Division of Research Financial Management FY2021

Transcript:Division of Research Financial Management FY2021:
Division of Research Financial Management FY2021 Fringe Rates on Grants Presented September 2020 New Fringe Rate Agreement for FY21 Increased to additionally recover $760K for each of the next three years. As of FY19, a deficit of $2.3 million. Increased to additionally recover $1.2 million for each of the next three years. As of FY19, a deficit of $3.5 million. Benefits included in FY21 Fringe Rates Historical Grant Fringe Rates per Negotiated Agreements (a) For these fringe rates to apply, PostDocs in the past would have been hired into faculty, or the newer PostDoctoral Fellow, job family. Treatment of Fringe Benefits on Grants Regulated by Uniform Guidance - 2 CFR § 200.431 - Compensation - fringe benefits Treated as compensation in addition to regular Salaries & Wages 2 methods to charge fringes: Specifically Identified per the Individual or Fringe Rates Rates limited to those negotiated with Department of Health and Human Services (DHHS) Fringe Rates charged to federal awards must be equitably based on actual costs for the entire University Multiple-year rates in past agreements Current FY21 rates based on FY19 actual costs and prior year surplus/deficits New rate proposal to be submitted by 12/31/20 for FY22 based on FY20 actuals May result in a multiple-year agreement (predetermine rates similar to F&A rates) May elect to negotiate annually (fixed rates carry-forward) Fringe Rate Proposal Maximus Consulting Hired Expert at negotiating with DHHS Since last agreement signed in 2012, knew data would be challenging Last Agreement data collected from Banner system New Agreement data would be drawn from Workday DHHS would most likely require multiple-year analysis Fringe Proposal for FY21 Rates Proposal to DHHS that resulted in FY21 Fringe Rates included: FY17-FY19 data analysis required to True-up (A review of Actual Costs and Recoveries) Compensation: (Fringes and Salaries & Wages) reconcilable to Financial Statements Determine under/over recoveries: What was charged via rates and actual costs Terminal Leave Analysis All above combined into Fringe Benefits True-Up & Rate Setting for FY21 FAU under recovered in the amount of $2 million for the 3 year period Allowed to include the under recovery over 3 years ($0.7 million each year) effective FY21 Fringe Proposal For FY22 Rates Proposal to DHHS for FY22 Fringe Rates to include: True-Up of FY20 Rates to Actuals + prior years’ carryforwards Comparison of FY20 actual fringe costs to the FY20 Fringe rates charged. Differences will be absorbed in rates