Course V: Financial Management of Sponsored Programs

RAC 9018

Course Description:

This course provides an introduction to the basics of financial management of sponsored awards; grants, contracts and cooperative agreements. Students gain an understanding of the principles governing cost allocation and cost reimbursement in an academic environment, with emphasis on the distinction between indirect and direct costs and the importance of indirect cost recovery. Students discuss "post-award" administration issues including organizational structures, roles and responsibilities, internal controls and award monitoring and award closeout. Recent federal audits and audit findings at universities and medical centers are used to illustrate high risk financial compliance issues such as cost allocation and allowability, cost sharing, effort reporting, cost transfers, and sub-recipient monitoring.

Course Objectives

1. Understand the principles governing cost reimbursement for federally funded research projects: allowable, allocable, reasonable, consistent treatment.
2. Introduce key concepts related to the calculation and negotiation of indirect cost rates, discuss differences in indirect cost policy for federal and non-federal sponsors, and learn the importance of indirect cost recovery.
3. Understand definitions of key financial topics, including cost sharing, program income, sub-recipient monitoring, and financial conflict of interest
4. Become familiar with a variety of resources including regulations, federal agency guidance, reference materials, and reports.
5. Define roles and responsibilities of key individuals in the financial management of sponsored projects, explore different organizational structures to promote efficient and effective grants management
6. Compare and contrast different types of funding instruments and sponsors and the financial implications of each
7. Understand the pros and cons of relationships between universities and corporate sponsors of university research
8. Introduce federal procurement regulations; Federal Acquisition Regulations (FAR) and Cost Accounting Standards (CAS).
9. Explore ways to ensure proper stewardship of funds, enhance accountability, and compliance with regulatory requirements and award terms and conditions
10. Examine recent audit findings and government investigations and settlements to identify high risk financial compliance areas and trends.
    

Breakdown of Topics

Week 1:
The legal framework (OMB Circulars, Cost Accounting Standards) and an introduction to the federal cost principles governing reimbursement of direct and indirect costs of government sponsored research.

Week 2:
Examine key concepts in budget development and cost recovery, including indirect cost rates, employee benefit costs and service and recharge centers. Assess the impact of regulatory changes affecting cost recovery and reimbursement.

Week 3:
Overview of award terms and conditions, sponsor policies and federal procurement regulations (i.e. Federal Acquisition Regulations (FAR).

Week 4:
Introduce key concepts and definitions, roles and responsibilities and organizational structures related to the financial management of grants.

Week 5:
Research compliance issues (e.g. effort reporting, cost sharing, cost transfers, sub-recipient monitoring); audits, investigations, lawsuits and settlements

Week 6:
Tools, techniques and systems to facilitate the financial management of sponsored projects, including internal controls, compliance monitoring, institutional oversight and audit.

Week 7:
Corporate sponsorship of university research, intellectual property and technology licensing, financial conflict of interest. Types of relationships (e.g. strategic partnerships vs. single research contract) and types of agreements (cost reimbursement, fixed price, time and materials).