Texas A&M Intern

GRANT ADMINISTRATION

GRANT DEVELOPMENT

HANDBOOK

ational University

AND

2

PREFACE

In our effort to assist faculty and staff in proposal development and grant administration, the Office of Grant Resources in collaboration ith the Office of Budget, Payroll, Grants and Contracts, Human Resources and Purchasing has compiled valuable information that will help grant seekers become aware of the g pment procedures both internal and external and help awardees with p ration. Additional information is provided regarding proposal funding b

he Grant Development and Grant Administration Handbook is a reference tool that will

M International University

(956) 326-3025 www.tamiu.edu/gradschool/grant/

w

rant develoroject administasics.

Tassist you in carrying out TAMIU’s pre-award and post-award procedures. The handbookprovides you with “how to” information on proposal development and “hints” for effectiveand efficient grant administration. Good luck and best wishes on your research and grant initiatives!

Texas A&

Office of Grant Resources

Offic acts (956) 326-2448

www.tamiu.e ntracts.shtml

e of Budget, Payroll Grants and Contr

du/adminis/payroll/grant_co

Note: P hange. Please visit the following l version of this Handbook.

www.tamiu.edu/gradschool/grant/university_procedures.shtml

rocedures set forth in this Handbook are subject to c

ink for an updated

Revised 3/06

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TABLE OF CONTENTS

Preface ....................................................................................................................................2

I. Table of Contents ...................................................................................................................3

III. General Information ..............................................................................................................4 IV. Pre-Award Information .........................................................................................................7 A. Proposal Funding Basics....................................................................................................7

B. Personnel Appointments to Grants .................................................................................18

C. Budget Preparation..........................................................................................................20

D. Grant Proposal Submission.............................................................................................28

E. Pre-Award Authorization Forms.....................................................................................30

V. Post-Award Information .......................................................................................................34

A. Grant Administration .......................................................................................................34

B. Budget Management ........................................................................................................37

C. Purchasing Procedures .....................................................................................................38

D. Property Management Systems........................................................................................39

E. Reporting Requirements ..................................................................................................41

F. Monitoring, Closeout and Records Retention..................................................................42

G. Prior Approval and Expanded Authorization ..................................................................43

H. Post Award Forms............................................................................................................44

VI. Appendices ............................................................................................................................51

A. Expanded Authorities........................................................................................................51

B. Applicable Regulations .....................................................................................................53

I. I

4

GENERAL INFORMATIO

The Office of Grant Resources (OGR), a unit within Texas A& M International Universit

nds from public and private agencies. Emphasis is placed on securing funds to achieve the

nd staff through all stages of the project -- from the initial project planning through proposal

cludes the following:

gency Liaison Conand interests.

Consultation Provproposal, and identifies funding sources.

development tips, University policies and procedures related to contracts and grants, grant term

GranDevelops and m

Proposal Development AssistanceProvApplications (RFP/RFA)propedits proposals, comdeliv

RecoMaintains copies of proposals submgran

N

y’s Office of Graduate Studies and Research (OGSR), supports faculty and staff in securing external fuUniversity’s priorities. The Office supports the contract and grant-writing activities of the faculty asubmission.

Support services provided for University faculty and staff by the Office of Grant Resources in

Atacts Federal and State sources for funding information and discussion of project priorities

ides advice on planning projects, consults with faculty and staff on content and design of the

Materials/Information Dissemination Provides information, paper-based as well as electronic, about funding opportunities, proposal

inology, grant management, and other grant-related topics.

ts Web Page aintains a Grants Web Page that disseminates contract and grant information.

ides general information on proposal writing and Request For Proposal/Request For

guidelines. Provides general descriptive information for inclusion in osals (boilerplates), meets with faculty to discuss guidelines, assists with preparing budgets,

pletes forms and assurances, obtains signatures, makes copies, coordinates ery of proposals to funding agencies, and submits proposals by mail or electronically.

rds itted by faculty and staff and examples of past successful

t proposals.

Grants Database Establishes and maintains a database of information about proposed and funded projects that will be used to benchmark the University’s progress in grant activity.

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Provides workshops on proposal preparation to faculty and staff upon request.

Workshops

Evaluation Provide information about and aid in the development of evaluation plans for inclusion incontract and grant proposals and assists in conducting the evaluation of funded projects.

The OGR is located in the Killam Library, Room 332. OFFICE OF BUDGET, PAYROLL, GRANTS AND CONTRACTS

The Office of Budget, Payroll, Grants and Contracts (BPGC) is located at the Killam Library, PGC is responsible for providing post-award support services for contracts and

udget, Payroll, Grants and Contracts include

rior to submission: reviews positions and salaries in indirect costs or overhead rates; verifies calculations,

t following notification of grant award; reviews proposal for reasonableness

ty; and identifies legal or compliance issues; and conducts

g of Grant Expenditures

t Information

Room 159. The Bgrants to faculty and staff.

Support services provided by the Office of Bthe following:

Preliminary Budget Review Examines the proposed budget for accuracy pthe proposal; fringe benefit calculations;compares current budget to prior year budgets if the grant application is being submitted for renewal, and analyzes matching requirements.

Grant Approval Budget Review Examines the budgeand completeness of program expenditures and budget in relation to the program purpose, objectives, and governing documents; identifies potential issues, risks, or items that might have a fiscal or other impact on the universiother reviews as necessary based on the RFA/RFP.

Establishment of Grant Accounts Following notification of grant award, approval of the final budget, and execution of the grant agreement by the University, the BPGC Office establishes an account for the awarded project.

MonitorinReviews purchases made for the project to insure compliance with grant guidelines and applicable cost regulations.

Database of BudgeEstablishes and maintains a database of fiscal information that will be used to monitor a project’s budget and reporting requirements.

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l Reports ject reporting

requirements.

Project FiscaWorks with the Project Director to provide fiscal reports in accordance with pro

OFFICE OF HUMAN RESOURCES

The TAMIU Office of Human Resources (HR) is responsible for monitoring personnel rt provided by HR includes the

lowing:

Budget Development Assistance

roject.

appropriate job description is developed and appropriate salary is assigned for each project position.

appointments to grants received by the University. Suppofol

Provides assistance in identifying appropriate positions and salaries for new positions; identifies appropriate salaries for existing positions included in the grant budget; and identifies solutions to meet staffing needs for the p

Personnel Review Ensures that the

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PRE-AWARD INFORMATION

A. Proposal Funding Basics

1) Funding Sources

o Federal - The funding sources at the Federal level to which proposals from TAMIU are most frequently submitted include:

ndation (NSF)

ng opportunities from these and other federal agencies are announced in the

than others. Proposal guidelines for Federal grants are generally very pecific and must be adhered to strictly. The indirect costs that can be requested vary by funding gency. In many cases, the allowable indirect cost rate that can be requested is stated in the

Request For Proposals (RFP); if it is not, it is important to contact the funding agency through the contact person listed on the RFP.

o State - The funding sources at the State level to which faculty and staff from TAMIU most frequently submits proposals are:

1. Texas Higher Education Board 2. Texas Commission for the Arts 3. Texas Infrastructure Board Fund

There are a number of publications that provide information about funding opportunities. These include opportunities from public as well as private agencies. Those available from the Office of Grants Resources include:

o Federal Assistance Monitor - An independent news service published twice monthly. This publication includes information about federal agencies, their funding priorities, the process for submitting an application, and contact information for requesting more information or submitting a proposal.

o Foundation & Corporate Grants Alert - Published monthly, this publication includes information about major foundations, their funding priorities, the process for submitting an application, and contact information for requesting more information or submitting a proposal.

1. U.S. Department of Education (USDE) 2. U.S. Department of Health – Health Resources & Services Administration (HRSA) 3. National Science Fou

In most cases, fundiFederal Register. Funding is awarded through a competitive grant process, with some programsmore highly competitivesa

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The Internet provides a w ties at the Federal and State levels, as well as thro

• Grant Advisor Plus - The Grant Advisor Plus provides full access to the powerful on-line te. Faculty and staff may visit this site for browsing, . www.grantadvisor.com

ealth of information about funding opportuniugh private foundations.

features available at their web sisearching, and downloading files Contact the Office of Grant Resources for off-campus access instructions.

