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<p class=MsoNormal><span style='font-size:12.0pt'>Please broadly disseminate the
below guidance from the Vice Chancellor for Research (which is also attached) 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'><o:p>&nbsp;</o:p></span></p>

<p class=MsoNormal><b>OFFICE OF THE VICE CHANCELLOR FOR RESEARCH</b><o:p></o:p></p>

<p class=MsoNormal><b>April 29, 2009<o:p></o:p></b></p>

<p class=MsoNormal><br>
<b>ALL ACADEMICS &amp; KEY ADMINISTRATORS/KEY SUPPORT STAFF <o:p></o:p></b></p>

<p class=MsoNormal><b><o:p>&nbsp;</o:p></b></p>

<p class=MsoNormal><b>SUBJECT:</b>&nbsp;<b>&nbsp;&nbsp;American Recovery and
Reinvestment Act of 2009 (ARRA)<o:p></o:p></b></p>

<p class=MsoNormal><o:p>&nbsp;</o:p></p>

<p class=MsoNormal>In the coming months, due to the impact of the ARRA stimulus
program, the&nbsp;University&nbsp;of California&nbsp;expects to receive a
significant increase in sponsored research funding.<o:p></o:p></p>

<p class=MsoNormal><o:p>&nbsp;</o:p></p>

<p class=MsoNormal>This guidance is issued in anticipation of a final
determination to be made by the federal Office of Management and Budget (OMB)
regarding the allowability of administrative support charges as direct costs on
ARRA awards.&nbsp; In the event that the OMB determines that such costs cannot
be charged as direct costs, the campus will comply with this determination and
any administrative support personnel costs budgeted in ARRA awards may be
rebudgeted for other project needs consistent with award terms and conditions,
sponsor policy, UC/campus policy and applicable regulations and statutes.<o:p></o:p></p>

<p class=MsoNormal><o:p>&nbsp;</o:p></p>

<p class=MsoNormal><b><u>Guidance for Budgeting Administrative Support Expenses
in Proposals for ARRA Awards<o:p></o:p></u></b></p>

<p class=MsoNormal><o:p>&nbsp;</o:p></p>

<p class=MsoNormal>ARRA awards will require an expanded level of reporting and
administrative management in order to meet the accountability requirements for
these awards. To meet the requirements, UCR proposals submitted for ARRA funds
should include a direct labor allocation for departmental administrative
support salaries commensurate with the level of effort required to manage the
expanded financial management and reporting anticipated for these awards.&nbsp;
Generally, the level of effort would not exceed 10% FTE.&nbsp; However, it may
be necessary to scale the level of effort based on the size, complexity and
programmatic activities associated with the project.&nbsp; It is also important
to remember that all administrative support directly charged to ARRA awards
will require quarterly effort certification.<o:p></o:p></p>

<p class=MsoNormal><o:p>&nbsp;</o:p></p>

<p class=MsoNormal>Departmental administrative support personnel budgeted and
charged to ARRA awards should be responsible for the administrative activities
necessary and essential for fulfilling the reporting requirements and other
special obligations associated with ARRA-funded awards (list is not
exhaustive):<o:p></o:p></p>

<p class=MsoNormal>&nbsp;<o:p></o:p></p>

<ul style='margin-top:0in' type=disc>
 <li class=MsoNormal style='mso-list:l0 level1 lfo1'>Monitoring expenditures
     under ARRA awards to ensure that the funds are being spent timely and in
     accordance with the award terms and conditions. <o:p></o:p></li>
 <li class=MsoNormal style='mso-list:l0 level1 lfo1'>Coordinating the data
     required for reporting under ARRA by working with PIs, Sponsored Programs
     Administration, and Extramural Funds Accounting.<o:p></o:p></li>
 <li class=MsoNormal style='mso-list:l0 level1 lfo1'>Assisting PIs and
     Sponsored Programs Administration with coordinating the submission of
     ARRA-required administrative and financial data reporting elements.<o:p></o:p></li>
 <li class=MsoNormal style='mso-list:l0 level1 lfo1'>Any other administrative
     and financial tasks related to ARRA awards. <o:p></o:p></li>
</ul>

<p class=MsoNormal><o:p>&nbsp;</o:p></p>

<p class=MsoNormal>The proposal budget justification must include a rationale
for requesting departmental administrative support costs in the form of administrative
and/or clerical salaries. Here is sample language:<o:p></o:p></p>

<p class=MsoNormal><o:p>&nbsp;</o:p></p>

<p class=MsoNormal><i>Due to the extraordinary administrative oversight and
reporting activities associated with awards made under the American Recovery
and Reinvestment Act, this proposal includes __% salary support for the
additional administrative services required by the Act should an award be
issued. Regulatory support for this request is located at OMB Circular A-21
F.6. a. (2.), which states: &quot;Direct charging of salaries of administrative
and clerical staff costs may be appropriate where administrative or clerical
services required by the project are significantly greater than the routine
level of such services provided by academic departments.&quot;<o:p></o:p></i></p>

<p class=MsoNormal><o:p>&nbsp;</o:p></p>

<p class=MsoNormal>If you have any questions or require any additional
information please contact the <a href="http://or.ucr.edu/home/Staff.aspx?t=3"
title="http://or.ucr.edu/home/Staff.aspx?t=3">Contract and Grant Officer
assigned to your unit</a>.<o:p></o:p></p>

<p class=MsoNormal><o:p>&nbsp;</o:p></p>

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