University Business - January 2009 - (Page 44)

END NOTE Grants: The Easy Way Isn’t Always Best Why grant money requires careful handling By Edward T. Waters t the risk of inviting the ire of clients and friends, i think it’s fair to say that colleges and universities are the “chosen ones” of the federal grants world. they have more favorable rules compared to those in other areas. Yet government auditors, campus whistleblowers, and even federal prosecutors have become interested in the management of federal grant funds by higher ed institutions. Could this possibly be the unintended consequence of successful efforts over the past 30 years to ensure that ihes are provided considerable flexibility in documenting and accounting for costs charged to their grants? to some extent, i would say yes. What favorable rules? the White house’s office of Management and Budget issues rules, known as “cost principles,” for spending federal grants. the rules that apply depend on the type of entity receiving the grant rather than on what agency provides the funds. thus, a grant made to a college is covered by different rules than the same grant made to a nonprofit research organization. take the issue of payroll distribution—or how the cost of an employee is distributed or charged to a federal grant. A nonprofit conducting groundbreaking research must have employees turn in personal activity reports showing the percentage of time spent on all main activity, grant funded or not, at least monthly. employees of local, tribal, and state governments, presumably a trustworthy crowd, must also report monthly. Defense contractors have to keep track of their work by the hour. employees of stand-alone research hospitals are given a break, with reports due every other month. educational institutions, by contrast, have in some cases up to one year to document their time. the cost principles applicable to ihes provide general criteria for any payroll distri44 | January 2009 A Have lax provisions actually harmed some colleges and set them up for failure? bution system and describe three acceptable systems: the plan confirmation method, the after-the-fact activity record method, and the multiple confirmation records method. the plan confirmation method requires a “responsible official” to confirm the time charged to federal awards “at least annually.” the afterthe-fact and multiple confirmation records methods take a stricter view, requiring “professorial and professional staff ” to prepare activity reports “each academic term, but no less frequently than every six months.” Cutting ihes a break by reducing paperwork seems like an admirable goal. however, since the provisions are so lax, they may actually have harmed some colleges and universities and set them up for failure. Who can accurately remember what he or she did over the past six months or a year? such an impossible standard sends a message to employees that the rules really don’t matter much. Provisions such as those for payroll distribution are a likely culprit for the numerous settlements paid by ihes in the past few years due to alleged failures in accounting for federal funds. for example, it was reported last summer that officials at St. Louis University, while denying any wrongdoing, paid approximately $1 