• Foundation Center – Provides information on foundations, corporate giving and related sub tjec s. http://fdncenter.org/pnd/rfp/

• The Grantsmanship Center – Provides a daily update of federally announced requests for proposals. .asphttp://www.tgci.com/funding/resources

• Internet Sites of Interest

Federal Agencies o U.S. Department of Agriculture (USDA) www.usda.gov o U.S. Department of Commerce www.doc.gov o U.S. Department of Defense www.dod.gov o U.S. Department of Education www.ed.gov o U.S. Department of Energy (DOE) www.doe.gov o Environmental Protection Agency (EPA) www.epa.gov

General Service Administration (GSA) www.gsa.govo o Health and Human Services www.dhhs.gov o Health Resources and Service Administration www.hrsa.gov o U.S. Information Agency http://dosfan.lib.uic.edu/usia/

t www.hud.govo Housing and Urban Developmen w.usdoj.govo U.S. Department of Justice ww .dol.govo U.S. Department of Labor www

o National Aeronautics and Space Administration (NASA) www.nasa.gov o National Endowment for the Arts (NEA) www.nea.gov o National Endowment for the Humanities (NEH) www.neh.gov o National Institute of Standards and Technology www.nist.gov

National Oceanic and Atmospheric Administration (NOAA) www.noaa.govo o National Institutes of Health (NIH) www.nih.gov o National Science Foundation (NSF) www.nsf.gov o U.S. Department of Transportation www.dot.gov o Veterans Affairs www.va.gov

• Other Sites of Interest o Chronicle of Higher Education http://chronicle.com/ o Federal Register www.archives.gov/federal_register/ o Library of Congress www.loc.gov o Catalog of Federal Domestic Assistance www.cfda.gov/

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• Identify potential sponsors laborators/partners

• Narrow the search - Discuss project with program officers of funding source(s) • (s) - Get appropriate guidelines and application forms (if required) • C c

Stage 2

• W• P a• O i• R ie• G a• Subm

Stage 3 P

• W t • R• R a• C y unded) • G p• R

Things to low the guidelines specified in the Request for Proposal (RFP)/Request for Application (RFA). Proposals that do not meet the guidelines will not be reviewed. If the guidelines are not specific, this basic format, which is us t of Education, may fit your needs.

2) Stages in the Proposal Development

Stage 1. Conceptual Stage – (Pre-application)

• Develop an original idea • Document the need • Do a literature search • Define project goal(s) and objectives • Develop a plan of action/approach • Draft a concept paper or preliminary proposal • Research the funding sources

• Identify potential col

Select best sourcehe k deadlines

. Application (Writing) Stage

rite proposal rep re budget bta n support materials ev w, refine, rewrite proposal et pproval(s)

it proposal

. ost-application (Negotiation) Stage

ai for agency evaluation and final selection eceive official notification ele se award notice to press with agency approval arr out project (if funded) - Submit progress reports/final report (if fet eer reviews or staff comments (if not funded) esubmit and keep trying (if not funded)

remember: Read the proposal guidelines carefully. Fol

ed by the U.S. Departmen

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3) Basic Proposal Format

Proposal Components - pleted forms (SF 424 or an OM osal form) and additional material as outlined in the proposal instru The m s cooperative agreement are:

• a and representations) • an• a • a • cu ersonnel • in y the agency • a • re• appendices, as required or as permitted.

Cov

The application generally consists of com

B-approved alternative, such as the PHS 398 propctions.

o t common attributes in a proposal for a grant orcover page (which may or may not contain certifications abstract or project summary proposal narrative

ence section bibliography or proposal refert prriculum vitae of key projec

formation on other support, if requested bbudget and narrative of a budget description sources or facilities statement

er Page Most federal agencies specify a format for the cover page. Whether or not a form is provided, basic information on the cover page includes such items as:

• p• p• f• p tor/project director name and title, and address; and • spaces for signatures of the principal investigator (sometimes optional) and the

authorized institutional representative (generally mandatory).

Table of Contents

roject title; roject period; unding requested; rincipal investiga

If the o proposal and table of contents should follow h Abstract

pr ject guidelines (RFP/RFA) suggest a format, the t is format.

The a tr n of the project, its goals, and proje d oject to the particular field being studied. As a rule, the abstract is written in less technical language that the proposal narrative. Abstracts

Consequently, the abstract ust be carefully written in order to satisfy both possible end uses. As a general rule, abstracts

should not be more than one page in length. Often, an agency will dictate the length of the abstract; if so, the principal investigator must adhere to said specifications.

bs act or project summary is generally a short descriptiocte outcomes, including significance of the pr

often serve a dual purpose. First, because the abstract may be used to assign reviewers or identify the appropriate study panel, some technical terms need to be used. In addition, the abstract often is used by the funding agency for demonstration to the public, rather than persons in specialized fields that the agency may generally fund projects.m

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Narrative The guidelines will advise you on the amount of pages and format that the agency wants you to

f plete

impact on a local level and, if necessary, on a

Institut

follow when presenting the project’s information. The narrative should include the problem being addressed, the proposed activities, and the project’s intended outcomes along with a briediscussion of the objectives for the project, the applicant’s capacity and commitment to com

e project, and how the project will have an thnational level.

ional and Personnel Information Det e the appendix, but at least a few paragraphs should be incl e dix may not be read. Also keep in mind that som Budget

ail d information may be included inud d in the proposal. Keep in mind that the appene funding agencies do not allow appendices included.

For w ones, the construction of the budget is the most difficult part of the proposal. It is important to follow instructions and use all forms provided by the RFP/RFA guidelines. The principal investigator should carefully explain all budget items and state how each of the costs were derived, how the costs relate to the project

the costs associated with evaluating the project (if appropriate).

unds, be certain to include a breakdown showing these funds. Budget preparation is covered in detail in Section 4 of this Han o Cer c

ne principal investigators and many experienced

activities, and If the funding organization requires cost-sharing or matching f

db ok.

tifi ations and Assurances Forms In a t pleted such as s and obtain the necessary signatures.

ddi ion to budget forms, the guidelines may include other forms that need to be comCertifications and Assurances. Be certain to complete all form

Appendices Use appendices carefully. They are not always read, and as noted above, may not be allowed.

ery important items should be included in the proposal, not the appendix. Consult agency .

Vguidelines

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al Writing Tips4) Propos

• Start early Keep informed about funding opportunitiesidea so that when the Request for Proposal (RFP)/Request for Application (RFA) is announced, you will have a head start on developing your proposal. The period of time from the announcement of the RFA/RFP to the due date ranges from about four to six weeks. If you’re developing a proposal for a program that occurs annually, r

that will become available. Develop your project

eview the previous year’s

Follow the instructions

s

uld be single- or double-spaced, number of copies to be submitted, how to bind the color of ink to use in signing forms. Applicants who do not follow the basic

o

•

announcement, since the guidelines typically change little from year to year. Obtain copies of previously funded proposals for the program, and review them for ideas about successful strategies. Contact program officers to get additional information about the proposal guidelines. Identify members of the proposal development team, if you plan to use a team-approach in developing the proposal. Create a timetable for writing and submitting the proposal.

•

Read the Guidelines carefully and be sure to follow all the instructions! Make your proposal fitfunding requirements. Examples of instructions include page limitations, inclusion of appendices, allowable costs, whether the forms can be duplicated or replicated, whether the

roposal shopproposal, andinstructions run the risk of having their proposals rejected from the pool of eligible proposals. Gover the checklist twice and make sure each item is addressed.

Organize for clarity Follow the format included in the application. Provide all the information asked for in the instructions and in the order requested. Don’t make reviewers hunt for information, even if this means repeating information or referencing the reader to a previous section. Sections should include introductions to orient the reviewer. Include a table of contents, a clearly written abstract and strong topic sentences.

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• Make it easy to read

ake sure y e any typographical errors in your proposal. Use a lot of white space in document to break up the text to make it easier to read. Use heading, charts, and graphs to

M ou do not haveth

break up the narrative. Do not right-justify the text; it makes it difficult to read.

• Communicate clearly Include what you plan to do and why; how you will do it and why that is the best approach; who will be involved and why they are qualified; what the institution needs to accomplish the tas

hat the timetable will be; how you will know the goals have been met. Be realistic, fks;

actual and pecific! Use language anyone will understand; no abbreviations, initials or jargon. Do not

assume the reader will understand acronyms or abbreviations.

ws

• Get feedback from others Check the clarity of your writing by having friends or family who are not familiar with yourtopic read the proposal; if they understand it, it has passed the "Grandmother Test" and should beunderstandable and clear to your reviewers.

