FINANCIAL ACCOUNTING AND REPORTING CONTRACTS AND GRANTS DEPARTMENT

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1 FINANCIAL ACCOUNTING AND REPORTING CONTRACTS AND GRANTS DEPARTMENT The Contracts and Grants Department (C&G) is charged with responsibility for the fiscal administration of all contracts, grants and other sponsored agreements entered into by the University of Georgia for the conduct of research, instruction and public service. Summary of Major Accomplishments American Recovery and Reinvestment Act (ARRA) Reporting Contracts and Grants conducted multiple ARRA Question and Answer (Q&A) Sessions at the Training and Development facility for faculty and staff during the first three quarters of Fiscal Year Procedures were implemented to reconcile UGA records to agency readiness tools in order to ensure that all ARRA projects are identified, especially those awarded close to the reporting deadline. Coordination for receiving technical elements from the department and extracting financial data not previously required within the first 10 days after quarter end was achieved. Templates were successfully completed, reviewed and uploaded to FederalReporting.gov. Internal Audit reviewed the newly implemented procedures for reporting on ARRA funding, with no major findings. For the period ending June 30, 2010, there were 73 reports as prime recipients, and seven reports as subrecipients filed with FederalReporting.gov; award amounts totaled $26,350,405 and $995,647 respectively. C&G continues to monitor ARRA guidance by participating with the Federal Demonstration Partnership ARRA Listserv, the Council on Governmental Relations and other University contacts. OnBase Document Imaging and Workflow Contracts and Grants in conjunction with the Office for Sponsored Programs (OSP), began the implementation of the Onbase Document Imaging, Workflow and Repository system during FY Although the system was unable to produce the required results for C&G, OSP continued to develop the pre-award processes and completed these processes in FY The post-award awarding queue function for C&G was completed during FY Contracts and Grants and Office for Sponsored Programs (OSP) Training Graduates from the Research Administration and Management Program (RAMP), including those from OSP, conducted minute mini training sessions at the departmental level during FY The topics included Surviving Project Close-Out, Successful Cost Transfers, Effort Reporting, Submitting Proposals at UGA, Residual Balances, and No-Cost Extensions. Internal Audit of Contracts and Grants Internal Audit completed its audit of the business procedures at Contracts and Grants during FY 2010 and issued a report on September 14, Two opportunities for improvement in internal controls and procedures were identified and implemented: (1) strengthen controls over cash and check receipts; and (2) improve accounts receivable procedures. F-15

2 Summary of Fiscal Year 2011 Goals Research Administration and Infrastructure Ad Hoc Committee Report Beginning in FY 2008, the Research Administration and Infrastructure Ad Hoc Committee was formed by Provost Arnett Mace, Senior Vice President Tim Burgess and Vice President for Research David Lee. The committee was charged with recommending ways to improve research and administration efforts that foster a true and balanced culture of support for the University s growing research mission and research compliance. The committee is primarily comprised of faculty members with representation from both departmental and central administration, including Contracts and Grants. The committee was formed to provide feedback and recommendations on operational, support, training and infrastructure needs that would be necessary to create and foster a more proactive environment for research at UGA. With the assistance of Huron consultants, the report was completed in July Of the 37 recommendations identified in the Research Administration and Infrastructure Ad Hoc Committee report, nine were completed in FY 2010 and another seven were very close to completion at 80% or better. (See Exhibit 7 for detailed information.) Significant progress was made on the Sponsored Projects Administration Site (SPAS), a Web site which will provide researchers, departmental staff and anyone else interested in sponsored activities a single portal through which to access any and all information relating to research administration. This site will not only provide information on all manner of facts related to proposal preparation and submission but will also provide policies and procedures regarding post-award questions, links to applicable forms, and education tools to assist Principal Investigators and budgetary unit staff throughout the project life cycle. The completion date for SPAS is currently set for June 30, OnBase Electronic Files Contracts and Grants began processing awards electronically on July 1, 2010 and will maintain electronic files for all new awards from this day forward. A review will be made during FY2010 to consider possible expansion of the electronic files to include those awarded prior to FY Statistical Information Extramural funded awards totaled $247,538,202 during FY 2010, a 2.8% decrease from FY The year s activity was supported by 2,961 funded proposals. Exhibit 1 following this narrative summarizes sponsored account activity from the standpoint of the number of active accounts awarded and administered by Contracts and Grants during FY Activity is classified initially by function and, secondly, within function, by school or college. The number of active restricted accounts totaled 5,211 during the past fiscal year, which represents an increase of 664 accounts. The illustration below presents a comparison of sponsored project expenditure activity between the fiscal years ended June 30, 2009 and June 30, Overall expenses increased during FY 2010 by $19.5 million or 7.34% from FY An analysis of the F-16

