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 2010. 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 2007. 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 2009. The post-award awarding queue function for C&G was completed during FY 2010. Contracts and Grants and Office for Sponsored Programs (OSP) Training Graduates from the Research Administration and Management Program (RAMP), including those from OSP, conducted 24 10-minute “mini” training sessions at the departmental level during FY 2010. 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, 2009. 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.

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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 2008. 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, 2011. 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 2010. Statistical Information Extramural funded awards totaled $247,538,202 during FY 2010, a 2.8% decrease from FY 2009. 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 2010. 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, 2010. Overall expenses increased during FY 2010 by $19.5 million or 7.34% from FY 2009. An analysis of the

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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%.

FY 2009 FY 2010 Increase (Decrease)Total Percent

Instruction 16,585,377.04$ 11,485,811.39$ (5,099,565.65) -30.75%

ResearchResident Instruction 108,845,763.07 114,606,638.12MCG/UGA Partnership 0.00 10,359.59Experiment Station 28,285,416.63 28,329,217.65Marine Extension 729,690.90 619,763.01Marine Institute 481,138.01 539,301.60Vet Labs 76,424.89 99,244.29Forestry 4,731,682.60 6,109,729.59Total Research 143,150,116.10$ 150,314,253.85$ 7,164,137.75 5.00%

Extension/Public ServiceResident Instruction 33,536,807.81 29,826,641.72Forestry Extension 290,642.19 442,532.38Extension Service 19,883,029.40 20,825,625.31Marine Extension 807,084.66 615,012.53Vet Labs 5,788,756.77 5,343,523.59Total Extension/Public Service 60,306,320.83$ 57,053,335.53$ (3,252,985.30) -5.39%

Other Sponsored 2,722,091.74 5,412,267.09 2,690,175.35 98.83%Subtotal 222,763,905.71$ 224,265,667.86$ 1,501,762.15 0.67%

Plant Fund 44,090,807.04 62,179,557.28 18,088,750.24 41.03%

Total 266,854,712.75$ 286,445,225.14$ 19,590,512.39 7.34%

Sponsored Project Expenditure Activity Comparison of FY 2009 and FY 2010

Exhibit 2 compares the total University collections of facilities and administrative costs (F&A) during FY 2009 and FY 2010. For Fiscal Year 2010, F&A recoveries totaled $31,394,638.08, which represented an increase of $2,587,320.18 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 $28,385,910.14 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 $2,587,320.18 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.

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Amount of Percent Function Increase (Decrease) ChangeInstruction 82,422.79 79.86%Research 2,519,635.96 9.74%Public Service (1,198.57) -0.04%Other Sponsored (13,540.00) -11.57%Total 2,587,320.18 8.98%

Amount of PercentBudgetary Unit Increase (Decrease) ChangeResident Instruction 2,676,712.73 10.95%Experiment Station (220,337.94) -7.02%Forestry Extension 143,081.12 26.10%Cooperative Extension 31,096.80 8.63%Marine Institute 20,895.26 32.63%Marine Extension (60,734.97) -26.19%Vet Labs (3,392.82) -20.79%Total 2,587,320.18 8.98%

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 2010. 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:

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.

Year Amount Year AmountFY2001 3,238,486 FY2006 4,888,164FY2002 3,767,747 FY2007 4,891,670FY2003 4,403,912 FY2008 5,216,802FY2004 4,687,237 FY2009 5,534,773FY2005 5,166,976 FY2010 6,065,844

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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.

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 - Sponsored Account Activity Exhibit 2 - Gross Facilities and Administrative Cost Recovery Exhibit 3 - Analysis of Sponsored Activity by Function Exhibit 4 - Summary of Research, Instruction and Public Service Exhibit 5 - Summary Aging of Restricted Accounts Receivable Exhibit 6 - Research Administration and Infrastructure Ad Hoc Committee Recommendations – Dashboard to Measure Improvements Organizational Chart

Source FY 2009 FY 2010

Federal $119,388,534 46.88% $141,527,431 57.17%State 26,262,829 10.31% 37,889,471 15.31%Other States 12,952,734 5.09% 14,386,649 5.81%City/County 3,424,621 1.34% 4,000,372 1.62%Private & Foreign 92,620,546 36.37% 49,734,279 20.09%

Total $254,649,264 100.00% $247,538,202 100.00%

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FY 2009 vs FY 2010

TOTAL INSTRUCTION 178 234

RESEARCH

- RESIDENT INSTRUCTION 1,948 2,290 - FORESTRY RESEARCH 154 191

- AG EXPERIMENT STATIONS 909 1,056

- MARINE EXTENSION 13 17

- MARINE INSTRUCTION 14 10

- ATHENS & TIFTON VET LABS 7 12

TOTAL RESEARCH 3,045 3,576

PUBLIC SERVICE

- RESIDENT INSTRUCTION 740 661

- FORESTRY EXTENSION 31 37

- COOPERATIVE EXTENSION 481 593

- MARINE EXTENSION 34 27

- ATHENS & TIFTON LABS 23 26

TOTAL PUBLIC SERVICE 1,309 1,344

TOTAL OTHER (INCL. PLANT FUND) 15 57

GRAND TOTAL SPONSORED 4,547 5,211

RELATED COST SHARE ACCOUNTS 992 945

Number of Sponsored Accounts by Function and Fund

EXHIBIT 1

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Resident Experiment Forestry Cooperative Marine Marine VetInstruction Stations Rsch/Ext Extension Institute Extension Labs Total