• Pay attention to the budget

udget. Do not introduce elements in the budget that have t been discu rrative. When reviewers have problems with the budget,

s to

Account for all relevant items in the bo ssed in the proposal nan

they are likely to mistrust other information in the proposal. Carefully review the Guidelinebe sure you know what costs are allowable. Stay within the funding range identified by the funding agency. Make sure your budget numbers agree and review the budget spreadsheet for rounding errors.

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Meet the deadline Plan ahead and allow sufficient time for review at all stages. It is possible that the OGR will have multiple projects with the same due date. If a proposal is late, it will not be considered. Read the guideline’s deadline information carefully. Does it say the proposal must be

elivered by or postmarked by the deadline? If it needs to be delivered by the deadline, do not count on overnight delivery getting it there on time. Allow at least two days delivery time. If the plane cannot fly, the proposal will not get there. If it needs to be postmarked by the deadline, it needs an official postmark from the U.S. Post Office. The proposal needs to be hand-delivered to the Post Office and should be mailed via certified mail to provide proof of the date of mailing.

equested to verify that the proposal has been received by e funding agency.

Sources: A Guide to Managing Federal Grants for Colleges and Universities, June 2002

d

In addition, a return receipt should be rth Always remember that the original proposal will be mailed from the Office of Grant Resources according to program guidelines.

Grants and Contracts Weekly, April 6, 1992 Program Planning and Proposal Writing. The Grantsmanship Center News. Los Angeles, CA: The Grantsmanship Center Aid for Education Report, April 14, 1998

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Glossary of Grant Terms Accessibility Allow t for which the funding agency will reimburse the grant or

ct that has been awarded to the university.

roject eriod,

of or

ble to Americans from Federal agencies. Each program is assigned a CFDA

rant purposes, it must be accurate.

Federal or State funds specified for or restricted to a specialized area. Funds that are received through submission of a proposal in response to a Request for Proposal (RFP)/Request for Application (RFA).

ed directly from the ing source, as well as those that are received from a

at are allocated to the State and, in turn, distributed by the State to grant

through a competitive grant process).

onflict Of Interest Using a vendor that is a member of your family or a personal friend. Transaction must be "arms length."

Cost Sharing

Synonymous with Matching Funds.

Consultant Individuals whose expertise and skills will add value to a project.

Contract For Services Funds that are received through a contractual agreement to provide specified services, such as training courses or an educational program. Typically, a simple proposal is prepared that includes a cost justification for the services provided.

Cover Sheet The top sheet of a grant proposal that is usually a standardized form thatincludes summary information about the proposal. This form usually includes signature lines that must be completed prior to submitting the proposal.

able Cost A coscontra

Award Letter The written notification sent by the funding agency stating that a phas been awarded, which includes the project term or contract pand the amount funded.

Budget The financial plan for operation of the project that includes estimatesthe income and expenditures associated with operating the project fan identified period of time.

Catalog Of Federal Domestic Assistance (CFDA)

Contains information about Federal grant and loan programs availa

number. When submitting proposals to Federal agencies, the CFDA number must be included, and because it is used in the audit for gidentification

Categorical Funds

Competitive Grant

Competitive grants include those that are receivprimary fundsecondary source from flow through dollars (i.e., federal dollars th

recipients

C

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Due dates for submission of proposals and grant reporting requirements. When submitting proposals it is important to note

I.D. # or Entity Number

Duns Number stem (DUNS) is a unique nine-digit code

Fiscal Year (FY) ancial operations for an

’sear.

Full Time Equivalent (FTE)

Grantor o carry out a project.

part of the expense of operations clude neral

Matching Funds h, and the amount of the match

Deadlines

whether the deadline is the due date for receipt at the agency or for postmark of the proposal. Expenses thatDirect Costs are associated with the operation of a project and that are itemized by categories, which are described by specific uses of allowable costs (e.g., salaries, fringe benefits, travel, supplies).

Federal Federal

The identifying number assigned to an organization by the Federal government. TAMIU I.D. # is 74-1761398.

Data Universal Number Syissued to institutions by Dun and Bradstreet. Many institutions have multiple DUNS numbers. In these cases, an institution would be wise to consistently use one DUNS number for all of its sponsored project activity. TAMIU DUNS # is 095100095. Refers to the 12-month period for finorganization or government. Funding periods for projects funded by an organization or government generally correspond to the funding entityfiscal y The amount of time spent in an activity or position that is calculated as a percentage of a full time position on an annual basis (e.g., a person who is hired for a 12-month period on a half-time basis is considered to be .5 FTE; a 9-month employee working fulltime is 0.75 FTE; and FTE for certificated staff is based on a 175-day year).

Grantee The organization that is the recipient and administrator of a grant. The agency, which awards the funds t

d by the University as a Indirect Cost

Costs incurrethat are not directly a part of the grant operations. Such costs in

aintaining the physical plant, library resources, and gemadministration. These costs are generally calculated as a percentage of the total direct costs of the project. Cash or "in-kind" support contributed by the grantee to carry out the project. Some programs require a matc

varies by program.

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etitive Grant

Pass Through Funds y a State or local agency for a specific

Pre-Application preliminary screening process used by organizations to identify

ribed format identified by the funding agency.

Project Program Officer

RFP/RFA (Request For Proposal or

ement by an agency that proposals or applications will be ccepted to accomplish specific goals. As a general rule, the amount of

Subcontract to support the costs ssociated with carrying out a portion of the project. Typically, it is not

ough ubmission of a budget often is necessary.

Unsolicited Proposals gencies may allow institutions to submit proposals for projects that

Non-Comp Federal or State dollars allocated on the basis of a formula. Receipt of the funds may or may not require submission of a proposal. These grants are often referred to as formula-driven grant funds. Federal funds that are received bpurpose. The state for local agency then conducts its own grant process to award the funds to other individuals, organizations, or agencies. Apotential fundable projects. Pre-applications, while shorter in length than a full proposal, generally follow a presc

The individual at the Federal or State agency who is responsible for the overall administration of the program and for monitoring the project, providing technical assistance, and ensuring that the project is carried out within the framework of the program.

Proposal An application submitted to a funding agency requesting funding for a specified period of time to carry out a specified project.

n announc

Application)

Aatime from the release or "letting" of the RFP/RFA until the due date for submitting requests for funding is six weeks, but the amount of time can vary.

unds received from a primary grant recipientFanecessary to submit a proposal to receive a subcontract, alths Aare not part of the agency’s identified programs or funding priorities.

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tments

Personnel are a key element of mo here the personnel who will be responsible for carrying out the activities of the project are identified. In

nel are currreassigned during the period of thewill be employed by TAMIU and are typically said to be "soft-money"

r the duration of

1) Personnel Guidelines – Propo

B. Personnel Appoin to Grants

st grants, and most grant proposals include a section w

some cases, the person ent employees of TAMIU whose job responsibilities will be grant. In other cases, the personnel are to be new hires that

assigned to the grant project. Employees hired on grant funds or "categorically," funded, which means that their

the grant.

sal Preparation

employment is fo

To include an individual wemployed by the Universi

ho is inty in ano

the individual’s supervisor(s), andan employee can be released from ies of the grant. Permission should be obtained in writing and early in the proposal planning process.

The fringe benefits associated with d by the grant, and not as matching funds. The current University fringe benefits cost for full-time

is 28% of the salary a

that the amount of mcosts for the individual. This applisalary is paid in whole by the grant. Typically, there are no other sources of funds to pay personnel who are hired to work under grants.

System policies and TAMIU rules

terested in participating in the grant and who is already ther position, you must obtain permission from the individual, check with Office of Human Resources. Do not assume that his/her other duties to carry out the dut

the salary of each position in the grant are to be pai

employment nd 8% for half-time employment.

oney available in the grant be sufficient to pay all the salary es to individuals who were hired under the grant and whose

It is important

( www.tamiu.edu/adminis/ohr/policy ) govern all matters loyment. Job descriptions must be developed for all positions, in determining classifications and salar

related to personnel and their empand these job descriptions are used ies.

nel Using 2) Hiring New Person Grant Funds

Your grant has been awarded and you need tosu

hire personnel. What do you do? As hiring pervisor, you have the responsibility of selecting the best-qualified candidate for vacancies,

while adhering to all applicable laws and regulations. The same hiring process that applies to regular employees at the University is used when hiring grant-funded personnel.

