Budget Related Flashcards
Which of following agencies are responsible for negotiating fed IDC rates?
- Department of Commerce
- Department of Health and Human Services
- Department of Defense
- Department of Treasury
- Office of Naval Research
Department of Health and Human Services
Office of Naval Research
What were NSF’s cost share policy changes?
NSF revised its policy, effective January 18, 2011, in order to implement the Board’s recommendations. The major change is that, except when required in an NSF solicitation, inclusion of voluntary committed cost sharing is prohibited.
Single Audit
In the United States, the Single Audit, Subpart F of the OMB Uniform Guidance, is a rigorous, organization-wide audit or examination of an entity that expends $750,000 or more of federal assistance (commonly known as federal funds, federal grants, or federal awards) received for its operations.[1][2][3] Usually performed annually,[4] the Single Audit’s objective is to provide assurance to the US federal government as to the management and use of such funds by recipients such as states, cities, universities, non-profit organizations, and Indian Tribes. The audit is typically performed by an independent certified public accountant (CPA) and encompasses both financial and compliance components.
The Single Audits must be submitted to the Federal Audit Clearinghouse along with a data collection form, Form SF-SAC.
NIH Modular Budget
- Used for selected NIH research grant mechanisms including R01, R03, R15, and R21
- Not as detailed as the R&R budget format
- Cannot exceed $250,000 direct costs annually (if any more than this, if automatically becomes an R&R detailed budget)
- Direct costs requested must be in $25,000 modules
3 categories of procurement
Informal - no competitive bud required
Formal - sealed bids. Proposals.
Non-competitive - sole source
Formula for calculating IDC
Total allowable F&A costs for institution
DIVIDED BY
Total expenditures based on MTDC, mandatory cost-share and voluntary committed cost share
Facilities costs (F&A)
- construction and maintenance
- utilities
- radiation/chemical/biological hazards safety, training, disposal
- secure data storage, internet, telecom
- advanced lab equipment
- library facilities
What is used to determine institution’s “facilities” costs when preparing F&A rate proposal?
Institution’s space survey - distributes facilities costs equitably by function
Administrative costs (F&A)
- costs of fed, state, local regulatory compliance management of COI and research integrity
- costs of support personnel not tied directly to project
- used when the IHE receives less than $10M in federal funding per year
- salaries and wage based (hospitals)
OR - MTDC
Simplified IDC cost calculation
Methods of F&A calculation
1) Standard (long form):
for IHEs that receive > $10M in federal funding per fiscal year
2) Simplified:
May be used when IHE receives < $10M in federal funding
Salaries and wages base
Modified total direct cost base
MTDC excludes (8):
- equipment
- tuition reimbursement
- scholarships and fellowships
- capital expenditures and renovations
- rental costs
- patient care
- participant support costs
- portion of each sub I’m excess of the first $25k
A permanent rate established for a specified current or future period that is not subject to adjustment.
May be used on awards where there is reasonable assurance that the rate is not likely to exceed a rate based in the institution’s actual costs.
Normally in effect for a period of 2 to 4 years
Predetermined Rate
Becomes the negotiated permanent rate for a specified period, usually based in the institution’s fiscal year(s)
Any over- or under- recovery of actual costs are included as an adjustment to the indirect costs calculated for the next period’s rate negotiation
Fixed Rate
A temporary rate applicable to a specified period
Used when the cognizant agency does not have sufficient data to justify a predetermined or fixed rate, or when the parties cannot agree in an equitable rate.
May be adjusted by the cognizant agency as needed during the institution’s fiscal year
Provisional Rate
Established when a provisional rate is not replaced by a predetermined or fixed rate before the end of the institution’s fiscal year
final rate
Definition of Equipment
- tangible personal property, including IT systems
- useful life if more than 1 year
- per unit acquisition cost is equal to or greater than $5,000
Definition of Supplies
- tangible personal property, including computer devices
- per unit acquisition cost less than $5k
- regardless of length of useful life
Micro-purchase Threshold (FAR)
- increased from $3,500 to $10,000 (2020)
- allows for expedited purchases that do not require competitive bidding
Simplified Acquisition Threshold (FAR)
- increased from $150k to $250k (2020)
Equipment maintenance and repair costs are allowable direct costs when:
- used to keep equipment in efficient operating condition over its useful life,
- but does not appreciably extend its useful life and does not add to its permanent value
- if it does extend the life and/or add to its value, it is considered a capital expenditure
Capital expenditure for equipment:
- general purpose equipment: in allowable as direct costs except w prior written approval of sponsor
- special purpose equipment with unit costs equal to or greater than $5k: allowable as direct cost with prior written approval of sponsor
- unallowable as indirect costs
Who has title to equipment purchased in a federal award?
- for grants and cooperative agreements, title to the equipment vests in the non-fed entity but as a conditional title, unless the fed agency is specifically authorized by statute to vest title to the awardee without further obligation to the fed gov
Use of equipment… (4)
- must be used in the program or project for which it was acquired for as long as needed
- when no longer needed for the orig program or project, it may be used in other projects and activities funded by same fed agency
- it may be used for projects and activities funded by other fed agencies
- It may be used for non-fed funded projects
Disposition of Equipment (3 scenarios)
- when title is conditional then the non-fed entity must request disposition instructions from fed agency when equipment is no longer needed in the project or other activities supported by fed agency
- items w current per unit market value of $5k or less my be retained, sold or otherwise disposed w no further obligation to fed agency
- greater than $5k in value may be retained or sold. If sold, fed agency is entitled to a portion of proceeds (agency may allow awardee to deduct and retain a $500 or 10% share of proceeds (whichever is less) as a handling fee.
Types of Service Centers (3)
1) specialized service facility - large service center that provides specialized services to a select group of users; combined annual direct operating costs and internal overhead costs if $1,000,000 or more
2) recharge activities - service center w annual total operating costs if less than $100k: include specialized computer labs, testing equipment
3) service facility - all service centers that do not fall within the definition of recharge or specialized service facility
