PCORI`s Contract Award and Activation

PCORI’s Contract Award
and Activation
Shayan Hobbi and Geri Guman Contracts Management and Administra1on June 23, 2015 Welcome!
Shayan Hobbi
Contracts Associate,
Post-Award
Geri Guman, MBA
Senior Contracts
Administrator,
Post-Award
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PCORI Guide to Contract Activation
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In This Session
•  Detail the PCORI contrac1ng process from Award Announcement to Contract Execu1on •  Review key notes on Budget and Milestone Schedule •  Describe the roles of Contractors, PCORI Program Officers, and PCORI Contract Administrators 4
Award Announcement
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Recipient Information Form (RIF)
See Handout #1
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What Are Milestones and Deliverables?
Definition:
Significant events or
accomplishments
within the project.
Milestones often have
deliverables
associated with them.
Definition:
Products generated by
the successful
execution of the
contracted project plan.
See Handout #2
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Sample Milestone Schedule
See Handout #3
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Key Budget Notes
•  PCORI Caps –  Salary not to exceed $200,000 –  Indirect Cost Rate (IDC) not to exceed 40% –  Travel not to exceed $10,000 for Scien1fic Travel •  IDC calcula1ons can only include the first $25,000 of ALL subcontractor costs •  Read the PFA carefully for addi1onal funding and travel guidelines, etc. •  Make sure Milestones 1e back to the budget •  Make sure Budget Summary aligns with Budget Detail *For more informa1on please aXend the Preparing Your Budget breakout session at 1:00PM 9
Issuance of a Contract
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You have a contract, now what?
Verify the accuracy of the: •  Effec1ve start and end dates of the contract •  Officials and their addresses listed in the contract •  Project 1tle listed in the Recitals •  Final budget amount and details in AXachment A •  Milestone Schedule in AXachment B 11
Complete the COI Certification
•  The COI cer1fica1on form addresses specific requirements in PCORI’s Authorizing Legisla1on rela1ng to Conflicts of Interest •  Complete Ques1ons 1–6 in Contract AXachment C: Conflicts of Interest Disclosure Form •  Have the signing official and the Principal Inves1gator (PI) sign and date the cer1fica1on 12
Prepare the Contract for Execution
•  Set up e-­‐payment account with PCORI Finance team •  Submit Ins1tu1onal Review Board (IRB) approval documenta1on, if applicable •  Have your signing official sign and date the contract and return to PCORI 13
Active Portfolio Management
PCORI is ac1vely involved to ensure that deliverables are met and milestones are on-­‐
track and within budget. Key players •  Contractors: –  Manage project within contract terms and condi1ons •  PCORI Program Officers: –  Ac1vely monitor scien1fic research projects •  PCORI Engagement Officers: –  Monitor pa1ent and stakeholder engagement in projects •  PCORI Contract Administrators: –  Ac1vely monitor progress of awardees, for contractual and financial compliance •  PCORI Finance: –  Ensures the 1mely payment of Contractors *For more informa1on please aXend the Ac1ve Porgolio Management breakout session at 10:50AM 14
Welcome!
Kim Jackson, CPA,
CGMA, MBA
Deputy Director,
Finance-Controller
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Session Objectives
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What to expect with regard to financial requirements Overview of the invoicing and payment process Expecta1ons for ini1al invoice submission How to meet requirements for monthly invoicing Avoid common invoicing pigalls Allocate project expenses to appropriate cost categories Sa1sfy project closeout requirements 16
PCORI’s Invoicing to Payment Process
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PCORI’s Invoicing to Payment Process (cont’d.)
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PCORI is not Federal
•  PCORI funding comes from the Federal Government –  Appropria1ons, CMS Transfers and PCOR Fee •  PCORI is not subject to OMB circulars. •  BUT, we do observe the best prac1ces and rules as if the OMB circulars did apply. •  We behave and require expense substan1a1on in a certain way to fulfill our fiduciary du1es as recipients of Federal dollars. 19
Getting Setup to Receive Payment
•  Iden1fy financial point of contact •  Establish vendor profile –  Address confirma1on –  Complete a W9 •  Establish electronic payment profile –  Currently Bill.com •  Submit invoice •  Get Paid! 20
Invoicing PCORI
•  What is required to invoice PCORI? •  PCORI requires monthly invoicing. •  AXachment D: Sample Invoice -­‐OR-­‐ •  System General Invoice –  With necessary detail and/or suppor1ng reports 21
Invoicing PCORI – Labor Detail
•  Included a detailed labor report: –  In body of invoice or as separate report •  Indicate: –  Who worked on the contract –  % of 1me and cost for each person charging to the contract •  The terms of PCORI’s contract flow down to the subcontractors. –  The same labor detail requirements for subcontractor •  Effort cer1fica1on 22
Invoicing PCORI – Allowable Expenses
•  Supplies –  Must be specifically allocable to the contract –  General office supplies are not an allowable expense 23
Invoicing PCORI – Allowable Expenses
•  Meals may be expensed on a research contract when: –  Provided to subjects or pa1ents under study –  Specifically approved as part of project ac1vity in contract –  Not duplicated in per diem or subsistence allowances (if any) –  When part of a mee1ng held to disseminate technical informa1on •  Ins1tu1ons must have a wriXen, enforced policy •  Meals at recurring business mee1ng are not an allowable expense 24
Invoicing PCORI – Indirect Cost Rate
•  Use rate in Nego1ated Indirect Cost Rate Agreement (NICRA) •  Rate cap is 40% –  What if rate is lower than 40%? –  What if rate is higher than 40%? •  What to do in absence of NICRA rate: –  Calculate a rate –  10% rate –  PCORI can provide further guidance 25
How PCORI Reviews Invoices
•  PCORI reconciles project invoices and spending, ensuring that: –  Charges are allowable, allocable, reasonable, and consistent –  Funds are spent in accordance with the approved budget •  Avoid common pigalls –  Include labor detail –  Spend within cost categories –  Adhere to budget –  Avoid unallowable cost and cost misalloca1ons 26
Prepare for PCORI Audits
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PCORI has the right to perform audits, desk reviews, and/or site visits PCORI may review Federal or financial audits –  A-­‐133, etc. –  Looking for iden1fied deficiencies –  Ins1tu1ons receiving > $750,000 Availability Record reten1on requirement -­‐ Why it is so important? –  Keep detailed records: •  Timesheets and labor reports •  Invoices and receipts •  Other financial records •  Requirements –  Five years –  Later of the term or termina1on of the agreement 27
Invoicing PCORI – Receiving Payment
•  PCORI pays all invoices electronically –  Bill.com ACH plagorm –  New ACH plagorm coming soon •  Secure, quick, and easy to use •  Submit to [email protected]. 28
Ensuring Timely Final Payment
•  Financial requirements for project closeout: –  Submit Final Report –  Submit Expenditure Report •  Final payment will not be released un1l all final reports have been submiXed and approved by PCORI 29
Closeout Checklist
•  12 Categories –  Contract Nego1a1on Historical Background Data –  Contract Modifica1on Documents –  Reports; Special Progress Reports; Final Reports –  Public Dissemina1on No1fica1ons –  Peer-­‐Review; Public Dissemina1on –  Finance; Outstanding Issues; Close-­‐out •  Excel spreadsheet/MS Word drau version in development 30
Questions?
Thank You!
Shayan Hobbi, Contracts Associate, Post-­‐Award Geri Guman, MBA, Senior Contracts Administrator, Post-­‐Award Kim Jackson, CPA, CGMA, MBA, Deputy Director, Finance-­‐Controller