In general, the advertising and hiring process involves developing a job description and getting approval, advertising the vacancy, interviewing applicants, and making a selection. For guidance, you can refer to “Resources for Hiring Supervisors” for the HR Employment webpage at: www.tamiu.edu/adminis/ohr/emplopp, or you can contact the HR Employment Office for assistance.

19

s3) Current Personnel Assigned to Grant Fund

Once a grant is awarded, a Personnel/Budget Action Form must be completed for any current employee of the University to reflect the time committed to the grant. It is important to generatethe budget action form as soon as possible and to contact the Office of Budget, Payroll, Grants and Contracts in order to process the necessary paperwork and establish a grant account. 4) Time Keeping Requirements for Federally-Funded Programs To fully document all time spent on grant activities, all employees fully or partially supported by

rt Activity Report Formgrant funds, are required to complete a Time and Effo . The verification of time is required by funding agencies, and auditors are required to look for this information

e port Form.

If any questions on how to complete the Time and Effort Activity Report Form you can contact

during project audits. Completion of this information is necessary for the University to meet legal requirements. If a portion or all of the employee’s time is being used as matching funds for a grant, the timspent on the grant as a match must be documented in the Time and Effort Activity Re

The fully executed Time and Effort Activity Report Form must be returned to the Office of Budget, Payroll, Grants and Contracts at the end of each payroll period.

the Office of Grant Resources or the Office of Budget, Payroll, Grants and Contracts.

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. Budget Preparation

of the

gency from which you are requesting funds, by the number of years the project is to be funded, proposal writer, you are

rged to seek assistance when preparing your budget. The Office of Grant Resources and the

C

The budget is the plan you have for the project or for your organization, expressed in the language of dollars. For new principal investigators and many experienced ones, the preparationof the budget is the most difficult task of the proposal. Budgets vary by the requirements aand by the complexity of the proposal. Unless you are an experienceduOffice of Budget, Payroll, Grants and Contracts at TAMIU are available to provide assistance. 1) Budget Components A budget may include various components:

Not all proposals require all of these components and the level of detail will vary from agency to agency and from project to project.

2) Budget Format

• Project or program budget: The income and expenses associated with the project for

which you are seeking funding.

• Budget detail/budget narrative: A more detailed description o certain income and expense items.

• In-kind contribution budget: The value of non-cash contribution provided to the project.

Most agencies provide either a form or a format for the budget presentation. As with any other prescribed forms or formats, it is important to follow the agency’s instruction explicitly. While there are differences between and among agencies, most include the same major categories for direct costs. The direct cost categories usually include the following:

• Personnel - Salaries and Wages • Personnel - Fringe Benefits • Supplies and Materials • Travel • Equipment • Other

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3) Steps in the Budget Preparation Process To develop the budget component of a proposal

• Supplies

• Program-related travel

• Printing

d by all the programs of an organization, such as the cost of the audit, general liability insurance, the copier lease, utilities expenses, etc. Because

nt to n of these costs in the request for funding. There are several approaches

to this “recovery of indirect costs” and the guidelines of the funding agency are the most

d. Estimate donated goods and services (In-kind contributions) that will be used. Not all me

e. Estimate anticipated revenues for the project. Sometimes the proposed project may

more than one source. Included here could be individual contributions, a special event, or grants from other foundations and corporations. Each possible source of

It is useful to prepare the budget in a format that will provide all the information you need to com , as well as for setting up the budget once the project is f d Bef e ing your budget to the Payroll, Budget, Grants and Contracts Office for review and approval, be sure to check that your budget matches your proposal narrative. For example, be sure that the position titles and time allocations in your budget correspond to what you have used in the narrative.

you should follow these steps:

a. Establish the budget period. This refers to the length of time the budget covers. Determine the period of time the proposal covers and develop a budget corresponding that length of time.

b. Estimate expenses. Obtain cost estimates as necessary. Begin by estimating the direct expenses or expenses that are directly related to the project and indispensable to it. Direct expenses include the following:

• Program staff salaries and benefits

• Equipment

• Program-related rent

c. Decide whether and how to include overhead costs. Indirect costs, often called overhead, are costs that are share

special projects and programs benefit from the overhead of the agency, it is importainclude a portio

important criterion in choosing your approach.

costs of the project will have to be paid for in cash. Donated goods and volunteer tiare important to many non-profit ventures.

be funded by

revenue for the project should be estimated and included in the budget. f. Check to be sure that the budget as a whole makes sense and conveys the right message

to the funding agency.

plete the funding agency’s budget formun ed.

or submitt

22

4) Budget Categories a. Salaries and Wages: Salaries are calculated for all TAMIU personnel involved with the proearningChair, urces Office ext. 2363. Rates vary according to discipline and expyour D h these so t with University policies. To estimate the salary for faculty d based on contracted months. For example:

9-month contracted personnel

ject: administrators, faculty, technicians, clerical and students. To determine the rate of s for a replacement instructor or professional support staff, contact your Department

Dean and Human Resoerience. Stipends for graduate and undergraduate students can be determined by contacting

epartment Chair and/or Career Planning & Placement Office ext. 2260. Checking witurces will ensure that rates are consisten

an /or other personnel calculate the rate

Annual Salary/9 months = monthly rate Annual Salary/39 weeks = weekly rate

Annual Salary/39 weeks/5 days = daily rate Pay Plan calculate hourly wage in this manner:

Annual Salary divided by 2088 hours* = Hourly rate Example: $15,000.00 Annual Salary equates to

$1,250.00 Monthly or $7.19 Hourly

* Note: hours are based on FY 2006 calculations. Allincl emulti-ythe the fuse for b. FThe rates for the current year are 28% for full-time employment and 8% for part-time employment. For personnel who are to be paid by the funding agency, both salary and fringe

. Travel: Since travel costs may change from the time the proposal is submitted, it is important

for subsistence costs based on actual expenses for in-state travel. For out-f-state travel, the reimbursement rate changes from one state to other. It is important to check urrent travel rates when projecting travel costs. For more information about the out-of-state imbursement rate click on https://fmx.cpa.state.tx.us/fm/travel/out_of_state/index.php

proposals that include personnel whose salaries are to be paid by the funding agency should ud funds for salary increases. The estimated rate for salary increases may vary. For

ear grants, annual step increases, need to be included for personnel who are to be paid by funding agency. In preparing a proposal budget, contact the Human Resources Office and Of ice of Budget, Payroll, Grants and Contracts for information about the estimated rate to

step increases for each year of the grant.

ringe Benefits: Fringe Benefits should be calculated using the established TAMIU rates.

benefits should be requested from the funding agency. In other words, do not charge salaries to the funding agency and cost share the fringe benefits.

cto request the standard rate and avoid special rates in order to ensure adequate coverage of your travel costs. Also consider full costs when determining hotel or room & board expenses, especially for international travel. The University will reimburse the allowable cost (as per established State rates)ocre

23

ll as in-state lodging is also reimbursed based upon current State stablished rates. Please call the Business Office at 956-326-2149 for guidelines relating to

il

on

e sure to check the Request for Proposal (RFP)/Request for Application (RFA) guidelines to determine if equipment purchase heck whether indirect costs can be charged to equipment, wh there are restrictions for use of the equipment. Please consult with the B vendors. If your proposal includes the e. Supplies and Materials: T ware applications, laboratory, and/or studio supplies.

Other Costs: These could include the following costs:

Personal mileage as weetravel.

d. Equipment Costs: Items of equipment (as defined by the institution’s policy and in accordance with the provisions of Federal Circulars A-110 and A-21) should be listed in detaon the budget. Both Circulars A-110 and A-21 allow an institution to set their own levels for definition of equipment as long as the acquisition cost does not exceed $5,000 and that definitiis used in the construction of the institution’s current Facilities and Administrative (F&A) costs. B

s are allowable. Also be sure to cether matching funds are required, and if

Purchasing Department for guidelines related to HUpurchase of computers, check with the OIT Department for price quotes.

his should include office supplies, soft

f. Participant Cost - Some projects will involve supporting participants on the project by providistipends, travel and/or subsistence. Participants are defined as those who will participate in the project as opposed to those who plan, develop, or direct the project, i.e., teacher and/or student training personnel; guest lecturers; conference invitees. Calculating costs for participants will bebased on the current reimbursement rates of the Un

ng

iversity, the funding agency's requirements

nd/or where the activity takes place (i.e., in the U.S. or another country). a Consultants - Many funding agencies, particularly at the Federal level, have specified crates, and these should be used. If no rate is specified, use rates that are reasonable and based othe going-rate for similar type of work.

onsultant n

Service Contract – Services provided by University employees beyond normal duties are compensated using a Service Contract. PLEASE contact the Office of Budget, Payroll, Grants and Contracts for processing instructions.

