Proposal Status and Notification
The Grants and Contracts Office is the central repository for sponsored research records.  Proper documentation is essential for institutional recordkeeping and reporting, post-award grant management, and notification of appropriate campus offices.  Principal investigators should notify the Grants Office when proposals have been assigned an agency I.D. number or have been approved or withdrawn, declined, or awarded a time-extension.

Award Acceptance
Normally, both the Grants and Contracts Office and the principal investigator receive official notification of awards.  On those occasions where notification is sent only to the principal investigator, s/he should send a copy of the award letter to the Grants Office so that the assignment of a Davidson College grant account number is not delayed.  The grants administrator compares the award letter and budget with the original application to insure that the terms and conditions of the award are agreeable to all parties.

On occasion the funding agency will request proposal revisions before funds are committed.  Requests may be as simple as clarifying the project objectives or may require the reallocation, modification or withdrawal of certain budget line items. Careful thought should be given as to whether a project can be completed with the appropriated funds or if budget reductions will necessitate a reduction in the scope of the project.  Faculty members lack authority to make financial commitments on behalf of the College and must involve the grants administrator in any negotiations with the funding agency.  Verbal agreements regarding revisions should be followed by a written confirmation and signed by the principal investigator and the grants administrator.

Davidson Colleges does not permit principal investigators to incur pre-award costs for any externally funded project.

Principal Investigator/Project Director
In accepting a grant or contract, Davidson College assumes an obligation to administer the award in compliance with all applicable institutional, agency, federal, state or other regulations governing the use of those funds. Likewise, the principal investigator or project director agrees to abide by the terms and conditions of the award and manage funds within approved budgets.  The principal investor/project director initiates required approvals for budgetary and programmatic changes, prepares technical reports, and ensures that individuals employed under the grant are familiar with institutional and agency compliance issues.

Hiring New Personnel
All grant-funded new hires are subject to the policies and procedures of the college’s Human Resources office and Business Services office. Principal Investigators are encouraged to review the college’s employment practices and policies guide and to contact the appropriate HR staff person when questions arise.   

All employees must complete the following forms prior to working and being entered into the payroll system:

• I-9 (Employment Eligibility Verification) - see specific instructions on the I-9 Form

• This is an INS file, and proper documentation must be presented.  This form must be signed in front of an authorized representative of Human Resources or Business Services.

• W-4 (Employee's Withholding Allowance Certificate for the Internal Revenue Service) - see specific instructions on the W-4 Form

• NC-4 (Employee's Withholding Allowance Certificate for the State of North Carolina) - see specific instructions on the NC-4 Form

• Direct Deposit Enrollment Form

The following procedures should be followed when hiring grant-funded student and summer employees.  NOTE: During the summer months, students (including those participating in summer programs) are classified as “employees.”

Academic Year Employment
Before a student can be added to payroll, supervisors must complete a Student Employment Authorization form and file it with the Payroll Office.  Signed forms should be sent to the attention of Rene Baker, Payroll Coordinator, Business Services office.  Supervisors should then advise their students to take appropriate forms of identification as stated on Form I-9 and a voided check to the Business Services office (Jackson Ct. #3) in order to complete employment forms.

Students are paid the 15^th of each month for services rendered the previous month.  Timesheets for those services should be reviewed for accuracy by the supervisor, approved, and forwarded to Rene Baker in Business Services by the 4^th of each month.

Summer Employment
Prior to recruiting individuals for summer employment, the PI should determine the hourly wage to be paid to, or on behalf of prospective employees by completing the Compensation Budget Worksheet.  Unless separately funded by the grant, the College’s matching contribution for FICA/Medicare of 7.65% on wages, and non-cash fringe benefits (housing, meals, etc.) must be deducted from the compensation budget.  Please return the Compensation Budget Worksheet to LuAnne Sledge in the Grants & Contracts Office.

Supervisors should complete a Temporary Employee Authorization form for each individual employed during the summer months.  Send the completed form to Diann Cavin in the Human Resources office no later than one week prior to the individual’s first day of work. Supervisors should advise each individual to take appropriate forms of identification as stated on Form I-9 and a voided check to Human Resources office on the first day of employment in order to be entered into the college payroll system.  Individuals who have been previously employed by the college should contact Diann Cavin  (x2213) by telephone or email. 

Housing and Meal Plans
Under Treasury Regulation Section 1.119-1, all compensation paid to, or on behalf of an employee is subject to Federal, State, FICA, and Medicare withholding.  College provided housing and meals are considered taxable fringe benefits to the individual and, as such, are subject to withholding.  In order to eliminate the confusion associated with taxing a ’non-cash taxable fringe benefit’, a situation that occurs when payment for the benefit (housing, meals, etc.) is made directly to the provider, a pro-rata housing and /or meal allowance should be added to the individual’s gross pay.  Once the applicable taxes have been withheld each pay period, a matching housing and/or meal deduction will remove the funds from the individual’s net pay and credit Residence Life and/or Dining Services. 

