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<p class=MsoNormal><span style='font-size:12.0pt'>Please broadly disseminate
this message within your unit to Principal Investigators and those individuals
involved in the development of extramural proposal budgets.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>The Office of Management and
Budget recently issued proposed guidance regarding how the federal government
will implement many aspects of the American Recovery and Reinvestment Act (ARRA)
of 2009, which includes $25 billion dollars in support of research and
development, but also includes unprecedented transparency and accountability
requirements. The proposed guidance clarifies that federal agencies and
ARRA funding recipients are required to separately account for and report on
ARRA awards, even when those awards are made to supplement existing (non-ARRA)
research awards. <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>To comply with this
requirement, federal agencies will issue all ARRA-funded awards, including
supplemental awards, as new awards (i.e., new award numbers).
Consequently, all proposals for ARRA funding (including supplemental proposals)
should use the applicable rate consistent with UCR’s new <a
href="http://or.ucr.edu/SP/Lifecycle/Prepare/index.aspx?T=5">Facilities and
Administrative (F&A)Costs Rate Agreement</a>. In addition, all
ARRA-funded awards will be subject to UCR’s new <a
href="http://or.ucr.edu/SP/Lifecycle/Prepare/index.aspx?T=5">F&A Costs Rate
Agreement</a>. For ARRA-funded awards resulting from proposals that used
F&A rates from UCR’s prior rate agreement, the difference between the
F&A costs contained in the proposal and the F&A costs calculated using
the new applicable rate will be rebudgeted from direct costs at that time the
award is set up.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>Because of the extensive
reporting requirements associated with ARRA-funded awards, including quarterly
reporting of funds expended, project status, jobs created, jobs retained, funds
obligated, etc. all within 10 days after the end of each calendar quarter, the
campus will not be in a position to endorse and submit F&A cost
reduction/waiver requests to the Office of the President. Notwithstanding
the foregoing, if a federal agency has a written, publically available policy
that limits the recovery of F&A costs to rates below those in UCR’s <a
href="http://or.ucr.edu/SP/Lifecycle/Prepare/index.aspx?T=5">F&A Costs Rate
Agreement</a>, the Office of Research will submit a request to the Office of
the President for approval.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>Questions regarding budgeting
F&A costs in ARRA proposals and applicable F&A rates for ARRA-funded
awards should be directed to the <a href="http://or.ucr.edu/home/Staff.aspx?t=3">Contract
and Grant Officer assigned to your unit</a>.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>Bruce Morgan<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt'>Assistant Vice Chancellor for
Research<o:p></o:p></span></p>
<p class=MsoNormal><o:p> </o:p></p>
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