Publishing Costs- These include printing, layout, mailing, graphic design costs and other coassociated with publishing or disseminating your results. Consider the costs of printing and mailing by the piece. Our Print Shop in Secretarial Services, Ext. 2354, will provide you with estimates. If you are developing a highly sophisticated report, brochure, or document, the costscan be substantial for the graphic design, layout and printing. The Office of Public Relat

sts

ions,

Marketing and Information Services, Ext. 2180, will provide you with estimates.

24

wable. the

Government. Our rate has been negotiated with the Department of Health and Human Services. The indirect cost rate covers all expenses incurred by the institution which cannot be

d/or use

ate is calculated against the TOTAL SALARIES AND WAGES portion of a project budget.

LEASE KEEP IN MIND THAT ONLY ONE OF THE RATES MAY BE USED IN

) Budget Explanation or Narrative

g. Indirect Costs: Funding sources usually indicate whether or not indirect costs are alloThe indirect cost rate for each institution is determined by prior negotiation with an agency ofFederal

directly attributable to the contract/grant (such as overhead expenses, support services anof facilities).

If the funding agency allows indirect costs, use the negotiated rate, as of August 31, 2005, the University negotiated rate is 50% for on-campus projects and 20% for off-campus projects. This r

However, a rate of 8% of TOTAL DIRECT COSTS of the project may be utilized if it is acceptable by the funding agencies.

PPREPARING THE PROPOSAL.

5 Depending on the requirements of the grant, you may need to compose a separate budget xplanation. The narrative serves to explain how you arrived at the various figures in the budget

bout step increases, mileage and dging rates are examples of costs that would be explained in the budget narrative. Be sure to

eand why particular items have been included. Information aloread the requirements in the RFA/RFP and follow them closely.

25

SAMPLE OF A NARRATIVE BUDGET YEAR ONE : 2005-2006

Federal Funds

Requested Matching Funds

Total

estimated at $________ with a _% increase each

The annual full-time salary for this position is

Administrative Assistant (100%FTE)

ummer tutors x $_____/hr. x 20 hrs/week x 4 weeks

Subtotal B. Fringe Benefits Based on a __% of salaries for full time and __% salaries on part-time. C. Travel Local Travel Project Coordinator & Staff. Based on _____ miles/mth x 12 mths @$.445/mile. Travel requested to meet w/sponsors & consultants.

$__________ $__________

$__________ $___________ $__________

$___________ $___________

_________ $___________ $___________ $___________

___

$_________ $_________

$_________ $________ $_________ $_________

A. Personnel Project Coordinator (100% FTE) The annual full-time salary for this position is

$__________

$___________

$_________

year. Counselors (2) (100% FTE)

$__________

$___________

$______

The annual full-time salary for this position is estimated at $______ with a __% increase each year. Curriculum Specialist (1) (100% FTE)

estimated at $________ with a __% increase each year.

The annual full-time salary for this position is estimated at $________ with a __% increase each year. Tutors 4 per semester x 2 semesters x $_____/hr x 20 hrs. per week x 22 weeks S4

$___________

$

SAMPLE OF A BUDGET NARRATIVE Year One 2005-06 s

equested

Federal FundR

Matching Funds

Total

C. Travel (cont’d)

Texas. Airfare $450.00, Room 3 nights iem 3 days x

=

00 MHZ ,

indows NT 4.0, @$1,600.00

l Materials aries, testing materials, papers, d other educational material

s based on $150.00/month x 12

Subtotal

Mainland travel

Project Coordinator to attend Two sponsored workshops in x $85.00/night=$255.00, Per d$36.00/day = $108.00, Taxi=$120.00. $933 x 2$1,866.00

Subtotal D. EQUIPMENT 4 Computers HP Vectra Vli Pentium III 5SFF Case 128MB, 8.4GB, 24X Slim CD ROM10/100 LAN Card, 16-bit sound Card, HP Matrox MGA G200 8Mb Video Card Floppy, keyboard &mouse, WFour 71 - 17" Color Monitor @$285.00 Four HP Laser jet printer @$300.00 Subtotal

. MATERIALS AND SUPPLIES E

ducationaEThis includes: diction

otebooks, pencils, ann(based on $45 per student x 216 students) Office Suppliemonths

$__________

__________

___________

___________

___________

___________

$ $__________ $ $___________ $ $

$

___________

$____________

_________

_________

___________

_

___________

$___________ $___________ $ $____________ $____________

$ $ $__________ $ $__________ $__________ $

26

SAMPLE OF BUDGET NARRATIVE

ear One 2005-06

ederal Funds

FRequested

Matching Funds

otalY T

F. CONTRACTUAL G. OTHERS COSTConsultants and resou

S rces

Production of materials, modules, duplication,

service ($150/month x 12 months)

rental

ities

and summer)

ntributions from partners includes lassrooms, equipment, laboratories, office space,

ased on $2,000.00/month x 12

INDIRECT COST (8%) (Total direct cost x .08)

. TOTAL PROJECT

graphic arts for modules, audiovisual materials Postage Telephone

Equipment Socio Cultural Activ Student T-shirts 2 per student $15.00 each 216 students (1TS/academic yr & 1TS/summer) Accident Insurance ($10/student x 216) Student transportation (academic year In kind cocpersonnel, conference rooms) B Subtotal H. TOTAL DIRECT COSTS I. J

$__________ $__________

__________

_________

__________

__________

_________

__________

_________

_________

_________

_________

__________

__________

_________

$__________

$__________

_________

___________

_________

_________

_________

$_________

____

__________

__________

_________

__________

__________

__________

_________

_________

_________

_________

_________

_________

$ $ $ $ $__________ $___________ $ $ $ $ $ $

$__________ $ $ $

$__________ $___________ $ $ $ $ $

$______ $ $ $ $ $ $__________ $

__________ $ $ $ $ $ $ $

27

D. Grant Proposal Submission

When submitting a proposal, be bmission established p T pply for grant funding sh t wi artmeand the Dean of their College (or appropriate Vice President) before beginning the process o t proposal. This consultat th t cess o r a grant and conducting the proposed project, if a d when funding is obtained. Most importantly, early consultation will p t wit vic osed pg approv inf ervisoplans, the entire application is placed in jeopardy.

1. PROVOST APPROVAL – The first step in requesting external eet wit /De your

idea/concept. A docu TA oposaAuthorization Form must be compl ed as a preliminary step to submitting a grant or request for external funding. Your project needs to be approved by the ha Dea and

ut the rovost’s approv l a project cannoTAM Grant Proposal Pre-Authorization form must

rded to the O nt Re pport Office of Grant Resources in the actual writing of a proposal is

bm ion of this form. To obtain a copy of the form

.edu radschool/gran rms.shtml

sure to follow the grant proposal surocedure.

hose who wish to a ould consul th their Dep nt Chair

f preparing a gran ion will smoo he entire pro f applying fon

rovide the applicanrant applicants wait until the mandatory

h valuable ad e on the prop roject. If al process to orm their sup rs of their

funding is to m h your Chair an to present project ment called “ MIU Pre-Pr l ” et

Department C ir, the College nProvost. Withosubmitted. The

P a t be IU

be forwa ffice of Gra sources. Su from the

contingent upon su issyou can visit the Office of Grant Resources web page http://www.tamiu /g t/fo

THORIZATION FORMS* – Once the proposal is fully

developed the “TAMIU Authorization ubmissProposals for External Support” needs o be completed. This form and

e original copy of th osal forwarOffice of Grant Resources for further administrative approval and submission. Support ffice esourc e

Budget, Payroll, G nts & Contract is contingent upon submission of these forms

a. TAMIU Authorization Form for Submission of Proposals

for External Support b. Cost Sharing Statement (if applicable) c. Significant Financial Interest Form (if applicable)

3. BUDGET – The Office of Budget, Payroll, Grants and Contracts must

be consulted at least ten (10) days prior to the sponsor’s deadline in order to review the proposed project budget. All projects must receive approval by this Office in order to obtain the President’s signature.