Payment to Individuals From Multiple Grants
If an individual is hired by and reports to two different PIs, separate authorization forms should be completed and sent to Human Resources as previously detailed in Summer Employment.  The employee will then have two job records in the payroll system and will report hours worked respectively for each position.  In the event the employee reports more than 40 hours in one week, unless otherwise noted, the secondary position will be responsible for all overtime pay.

With the exception of federal grants, if a low grant requires supplemental funding, those funds should be periodically transferred from the supplemental source to the primary grant account (using a Journal Entry form), with the employee being paid only from the primary grant.

Payment to Non-US Citizens
Due to complicated IRS and INS regulations with which the College must comply, extra care and time (sometimes in excess of 40 days) are needed to pay anyone (speaker, performer, etc.) who is not a U.S. citizen.  These regulations also apply to payments made to U.S. agents on behalf of non-U.S. citizens.  If you plan to pay anyone this semester who is not a citizen of the United States, please review the college policy at http://www2.davidson.edu/administration/bus/pol_acctspayfaqs.asp#paynonus

Other Grant-funded Employees
Principal Investigators and Project Directors should follow formal college hiring procedures set forth by the Human Resources Office. Appropriate salary levels for all positions, including time-limited appointments, are determined by HR using a “Position Information Questionnaire.”  PIs and PDs should send the completed form to Human Resources where duties and responsibilities, educational and experience requirements, and work environment of the proposed position will be assessed and an appropriate grade level and salary range assigned.  All new positions, including those funded through external grants, are reviewed and approved by the President of the College.

Once the new position is approved, the Human Resources office will initiate advertising.  Costs associated with external advertising are borne by the Principal Investigator or Project Director.  Questions regarding staff positions should be directed to Jennifer Lazarus; questions regarding faculty positions should be directed to Carl Sorensen.   Detailed information is also available on the Human Resources web page.  

New employees should go to the Human Resources office on the first day of employment to complete required Federal forms (see above) and to schedule a benefits orientation with the Benefits Coordinator.

Performance Review
Research assistants and technicians whose salaries are funded by external grants are considered employees of Davidson College. As such they are to be included in the regular performance development and planning process and should receive year-end reviews. Goals should be set each June for the academic year or within 30 days of beginning work if hired later. Mid-year discussions of progress and end-of-year performance reviews need to be documented and signed. Please use the College's standard forms (Coaching Form, Employee Input Form, Performance Development Plan) for this purpose. Then, salary review should occur in early May for the next fiscal year. When the grant start date is May 1st, the performance review must be completed earlier. Salary increases cannot exceed the agency approved budget. Recommendations for salary increases need to be in writing and should be sent to the chair or to the next level supervisor for approval before they are sent with the Performance Planning document to the Human Resources office.
 

The Grants Accountant
Ms. LuAnne Sledge (x2927) in the Grants & Contracts Office is responsible for post-award fiscal management of grants and contracts awarded to Davidson College on behalf of principal investigators and project directors.  The grants accountant files financial reports and oversees record reconciliation and grant closeouts.

Banner Access
In order to access the grant account, faculty members must have Banner uploaded to their computer.  New faculty should contact the ITS helpdesk to gain access to Banner.  Once a Banner user account is established, faculty should contact Lori Gaston (x 2207 or logaston@davidson.edu) in Business Services to gain access to their grant account. 

Account Assignment
After formal, written notification of award is received by the Grants Office, the grants administrator prepares a grant account request memo, which, accompanied by a copy of the award letter, original proposal, and budget is sent to the grants accountant for entry into Banner, the College’s accounting system.  Each grant account carries four sets of numbers. The “fund” number is specific to the award and will not change. The “org” number identifies the department and does not change. The “account” number will change according to the description of the charge. The “program” number, “01,” does not change.  Principal investigators should review their copy of the grant account memo carefully.  Errors should be reported to the Grants and Contracts Office immediately.

Accounts Payable
The Business Services Office provides accounts payable guidelines at  http://www2.davidson.edu/administration/bus/pol_acctspayfaqs.asp#reqdirdepos.  Please remember to use the grants-specific journal entry form and accounts payable voucher form for all grant funded expenses.  These forms should be sent to LuAnne Sledge in the Grants and Contracts Office for review/approval.

Cost-Shares and Matching Funds
In order to assure that departmental and institutional cost-sharing/matching funds obligations are met, the business services and grants offices require a general ledger account number to which each cost-share or match will be charged.  In the case of multi-year commitments, departments may spread their cost-share over the duration of the grant as long as the commitment is met by the grant expiration date.  Single year commitments should be transferred into the grant account at the time of award notification.  All fund transfers must be initiated and approved in writing by the principal investigator or project director for grant accounts, the vice president for academic affairs for institutional funds, and department chairs for department fund transfers.

