Grants and Contracts Administration
Technical Assistance Manual
Office of Research and Sponsored Programs
Stephen F. Austin State University
Effective: February 2005
Revised: September 2008
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Grants and Contracts Administration Office of Research and Sponsored Programs |
TABLE OF CONTENTS
Introduction to Grants and Contracts Administration at SFA - Whom do I contact for help?
ORSP Essential Services - When must I involve ORSP?
PART I - External Funding
Introduction - What policies govern sponsored projects?
Proposal Preparation - What do I need to consider?
Post-Award Administration - Responsibilities of the PI/PD
Project Closing Procedures - What to do when it's all over
PART II - Internal Funding
Grants and Contracts Office at SFA - Whom do I contact for help?
Office of Research and Sponsored Programs (ORSP)
See also About Us
ORSP is the administrative center at Stephen F. Austin State University (SFA) that provides services related to:
Office of Research and Sponsored Programs Contact Us: |
ORSP Essential Services - When must I involve ORSP?
ORSP provides a vital link between faculty and staff who develop proposals for submission and the submission process for restricted use grants, contracts, and gifts.
ORSP must be involved in the following key processes:
Grant Proposals - All grant proposals where SFA is the fiscal agent (regardless of source of funds) must be approved in advance of submission by the appropriate chair, dean, and vice-president, as well as the president. The Proposal Clearance Form (PCF). is used to route your proposal through the university for appropriate review and signatures.
- The completed form should be submitted to ORSP for routing with:
- A final budget
- A final or "final draft" of the proposal
- Required departmental and college signatures
- To ensure that all signatures can be obtained, please submit the PCF and related materials to ORSP at least three days before the submission deadline (see Proposal Deadlines).
No proposals shall be submitted without the signature of the President or his delegated authority. Only the President has the authority to make commitments for the University and its employees.
Binding Agreements - Before contracts, subcontracts, subgrants, consulting agreements, or cooperative agreements can be executed, they first must be:
- Reviewed by ORSP
- Reviewed by General Counsel (ORSP will route)
- Signed by the President (ORSP will route)
- If the contract represents the entire proposal, a Proposal Clearance Form (PCF) also must be submitted to ORSP.
The completed form should be submitted to ORSP for routing with:
- A final budget
- A final or "final draft" of the contract
- Required departmental signatures
- To ensure that there is sufficient time for legal review and to obtain the President's signature, please submit the contract (and PCF as required) to ORSP at least two weeks before the start date of the contract.
No contracts or other agreements shall be executed without the signature of the President or his delegated authority. Only the President has the authority to make commitments for the University and its employees.
See also Contracts
Project Revisions (Amendments). ORSP must review any amendment that requires sponsor approval. If you are not sure if sponsor approval is required, contact ORSP.
The following revisions are required for federally funded projects and must be reviewed by ORSP before they are submitted to the sponsoring agency:
- Amendments that significantly change a project's scope or timeline.
- Budget amendments that change the award total or affect indirect costs or matching commitments.
- Budget amendments for federal projects that exceed $100,000 and the cumulative amount of transfers among direct cost categories exceed 10% of the total budget as last approved.
PD/PIs must complete the project Revision Clearance Form and submit it to ORSP for signature.
Irrespective of whether prior approval is required for a budget change, ORSP must receive copies of any revised budgets so that they can be appropriately entered into the FRS system and coordinated with the Grants Accountant.
Budget Revision Form (for internal use)See also Recipients and Forms
Online Submissions. ORSP is the administrative unit at SFA that is approved to submit applications to government agencies using electronic or online applications (including Grants.gov, NSF Fastlane, e-Grants, the Texas Education Agency, and the Texas Higher Education Coordinating Board). All online submissions require prior approval of the President and require a Proposal Clearance Form. Some applications also may require thqat a signature page be submitted after completion of the online submission.
Contact ORSP as soon as possible if a grant is to be submitted electronically. This will help ensure that ORSP has access to the application in advance and the Principal Investigator (PI) or Project Director (PD) has registered with the sponsoring agency, if required.
Most federal projects are now submitted through Grants.gov. Individuals DO NOT register in this system for projects submitted by SFA; ORSP is already registered on behalf of SFA. On the other hand, Project Directors (PD) or Principal Investigators (PI) are required to register for the NSF FastLane system and for NIH grants. These require several levels of approval, so be sure to notify ORSP as soon as you begin proposal development using one of these online application systems.
Sometimes there are technical difficulties with Web applications, so please don't plan to have your application submitted electronically on the due date.
Request to Establish an Account. After receiving notice of award or receipt of funds, a REA Form for External Grants and Contracts must be submitted to ORSP for routing through the Controller's Office. A REA form also should be processed through ORSP for unrestricted awards or restricted cash gifts from private sources if they are to be used for research purposes. ORSP must have acopy of the award notice before the REA will be processed.
The routing process is as follows:
- REA is completed and signed by the PI/PD
- The PI/PD gives the REA to the chair for signature
- The chair gives the REA to the dean for signature
- The dean sends the form to ORSP
- ORSP reviews the form and routes it to the Controller's Office
- A copy of the completed form is returned to the PI/PD
The REA also serves as a vehicle for the PI/PD to acknowledge and accept responsibility for the programmatic managment of the grant or contract. The PI/PD receives a copy of the form once all signatures have been obtained and an account number has been assigned.
As soon as you receive a grant account number from the Controller's Office, you may begin expending funds according to the approved budget.
See also Grant Accounts and Forms
Each new grant or contract must have its own account and internal budget. (See above section for how to request an account.)
Externally funded, restricted use grant, contract, and gift account invoicing and reconciliation is managed by the Grant Accountant, Letitia Hamilton, in the Controller's Office. She is responsible for requesting payments from sponsors, reporting University matches based on information provided by the PI/PD, and preparing financial reports. In addition, the College of Forestry and Agriculture has accounting staff who assist in the invoicing process and work in coordination with the Controller's Office.