Instruction $185,627.71 $185,627.71Research 24,602,955.83 2,916,372.26 659,864.54 84,940.95 114,293.66 7,482.90 $28,385,910.14Public Service 2,234,564.82 31,348.46 391,444.80 56,842.03 5,440.12 $2,719,640.23Other 103,460.00 $103,460.00

Total $27,126,608.36 $2,916,372.26 $691,213.00 $391,444.80 $84,940.95 $171,135.69 $12,923.02 $31,394,638.08

Resident Experiment Forestry Cooperative Marine Marine VetInstruction Stations Rsch/Ext Extension Institute Extension Labs Total

Instruction $103,204.92 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $103,204.92Research 21,964,600.42 3,136,710.20 534,200.74 0.00 64,045.69 156,459.49 10,257.64 $25,866,274.18Public Service 2,265,090.29 0.00 13,931.14 360,348.00 0.00 75,411.17 6,058.20 $2,720,838.80Other 117,000.00 0.00 0.00 0.00 0.00 0.00 0.00 $117,000.00

Total $24,449,895.63 $3,136,710.20 $548,131.88 $360,348.00 $64,045.69 $231,870.66 $16,315.84 $28,807,317.90

Gross Facilities and Administrative Cost Recovery

FY 2010

FY 2009

EXH

IBIT 2

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Total Facilities andFunction 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 100.00% 100.00% 100.00%

ANALYSIS OF SPONSORED ACTIVITY BY FUNCTIONFY 2010

EXHIBIT 3

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# Amount # Amount # Amount # Amount # Amount

FY 2009 Proposals 2162 $350,519,319.00 743 $60,020,795.00 512 $23,347,875.00 909 $59,497,239.00 4326 $493,385,228.00

FY 2009 Awards 1355 $143,190,705.00 581 $38,084,712.00 494 $22,610,453.00 843 $50,763,392.00 3273 $254,649,262.00

FY 2010 Proposals 1874 $306,960,894.00 679 $47,363,360.00 448 $36,254,370.00 881 $66,442,514.00 3882 $457,021,138.00

FY 2010 Awards 1196 $141,586,825.00 533 $30,515,197.00 442 $23,968,232.00 790 $51,467,948.00 2961 $247,538,202.00

INSTRUCTION PUBLIC SERVICE TOTALRESEARCH

SUMMARY OF RESEARCH, INSTRUCTION AND PUBLIC SERVICEPROPOSALS AND AWARDS

Comparison of FY 2009 and FY 2010

General Experiment Stations

EXH

IBIT 4

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Summarized Current Over TotalAgency 30 to 60 60 to 90 90 to 120 120 Days

UGA:

U.S. Navy & Army 0.00 0.00 0.00 0.00 0.00 0.00U.S. Dept. of Interior 10,208.00 7,482.00 0.00 0.00 0.00 17,690.00U.S. Dept. of Agriculture 83,540.60 265,735.60 46,091.80 22,272.01 124,741.91 542,381.92State Agencies 1,783,443.42 1,740,891.10 416,745.54 255,787.73 447,783.91 4,644,651.70Other 885,241.92 1,012,911.03 242,782.65 69,967.04 500,907.46 2,711,810.10

Subtotal $2,762,433.94 $3,027,019.73 $705,619.99 $348,026.78 $1,073,433.28 $7,916,533.72

UGARF:

U.S. Navy & Army $8,656.63 $2,391.26 $64,890.58 $0.00 $5,325.00 $81,263.47U.S. Dept. of Interior 4,073.27 6,979.82 6,804.30 3,903.60 18,557.92 40,318.91U.S. Dept. of Agriculture 60,282.53 102,008.79 5,506.52 4,922.10 40,446.30 213,166.24State Agencies 175,352.67 688,671.26 159,980.74 70,301.99 391,204.96 1,485,511.62Other 3,530,740.77 7,008,766.64 610,624.17 921,481.80 1,146,942.59 13,218,555.97

Subtotal $3,779,105.87 $7,808,817.77 $847,806.31 $1,000,609.49 $1,602,476.77 $15,038,816.21

Total UGA/UGARF $6,541,539.81 $10,835,837.50 $1,553,426.30 $1,348,636.27 $2,675,910.05 $22,955,349.93

