Managing a Scientific Laboratory

Financial Management and Budgeting

Start-up Funds
Nichole Phillips
Director of Research Administration
Viterbi School of Engineering

Budgeting for Proposals

Sabrina Feeley
Director of Research Administration
Dornsife College of Letters, Arts and Sciences

Managing your Grant Award

Janet Stoeckert
Director of Research Administration
Keck School of Medicine
 Start-Up Funds
Getting your Lab Started

Nichole Phillips
Director of Research Administration
Viterbi School of Engineering
nicholep@usc.edu
 Start-up Package
1. Resources a university makes available for research support

2. Office and lab space

3. Housing/Moving Expenses

4. Lab equipment, computers and software

5. Technician and/or other staff support

6. Salary Support for course buyout or summer effort

7. Supplies

8. Travel
 Negotiating a Start-up Package
1. During the process of discussing an offer is when to put the dollar
values on your needs

2. Offer time is the time you have the most leverage than you will
have for years when joining a faculty

3. Be prepared - part of the job search process is

completing an assessment of your minimum
requirements to get your research up and
running
 Negotiating a Start-up Package

4. Research current salary information

5. Keep in mind only the department chair or dean can

make commitments to you

6. Be collaborative on ways to get expensive items

7. Be sure to get commitments in writing

 Hard Money vs. Soft Money
1. Hard Money refers to guaranteed funds you receive from the
university

2. Can be part of your start-up package or other discretionary

funding

3. Quasi- hard money include various types of internal funding the

university may provide to assist in jump starting your research

. Zumberge Individual Research Grant

-http://research.usc.edu/for-
investigators/funding/usc/zumberge/
 Hard Money vs. Soft Money

4. Soft Money refers the funds you receive from sponsors

5. Funding you competed for with deliverables

 Start-up Funds & Your Lab
1. All or a portion of your start-up funds may be made
available in an account for you to manage

2. Spending limits/requirements.
a. Were these addressed in your offer letter
b. Work with your department or the school regarding any
specific policy

3. Think strategically when setting up your lab

a. Start-up funds will be the basic funds available while
acquiring grant funding
b. What are the items required to launch your lab
 Staffing your lab
1. Staffing
a. Are they part of your start-up funds
b. What type of Staff do you need
Post-doc
Lab Technician
Graduate Research Assistant

2. Keep in mind
a. Time for training
b. Time for mentoring
Resources

1. http://serc.carleton.edu/NAGTWorkshops/careerprep/jobsearch/n
egotiating.html

2. http://chronicle.com/article/The-Right-Start-Up-Package-/45611/

3. http://research.usc.edu/for-investigators/funding/usc/
Budgeting for Proposals
August 22, 2013

Sabrina Feeley
Director of Research Administration
Dana and David Dornsife
College of Letters, Arts and Sciences
 BUDGET | 12

Goals

Gain an understanding of:

Identifying Funding Opportunities
Why Prepare a Budget?
Budget Elements
Budget Justification
Cost Sharing
Compliance
Submitting Your Proposal
 BUDGET | 13

Identifying Funding Opportunities

- solicitation, RFP, program announcement, BAA

On-line Information Systems:

Sponsored Programs Information Network (SPIN)
FedBizOpps.gov Federal Opportunities
Pivot Community of Science (COS)
ResearchResearch.com
Grants.gov
Sponsor Websites

Read carefully and thoroughly!

 BUDGET | 14

Why Prepare a Budget?

Definition of a Budget:

A categorical list of anticipated project

costs that represent the Principal
Investigator's best estimate of the
funds needed to support the work
described in a proposal.
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Function of a Budget
The budget estimates, as realistically as possible, the
cost of completing the objectives identified in the
proposal.
The sponsor will use the budget details to determine
whether the proposal is economically feasible and
realistic.
The budget provides a means to monitor the project's
financial activities over the life of the project.
Many sponsors (especially government agencies)
provide either a form or a format for the budget. It is
imperative to follow the agency's instructions explicitly.
 BUDGET | 16

Impacts on Budget Planning

Sponsors Budgetary Restrictions
Type of Sponsor (federal, non-federal, international)
Project Period Phases/Option Years
Task Budgets
Types of personnel appointments (faculty, research staff,
postdoc, student)
Fringe Benefit Costs
Sub Awardees and Collaborators
Location of Project (on or off campus)
Facilities and Administration Costs
 BUDGET | 17

Go through your project narrative and make a list of

everything that will have to be paid for.