The Grant Accountant is NOT responsible for ensuring that expenditures are allowable, allocable, or reasonable. This is the direct responsibility of the PI or PD.
Resources for the PI/PD include: Allocable / Allowable Quick Guide, Federal OMB A-21 Allowable Costs
See also Grant Accounts, Allowable Costs, and Forms
For assistance with solicitation of philanthropic gifts from foundations and individuals, proposals to be submitted by the SFA Foundation, and general information on unrestricted gifts from foundations, individuals, and/or other private sources, contact University Development.
Tax-exempt Status
See also Gifts vs Grants
Grant Assistance - College and Department Contacts
Some colleges or departments have staff that serve as development officers for the college, provide grant writing assistance, and/or help manage grant budgets. They are:
Introduction - What policies govern sponsored projects?
Faculty and staff are encouraged to seek external funding for research and sponsored projects undertaken to further the mission of SFA in teaching, research and public service.
Sponsored projects enhance and expand the educational opportunities available to undergraduate and graduate students at the University, permit research, scholarly inquiry, and the development of new knowledge, and contribute to the academic achievement and stature of SFA.
The primary responsibility for the development of proposals rests with the Principal Investigator (PI) or Project Director (PD). All proposals are expected to be relevant to the interests and expertise of the PI/PD and consistent with the mission of SFA.
All grant and contract awards are made to the University; however, the PI/PD is responsible for the management, execution, and completion of the project, including submission of all required reports. When a PI/PD signs and submits a Request to Establish an Account (REA) they are accepting responsibility for the management of the award, while adhering to program, sponsor, and university guidelines, procedures, and policies.
See also Policies
Prevent grant fraud, waste, and abuse
Overview of ORSP Services
See also About Us and Services
SFA’s responsibility to the sponsoring agency is to ensure that the project is conducted and funds are administered and spent in accordance with the award, state and federal regulations and guidelines, and University policies and procedures. ORSP is the office established to facilitate these processes.
ORSP is a service department that:
What Proposals and Forms Must Be Processed Through ORSP?
See also Procedures and Gift vs Grant
If one or more of the following apply: |
Process through: |
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ORSP and Submit |
Development |
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| A specific program of work or research is proposed to, or required by, the sponsor. |
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| The sponsor requires an authorized institutional signature. |  Proposal Clearance Form Request to Establish Account |
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| The sponsor requires or expects one or more progress reports, a final report, financial reports, and/or formal accounting of how the funds were expended. | Proposal Clearance Form Request to Establish Account |
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| There are intellectual property, confidentiality and/or publication conditions associated with the receipt of funds. | Proposal Clearance Form Request to Establish Account |
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| If none of the above apply: | Process through: |
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ORSP and Submit |
Development |
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| Cash gifts designated for any type of research | Request to Establish Account* |
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| Unrestricted cash gifts | |
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| Donations of equipment and other non-cash items used in research | |
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Not sure? Contact ORSP or call ext 6606 |
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| *To ensure that ORSP completes a Current Year Award Checklist to capture all research funds for reporting purposes (accurate reporting ensures the SFA receives maximum funding from the state for research development). | ||
ORSP Areas of Assistance and Responsibility
See also Services and Staff
ORSP is a resource for assistance in developing ideas into grant proposals and contracts and for providing post-award technical assistance to help ensure a successful award outcome. ORSP functions include:
Standard Information for Proposals
| Submitting Organization | Stephen F. Austin State University |
| Address for Official Correspondence | Stephen F. Austin State University Office of Research and Sponsored Programs PO Box 13024 OR 1936 North Street OR 404 Aikman Drive Liberal Arts North, Room 421 Nacogdoches, Texas 75962 |
| Type of Organization | Public Institution of Higher Education |
| US Congressional District Texas Senatorial District Texas House of Representatives District |
1st - Louie Gohmert 3rd - Todd Staples 9th - Roy Blake, Jr. |
| Authorized University Official for all Proposals, Certifications, and Contracts | Baker Pattillo, President |
Financial Contact
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Dora Fuselier, Controller Office of the Controller |
| Principal Investigator or Project Director | Faculty Name (or investigator to serve as project contact if there are co-investigators) |
Employer ID Number (IRS EIN) DUNS Number FICE Code TEA County-District Number State Agency Number Federal Non-Profit Status |
75-6002514 07-389-4727 362400 174-504 755 Governmental entity covered under Section 170, IRS Code 1986 |
| Fringe Benefit Rate | 26% of salaries and wages (faculty and staff) 2% of wages (undergraduate students) 2% of wages plus 50% of health insurance (graduate students) (Contact ORSP for rates for additional compensation) |
Cognizant Agency for Facilities and Administrative Cost Rate (Indirect Cost Agreement, IDC) Rates to use for all federal grants and contracts (unless otherwise stated by the agency) |
Department of Health and Human Services
50% of salaries and wages* (on-campus) 18% of salaries and wages* (off-campus) *direct salaries and wages including paid absences (vacation, holiday, sick) but excluding all other fringe benefits (health, insurance, retirement, etc.) |
| Local DHHS Audit Office | DHHS Audit Agency 1301 Young Street, Room 732 Dallas, Texas 75202 Contact: Henry Williams Phone: 215.767.3261 |
Policies and Regulations Governing External Funding
See also Policies
Research and sponsored project funds awarded to and administered by the University are to conform to University policies and guidelines and those of the sponsor. Projects where the University is a subawardee are subject to applicable policies of the sponsor providing the funding, as well as whatever other terms and conditions are specified by the prime awardee.
| Related University Policies (see the University Policy Manual for a complete listing of policies) | |
| A-56 A-11.5 A-31.5 A-39 A-51 A-62 A-65 A-68 |
Grants and Contracts Administration Conflict of Interest in Sponsored Activities Misconduct in Research Research Enhancement Program Indirect Cost Recovery, Distribution and Use Human Research Subjects Protection Research Development Program Effort Reporting and Certification for Sponsored Activities |
| C-9 C-15 C-16 C-18 C-33 C-34 C-45 C-58 |
Contracting Authority |
| D-20 | Intellectual Property |
| E-9 E-56 |
Salary Supplements, Stipends and Additional Compensation Ethics |
Federal Regulations
See also Federal RegulationsPrevent grant fraud, waste, and abuse
When a sponsor provides federal funding for a project, either directly or indirectly as pass-through funds, there are specific compliance requirements. The State of Texas has adopted these requirements. Be sure to check the award document and/or check with state funding entities for any specific additional requirements.
