space assigned to research, the facilities rate component for the university with twice the net square footage will be approximately twice that of the other university.
• A university’s ability to secure funds to construct, upgrade and maintain research facilities is another variable.  Universities able to spend money to renovate existing research facilities and construct new research facilities experience a higher level of costs than universities that are unable to do so.  These higher costs are reflected in the recovery rates for building depreciation.
• The location of a university has a significant effect on the costs of facility operations.  The universities that have the best combination of climactic conditions and utility rates will generally have a lower rate for facility operations.
• The “mix” of research among universities contributes to the variances in facilities rates.  The cost per square foot of constructing or renovating biomedical research space is more costly than the cost per square foot of space for mathematicians.
• Differences in cost recovery strategies also contribute significantly to rate variations.  Many public universities are not permitted to retain recovered F&A funds within the university to further support research programs.  Where these universities recover F&A costs as a budget offset, they have less incentive to fully recover their costs from sponsors and thereby less capability to fund special initiatives that support or enhance research.
• Some universities may have elected to recover a given cost directly rather than as a F&A cost or vice versa.  A common example of this would be employee fringe benefits.

Administrative costs are the most difficult to quantify and, consequently, they are the most criticized and questioned F&A costs.  They are not, however, a major contributing factor to differences in F&A rates among universities.  The Federal government has capped the amount of administrative cost recovery at 26% by revising OMB Circular A-21 language several times in recent years, even though the regulatory burden and related administrative costs to universities continues to increase.

 

 

 

 

8. Does ASU receive full reimbursement for its F&A costs?

No. Most universities calculate an F&A cost rate greater than the final negotiated F&A cost rate. ASU has historically accepted some reduction of its calculated rate in the interest of reaching a prompt agreement with federal negotiators. Additionally, many federal programs either do not provide F&A funds (such as conference grants) or limit the F&A reimbursement to a prescribed rate that is less than the negotiated rate (such as training grants). Most non-corporate private sponsors also have policies limiting F&A reimbursement to a prescribed rate. Universities are also asked to cost share both direct and F&A costs under many sponsored agreements as a way to show their commitment to a project.

9. How are ASU's F&A fund recoveries utilized?

It is important to note the term "recoveries" in this context refers to recapturing F&A costs that have already been incurred, not those to be incurred in the future. Nonetheless, ASU has established policies to return a portion of the F&A cost recoveries to the faculty, department, and college in which the funded sponsored project activity occurs.

A portion of the F&A recoveries is reserved for the support of various research initiatives under the auspices of the Office of the Vice President for Research & Economic Affairs. In addition, there are some significant annual allocations of funds as well as a number of special funding requests for new initiatives, sponsored project matching, bridging funds and emergencies that are approved by OVPREA to support and enhance the research enterprise and support the research activity that benefits a large segment of the University research community.

Examples of F&A cost recoveries being returned directly to the campus include: 1) distributing a percentage of the total F&A costs budgeted in awards received to investigator incentive accounts and, 2) returning a percentage of the total F&A costs recovered, by college and department, each year to the Deans for reallocation.

10. How do I request approval to use a lower Facilities and Administrative (F&A) rate on my sponsored Project?

All sponsored projects are required to use the full F&A rate. However, some exceptions may be made. Refer to theF&A waivers section of the F&A costs page.

11. What is the downside (for me) of F&A waivers?

When a waiver is approved, there will be no Research Incentive Distribution (RID) for that project. For sponsored projects with federally mandated reduced rate, the RID will be proportionately reduced. 

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 Program Income

1. What is program income?

Program Income is revenue received by ASU directly generated or earned as a result of a sponsored project. Some examples are charging a fee at a sponsored conference or selling items fabricated under an award.

2. How does program income affect the project budget?

Unless the sponsor specifically instructs differently, program income generated by research projects increases the project's budget (additive method) and program income generated by non-research projects lowers the portion of the budget funded by the sponsor (deductive method).

3. What can I spend program income on?

Treat program income just like it was received directly from the sponsor. Follow all the rules and regulations for money received directly from the sponsor. The only time ASU may treat it differently is when the sponsor gives us permission in writing to spend the program income on something you couldn't normally spend sponsor money on.

4. What happens when I have program income remaining at the end of the project's period of performance?

In a cost reimbursable project, which is the majority of projects, it is returned to the sponsor as unspent funds. To help prevent the need to return funds spend the program income first.

5. How is program income accounted for in Advantage?

A sponsored project program income account is created. The program income revenue is deposited into this account. The program income budget is set to equal the program income revenue generated by the project. In non-research projects (deductive method) where the program income reduces the funding from the sponsor, the sponsor's account budget is reduced by the amount of program income.

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Space Survey

1. What is the space survey? Why do I have to participate?

The space survey records information about ASU's facilities and their usage. It is important to maintain accurate space records. ASU uses the information to:

• generate reliable 7-11 reports for the Arizona Board of Regents
• negotiate favorable F&A rates for sponsored projects
• respond to space-related inquiries within ASU and externally to the federal government, state legislature, other universities, organizations, and the general public.

For more information, visit the Space Survey website. 

 

 

 

 

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 Conflict of Interest

  Call ORSPA's Compliance Office at 965-2179.

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