3 information provided indicates increases in research and other sponsored expenditures by 5% and 98.83%, respectively. Instruction and extension/public service expenditures decreased by 30.75% and 5.39%, respectively. Plant fund expenditures increased by $18 million during FY 2010 or 41.03%. Sponsored Project Expenditure Activity Comparison of FY 2009 and FY 2010 FY 2009 FY 2010 Increase (Decrease) Total Percent Instruction $ 16,585, $ 11,485, (5,099,565.65) % Research Resident Instruction 108,845, ,606, MCG/UGA Partnership , Experiment Station 28,285, ,329, Marine Extension 729, , Marine Institute 481, , Vet Labs 76, , Forestry 4,731, ,109, Total Research $ 143,150, $ 150,314, ,164, % Extension/Public Service Resident Instruction 33,536, ,826, Forestry Extension 290, , Extension Service 19,883, ,825, Marine Extension 807, , Vet Labs 5,788, ,343, Total Extension/Public Service $ 60,306, $ 57,053, (3,252,985.30) -5.39% Other Sponsored 2,722, ,412, ,690, % Subtotal $ 222,763, $ 224,265, ,501, % Plant Fund 44,090, ,179, ,088, % Total $ 266,854, $ 286,445, ,590, % Exhibit 2 compares the total University collections of facilities and administrative costs (F&A) during FY 2009 and FY For Fiscal Year 2010, F&A recoveries totaled $31,394,638.08, which represented an increase of $2,587, over collections from last year. A further review of this exhibit reveals that the Research function accounted for the majority of facilities and administrative recoveries, comprising $28,385, of the total (representing 90.4% of all recoveries.) The illustration below further summarizes Exhibit 2 by comparing the facilities and administrative cost recovery variance of $2,587, between current and prior fiscal years by function and by budgetary unit. This illustration reveals increases in the instruction and research functional areas. Further analysis by budgetary unit reveals an increase in recoveries within Resident Instruction, Forestry Extension,Cooperative Extension and the Marine Institute. F-17

4 Amount of Percent Function Increase (Decrease) Change Instruction 82, % Research 2,519, % Public Service (1,198.57) -0.04% Other Sponsored (13,540.00) % Total 2,587, % Amount of Percent Budgetary Unit Increase (Decrease) Change Resident Instruction 2,676, % Experiment Station (220,337.94) -7.02% Forestry Extension 143, % Cooperative Extension 31, % Marine Institute 20, % Marine Extension (60,734.97) % Vet Labs (3,392.82) % Total 2,587, % The University of Georgia Research Foundation, Inc. receives a portion of total F&A recoveries from the University. In the illustration below, F&A amounts recovered by the University of Georgia Research Foundation, Inc. increased by $531,071 FY The facilities and administrative costs recovered by the University of Georgia Research Foundation, Inc. over the past 10 years as the research arm of the University are as follows: Year Amount Year Amount FY2001 3,238,486 FY2006 4,888,164 FY2002 3,767,747 FY2007 4,891,670 FY2003 4,403,912 FY2008 5,216,802 FY2004 4,687,237 FY2009 5,534,773 FY2005 5,166,976 FY2010 6,065,844 Exhibit 3 presents an analysis of expenditures by functional activity compared to the total sponsored project costs. The direct and facilities and administrative cost ratios are listed by function. Based on total sponsored activity expenditures, the Research category accounted for the largest share, representing 52.48% of the total overall expenses. A further breakdown of the categorical expenditures reveals that Research comprised 47.81% of the total University direct cost expenses and 90.42% of the total University facilities and administrative cost expenses. F-18