- Statutory Requirements, which are created when laws are enacted. These requirements take precedence over all other policies and regulations related to sponsored projects.
- Office of Management and Budget Circulars (OMB) for government-wide sponsored project management:
Federal Regulations - The University and the PI/PD, in accepting an award from a sponsoring agency, assume the responsibility for the financial, technical, and administrative aspects of the award. There are five principal sets of regulations that provide guidance in the financial and programmatic management of awards to universities from federal agencies. The Office of Budget Management (OMB) circulars outline acceptance practices for institutions that accept government funds in the form of contracts and grants.
A-21 Principles for Determining Costs Applicable to Grants, Contracts, and Other Agreements with Educational Institutions (Note that A-21 applies to contracts and to subrecipients performing work under federal awards.)
A-110 Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations (Note that federal contracts are subject to Federal Acquisition Regulations rather than A-110).
A-133 Audits of States, Local Governments, and Non-Profit Organizations
EDGAR Administrative regulations for the U.S. Department of Education grants.
http://www.ed.gov/policy/fund/reg/edgarReg/edlite-part75f.html
FAR Federal Acquisition Regulations (FAR) are the primary regulations used by federal sponsors to govern contracts for supplies and services, including research services. FAR incorporates OMB Circular A-21 for the purpose of defining allowable costs. FAR is not applied to grants and cooperative agreements that are governed by OMB Circular A-110, agency grant regulations, or FDP terms and conditions. (Federal contracts typically incorporate all of the FAR clauses applicable to a given project.)
Who is Responsible for Externally Funded Projects?
See also Responsibilities
Awards from external sources (grants, contracts, and cooperative agreements) are made to the University, not the principal investigator or project director who prepared the proposal.
Therefore, the President of SFA is the only individual who can commit the University to the terms of a sponsored agreement, indicated by his signature on a proposal or a contract.
From the REA: Principal Investigator (PI)/Project Director (PD) Acceptance of Responsibility |
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Safety in Research
See also Research Safety, Select Agents, and Forms
Individuals proposing research projects which anticipate the use of carcinogenic or toxic compounds, animals, human subjects (including surveys), recombinant DNA, pathogens, or radioactive materials in research activities should contact the committee chairs listed below and/or ORSP for further information.
Protection of Human Subjects – Institutional Review Board (IRB) - The Institutional Review Board is responsible for reviewing and approving research involving the use of human subjects, including surveys. Principal Investigators proposing reseach using human subjects at any level should review related policies and are encouraged to submit the appropriate application early in the process. This includes research conducted by students.
Contact Chair: Dr. Michael Walker
Phone: 936.468.4402, irb@sfasu.edu
ORSP Contact: Angela Ford
Phone: 936.468.6606, aford@sfasu.edu
Biosafety Committee - Research involving biohazards, such as novel recombinant DNA, blood-borne pathogens, and carcinogens (including select agents) requires protocol review in compliance with NIH guidelines prior to the submission of a proposal or the start of the research.
Contact Chair: Dr. Robert Stewart
Phone: 936.468.3601, rstewart@sfasu.edu
ORSP Contact: Dr. Carrie Brown
Phone: 936.468.6606, brownch@sfasu.edu
Animal Care and Use Committee - All projects involving the use of live animals must be reviewed by the Institutional Animal Care and Use Committee (IACUC) prior to the initiation of any research. Precautions are taken to protect the user as well as the particular animal species involved. Only properly trained personnel are allowed to handle and dispose of animals. Radioactive animals receive special handling according to federal, state, and campus guidelines on radiation safety; see the section which follows on radiation safety. The use of radioactive materials must be approved prior to submission to the IACUC. Please note that most federal agencies now require that protocols using animals be reviewed and approved by the IACUC prior to submission.
Contact Chair: Dr. Tim Cherry
Phone: 936.468.3705, tcherry@sfasu.edu
ORSP Contact: Dr. Carrie Brown
Phone: 936.468.6606, brownch@sfasu.edu
Environmental Safety and Health/Radiation Committee - The University Radiation Safety Officer is responsible for ensuring the effective use of safety measures relating to radioactive materials and radiation devices, consistent with the Radiation Control Program of the Texas Department of Health, the Texas Radiation Control Act, and the Federal Radiation Control for Health and Safety Act of 1968. This Radiation Safety Officer regulates the receipt, possession, use, transfer, or acquisition of any source of ionizing or non-ionizing radiation or radiation-producing device. Compliance is required regardless of the source of funds used to support the research.
Radioactive or Radiation Producing Materials or Equipment
Contact Officer: Dr. Bea Clack
Phone: 936.468.6908, bclack@sfasu.edu
Health and Safety Policy
Emergency Management Plan Policy
Contact Officer: Jeremy Higgins
Phone: 936.468.4514, higginsjk@sfasu.edu
Hazardous Materials; Chemical Removal
Contact Officer: Dr. Wayne Boring
Phone: 936.468.3606, wboring@sfasu.edu
Sponsored Projects - A sponsored project is any externally funded research, scholarly activity, or public service that has a defined scope of work or set of objectives, which provide a basis for sponsor expectations.
Sponsored projects are supported by entities outside the University, have a defined scope or objective, and usually include reporting requirements. They result from proposals submitted by SFA and funded by an external organization, such as a federal, state, local, or foreign unit of government, a foundation, an association, or a commercial entity.