UNIVERSITY OF GEORGIACONTRACTS AND GRANTS DIVISION

Summary Aging of Restricted Accounts ReceivableAs of 06/30/2010

EXH

IBIT 5

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RecommendationsOverall

86%

1# Improve service levels & increase communication; alternative org'l structures 40%

2# Balance of responsibilities between research unit & OSP, C&G 100%

3OSP and C&G organizational evaluation for flexibility, access, & training 100%

4Clearly define "career paths" for staff members in OSP, C&G, and research unit admininistration 100%

5Office-level performance & productivity metrics for OSP and C&G functions and personnel 100%

6Formalized communications between OSP and C&G, and with research admininistrators & faculty 75%# = Top Priority Recommendation

RecommendationsOverall 91%

1Deepened, enhanced service role of OSP and C&G 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%

3

"Future State" matrix; clarify level of delegated authority for research administration and 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%

6aC&G: Establish "aspiration goals" for OSP and C&G staff performance and productivity 100%

6bOSP: Establish "aspiration goals" for OSP and C&G staff performance and productivity 100%# = Top Priority Recommendation

Research Administration and Infrastructure Ad Hoc Committee Recommendations

Roles and Responsibilities

Organizational Structure

Percent Complete

Percent Complete

EXHIBIT 6 page 1 of 4

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RecommendationsOverall

65%

1Strengthen formal policies and procedures for key research admin. functions supporting research 90%

2

Continue to monitor and evaluate policies and procedures for high risk fiscal and research compliance areas 80%

3Develop institutionally-supported "policy on policies" 20%

4

Appoint/define single, recognized owner of policies; identify central location for policies and procedures

60%

5

Form standing joint faculty/staff policy development committee (connected to Training & Education recommendation) 70%

6

Develop comprehensive training and education programs supporting newly developed/issued policies (see T&E) 70%# = Top Priority Recommendation

RecommendationsOverall

88%

1Improve financial status reporting and other related reports for research faculty and staff 100%

2# OVPR should develop strategic plan for Research IT needs and continue to refine plan 100%

3

Adopt and implement integrated proposal and compliance protocol development management system 50%

4

Include key research admin. & faculty, and EITS in technologies, software, and reporting that supports research 100%# = Top Priority Recommendation

Policies and Procedures

Systems and Technologies

Percent Complete

Percent Complete

EXHIBIT 6 page 2 of 4

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RecommendationsOverall

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%

3aFiscal: Strengthen compliance communication channels where information-sharing is important 50%

3bResearch: Strengthen compliance communication channels where information-sharing is important 50%

4bResearch: Strengthen compliance enforcement activities 50%

5b

Research: Establish uniform process for following up on compliance "corrective actions" to ensure compliance reinstated 50%

6aFiscal: Create more comprehensive, campus-wide training and education programs for compliance 60%

6b

Research: Create more comprehensive, campus-wide training and education programs for compliance 50%# = Top Priority Recommendation

RecommendationsOverall

62%

1

# Increase support for a formal training and education program aimed at depart'l and central research admins. 100%

2Develop and implement comprehensive research education program for faculty 70%

3

OSP, C&G primary responsibility for formal training process for new and existing staff; develop training manuals 70%

4Novel approaches to T&E; support formal certification programs to incentivize and reward 0%

5

Develop comprehensive training and education programs supporting newly developed/issued policies (see P&P) 70%# = Top Priority Recommendation

Research and Fiscal Compliance

Percent Complete

Percent Complete

Training & Education

EXHIBIT 6 page 3 of 4

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RecommendationsOverall

40%

1# Undertake administrative actions that facilitate and support inter-disciplinary research 40%

2

# Take additional measures to ensure comparable admin support for units not traditionally research-funding heavy 0%

3Develop formal "Grant Mentoring Program" for junior faculty; align appropriate admin support 80%

4

# Re-evaluate process for returning F&A funds to units; ensure transparency, equity, alignment; promote research 0%

5

# IRB improve efficiency and facilitate research in additional ways (see full report for suggestions)

80%# = Top Priority Recommendation

Research Facilitation

Percent Complete

EXHIBIT 6 page 4 of 4

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Pamela Ray Director

Crystal Rogers Fiscal Comp Officer

Tammy Ebert Associate Director

LaKieya Keese Compliance Manager

Lynn Beard Cash/Award Manager

Jay McGarity Grants Acct Spec III

Brad Langford Grants Acct Spec III

Cynthia Sherk Grants Acct Spec III

Don Carpenter Grants Acct Spec III

Sims Little Grants Acct Spec I

Ken Dover Grants Acct Spec II

Morgan Bennett Grants Acct Spec I

Joy Hirsch Accountant

Daniel BrughGrants Acct Spec II

Jane Magrino Grants Acct Spec I

Michael Myrick Accountant

Jackie WalshGrants Acct Spec II

Patsy Fullwood Billing Receivables

Manager

Tandi DubnikAdmin Associate I

FINANCIAL ACCOUNTING AND REPORTINGCONTRACTS AND GRANTS DEPARTMENT

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