People, consumables, publications, equipment,

conference travel, collaborators

Do not forget to review sponsor guidelines for any

restrictions or special guidance.
 BUDGET | 18

Budget Elements
Compensation
Salary
Fringe Benefits (Federal & Non-Federal)
Wages
Materials and Supplies
Equipment
Travel
Publication
Sub Awards or Consultants
Other Direct Costs
Facilities & Administration Costs (Indirects or Overhead)
 BUDGET | 19

Budget Justification
Explains:
why each cost is essential to performing project
how project costs were estimated
any special circumstances
what each person will contribute to project,
12 month versus 9 month faculty
lab and animal costs
equipment needs include quotes

USC Research - Current Rate Agreement - June 26, 2012

http://research.usc.edu/dcg/proposal-development/rates-
at-a-glance/
 BUDGET | 20

Budget justifications should answer the questions a

skeptical reviewer would ask.

Make a persuasive case for investing in you and your

team.

It is important to include budget justifications since they

can be essential for surviving an audit.
 BUDGET | 21

Cost Sharing
When federal or agency regulations require that the
institution share in the cost of sponsored research projects,
the institution contribution is referred to as cost-sharing.

In general, cost sharing and matching represents that portion

of project or program costs not borne by the sponsor
(generally the federal government).

Cost sharing can be voluntary or mandatory (that is, required

by means of a statute or law), and can take the form of either
cash or in-kind contributions.
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USC Policy - Cost Sharing

http://policies.usc.edu/p2admOpBus/cost-sharing.pdf

Individual school policies.

Be sure all appropriate institutional approvals are

secured prior to submission.
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Compliance
OMB Circular A-110 Uniform Administrative Requirements
for Grants and Other Agreements with Institutions of Higher
Education, Hospitals and Other Non-Profit Organizations.

Federal cost accounting standards, are a series of federal

regulations, detailed in OMB Circular A-21, which stipulate
how educational institutions administer the financial aspects of
grant management.

Costs must be reasonable, allowable, allocable

and consistent.
 BUDGET | 24

If any of the following are involved, institutional review

boards may be required:
-Human Subjects
-Human Embryonic Cells
-Animal Subjects
-Radioactive Materials
-Biohazardous Materials

Conflict of Interest
-diSClose
-HHS Required COI Training

Responsible Conduct of Research (RCR)

 BUDGET | 12

Submitting your proposal

Route proposal package for approval
Internal paperwork Proposal Approval Record (PAR)
Sponsor paperwork Have the right forms been filled
out correctly?

Research Administrators and Department of Contracts

and Grants (DCG) will assist with review and submission.

Do not wait until last minuteSubmit early!!

 BUDGET | 26

Wrap-up

Read the funding opportunity!

Prepare your budget

Does the budget reflect reasonable costs for the project?
Is the budget justification in line with the project narrative?
Are there unallowable costs in the budget?
Can you complete the scope of work on this budget?

Review and finalize all aspects of your proposal.

Submit early and wait for it to be awarded!

Managing Your Grant Award
August 22, 2013

Janet Stoeckert
Director, Research
Administration
Keck School of Medicine

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 Goals

Gain an understanding of:

Types of Grants
Award versus Spending Plan
Budget Management &
Monitoring
Award Close Out

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Congratulations!
You have a grant award!

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 Types of Grant
Awards
Grant
Transfer of money, services, or anything
of value to recipient to accomplish a
public purpose
No substantial involvement with sponsor
Cooperative Agreement
Transfer funds to recipient to accomplish
a public purpose
Substantial involvement between
sponsor and recipient

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 Types of Grant
Awards

Contract
Acquisition of property or services for
benefit or use of sponsor
Purchase Order
Fixed priced for a product or service
Other (IPA)

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 Types of Grant
Awards

Grant or Gift?