Sponsored projects such as grants, contracts, and cooperative agreements are solicited and/or accepted for purposes which are consistent with and enhance the teaching, research, and public service mission of SFA.
All proposals for support of sponsored activities must be submitted to the sponsor through ORSP. (See section on Proposal Submission)
See also Preaward
Sponsored project awards can be:
- Grants – Grants are used when the principal purpose of the award is to accomplish a specified public purpose of support or stimulation of initiatives authorized by federal or state statute. Grants are also used by state agencies, local governments, foundations, associations, corporations, and other private entities. Grants differ from gifts in that they entail reporting requirements, and differ from contracts in that they do not typically involve specific deliverables. Grant terms and conditions usually are sponsor or program regulations that are referred to but not included in the grant document itself.
- Cooperative agreements – Cooperative agreements have the same principal purpose as a grant but are chosen as the instrument of award when conduct of the work involves substantial participation by the federal sponsor.
- Contracts – Contracts are used when the principal purpose is procurement, i.e., acquisition of property or services for the direct benefit of the sponsor. Contracts entail specific deliverables, and terms and conditions are incorporated directly into the contract document. Contract Issues.
- Standard research agreements – The University has developed standard contracts and consulting agreements for commercial and other non-federal sponsors. Common contract templates (previewed by General Counsel). Additional contract information - Office of the General Counsel Web site.
- Sponsor-originated agreements – When sponsors furnish agreements to be used instead of standard agreements they must be reviewed by ORSP and approved by the General Counsel. Where necessary, ORSP will negotiate with the sponsor to reach mutually satisfactory terms and conditions for conducting the work.
- Subawards – Subawards are awarded by a pass-through entity using funds it received from a prime sponsor, rather than its own funds. Subawards are typically subject to the same terms and conditions of the prime award to the pass-through entity, plus any additional terms and conditions the pass-through entity feels it needs for the effective administration of the subaward.
- Scholarships – Scholarships are payments to students to provide financial assistance during the period of their education and training. Scholarships may be managed in a number of ways. They are considered sponsored projects and are covered under sponsored project policies if they are:
- Received as part of a sponsored project and awarded to eligible students selected by the sponsor, or
- Received as part of a sponsored project when the sponsor imposes terms and conditions for which the University is responsible for compliance, irrespective of whether the sponsor or University selects the recipient.
- Scholarship funds are classified appropriately in the accounting system (graduate, undergraduate) and awards are managed by Student Financial Aid.
Gifts are contributions made to the University for which the donor receives no direct benefit and provides the support with minimal requirements (no terms, conditions, or other obligations, no authorized signature required, no financial or programmatic reports required, and no intellectual property, confidentiality, or publication conditions).
Research gifts do not require specific deliverables but a Request to Establish an Account (REA) should be processed through ORSP to aid in accurate reporting of research funds.
Gift letters and checks should be forwarded to University Development for processing. Unrestricted gift funds are generally placed in “various donors” gift accounts.
CFDA is the acronym for the Catalog of Federal Domestic Assistance, a compendium of federally funded programs. It is noted for federally-funded projects on the Proposal Clearance Form (PCF) and is used for reporting purposes.
See the CFDA.
A project is classified as Restricted Research if:
Research and Development (R&D) means all research activities, both basic and applied, and all development activities that are supported at universities, colleges, and other non-profit institutions. “Research” is defined as a systematic study directed toward fuller scientific knowledge or understanding of the subject studied. “Development” is the systematic use of knowledge and understanding gained from research directed toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes. The term research also includes activities involving the training of individuals in research techniques where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function. (U.S. Office of Management and Budget, circular A-110, Appendix A, Subpart A.2.dd)
Note: Curriculum development projects may be considered "R&D" when the primary purpose of the project is developing and testing an instructional model through appropriate research methodologies, i.e., data collection, evaluation, dissemination, and publication.
R&D activities are properly classified as Sponsored R&D if the activity is funded (sponsored) by externally derived funds that are designated by the sponsor primarily for R&D purposes. External entities that can provide sponsored R&D funds via grants, gifts, and/or contracts (including “sponsored research agreements”) include federal, state, or local governmental agencies; private philanthropic organizations and foundations; for-profit businesses; and individuals.
Proposal Preparation – What do I need to consider?
See also Preaward
ORSP staff is available to assist in the development of proposals for external funding. Faculty and staff are encouraged to seek assistance early in the proposal development process. Because resources are limited, ORSP is unable to write grants in their entirety. Available services include:
Requests for Proposals (RFPs), Applications (RFAs) and Program Announcements (PAs)
RFPs, RFAs, and PAs are solicited proposal packages that normally include representations and certifications to be completed and executed by the University and may include proposed contract terms and conditions. Most of these types of proposals have firm deadlines applicable to their receipt by the sponsor. A copy of the entire proposal solicitation instruction package should be forwarded to ORSP when it is received by the investigator or department, along with an indication of who intends to submit a proposal under the RFP, so that appropriate internal reviews and approvals may be accomplished before specified submission deadlines.
There are two types of award based on how funds are provided by the sponsor:
Budget Preparation
See also Budget Development
Because budget preparation is a critical component of grant applications and contracts, it is encouraged that you consult with ORSP staff.
It is important that the budget section of the proposal reflect, as accurately as possible, the funding needed to carry out the proposed project and the Principal Investigator (PI) or Project Director (PD) should neither overestimate the funds required nor underestimate budgetary needs. Either of these strategies may lead to proposal rejection. A budget that accurately details the funds necessary to carry out the technical statement of work strengthens the overall proposal and increases the likelihood of funding. (A carefully prepared budget can also identify weak areas in the proposal narrative and result in improvement of the technical proposal.)
ORSP staff are experienced in preparing budgets, and encourage investigators to contact them when they have a draft of the budget. ORSP can provide expertise in completing a budget request, calculating fringe benefit and indirect cost rates, documenting subcontracts/subrecipient agreements, consultants, indirect costs, and identifying matching funds and/or cost sharing resources. ORSP also completes sponsor assurances and certifications for the President's signature, when required by the sponsor.