2. AU Form for S ion of t

th e final prop will then be ded to the

from the O of Grants R es and Officof ra s

.

28

4. GRANT RESOURCES – Our office can assist you in the f your proposal. We will be happy to review a proposal,

provide technical assistance to ensure guidelines are being followed, e OGR

will obtain final approval and signatures and will handle the submission of the proposal to the sponsoring agency.

6. SUBMISSION – Original proposals will be mailed from the Office of be e

and

rms are completing the forms, please

Contact Person

For questions, contact the

IRB Information

The Institutional Rev body established to protect the in research activities confaculty, employees, gradu M International community the regulations of the D Policy, and the regulatio B has the authority to review and a s in, or disapprove all research activities

volving humans that fall within its jurisdiction. (www.tamiu.edu/irb/?id=1

development o

and provide project feedback. Once a proposal is completed, th

5. FINAL APPROVAL & SIGNATURE – Once a proposal has been

approved by the Office of Budget, Payroll, Grants and Contracts it is routed to the Office of Grant Resources for a final review. Once approved the proposal will be submitted for final approval and signature.

Grant Resources according to program guidelines. Proposals willlogged into our database for System reporting. A copy of final thsubmitted proposal will be kept in the Grant Resources file,provided to each principal investigator as well as to the Office of Budget, Payroll, Grants and Contracts.

provided in PDF. If another version is needed, or assistance is required in contact our office at 326-3025 and/or 326-3026.

Office of Grant Resources.

*The Authorization Fo

iew Board (IRB) is an appropriately constituted administrativerights and welfare of human subjects or patients recruited to participate ducted under the auspices of the Texas A&M International University ate, and undergraduate students or using members of the Texas A&as subjects and regardless of the source of funding. In accordance withepartment of Health and Human Services (DHHS, i.e., the Federalns of the Food and Drug Administration (FDA), the IRpprove, require modification

in )

IRB Forms ● Protocol for Hu h http://www.tam

man Subjects in Researciu.edu/irb/pdfs/criteria_human.pdf

● Application for Research Including

httpPregnant Women as Research Subjects

://www.tamiu.edu/irb/pdfs/app_preg_women.pdf

p://www.tamiu.edu/irb/IRB_members.shtml IRB Board Members htt

29

E. Authorization rFo ms

30

31

32

33

POST-AWARD NFORMATION I

A. Grant Administration

The role of the Post-Award Administration is to assist the Principal Investigator (PI) with the financial reporting requirements of grants and contracts.

The following procedures are in place to assist with this process and ensure proper reporting of expenditures and compliance with all federal and state laws regarding the handling of grant funds.

• All requisitions pertaining to a grant will route through Budget, Payroll, Grants & Contracts Office for review and approval. Grant expenditures utilizing the University Pro-Card will be reviewed by the Office of Budget, Payroll, Grants & Contracts prior to submission for payment.

• Principal investigators are responsible for tracking grant expenditures. Supporting documentation for the previous month expenditures must be forwarded to the Office of Budget, Payroll, Grants & Contracts by the 5th of each month.

• An envelope to be used for monthly submissions will be provided by the Office of Budget, Payroll, Grants & Contracts and is to be completed in full. The envelope should include all documentation pertaining to expenditures such as ''L'' or ''R'' requisitions, copies of purchase orders, invoices, checks, etc. Copies of all correspondence (budget transfers, grant extensions, grant adjustments, expenditure reports, requests for reimbursement, etc.) prepared at the department levels must be forwarded to the Office of Budget, Payroll, Grants & Contracts.

• The Time and Effort Form and departmental requisition that is generated to pay grant funds to TAMIU employees must be submitted to the Office of Budget, Payroll, Grants & Contracts for review. Approved documents will be submitted for processing. Accounts must be monitored by the PI to ensure proper expenditure of funds. Any expenditures disallowed by the grantor will be charged to an alternate account provided by the Pl.

• Semi-annual Performance Reports shall be submitted to the appropriate College Dean and/or School Director and the Office of Budget, Payroll, Grants and Contracts by the Principal lnvestigator/Project Director. Fiscal forms to assist in reporting will be provided by the Office of Budget, Payroll, Grants and Contracts.

• Upon termination of the grant or contract, final progress reports and financial reports must be submitted to the grantor by the PI with a copy to the Office of Budget, Payroll, Grants & Contracts. Records must be kept available in accordance with System records retention schedule, for review by the authorized personnel of the granting agency.

Once the funding agency has notified the institution that a grant has been awarded, the institution must secure the necessary approval for acceptance. For the grant to be accepted by the University, notification from the funding agency must be received in writing. The recipient of the written notification varies by funding agency and program. For example, the written notification may be sent directly to the project director or to the President of the Institution.

34

Steps in the NotificationInformation about the step elow, including timelines for completion of the approval process at each step.

of Award Process s in the grant acceptance process is presented b

Steps Process Timeline

Step 1. Written notification of funding isAward

received by the University (President, Provost or PI) and forwarded to

Immediately after

Notification the Office of Grant Resources. received

Step 2.

NegAcc

The Office of Grant Resources will contact the

and Contracts, as necessary. The original award

Within 1

eipt

Award otiation and eptance

Responsible Administrator, who will conduct any necessary negotiations with the funding agency with assistance from the Office of Budget, Payroll, Grants

day of receipt

notification is forwarded to the Office of Budget, Payroll, Grants and Contracts and a copy is kept in the Office of Grant Resources files.

The Office of Budget, Payroll, Grants and Contracts: (1) verifies the match requirements; and (2) conducts other reviews as necessary based on the RFP/RFA, and required signatures are obtained for Award acceptance.

Within 2 days of rec

Step 3. ount ablishment

Upon receipt of the fully executed Award Notification, the Office of Budget, Payroll, Grants and Contracts and the PI or Project Director will meet to discuss the post-award procedures and establish the grant account before the project is initiated.

Within 2 days of receipt

AccEst

ts

The PI must contact the Comptroller’s office to obtain access to the University financial system for project account management. Upon completion of this procedure the PI or Project Director is ready to begin the project administration.

Performance Reports must be reviewed by and a final copy provided to the Office of Budget, Payroll, Granand Contracts prior to sending to the funding agency. Any changes in the scope or budget must be approved by funding agency.

35

Award Contracts and Subcontracts

Since these are legal documents, the university’s Legal Counsel must review them before gnature. Once reviewed by Legal Counsel the authorized personnel must sign the contract and

make the necessary distribution.

Usually the cover letter received with the contracts/subcontracts will provide instruction for on. Typically, requeste

to: Project yrol ts and Office of

Once the original contract is signed by the funding agency and returned to the university, the

opy is given to cts. Copieed to the Project of Gran rces.

si

distributi the original copies are mailed to funding agency as Director or Principal Investigator, Office of Budget, PaGrant Resources.

d and copies l, Granare provided

Contracts and

original c the Office of Budget, Payroll, Grants and Contra Director or Principal Investigator and to the Office

s are t Resoudistribut

36

THINGS TO REMEMBER DURING THE GRANT ADMINISTRATION 1) Managing the Grant

Once the University has been awarded the grant, it is essential that the grant is managed effectively. In accepting the grant, the University has agreed to accomplish designated tasks

erformance Reports must be reviewed by and a final copy provided to the Office of

2) Records Management

within a designated timeframe for a designated amount of money. This requires maintaining accurate and complete records, effectively managing the budget, and providing the required accountability information and reports.

PBudget, Payroll, Grants and Contracts prior to sending to the funding agency. Any changes in the scope or budget must be approved by funding agency.

A good file system is essential to effective grant management. At a minimum, each grant file should contain the following:

o A copy of the proposal and the approved budget o A copy of the Federal regulations that apply to the program o Operational budgets o Correspondence o Time documentation records o Personnel paperwork for individuals including contracts and time sheet copies o Consultant contracts, invoices, and reports o Report forms and report copies o Files related to grant activities such as client records, publicity, evaluation, etc. o Copies of all requisitions and invoices

For auditing purposes, the average length of time required for maintaining all records is five years from the closing date of the grant, or from the date a final agency audit is completed. Never discard paper source documents without first checking with the Office of Budget, Payroll, Grants and Contracts or the Education Department General Administrative Regulations (EDGAR), or the Funding Agency Regulations.