5 Proposal submission and award activity are presented in Exhibit 4. In summary, FY 2010 proposal submissions totaled $457,021,138, resulting in total awards from sponsoring agencies of $247,538,202. These numbers represent a decrease in proposal and award activity over prior year totals of $36,364,090 and $7,111,060, respectively. The following summary for FY 2009 and FY 2010 provides a comparison of the sources of funding for total awards. Total award funding increased in FY 2010 within the federal, state, other states and city/county by $22.1 million, $11.6 million, $1.4 million and $575,751 respectively. Source FY 2009 FY 2010 Federal $119,388, % $141,527, % State 26,262, % 37,889, % Other States 12,952, % 14,386, % City/County 3,424, % 4,000, % Private & Foreign 92,620, % 49,734, % Total $254,649, % $247,538, % An aged analysis of sponsored accounts receivable at June 30, 2010 is presented in Exhibit 5. Receivables are identified by the major sponsoring agencies and are divided by University and University of Georgia Research Foundation, Inc. projects. The total receivable balance for FY 2010 totaled $22,955,349 at fiscal year end. Exhibits summarizing statistical data are presented below: Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 Exhibit 5 Exhibit 6 - Sponsored Account Activity - Gross Facilities and Administrative Cost Recovery - Analysis of Sponsored Activity by Function - Summary of Research, Instruction and Public Service - Summary Aging of Restricted Accounts Receivable - Research Administration and Infrastructure Ad Hoc Committee Dashboard to Measure Improvements Organizational Chart F-19

6 EXHIBIT 1 Number of Sponsored Accounts by Function and Fund FY 2009 vs FY 2010 TOTAL INSTRUCTION RESEARCH - RESIDENT INSTRUCTION 1,948 2,290 - FORESTRY RESEARCH AG EXPERIMENT STATIONS 909 1,056 - MARINE EXTENSION MARINE INSTRUCTION ATHENS & TIFTON VET LABS 7 12 TOTAL RESEARCH 3,045 3,576 PUBLIC SERVICE - RESIDENT INSTRUCTION FORESTRY EXTENSION COOPERATIVE EXTENSION MARINE EXTENSION ATHENS & TIFTON LABS TOTAL PUBLIC SERVICE 1,309 1,344 TOTAL OTHER (INCL. PLANT FUND) GRAND TOTAL SPONSORED 4,547 5,211 RELATED COST SHARE ACCOUNTS F-20

7 Gross Facilities and Administrative Cost Recovery FY 2010 Resident Experiment Forestry Cooperative Marine Marine Vet Instruction Stations Rsch/Ext Extension Institute Extension Labs Total Instruction $185, $185, Research 24,602, ,916, , , , , $28,385, Public Service 2,234, , , , , $2,719, Other 103, $103, Total $27,126, $2,916, $691, $391, $84, $171, $12, $31,394, F-21 FY 2009 Resident Experiment Forestry Cooperative Marine Marine Vet Instruction Stations Rsch/Ext Extension Institute Extension Labs Total Instruction $103, $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $103, Research 21,964, ,136, , , , , $25,866, Public Service 2,265, , , , , $2,720, Other 117, $117, Total $24,449, $3,136, $548, $360, $64, $231, $16, $28,807, EXHIBIT 2