Standard budget template (to help translate your award budget with internal accounting codes)
The categories established for federal budgets are useful in the preparation of budgets for all types of proposals.
For federal projects, direct costs are those that can be directly attributed to the project (OMB Circular A-21). To be eligible as a direct cost, a cost must be allocable to the project, allowable under the cost principles, reasonable, and charged consistently. Categories of direct costs include:
- Salaries and wages
- Additional compensation
- Fringe benefits
- Consultants
- Equipment
- Supplies and materials
- Publication Costs
- Travel
- Subawards and Subcontracts
- Other Direct Costs
Allowable Cost Guide for federal projects (adapted from OMB A-21)
Allocable, Allowable Quick GuideIf you are uncertain or have any questions about what constitutes an allowable direct cost under your specific award, contact ORSP.
See also Direct Costs
Salaries and wages should be listed by the amount of time to be spent by each person, including faculty, administration and student assistants, who will be working on the project. Time commitments are usually shown in terms of months and a percent of full-time effort (i.e., 9 months at 25% time). Budgets should show a breakdown between summer and regular academic year for faculty.
- Sponsored activities may not result in any employees receiving compensation at a rate in excess of their authorized base salary or rate of pay.
- For multi-year projects, the budget should take into consideration any possible salary increases.
- In many cases, administrative or clerical salaries are considered an indirect cost and cannot be included in direct costs. There are exceptions for major projects where direct charging of these salaries may be appropriate. Examples are found in Exhibit C, OMB Circular A-21. Contact ORSP for more information.
Faculty and Exempt (non-classified) Staff
Normally and preferably, faculty are paid a portion of their base salary with grant funds and are granted proportional release time from teaching and other duties.
If warranted and approved as outlined below, extra effort expended during the conduct of sponsored projects (and less frequently research) may be paid additional compensation up to an amount not to exceed 25% of their base salary for work performed in addition to teaching and other duties.
Specific terms for additional compensation of faculty and staff must be specifically outlined in the grant application or contract and approved by the sponsoring agency. For specific details, see Policy E-9 - Salary Supplements, Stipends and Additional Compensation.
The Director of ORSP approves requests for additional compensation after verifying that the request meets criteria coutline in Policy E-9.
Request for Additional Compensation Services
Request for Additional Compensation PaymentExample 1: Full-time faculty on a 9 month contract, base salary of $40,000
- May earn up to $10,000 (25%) in additional compensation during the nine month period
- May earn up to $4,445 a month (proportional base rate) for each summer month not on contract
Example 2: Full-time faculty on a 10.5 month contract, base salary of $46,673
- May earn up to $11,668 (25%) in additional compensation during the ten and one-half month period
- May earn up to $4,445 a month (proportional base rate) for each summer month not on contract
Example 3: Full-time faculty on a 12 month contract, base salary of $53,340
- May earn up to $13,335 (25%) in additional compensation during the twelve month period
Example 4: Half-time faculty receiving $5,000 during the academic year
- May earn up to $5,000 in additional compensation during the academic year
Classified (non-exempt) Staff - Effort expended during the conduct of research and other sponsored projects by classified staff is compensated in accordance with compensatory or overtime payment regulations and procedures. A Request for Additional Compensation form is not used for classified employees unless it is for casual, seasonal work that must be performed outside of their regular department. In general, this would not apply to classified staff paid with grant or contract funds.
See Policy E-9.
Fringe benefits are a direct cost to a sponsored project, are clearly related to the salaries and wages to be paid, and are shown as a separate entry in the budget. The actual costs for fringe benefits are charged (billed) to the sponsored project at the time the costs are incurred; the amount charged is based on salary, selected benefit package, and other variables applicable to the individual employee. Current rates for unspecified personnel are:
- 26% of salaries and wages (faculty and staff)
- 2% of wages and 50% of health insurance (graduate students)
- 2% of wages (undergraduate students)
For specified personnel, rates are 16.23% of salaries and wages (see note below for non-TRS employees) plus the state paid portion of the selected health benefits plan (employee only, employee and spouse, or employee and family). Calculations for additional compnsation are 16.23% (see note below for non-TRS employees).
The breakdown is as follows:
Fringe Benefit Breakdown
Employee
Assistant *
Assistant *
** Non-TRS employees hired before 1996 receive 8.5%. All others receive 6.58%.Use the ORSP Fringe Benefit Calculator
See monthly rates for health insurance
Normally, consultants are paid a consulting fee plus travel expenses, if applicable. Some sponsors do not permit payments to consultants and some restrict or limit such payments and may require inclusion of travel costs in the contract fee. If in doubt as to the allowability of consultants or rates paid to consultants, refer to the sponsor's program guidelines and/or award documents, or contact ORSP for assistance.
Whenever possible, provide the following information in the proposal before it is submitted:
- identify the proposed consultant by name;
- indicate the number of days to be worked and the daily rate of pay; and
- a curriculum vitae.
In some instances, SFA employees may be used as consultants on a project and ONLY if the consultant is from a different department than the Principal Investigator or Project Director.
See Policy E-9.See also Contracts
SFA defines capital equipment as a item with a cost of $5,000 or more, that is non-consumable, independently functional, not attached to a permanent structure, and with a useful life of more than one year. Most sponsors defer to the institution’s definition of capital equipment. In most cases, capital equipment must be specifically outlined in an approved budget. Capital equipment is the property of the University and must be inventoried.
Access the University's Department Property Management Manual
Expendable Equipment (Materials) and Supplies
These are items costing less than $5,000 and include such items as expendable laboratory supplies, teaching aids, computer software, and office supplies. A reasonable amount should be budgeted for these items.
NOTE: Federal grants generally do not allow the purchase of office furniture and other general purpose equipment unless they are specifically approved in the budget. In addition, some general office supplies are considered part of indirect costs and are not allowable without clear justificaiton.