million to settle a claim that the “school of Public health over-billed and defrauded the federal government by inflating the number of hours its faculty members worked on research grants and contracts.” this type of settlement is all too familiar. Moreover, the possibility of having a similar problem has increased as law firms representing “qui tam relators” increasingly view institutions as easy targets. Qui tam relators are whistleblowers, most often university employees, who can bring an action under the federal Civil false Claims Act for submitting false claims to the government for payment. Avoiding ProbLem AreAS What can be done to avoid becoming a newspaper story? • Don’t overlook the obvious: Know the terms and conditions of all federal grants. • Form an internal monitoring system to ensure that employees follow an institution’s policies and procedures. • Avoid the temptation, in response to the many well-reported cases, to implement a new system that is so onerous as to become unworkable. • Make every effort to explain the whys and wherefores of policies and procedures to staff. After all, when dealing with intelligent, well-educated employees, telling them to do something without explaining why rarely results in the desired outcome. As a co-managing partner based in the Washington, D.C., office of Feldesman Tucker Leifer Fidell, Edward T. Waters has practiced grants law for 20 years. He has also served as board president for the National Grants Management Association. He can be reached at ewaters@feldesmantucker.com. universitybusiness.com http://www.universitybusiness.com

Table of Contents for the Digital Edition of University Business - January 2009

University Business - January 2009
Contents
Editor's Note
College Index
Company Index
Advisory Board
Behind the News
Sense of Place
Viewpoint
Money Matters
Financial Aid
Community College
From Data to Information
5 Reasons to Switch to Virtual Servers
Finished in a Flash
Internet Technology
What's New
End Note

University Business - January 2009

https://www.nxtbook.com/pmg/UB/UB_0520
https://www.nxtbook.com/pmg/UB/UB_0320
https://www.nxtbook.com/pmg/UB/UB_0120
https://www.nxtbook.com/pmg/UB/UB_1119
https://www.nxtbook.com/pmg/UB/UB_1019
https://www.nxtbook.com/pmg/UB/UB_0819
https://www.nxtbook.com/pmg/UB/UB_0719
https://www.nxtbook.com/pmg/UB/UB_0619
https://www.nxtbook.com/pmg/UB/UB_0419
https://www.nxtbook.com/pmg/UB/UB_0319
https://www.nxtbook.com/pmg/UB/UB_0119
https://www.nxtbook.com/pmg/UB/UB_1218
https://www.nxtbook.com/pmg/UB/UB_1118
https://www.nxtbook.com/pmg/UB/UB_1018
https://www.nxtbook.com/pmg/UB/UB_0918
https://www.nxtbook.com/pmg/UB/UB_0818
https://www.nxtbook.com/pmg/UB/UB_0718
https://www.nxtbook.com/pmg/UB/UB_0618
https://www.nxtbook.com/pmg/UB/UB_0518
https://www.nxtbook.com/pmg/UB/UB_0418
https://www.nxtbook.com/pmg/UB/UB_0318
https://www.nxtbook.com/pmg/UB/UB_0218
https://www.nxtbook.com/pmg/UB/UB_0118
https://www.nxtbook.com/pmg/UB/UB_1217
https://www.nxtbook.com/pmg/UB/UB_1117
https://www.nxtbook.com/pmg/UB/UB_1017
https://www.nxtbook.com/pmg/UB/UB_0917
https://www.nxtbook.com/pmg/UB/UB_0817
https://www.nxtbook.com/pmg/UB/UB_0717
https://www.nxtbook.com/pmg/UB/UB_0617
https://www.nxtbook.com/pmg/UB/UB_0517
https://www.nxtbook.com/pmg/UB/UB_0417