B. Budget Management

Budget Reports: The budget reports should be reviewed during each reporting period in order to check for the accuracy of expenditures and to determine unexpended funds. One method used to determine the progress of the grant is to compare the percentage of time elapsed in the grant period to the percentage of the total budget expended. If there is a significant discrepancy, a review of the budget will be necessary. Assistance from the Office of Budget, Payroll, Grants and Contracts may be obtained. Don’t be afraid to ask for help. Ignoring the problem will not help – in fact; it will make the problem worse. When managing your grant budget, it is also

37

important to monitor the line item expenditures. Most funding agencies do not allow you to verspend in a budget category by more than 10% without first obtaining authorization to

tegory to another. If you find that budget revisions need to be made, contact the Office of Budget, Payroll, Grants and Contracts for assistance.

u with the requisitions for your project purchases. Listed below are the University purchasing procedures to guide you in this process.

in FAMIS (Financial

Accounting Management Information System). FAMIS is an accounting system that gulations applicable to educational institutions, in particular to the

members of the Texas A&M University System (TAMUS).

electronically to the Purchasing Department. They should be submitted in advance to allow sufficient time for preparing and advertising bid invitations,

d permitting a normal delivery schedule.

rtment may require clarification of the specifications in order to ds. The Purchasing Department may require an additional written

or service that a user seeks to procure. It is o ust offer to be considered for an award. Specifications

ations n of the requirements for the product or service

to be purchased.

o Formal bids (over $10,000) require a minimum of 12 calendar days for advertising. Bids advertised on the Electronic Business Daily (bids over $25,000) require a minimum of 14

al is posted. A minimum of 21 calendar days is required for posting the notice.

l

otransfer funds from one ca

C. Purchasing Procedures

The Purchasing Department can assist yo

o A purchase is initiated when a department submits a requisition containing desiredspecifications and conditions of the purchase. Requisitions are created

responds to financial re

o Requisitions are routed

receiving and evaluating bids, awarding contracts, an o The Purchasing Depaobtain competitive biexplanation. o A specification is a description of a productals a description of what a bidder mare the primary means of communication between an agency and a vendor. Specificmust provide a clear and accurate descriptio

o A bidder or contract participant may provide free technical assistance to the department. However, the University is not liable for any purchase unless an official purchase order has been issued.

days if the entire bid propos

o Large purchases may not be divided into small lost purchase in order to meet the specified dollar limits (V.T.C.S, Article 601b, Section 3.08e, State Purchasing and GeneraServices Acts.)

Note: Please consult with the Purchasing Department for any updates and for guidelines regarding HUB vendors.

38

Follow these five major rules when purchasing goods and services for grant projects:

1. No purchases can be made until a grant account has been established. 2. Always refer to the purchasing procedures to insure you are following them. 3. All grant project purchases must be made before the grant term expires. 4. Adhere to the budget approved by the funding agency. For federal grants, any changes in

ategories in excess of 10% may need to be approved in advance by the funding agency. Check with the Office of Budget, Payroll, Grants and

et. all

purchases made during the grant period. For audit purposes, keep these records for five

Rep

expenditures from budget c

Contracts or the funding agency to determine the requirements for amending the budg5. Maintain all records, including requisitions, receipts, and vouchers, related to

years after completion of the grant.

orting

ding agencies require reports at specified intervals during the Fun grant period. These include financial reports, performance reports with detailed accomplishments, and evaluation reports. Be sure abo ts shorecord the due dates for submitting reports, and allow sufficient time in your work schedule to pre e Financial reports are prepared by the Office of Budget, Payroll, Grants and Contracts. Be sure to coordinate your report preparation with this office and be sure to provide them with copies of a r of B Pay reports and the ability to meet deadlines can have a direct impact on the chances for future funding.

D. Property Management System

Wh t inst ing of a eral gov institution to install a property management system, which meets certain min um requirements. The property management system establishes that property acquired wit r

to review the grant proposal at the beginning of the award period to refresh your memoryut the reporting requirements, including the timeline, type, and content of the reports. Reporuld conform to funding agency guidelines. Reporting deadlines are important. Be sure to

par the reports.

ll equired documents. Copies of Performance Reports must be submitted to the Officeudget, Payroll, Grants and Contracts.

particular attention to the reports due during the closing period of the project. The quality of

ile he acquisition of equipment and other property involves the expenditure of federal funds,itutions must also be aware of various administrative requirements related to the safeguardssets being employed or expended as part of the project activity. Accordingly, the federnment expects anim

h g ant funds are safeguarded during performance.

39

Minimum standards for the management of equipment purchased with Federal funds include the following:

used in a .

deral

l

t records must be maintained on all grant-acquired equipment and all federally owned equipment. These records include the following data elements:

federal government and costs if purchased by the recipient Information that would permit the calculation of the percentage of federal

Ultimate disposition data, including date of disposal.

being reconciled against equipment records at least once every two years. The inventory process must verify the existence, current utilization, and continued need for the equipment. Any loss, damage, or theft must be promptly investigated

event that the equipment is owned by the federal ust notify the awarding agency promptly.

isposition. • Supplies and Other Expendable Property. Items of supplies and other

expendable property are expected to be used in accordance with the terms and conditions of the grant.

• Non-competition. Equipment purchased with federal funds cannot be manner that competes unfairly with the private commercial sector

• Extended use. An institution shall use the equipment for project purposes as long as it is needed whether or not the project continues to be supported by the fegovernment. When not needed for the original project or program, equipment may be used in connection with other federally sponsored activities with a priority for those activities sponsored by the federal agency that funded the originaproject.

• Property records. Equipmen

A description of the equipment Manufacturer’s serial number, model number, federal stock number,

national stock number, or other identification number Source of the equipment including the award number Whether title vests in the recipient or the federal government Acquisition date or date received if the equipment was furnished by the

participation in the cost of the equipment Location and condition of the equipment, and date the information was

reported Unit acquisition cost

• Inventory. A physical inventory of equipment must be taken with the results

and fully documented. In thegovernment, the recipient m

• Maintenance Procedures. The property management system must provide for maintenance procedures to keep equipment in good working order.

• Disposition Procedures. There are very few cases where the government requires an institution to dispose of equipment that is no longer needed. A more common occurrence is the desire on the part of an institution to dispose of equipment. OMB Circular A-110 provides for such d

40

E. Reporting Requirements

Reporting and Administration OMB Circular ducation in dealing wit hprocedures forand identify th The federal aw hall be submitted. As noted in the OMB Circular A-110 section __.51, annual reports shall be due 90 calendar da a reporting perioanniversary da in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. Performance Reports The funding agenc ent the performance repor ief information on eac

A comparis period, the find r appropriate and the output of programs o to cost data for co of unit costs.

Reasons w not met, if appropriate. Other perti explanation of cost

overruns or high unit costs. Keep in mind t

1. The fisportiontogethe .

2. Eff s3. Grant a he due dates

in o e4. When s

those d5. Budget or to expenditures being

mad W cannot be exce ny amendm ch limits should be filed before the specified due date. Amendment requests should be issued well before the program end date in order to confirm approval of such amendments before the final report is due.

A-110 specifies the reporting requirements for institutions of higher eh t eir federal sponsors. Specifically, Section __.51 through __.53 set forth the

monitoring and reporting on the recipients’ financial and program performance e standard reporting forms.

arding agency prescribes the frequency with which the performance reports s

ys fter the grant year; quarterly or semi-annual reports shall be due 30 days after thed. The federal awarding agency may require annual reports before the te of multiple year awards

y will determine the format in which they want you to prests. Performance reports shall generally contain, for each award, brh of the following:

on of actual accomplishments with the goals and objectives established for theings of the investigator, or both. Wheneve

r projects can be readily quantified, such quantitative data should be related mputation

hy established goals were nent information including, when appropriate, analysis and

he following:

cal portion of progress and final reports should always be attached to the narrative when submitting to the granting agency. Both reports should be submitted r to reduce the possibility of the granting agency misplacing the reports

ort should be made to expend grant funds in a timely manner. pplications and mandatory reports should be processed well before t

rd r to allow for any revisions needed and for the gathering of signatures. etting-up budgets, the object codes and line-item amounts should closely match etailed in the original grant application. modifications need to be approved by the grantor pri

e. hen a program has a line item with a limit budget or a change limit thateded (i.e., line item changes cannot exceed 10% of the total program budget), aent requests to exceed su

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F. Monitoring, Closeout and Record Retention

onitoring

onitoring is the continuous collection of information by an awarding agency concerning its

onitor each

, academic eans, department heads and others to determine the status of projects administered by the

utine administrative actions completed by both the grantee nd the federal awarding agency. As stipulated in OMB Circular A-110 a recipient is expected

to swithin extensiapproved in advance of the end of the 90-day period. Gencloseou ffer according to the specific award.

ppropriate program regulations governing the award to assure that ll reporting requirements are met.