8 EXHIBIT 3 ANALYSIS OF SPONSORED ACTIVITY BY FUNCTION FY 2010 Total Facilities and Function Direct Cost Administrative Total Instruction 4.43% 0.59% 4.01% Research 47.81% 90.42% 52.48% Public Service 21.30% 8.66% 19.92% Other Sponsored 26.46% 0.33% 23.59% Total % % % F-22

9 SUMMARY OF RESEARCH, INSTRUCTION AND PUBLIC SERVICE PROPOSALS AND AWARDS Comparison of FY 2009 and FY 2010 RESEARCH INSTRUCTION PUBLIC SERVICE TOTAL General Experiment Stations # Amount # Amount # Amount # Amount # Amount FY 2009 Proposals 2162 $350,519, $60,020, $23,347, $59,497, $493,385, FY 2009 Awards 1355 $143,190, $38,084, $22,610, $50,763, $254,649, F-23 FY 2010 Proposals 1874 $306,960, $47,363, $36,254, $66,442, $457,021, FY 2010 Awards 1196 $141,586, $30,515, $23,968, $51,467, $247,538, EXHIBIT 4

10 UNIVERSITY OF GEORGIA CONTRACTS AND GRANTS DIVISION Summary Aging of Restricted Accounts Receivable As of 06/30/2010 Summarized Current Over Total Agency 30 to to to Days UGA: U.S. Navy & Army U.S. Dept. of Interior 10, , , U.S. Dept. of Agriculture 83, , , , , , State Agencies 1,783, ,740, , , , ,644, Other 885, ,012, , , , ,711, F-24 Subtotal $2,762, $3,027, $705, $348, $1,073, $7,916, UGARF: U.S. Navy & Army $8, $2, $64, $0.00 $5, $81, U.S. Dept. of Interior 4, , , , , , U.S. Dept. of Agriculture 60, , , , , , State Agencies 175, , , , , ,485, Other 3,530, ,008, , , ,146, ,218, Subtotal $3,779, $7,808, $847, $1,000, $1,602, $15,038, Total UGA/UGARF $6,541, $10,835, $1,553, $1,348, $2,675, $22,955, EXHIBIT 5

11 EXHIBIT 6 page 1 of 4 Research Administration and Infrastructure Ad Hoc Committee Organizational Structure Overall Percent Complete 86% # Improve service levels & increase 1 communication; alternative org'l structures 40% # Balance of responsibilities between research unit 2 & OSP, C&G 100% OSP and C&G organizational evaluation for 3 flexibility, access, & training 100% Clearly define "career paths" for staff members in 4 OSP, C&G, and research unit admininistration 100% Office-level performance & productivity metrics for 5 OSP and C&G functions and personnel 100% Formalized communications between OSP and 6 C&G, and with research admininistrators & faculty 75% # = Top Priority Recommendation Roles and Responsibilities Overall Percent Complete 91% Deepened, enhanced service role of OSP and C&G 1 supporting research staff and faculty 60% 2a C&G: Clarify roles and responsibilities for those involved in central research administration and compliance 100% 2b OSP: Clarify roles and responsibilities for those involved in central research administration and compliance 90% "Future State" matrix; clarify level of delegated authority for research administration and 3 compliance 100% 4a C&G: OSP and C&G should regularly evaluate indivdual workloads and staffing levels, re: program growth 100% 4b OSP: OSP and C&G should regularly evaluate individual workloads and staffing levels, re: program growth 90% 5a # C&G: Develop performance and productivity measures for all key staff members 100% 5b # OSP: Develop performance and productivity measures for all key staff members 70% 6a C&G: Establish "aspiration goals" for OSP and C&G staff performance and productivity 100% 6b OSP: Establish "aspiration goals" for OSP and C&G staff performance and productivity 100% # = Top Priority Recommendation F-25