https://www.nxtbook.com/pmg/UB/UB_0317
https://www.nxtbook.com/pmg/UB/UB_0217EPUB
https://www.nxtbook.com/pmg/UB/UB_0217
https://www.nxtbook.com/pmg/UB/UB_0117
https://www.nxtbook.com/pmg/UB/UB_1216
https://www.nxtbook.com/pmg/UB/UB_1116
https://www.nxtbook.com/pmg/UB/UB_1016
https://www.nxtbook.com/pmg/UB/UB_0916
https://www.nxtbook.com/pmg/UB/UB_0816
https://www.nxtbook.com/pmg/UB/UB_0816CG
https://www.nxtbook.com/pmg/UB/UB0716
https://www.nxtbook.com/pmg/UB/GlobalSellSheet
https://www.nxtbook.com/pmg/UB/UB_0616
https://www.nxtbook.com/pmg/UB/UB_0516
https://www.nxtbook.com/pmg/UB/UB0416
https://www.nxtbook.com/pmg/UB/UB0316
https://www.nxtbook.com/pmg/UB/UB_0216r2
https://www.nxtbook.com/pmg/UB/UBGuide
https://www.nxtbook.com/pmg/UB/UB0116
https://www.nxtbook.com/pmg/UB/UB
https://www.nxtbook.com/nxtbooks/pmg/ub201511
https://www.nxtbook.com/nxtbooks/pmg/ub201510
https://www.nxtbook.com/nxtbooks/pmg/ub201509
https://www.nxtbook.com/nxtbooks/pmg/ub201508
https://www.nxtbook.com/nxtbooks/pmg/ub201508_ConsultantsGuide
https://www.nxtbook.com/nxtbooks/pmg/ub201507
https://www.nxtbook.com/nxtbooks/pmg/ub201506
https://www.nxtbook.com/nxtbooks/pmg/ub201506_AudioVisualSolutions
https://www.nxtbook.com/nxtbooks/pmg/ub201505
https://www.nxtbook.com/nxtbooks/pmg/ub201504
https://www.nxtbook.com/nxtbooks/pmg/ub201503
https://www.nxtbook.com/nxtbooks/pmg/ub201502
https://www.nxtbook.com/nxtbooks/pmg/ub201501
https://www.nxtbook.com/nxtbooks/pmg/ub201501_FinancialServicesGuide
https://www.nxtbook.com/nxtbooks/pmg/ub201412
https://www.nxtbook.com/nxtbooks/pmg/ub201411
https://www.nxtbook.com/nxtbooks/pmg/ub201410
https://www.nxtbook.com/nxtbooks/pmg/ub201409
https://www.nxtbook.com/nxtbooks/pmg/ub201408
https://www.nxtbook.com/nxtbooks/pmg/ub201408_ConsultantsGuide
https://www.nxtbook.com/nxtbooks/pmg/ub201407
https://www.nxtbook.com/nxtbooks/pmg/ub201406
https://www.nxtbook.com/nxtbooks/pmg/ub201406_AudioVisualSolutions
https://www.nxtbook.com/nxtbooks/pmg/ub201405
https://www.nxtbook.com/nxtbooks/pmg/ub201404
https://www.nxtbook.com/nxtbooks/pmg/ub201403
https://www.nxtbook.com/nxtbooks/pmg/ub201402
https://www.nxtbook.com/nxtbooks/pmg/ub201401
https://www.nxtbook.com/nxtbooks/pmg/ub201401_FinancialServicesGuide
https://www.nxtbook.com/nxtbooks/pmg/ub201312
https://www.nxtbook.com/nxtbooks/pmg/ub201311
https://www.nxtbook.com/nxtbooks/pmg/ub201310
https://www.nxtbook.com/nxtbooks/pmg/ub201309
https://www.nxtbook.com/nxtbooks/pmg/ub201308
https://www.nxtbook.com/nxtbooks/pmg/ub201308_ConsultantsGuide
https://www.nxtbook.com/nxtbooks/pmg/ub201307
https://www.nxtbook.com/nxtbooks/pmg/ub201306_AudioVisualSolutions
https://www.nxtbook.com/nxtbooks/pmg/ub201306
https://www.nxtbook.com/nxtbooks/pmg/ub201305
https://www.nxtbook.com/nxtbooks/pmg/ub201304
https://www.nxtbook.com/nxtbooks/pmg/ub201303
https://www.nxtbook.com/nxtbooks/pmg/ub201302
https://www.nxtbook.com/nxtbooks/pmg/ub201301
https://www.nxtbook.com/nxtbooks/pmg/ub201301_FinancialServicesGuide
https://www.nxtbook.com/nxtbooks/pmg/ub1212
https://www.nxtbook.com/nxtbooks/pmg/ub1112
https://www.nxtbook.com/nxtbooks/pmg/ub1012
https://www.nxtbook.com/nxtbooks/pmg/ub0912
https://www.nxtbook.com/nxtbooks/pmg/ub_cg12
https://www.nxtbook.com/nxtbooks/pmg/ub070812
https://www.nxtbook.com/nxtbooks/pmg/ub0612