Some items costing less than $5,000 are controlled items, are the property of the University, and must be inventoried. For more information, see the university’s Department Property Management Manual.
Budget the anticipated cost of publishing the results of the research, keeping in mind that page charges may vary from journal to journal. Consider both page charges and reprint costs.
Official University business travel requires prior approval of the University and usually requires prior approval of the sponsor. Travel on grants must directly support project goals, which may include dissemination of results. Federal grants generally prohibit travel outside of the 48 contiguous United States.
If specifically approved in the project budget by the sponsor, travel to any foreign country other than Canada or Mexico requires advance written approval from the Chair of the SFA Board of Regents. The traveler must submit a travel request through the appropriate administrative channels to the President, who will forward the request to the Board Chair. To be considered for approval, foreign travel must be directly related to the University’s mission and must require a duty that cannot be performed without the travel.
For complete information regarding University travel policies and procedures, access the Travel Office Web site. Meal and lodging rates differ depending on whether the travel is in-state or out-of-state. Refer to Policy C-49, Travel for additional information.
Subawards are made by the University to other organizations that will perform a part of the scope of work for a project awarded by the sponsor to the University. Subawards may be subgrants, sub-cooperative agreements, or subcontracts, and are generally of the same type as the award to the University. Agreements to obtain goods or routine services are purchases and not subawards, and subject to all relevant University procurement policies.
Additional information on the distinction between subawards and procurement is found in OMB Circular A-133, Section 210.
The PI/PD should incorporate prospective subrecipient's work statements, budgets, administrative approvals, in the sponsor’s format if the sponsor so requires, with the University’s initial proposal to the potential sponsor. Failure to identify a subrecipient in a proposal may require sponsor approval or competitive selection before the subaward can be executed.
In some cases (for example, proposals submitted to the National science Foundation) partnering institutions that constitute subawards will be required to enter and submit their own information in an online applicaiton.
If your project involves expenses associated with a cooperative organization or a tiered agreement, those expenses should be included as a subcontract in the proposed budget. The total subcontract cost should appear as a line item in your proposal budget, and a separate budget breakdown for subcontract costs should follow the proposal budget. In addition to a detailed subcontract budget, a letter signed by the individual authorized to contractually commit the subcontracting organization should be included in the proposal. Subcontract costs should include the subcontracting organization's fringe benefit expenses.
$25,000 IDC limitation - Indirect costs (IDC) in a subcontract must be in compliance with the sponsoring agencies guidelines. Under federally sponsored research awards, the University only recovers the indirect costs on the first $25,000 of the subcontract at the university`s negotiated rate.
Subcontractors may recover indirect costs on the amount of the subcontract in excess of $25,000 at the organization's negotiated rate. If the subcontracting organization does not have a negotiated rate, no indirect for the organization should be included.
This limitation generally does not apply to training grants or other programs that require alternate IDC rate calculaitons. Be sure to carefully read the programs guidelines, and request assistance from ORSP, as needed.
See also Contracts
Consider, as appropriate, costs for copying, long-distance telephone calls, postage, reference books and materials, tuition and required fees for participating students, equipment maintenance, and contracted services. Some of these costs are considered indirect costs, so the Principal Investigator (PI) or Project Director (PD) needs to justify the need for these items in relation to the project, and it is the PI's/PD's judgment that this is the best way to spend the funds.
Indirect Costs [AKA: IDC, Facilities & Administration (F&A), Overhead Costs]
The University expects external sponsors to pay the actual costs of conducting the sponsored project, both direct and indirect.
Indirect costs (IDC) are necessary because in addition to costs that are directly related to your project, the University incurs certain costs that indirectly relate to your project. According to OMB Circular A-21, Cost Principles for Education Institutions, these indirect costs include building space, utilities, and related University services (i.e., the Office of Research and Sponsored Programs, Payroll, Purchasing, university security, departmental clerical support, and custodial support). The recovery of these costs is essential because even if not recovered, these costs don’t go away but are paid for by tuition and other unrestricted sources.
In other words, they include all those things essential to support sponsored activity which cannot be broken down and directly charged to a specific grant or contract. Indirect cost rates are determined annually from actual cost records through a detailed cost accounting procedure and are audited and approved by the federal government. These costs are charged to sponsored project by application of the facilities and administrative cost rate.
IDC must be included using SFA’s federally-negotiated rates unless the sponsor has a written policy which deviates from these rates. All deviations are subject to SFA administrative approval in advance. Sponsor guidelines limiting facilities and administrative costs must be justified on the Proposal Clearance Form (PCF).IDC is charged to sponsored projects, and the resulting revenue is placed in a campus account for distribution by campus administration based on Policy A-51, Indirect Cost Recovery, Distribution and Use . Any questions about the distribution of IDC recovery should be directed to Dr. Carrie Brown, Director of Research and Sponsored Programs.
- SFA’s current negotiated indirect cost rate for federal research projects is 50% of salaries and wages (on-campus) and 18% of salaries and wages (off-campus). Use this rate for all federal projects unless otherwise specified by the sponsor in the program announcement.
- The maximum indirect costs allowed by the sponsoring agency should be included in your budget.
- Only the Director of ORSP or his/her disignee, in consultation with the President, is authorized to negotiate alternate IDC rates. The President of the University is the only person with the authority to waive indirect costs (this is the same as entering into a cost sharing agreement on behalf of the University for indirect costs).
- Indirect costs in a subcontract must be in compliance with the sponsoring agencies guidelines. If IDC is based on total direct costs, the University recovers the indirect costs on the first $25,000 of the subcontract. Subcontractors may recover indirect costs on the amount of the subcontract in excess of $25,000 at the organization's negotiated rate. If the subcontracting organization does not have a negotiated rate, no indirect for the organization should be included.
- Including indirect costs in a budget does not negatively affect the outcome of a review.