All obl th the submis ts, and wag rs that should be reswith th Record Grante recordssubmis

M Administrative rules governing federal awards require recipients to monitor each project, program, sub-award, function, or activity supported by the award. Mawardees. It is important to read carefully OMB Circular A-110 to determine the nature of the monitoring that is required on the part of the grant recipient. The requirement that the recipient mproject means that each grant award is to be monitored internally with the grantee organization.Recipients are to put in place procedures that will enable senior managementdinstitution. Closeout A closeout of a grant involves fairly roa

ubmit all final financial, programmatic and other reports, such as a property and inventions, 90 days after the completion of the project. OMB Circular A-110 provides for an on of this reporting deadline, but such an extension must be requested in writing and

erally, closeout requirements are identical across federal agencies but the specific type of t procedures required will di

It is important to consult the aa

igations must be met within the 90 days after the end of the period to correspond wision of the final financial reports. (Invoices from vendors, payments to consultan

e payments to staff involved in preparing final documents are all matteolved by the 90-day deadline. Transfers of cost appropriate to the award also must be made

e same 90-day period).

Retention

es are legally required to retain all financial records, supporting documentation, statistical and all other records pertinent to an award for a minimum of three years after the sion of all final reports. Records must be available for any subsequent audits.

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G. Prior Approval and Expanded Authorities

Several provisions of both the administrative and cost principles require the grantee to obtain rior approval from an awarding agency before making certain changes during the award period.

regarding these items. hese waive approvals are often referred to as the “expanded authorities

pFederal agencies have the right but are not required, to waive certain cost-related and administrative approvals and permit an institution to make decisionsT ”. (See Circular A-110

nderstanding the expanded authorities and prior approval requirements of grants may increase

. Fixed charges, such as rent, should be fully recovered each year. If budgets are not adequate the fixed charges, variable budget categories should be adjusted to provide sufficient

nding or alternate resources should be sought.

e

. All planning related to budgeting and finding in-kind match sources for a grant should be

. Expenditures, such as travel, conference fees, etc., should relate to the dates covered by the

. Expenditures used for matching are subject to the same allowability and restrictions as grant

and Circular A-21 in the Appendix Section of this Handbook). Uflexibility for the institution and lessen the administrative burden on the Principal Investigator. Expenditures 1. All direct costs of the grant should be recovered to the fullest extent possible. 2to recoverfu 3. Equipment purchased with grant funds can only be used for grant activities. 5. In-kind matching for one program should not be used to match any other program. Thproject director is responsible for documenting the in-kind match used in the project. 6discussed with and approved by the University administration. 7grant. No expenditures should be incurred before or after the grant period. 8funds. 9. The use of Program Income for expenditures is generally subject to the same terms and conditions as grant funds.

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44

45

46

47

48

49

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APPENDICES

405. Expanded Authorities Revised OMB Circular A--110, published in the Federal Register of November 29, 1993, permits granting agencies to waive certain "prior approval" restrictions and expand the post-award authority of grantee institutions to: (1) incur pre-award costs, (2) extend an assistance program, or (3) carry forward un-obligated balances, unless specifically required by a Federal agency. A number of federal agencies have implemented these revisions. A list of these agencies appears below, along with the text of subpart C ("Post Award Requirements/Financial and Program Management), section .25 ("Revision of Budget and Program Plans"), of revised OMB Circular A-110, which details these expanded authorities. In addition, one of the expanded authorities under the Federal Demonstration Partnership (FDP) involved the ability to transfer costs among related grants. This is now codified in OMB Circular A-21 under subsection d, section C.4 ("Allocation and documentation standard"), which was added to the revised A-21 (dated July 26, 1993). The relevant portion of this subsection appears below. - February 1996

OMB Circular A-110 Subpart C: Post Award Requirements--Financial and Program Management .25 Revision of Budget and Program Plans (e) Except for requirements listed in paragraphs (c)(1) and (c)(4) of this section, Federal awarding agencies are authorized, at their option, to waive cost-related and administrative prior written approvals required by this Circular and OMB Circulars A-21 and A-122. Such waivers may include authorizing recipients to do any one or more of the following. (1) Incur pre-award costs 90 calendar days prior to award or more than 90 calendar days with the prior approval of the Federal awarding agency. All pre-award costs are incurred at the recipient's risk (i.e., the Federal awarding agency is under no obligation to reimburse such costs if for any reason the recipient does not receive an award or if the award is less than anticipated and inadequate to cover such costs). (2) Initiate a one-time extension of the expiration date of the award of up to 12 months unless one or more of the following conditions apply. For one-time extensions, the recipient must notify the Federal-awarding agency in writing with the supporting reasons and revised expiration date at least 10 days before the expiration date specified in the award. This one-time extension may not be exercised merely for the purpose of using unobligated balances. (i) The terms and conditions of award prohibit the extension. (ii) The extension requires additional Federal funds. (iii) The extension involves any change in the approved objectives or scope of the project. (3) Carry forward unobligated balances to subsequent funding periods. (4) For awards that support research, unless the Federal awarding agency provides otherwise in the award or in the agency's regulations, the prior approval requirements described in paragraph (e) are automatically waived (i.e., recipients need not obtain such prior approvals) unless one of the conditions included in paragraph (e)(2) applies.

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OMB Circular A-21 (added to revised A-21 on July 26, 1993)

. "Allocation and documentation standard"

to ties

ithstanding subsection C.4.b., the costs may be allocated or transferred to benefited

rojects on any reasonable basis, consistent with d.(1) and (2). [Note: see below for subsection

ents in order to meet deficiencies caused

entation standard" (1) Cost principles. The recipient institution is responsible for ensuring that costs charged to a

allowable, allocable, and reasonable under these cost principles. 2) Internal Controls. The institution's financial management system shall ensure that no one

Section C.4 "Allocable Costs" d(3) Direct Cost Allocation Principles. If a cost benefits two or more projects or activities inproportions that can be determined without undue effort or cost, the cost should be allocated the projects based on the proportional benefit. If a cost benefits two or more projects or activiin proportions that cannot be determined because of the interrelationship of the work involved,then, notwpC.4.b. and d.(1) and (2).] Section C.4 "Allocable Costs" b. Any costs allocable to a particular sponsored agreement under the standards provided in this Circular may not be shifted to other sponsored agreemby overruns or other fund considerations, to avoid restrictions imposed by law or by terms of the sponsored agreement, or for other reasons of convenience. Section C.4 "Allocable Costs" d. "Allocation and docum

sponsored agreement are(person has complete control over all aspects of a financial transaction.

Federal Agencies That Have Implemented OMB Circular A-110 Corporation for National and Community Service Department of Agriculture Department of Education Department of Energy Department of Health and Human Services (HHS) Department of Housing and Urban Development (HUD) Department of Justice Department of Labor Department of State Department of the Interior Department of Transportation Environmental Protection Agency General Services Administration National Archives and Records Administration National Science Foundation (NSF) U.S. Information Agency 405. Expanded Authorities New--February 1996 APPLICABLE REGULATIONS

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The following are federal regulations and OMB Circulars, which phe requirements of federal financial award receipt.

rovide guidance in meeting t

OMB Circulars Applicable to All Awards

o OMB Circular A-21 – Cost Principles for Educational Institutions o OMB Circular A-129 – Managing Federal Credit Programs o OMB Circular A-133 – Audits of States, Local Government and Non profit

organizations

OMB Circulars Applicable to Financial Assistance Awards

o OMB Circular A-110 – Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations

OMB Circulars Which May Impact Awards to Educational Institutions

o OMB Circular A-87 – Cost Principles Applicable to Grants and Agreements with

State and Local Governments o OMB Circular A- 103 – Uniform Administrative Requirements for Grants in Ai

to State and Local Governments o OMB Circular A-122

d

– Cost Principles for Nonprofit Organizations All above mentioned circulars can be accessed at http://www.whitehouse.gov/omb/circulars

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