https://www.nxtbook.com/nxtbooks/pmg/ub_avguide0612
https://www.nxtbook.com/nxtbooks/pmg/ub0512
https://www.nxtbook.com/nxtbooks/pmg/ub0412
https://www.nxtbook.com/nxtbooks/pmg/ub0312
https://www.nxtbook.com/nxtbooks/pmg/ub0212
https://www.nxtbook.com/nxtbooks/pmg/ub_financeguide0112
https://www.nxtbook.com/nxtbooks/pmg/ub1211
https://www.nxtbook.com/nxtbooks/pmg/ub1011
https://www.nxtbook.com/nxtbooks/pmg/ub0911
https://www.nxtbook.com/nxtbooks/pmg/ub_cg11
https://www.nxtbook.com/nxtbooks/pmg/ub0711
https://www.nxtbook.com/nxtbooks/pmg/ub0611_av
https://www.nxtbook.com/nxtbooks/pmg/ub0611
https://www.nxtbook.com/nxtbooks/pmg/ub0511
https://www.nxtbook.com/nxtbooks/pmg/ub0411
https://www.nxtbook.com/nxtbooks/pmg/ub0311
https://www.nxtbook.com/nxtbooks/pmg/ub0211
https://www.nxtbook.com/nxtbooks/pmg/ub0111
https://www.nxtbook.com/nxtbooks/pmg/ub_financeguide0111
https://www.nxtbook.com/nxtbooks/pmg/ub1110
https://www.nxtbook.com/nxtbooks/pmg/ub1010
https://www.nxtbook.com/nxtbooks/pmg/ub0910
https://www.nxtbook.com/nxtbooks/pmg/ub_2010financeguide
https://www.nxtbook.com/nxtbooks/pmg/ub_2010consultants
https://www.nxtbook.com/nxtbooks/pmg/ub_2010avguide
https://www.nxtbook.com/nxtbooks/pmg/ub0710
https://www.nxtbook.com/nxtbooks/pmg/ub0610
https://www.nxtbook.com/nxtbooks/pmg/ub0510
https://www.nxtbook.com/nxtbooks/pmg/ub0410
https://www.nxtbook.com/nxtbooks/pmg/ub0310
https://www.nxtbook.com/nxtbooks/pmg/ub0210
https://www.nxtbook.com/nxtbooks/pmg/ub0110
https://www.nxtbook.com/nxtbooks/pmg/ub1109
https://www.nxtbook.com/nxtbooks/pmg/ub1009
https://www.nxtbook.com/nxtbooks/pmg/ub0909
https://www.nxtbook.com/nxtbooks/pmg/ub0709
https://www.nxtbook.com/nxtbooks/pmg/ub_fg09
https://www.nxtbook.com/nxtbooks/pmg/ub0609
https://www.nxtbook.com/nxtbooks/pmg/ub0509
https://www.nxtbook.com/nxtbooks/pmg/ub0409
https://www.nxtbook.com/nxtbooks/pmg/ub0309
https://www.nxtbook.com/nxtbooks/pmg/ub0209
https://www.nxtbook.com/nxtbooks/pmg/ub0109
https://www.nxtbook.com/nxtbooks/pmg/ub1208
https://www.nxtbook.com/nxtbooks/pmg/ub1108
https://www.nxtbook.com/nxtbooks/pmg/ub1008
https://www.nxtbook.com/nxtbooks/pmg/ub0908
https://www.nxtbook.com/nxtbooks/pmg/ub0808
https://www.nxtbook.com/nxtbooks/pmg/ub0708
https://www.nxtbook.com/nxtbooks/pmg/ub0608
https://www.nxtbook.com/nxtbooks/pmg/ub0508
https://www.nxtbook.com/nxtbooks/pmg/ub0408
https://www.nxtbook.com/nxtbooks/pmg/ub0308
https://www.nxtbook.com/nxtbooks/pmg/ub0208
https://www.nxtbook.com/nxtbooks/pmg/ub0907
https://www.nxtbook.com/nxtbooks/pmg/ub0807
https://www.nxtbook.com/nxtbooks/pmg/ub0707
https://www.nxtbook.com/nxtbooks/pmg/ub0607
https://www.nxtbook.com/nxtbooks/pmg/ub0507
https://www.nxtbook.com/nxtbooks/pmg/ub0407
https://www.nxtbook.com/nxtbooks/pmg/ub0307
https://www.nxtbook.com/nxtbooks/pmg/ub0207
https://www.nxtbook.com/nxtbooks/pmg/ub0107
https://www.nxtbook.com/nxtbooks/pmg/ub1206
https://www.nxtbook.com/nxtbooks/pmg/ub1106
https://www.nxtbook.com/nxtbooks/pmg/ub1006
https://www.nxtbook.com/nxtbooks/pmg/ub0906
https://www.nxtbook.com/nxtbooks/pmg/ub0806
https://www.nxtbook.com/nxtbooks/pmg/ub0706
https://www.nxtbook.com/nxtbooks/pmg/ub0606-GG
https://www.nxtbook.com/nxtbooks/pmg/ub0606
https://www.nxtbook.com/nxtbooks/pmg/ub0506
https://www.nxtbook.com/nxtbooks/pmg/ub0406
https://www.nxtbookmedia.com