The Service Center has identified the following improvement initiatives to strengthen and enhance the sponsored research administration on the Main Campus and will be working with faculty and staff to achieve these goals. Additional initiatives will be listed as sponsored research at the University evolves.
Often PIs need to purchase supplies in bulk and then allocate those materials and their costs to several projects. Cost Allocation/ Distribution methods must be reasonable and must be documented and the basis for the allocation should relate to the work being performed on the projects. A 50 - 50 allocation of costs between two projects may be appropriate, but there must be an explanation in the project files to support that allocation. However, a precise assessment of factors that contribute to costs is not always feasible, nor is it expected. Reliance, therefore, is placed on estimates in which a high degree of tolerance is appropriate (OMB A-21).
For example, here are some possible allocation methods: 1) base the allocation on project headcount , 2) allocate based on numbers of experiments being performed, 3) distribute materials and costs based on square footage of lab space, 4) allocate based on the amount of some other related project costs, e.g., lab animal costs.
You may have noticed a few allocation methods that are NOT listed above. It is NOT appropriate to allocate costs solely on the basis of which project has the most money.
It is also NOT appropriate to pool costs and charge them all to one project in one month and then to another in the next- unless the materials involved are actually being used that way.
There is no "one right way" to allocate costs. The PI needs to exercise judgment, and then to document the selected method in the project files. A memo-to-file can describe how, in the PI's judgment, the benefits to the involved projects warrant that allocation of costs.
The Service Center’s goal is to have 80% of all active PIs with two or more awards to document the allocation methodology for their awards.
Effort reporting has become a major audit area of interest for our Federal Sponsors. It is important that all PIs correctly certify the effort of every member in their labs. Recent settlements paid by universities include:
Cornell – In 2005, auditors found that Cornell has paid non-research staff off of their Federal awards reached a settlement with the Federal government, in the amount of $4.4 million.
Alabama – In 2005, due to errors in certifying effort reporting on sponsored research projects, Alabama reached a settlement with the Federal government in the amount of $3.4 million.
Johns Hopkins – In 2004, due to errors in certifying faculty effort on sponsored research projects, Johns Hopkins reached a settlement with the Federal government in the amount of $2.6 million.
Northwestern – In 2004, due to errors in certifying faculty effort on sponsored research projects, Northwestern reached a settlement with the Federal government in the amount of $5.5 million.
Personnel Activity Report (PAR) Instructions
1) Only individuals who have detail knowledge of the actual amount of effort for each PAR should complete that PAR.
a. It might be helpful to have each individual certify their own time – PIs, Post-Doctoral Fellows, Graduate Students, Researchers, etc.
b. Departmental administrators will not be able to certify your time as they do not have first hand knowledge of your effort.
c. Please be aware that no matter how much or how little time you actual spent working over the last year, the total percentage of your time must equal 100%.
i. If you worked on average 90 hours a week, then 10% of your effort would equal approximately 9 hours.
ii. If you worked 30 hours a week on average, then 10% of your effort would equal 3 hours.
iii. This form only calculates percent of effort not the number of hours spent working.
2) Look at the fiscal year column, label Fisc-Yr
a. This column represents your total percentage of effort on each listed project for Fiscal Year 2006 (July 2005 to June 2006).
b. If the amount listed in this column is within 5% of what you think your actual effort on the project then the effort listed on the PAR is correct and you will not need to do anything.
c. If all of the projects that are listed are correct then you can skip Step 3.
3) If your actual effort on each individual project is 5% greater than the percentage listed in the Fisc-Yr column then you will need to modify the form.
a. To correct your effort all you will need to do is put the percentage of your actual effort in the corresponding box in the last column labeled Revised Percent.
b. Then subtract the corresponding percentage in the Fisc-Yr column from the percentage you entered as your actual effort in the Revised Percent column. Then enter this amount under Cost Share.
c. Please note in the margins if this cost share is mandatory, voluntary committed or voluntary uncommitted.
i. Mandatory Cost Sharing is where the cost sharing requirement is required by the Sponsor in order for the proposal to be funded.
ii. Voluntary Committed Cost Sharing is where there is no cost sharing requirement by the Sponsor but a cost sharing component was included in the proposal by the PI.
iii. Voluntary Uncommitted Cost Sharing is where there is no cost sharing requirement by the Sponsor and the PI did not include cost sharing in the proposal.
4) Please write your name, telephone number, and sign and date the form and return to the Service Center.
The Service Center’s goal is to have 90% of all active PIs to correctly certify their effort within the time restrictions set by SAO
.