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 Grant or Gift?
Proposed work binds A line item budget
the Institution to a detailing expenditures
specific line of by activity, function.
scholarly or scientific Project period must be
inquiry
adhered to as a
Includes work condition of funding
statement or the Detailed fiscal
testing of specific
reporting is required at
hypotheses,
intervals during the
methodologies or
course of the work or
validation of particular
at the end of the
approaches
project.
There is a specific
Any unexpended funds
commitment regarding
must be returned to33
the level of personnel
Review Award Document & Spending
Profile
Scope of Work
Time table
Budget and Cost Sharing
Reporting Requirements
Compliance Requirements
Clauses

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Review Award Document & Spending
Profilereduction in
Sponsor may request
budget
Scope of work should be reduce
accordingly
Sponsor may agree to full budget but
only allocate (incrementally fund) a
portion of funding for specific time-
frame
How can budget be adjusted to
accommodate funding 35
Budget Management &
Monitoring
Spending

36
What is my grant account number?

Notification of Award via Kuali Coeus

(KC)
Notififction of Account and budget
via Kuali Financial System (KFS)
Obtain Access to Account in
Financial System

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 Budget Management &
Monitoring
Encumbrance known expenses
Personnel
Subcontracts
Large Dollar Volume Expenses
Independent Contractors
Reoccurring
Maintenance of encumbrances
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 Budget Management &
Monitoring
Review Projections
No less than quarterly
Review for abnormally high or low burn
rate of funds

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Sample Projection

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 Account Status Report (ASR)
Replace with new sample

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Financial Compliance

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 Costs Must Be . . .
Allowable - Must conform to
regulations
- Must conform to any exclusions
contained in the sponsored
agreement
- May be an appropriate institutional
expense but not
allowable on a sponsored project
Allocable - Necessary to the project
- Directly benefits the project
- NOT determined by fund availability
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 Costs Must Be . . .

Reasonable - What prudent person

would pay in like circumstances
- Necessary?
- Advance the scope of work?
- Consistent with established policies
& practices?

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 Certifying Effort
After-the-fact confirmation of effort
Demonstrates that salaries charged to sponsored projects or to cost
sharing reasonably reflects effort performed
Way for government and other sponsors to verify salary charges to
grants
Required by institution policy and OMB Circular A-21

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 Effort Certification - How do you
certify?
eCert: On-line web-based

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Charging Effort to Grants

% Effort should reasonably reflect

actual effort spent
Include cost shared effort subsidized
by Department, School, Institution
Take into account sponsors salary
cap if applicable

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How much effort can you
charge?
Faculty effort on grants should
usually not exceed 90-95%
Effort towards teaching, committee
work, preparing new grant proposals
may not be charged to grants
Exceptions are reviewed by Office of
Financial Analysis
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 Cost Transfers
Institutional
Policy
The first
step in
charging
costs is to be
certain that
the initial
charge is 49
 Cost Transfers
Sponsored Projects Accounting (SPA)
reviews and approves cost transfer
Processed within 90 days
Attach detailed justification and
supporting documentation
PI and Administrator sign off
Over 90 days
Attach detailed justification and
supporting documentation
PI, Administrator, Manager and Director
sign off
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 Grant is
Completed

Close Out of Award

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 Close Out of Award
Close outstanding encumbrances
Ensure no outstanding charges
Programmatic/Technical reports
submitted
Personnel Expirations
Notify project staff as soon as possible

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 Close Out of Award
Data Retention and Access
Provide reasonable access
Retain for 7 years after final
reporting or publication
Retain financial records 3 years
after audit resolution
Dont forget to shred!

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 Moving?
Grant Transfers

PI notifies administration of
transfer
Review sponsor requirements
Estimate balance remaining
Prepare relinquishment
statement
Final financial statement to
sponsor prior to transfer to new54
 Summary

Review your grant award with your

Department or School for terms and
conditions, scope, awarded budget,
discuss spending plan
Review budget and projections at
least quarterly
Inform your administrator if you wish
to change to make changes to
personnel effort, purchases,
subawards, or need to transfer
expenses 55
Questions?

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 Thank you!
Nichole Phillips
Viterbi School of Engineering
nicholep@usc.edu

Sabrina Feeley
Dornsife College of Letters Arts and
Sciences
slf@dornsife.usc.edu
Janet Stoeckert
Keck School of Medicine
Janet.stoeckert@usc.edu
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