12 EXHIBIT 6 page 2 of 4 Policies and Procedures Overall Percent Complete 65% Strengthen formal policies and procedures for key 1 research admin. functions supporting research 90% Continue to monitor and evaluate policies and procedures for high risk fiscal and research 2 compliance areas 80% Develop institutionally-supported "policy on 3 policies" 20% Appoint/define single, recognized owner of policies; identify central location for policies and procedures 4 60% Form standing joint faculty/staff policy development committee (connected to Training & Education 5 recommendation) 70% Develop comprehensive training and education programs supporting newly developed/issued 6 policies (see T&E) 70% # = Top Priority Recommendation Systems and Technologies Overall Percent Complete 88% Improve financial status reporting and other related 1 reports for research faculty and staff 100% # OVPR should develop strategic plan for Research 2 IT needs and continue to refine plan 100% Adopt and implement integrated proposal and compliance protocol development management 3 system 50% Include key research admin. & faculty, and EITS in technologies, software, and reporting that supports 4 research 100% # = Top Priority Recommendation F-26

13 EXHIBIT 6 page 3 of 4 Research and Fiscal Compliance Overall Percent Complete 54% 1a # Fiscal: Strengthen, deepen programmatic investments in compliance across 8 key program elements 60% 1b # Research: Strengthen, deepen programmatic investments in compliance across 8 key program elements 70% 2a Fiscal: Establish more comprehensive monitoring, quality review and quality assurance compliance functions 30% 2b Research: Establish more comprehensive monitoring, quality review and quality assurance compliance functions 70% 3a Fiscal: Strengthen compliance communication channels where information-sharing is important 50% 3b Research: Strengthen compliance communication channels where information-sharing is important 50% 4b Research: Strengthen compliance enforcement activities 50% 5b Research: Establish uniform process for following up on compliance "corrective actions" to ensure compliance reinstated 50% 6a Fiscal: Create more comprehensive, campus-wide training and education programs for compliance 60% 6b Research: Create more comprehensive, campuswide training and education programs for compliance 50% # = Top Priority Recommendation Training & Education Overall Percent Complete 62% # Increase support for a formal training and education program aimed at depart'l and central 1 research admins. 100% Develop and implement comprehensive research 2 education program for faculty 70% OSP, C&G primary responsibility for formal training process for new and existing staff; develop training 3 manuals 70% Novel approaches to T&E; support formal 4 certification programs to incentivize and reward 0% Develop comprehensive training and education programs supporting newly developed/issued 5 policies (see P&P) 70% # = Top Priority Recommendation F-27

14 EXHIBIT 6 page 4 of 4 Research Facilitation Overall Percent Complete 40% # Undertake administrative actions that facilitate 1 and support inter-disciplinary research 40% # Take additional measures to ensure comparable admin support for units not traditionally researchfunding heavy 0% 2 Develop formal "Grant Mentoring Program" for 3 junior faculty; align appropriate admin support 80% # Re-evaluate process for returning F&A funds to units; ensure transparency, equity, alignment; 4 promote research 0% # IRB improve efficiency and facilitate research in additional ways (see full report for suggestions) 5 80% # = Top Priority Recommendation F-28

15 FINANCIAL ACCOUNTING AND REPORTING CONTRACTS AND GRANTS DEPARTMENT Pamela Ray Director Crystal Rogers Fiscal Comp Officer Tammy Ebert Associate Director Tandi Dubnik Admin Associate I F-29 LaKieya Keese Compliance Manager Lynn Beard Cash/Award Manager Patsy Fullwood Billing Receivables Manager Jay McGarity Grants Acct Spec III Don Carpenter Grants Acct Spec III Brad Langford Grants Acct Spec III Cynthia Sherk Grants Acct Spec III Jackie Walsh Grants Acct Spec II Jane Magrino Grants Acct Spec I Daniel Brugh Grants Acct Spec II Ken Dover Grants Acct Spec II Sims Little Grants Acct Spec I Morgan Bennett Grants Acct Spec I Joy Hirsch Accountant Michael Myrick Accountant