NOTE: Any under-recovery of the indirect cost due to grantor restrictions must either be treated as cost sharing on behalf of the University or supplied from other funds. All proposals submitted on behalf of the University must include indirect costs either as a request from the grantor or as cost sharing on behalf of the University, as allowed by the sponsor.
See also Indirect Costs
Off-campus rates are generally used when the Principal Investigator (PI), Project Director (PD), or other research staff are actually conducting research away from the campus for a period of no less than one long semester or all three summer months. Costs which are incurred in the field generally qualify for the off-campus rate.
A proposed budget may include both on and off campus budget items. Prior to submitting your proposal, please contact ORSP for assistance.
Matching and Cost Sharing Commitments
If sponsor guidelines require cost sharing or matching funds (cash contribution or donation of in-kind services such as contributed time and effort by the PI/PD), they must be included in the budget and budget justification. Appropriate letters of commitment from third-party sources also must be provided.
Matching funds are normally defined as cash (e.g. a percentage of the cost of a piece of equipment), whereas cost sharing is usually in the form of contributed time and effort by the Principal Investigator, Project Director, other project or University faculty and staff, and/or community volunteers. However, these terms are frequently used interchangeably.
- Do not include cost sharing unless it is required.
- For federal projects - Only cost-share federal projects with non-federal funds and cost-share only federally-allowable costs.
- For all projects - Do not use the same funds to match more than one project.
- Matching commitments must be honored and are reported to the sponsoring agency. When a Proposal Clearance Form (PCF) is prepared, the PI/PD must specify whether the commitment is cash or in-kind and must designate an account name and number for reporting purposes.
- Matching commitments must be approved by the department chair, the college dean, the Provost and Vice President of Academic Affairs, and the President.
- All matching funds or cost sharing commitments based on the faculty member's academic time and effort must be approved in advance by the PI/PD’s department chair and dean on the Proposal Clearance Form (PCF).
If cost sharing is required, ORSP can provide suggestions as to sources of funds. Some sources of cost sharing are release time, graduate students, equipment use, and computer lab usage. Matching funds may be available for projects which significantly further the University's primary mission. The University can also coordinate matching fund solicitations and contributions on behalf of corporations or foundations if the project is funded.
Documentation for cost sharing should demonstrate that:
- It is verifiable from the recipient's records.
- It was incurred during the period of performance of the award.
- It is not included as contributions for any other project or program.
- It is necessary and reasonable for proper and efficient accomplishment of project or program objectives.
- It is allowable under the applicable cost principles.
- It was not paid by the federal government under another award, except where authorized by federal statute to be used for cost sharing or matching.
- It was provided for in the approved budget when required by the federal awarding agency .
- It was consistent with federal cost allocation principles.
Other requirements related to cost sharing include:
- Unrecovered facilities and administrative costs may be included as part of cost sharing or matching only with the prior approval of the federal awarding agency.
- Principal Investigator's or Project Director's effort, whether fully reimbursed or contributed, cannot be reduced by 25% or more without prior approval by the sponsor when the sponsor is federal.
- Cost sharing in the form of volunteer effort or contributions from third parties must be accounted for in terms of the “market value” of the effort or contribution.
- In accepting an award where the proposal indicated institutional cost sharing, the University is committing itself to formally documenting that the cost sharing was actually applied to the project. If the award level is significantly lower than the requested level, a corresponding reduction in cost sharing should be negotiated.
See also Cost-Sharing or Matching
Time and Effort Reporting
See also Effort ReportingTime and effort is required by federal (OMB Circular A-21) and state (Governor's Office, Uniform Grant Management Standards), and SFA policy A-68 (Effort Reporting and Certification for Sponsored Activities).
The federal Office of Management and Budget’s Circular A-21 requires the documentation of services charged to sponsored federal agreements. Circular A-21 requires reporting of the percentage of time each employee spent on all grants and contracts compared to total time (effort); these requirements are the same as those of the Uniform Grant Management Standards for Texas state agencies. This process is commonly known as “Time and Effort Reporting.”
The Principal Investigator (PI) or Project Director (PD) is responsible for knowing if there are any requirements for personnel time and effort reporting and for ensuring and certifying that personnel paid with grant or contract funds have performed at the level of effort as paid.
- SAMPLE FORM
- SAMPLE INSTRUCTIONS
- FAQ
- View a PowerPoint Presentation on Time and Effort
- ORSP training
Because organizations sponsoring research and sponsored programs at Stephen F. Austin State University do not directly supervise work performed, SFA is responsible for ensuring that only legitimate expenses are charged to the contracts and grants funded by these organizations.
Each contract includes guidelines for charging employee time spent working on that project. In order to comply with organizations’ funding regulations, SFA must maintain complete and accurate records of work performed by employees paid from a grant or contract. Time and effort charges to any contract must represent work done on that project only. It is inappropriate to charge time and effort from any other project for any reason whatsoever.
Effort must be reported for faculty, staff, and graduate assistants who are paid:
- Any percentage of a salary (base salary only);
- Either directly (salary) or through cost sharing (matching or contributed time); and
- From one or more federal or state grants or contracts.
Guidelines for Time and Effort Reporting
The purpose of the effort certification report is to confirm that the charge made to the payroll system “reasonably reflects” each employee’s activity. Significant deviations (+/- 5%) from payroll charges may require an adjustment to the payroll. This reporting requires the signature of the employee, Principal Investigator, Project Director, or other responsible official to confirm (certify) that the percentages allocated to each activity represent a reasonable estimate of the work performed.
The effort report should reflect how a person spent his or her total time (effort) proportional to each activity (teaching, reseach, service, and grants/contracts), which would not necessarily agree with how the person is paid. The estimated percentage of effort shown may be adjusted if it is significantly different (+/- 5%) from the actual time spent on a particular activity. The amount of effort must be greater than or equal to pay distribution on grant fund.
- Effort is based on total time, not on a 40-hour work week or percent of salary
- Effort used as cost sharing must be documented in the same fashion as if receiving salary from the grant or contract.
- Effort CANNOT exceed 100% - For example:
- If you work a total of 20 hours a week and 10 hours is spent on grant activities, effort on the grant(s) is 50%.
- If you work a total of 60 hours a week and 30 hours is spent on grant activities, effort on the grant(s) is still 50%.
Effort Notification Process:
Upon receipt of notification of a federal or state award or contract, ORSP notifies the payroll office that an effort report should be generated for the employee. Reports are generated for each employee every month and are distributed for signing either monthly (classified employees) or by semester (non-classified employees). Forms are sent to the Principal Investigator or Project Director for each employee identified in the grant or contract for processing.
Principal Investigators / Project Directors need to:
- Maintain records of actual time each employee works on each project.
- Use these records to charge time to contract budgets.
- Require that faculty and staff submit effort reports and revisions promptly at the appropriate time interval.
Persons actually working on the sponsored project or a responsible party with direct knowledge of the employees activities should:
- Prepare and sign the effort report.
- Revise and sign the effort report, when needed.
- Write and sign a full and complete explanation for revised effort reports.
Supervisors (PI/PD) should:
- Review and approve the effort report.
- Approve and sign any revisions to the effort report.
- Review and sign the written explanation for the revision.
Guidelines for Time and Effort Reporting and Certification
The report should reflect how a person spent his or her total time (effort), which would not necessarily agree with how the person is paid. The estimated percentage of time shown may be adjusted if it is significantly different (+/- 5%) from the actual time spent on a particular activity.The employee, or a responsible party with direct knowledge of the employee's activities, is responsible for signing a form for every month in the certificaiton period (monthly or semester) to affirm the accuracy of reported time and leave taken. In cases where the timesheet is prepared by someone other than the employee, if appropriate the employee should review the information.
Changes and Corrections to Time and Effort Reports
It is important to report time and effort carefully to avoid the necessity of making retroactive corrections. Retroactive changes may be warranted when it is necessary to correct clerical and data entry errors, when subsequent information is received indicating an incorrect original entry, and/or when charges applicable to a continuing project have been charged to an old account number because the new account number was not established when the expense was incurred.Retroactive changes and transfers will not be approved when sufficient reasons and explanation are not provided or when the changes or transfers violate the restrictions of an account.
When it is necessary to make corrections to time and effort reported in a previous time period, a copy of the original effort report or time sheet must be used. The incorrect information must be lined through carefully and correct information provided and initialed by the person making the change. Time and effort reported should never be corrected by adjusting time reported in a subsequent period. The revised timesheet requires the same approvals as the original timesheet.
Cost-Shared Effort
If effort is used as cost sharing, effort is essentially documented in the same fashion as above; however, an additional form is generated by ORSP and included with the effort forms and instructions. This form should be completed, signed and dated, and returned along with the signed monthly reports.
YES, it can happen in Texas!
Audit Challenges Oversight of NSF Grant in TexasThe National Science Foundation (NSF) Office of Inspector General (OIG) published an audit of Texas State Technical College, West Texas. Weaknesses reported in financial controls at the institution included:
- Criticism of salary charges because the college did not have documentation to show that money was paid for work directly related to the grant.
- The college did not maintain activity reports to document that salaries charged to the grant reflected effort expended on the grant.
- Salary was paid for work performed after the expiration of the grant period (did not request a no cost extension).
- Cost sharing related to the grant was not adequately tracked.
- A consultant was paid with grant funds without a formal agreement for services.
The OIG recommended that the institution be classified as a high-risk institution for future grants.
Representations and Certifications (Provisions and Assurances)
Required assurances, representations or certifications are usually detailed in the proposal instructions. Proposals are considered incomplete if required endorsement signatures are omitted, or if required certifications are not provided. ORSP will obtain the required signature of the President when the proposal is routed through ORSP.
For example, federal funding agencies require certification that the University is in compliance with the Drugfree Workplace Act; that the University has not used and does not intend to use federal funds for lobbying activities; and that the University is not debarred or proposed for debarment.
For electronic submissions, signed certifications may not be requested by the sponsoring agency until the project is under consideration for funding.
Subawards are made by the University to other organizations that will perform a part of the scope of work for a project awarded by the sponsor to the University. Subawards may be subgrants, sub-cooperative agreements, or subcontracts, and are generally of the same type as the award to the University. Agreements to obtain goods or routine services are purchases and not subawards, and subject to all relevant University procurement policies.
Additional information on the distinction between subawards and procurement is found in OMB Circular A-133, Section 210.
The PI/PD should incorporate prospective subrecipient's work statements, budgets, administrative approvals, in the sponsor’s format if the sponsor so requires, with the University’s initial proposal to the potential sponsor. Failure to identify a subrecipient in a proposal may require sponsor approval or competitive selection before the subaward can be executed.
In some cases (for example, proposals submitted to the National science Foundation) partnering institutions that constitute subawards will be required to enter and submit their own information in an online applicaiton.
If your project involves expenses associated with a cooperative organization or a tiered agreement, those expenses should be included as a subcontract in the proposed budget. The total subcontract cost should appear as a line item in your proposal budget, and a separate budget breakdown for subcontract costs should follow the proposal budget. In addition to a detailed subcontract budget, a letter signed by the individual authorized to contractually commit the subcontracting organization should be included in the proposal. Subcontract costs should include the subcontracting organization's fringe benefit expenses.
$25,000 IDC limitation - Indirect costs (IDC) in a subcontract must be in compliance with the sponsoring agencies guidelines. Under federally sponsorec research awards, the University only recovers the indirect costs on the first $25,000 of the subcontract at the university`s negotiated rate.
Subcontractors may recover indirect costs on the amount of the subcontract in excess of $25,000 at the organization's negotiated rate. If the subcontracting organization does not have a negotiated rate, no indirect for the organization should be included.
This limitation generally does not apply to training grants or other programs that require alternate IDC rate calculaitons. Be sure to carefully read the programs guidelines, and request assistance from ORSP, as needed.
See also Contracts