Mileage
In accordance with Internal Revenue Service guidelines, the mileage rate for reimbursement of employee business travel in personal vehicles is .445 per mile. This rate is in effect from January 1, 2006 until December 31, 2006.

Purchasing
The Office of Purchasing  coordinates campus-wide purchasing for faculty and staff. We facilitate cost effective use of college funds through carefully negotiated and maintained vendor partnerships.

Capital Projects or Purchases
All capital projects/purchases/leases with a total cost of $5,000 or more must be documented and approved prior to purchase.  Capital items include expenditures for building renovations, scientific laboratory and/or field equipment, vehicles or boats, office and plant equipment, and computers and other technologies that will benefit a department for at least three years.  Please complete the capital purchases form, attach a copy of the invoice, obtain the required signatures and submit to the Business Services Office.  The form and related instructions are available at http://www2.davidson.edu/administration/bus/bus_forms/CapitalAuth.doc.  If you have any questions about this form, please contact Susie Fuller at x2066.

Equipment Ownership
Equipment purchased with externally-generated grant funds is considered the property of Davidson College.  In general, only specialized items of equipment not suitable for use within the college may be transferred with an investigator to another institution.  Exceptions to this policy are 1) special agreements covering equipment transfers negotiated between Davidson College and the funding agency and/or the principal investigator or 2) external agencies that maintain a “right of transfer or disposal” policy.  All costs associated with the transfer of equipment to another institution will be charged to the grant as a direct cost or be borne by the principal investigator.

Equipment Insurance
Equipment purchased with grant funds awarded to the College is considered the property of Davidson College.  Principal investigators should note the following categories of coverage for college-owned equipment:

On-Campus Equipment: Equipment housed on-campus is covered under the College’s general insurance policy as long as it remains on campus.  No additional insurance is required unless the equipment has an unusually high value, would be subject to damage from unusual causes, or would, by its nature, be very sensitive or easily damaged.

Off-Campus Equipment:  Equipment purchased with grant funds but used off-campus may require supplemental coverage.  Principal investigators should contact Mrs. Sylvia McDaniel, Manager of Housing and Insurance, to determine the amount and cost of supplemental insurance. To ensure coverage principal investigators should send a schedule of items purchased (including serial number, make, model and cost) to Mrs. McDaniel at the time of purchase.

Note: Laptop computers are covered by the College insurance policy while being transported via public transportation only when the laptop remains in the faculty member’s possession while in transit.  Insurance coverage does not extend to laptops “checked” as baggage.

Privately-Owned Equipment:  Research equipment purchased with grants awarded to individuals is considered personal property and therefore does not qualify for coverage under the College’s insurance policy.  Privately-owned insurance policies may cover such equipment; therefore, principal investigators should consult with their own insurance company or agent.

Time Extensions
Many agencies will allow a one-time, no-cost time extension of up to 12 months if the PI is unable to complete the original scope of the project within the designated timeframe outlined in the grant award.  Normally, agencies require a formal, written request that includes a detailed justification for the requested extension, a plan for completion of the work and an estimate of unexpended funds.  Requests should be made well in advance of the grant expiration date and should be signed and dated by both the PI and the director of Grants and Contracts.  Pls should consult agency guidelines for detailed instructions for no-cost time extension requests.

Rebudgeting and Program Revisions
In general, recipients of external grants are allowed a certain degree of latitude in transferring funds between budget line items with the understanding that no grant appropriations are to be used for purposes other than those consistent with the original intent of the project.  It is the principal investigator’s responsibility to become familiar with agency-specific guidelines.  In order for Davidson College to appropriately oversee expenditures and comply with general cost principals and agency regulations, all rebudgeting requests should be sent to the grants accountant for review and approval. Department assistants, research assistants, and lab technicians are not authorized to either request or approve budget revisions.   The rebudgeting request form, which can be completed on-line, is available at http://www2.davidson.edu/academics/gc/gc_forms/rebudgeting.dot.  Please send the completed form to LuAnne Sledge in the Grants and Contracts Office. 

NSF notifications/approvals are outlined in the NSF Grants Policy Manual. 

NIH notifications/approvals are outlined in the Grants Policy Statement. 

Prior Approval from federal funding agencies is required for any of the following program or budget reasons:

1. Change in the scope or objective of the project;

2. Change in key person specified in the application or award document;

3. The absence for more than three months, or a 25 percent reduction in time devoted to the project, by the approved project director or principal investigator;

4. The need for additional funding;

5. Transfer of funds budgeted for indirect costs to absorb increases in direct costs, or the reverse, if approval is required by the awarding agency;

6. Inclusion of costs that require prior approval in accordance with the Office of Management and Budget (OMB) Circular A-21: Cost Principles for Educational Institutions.

7. Transfer of funds allotted for training allowances (direct payment to trainees) to other expense categories; or

8. Subawards or contracting of any work under an award.

Restrictions
Federal agencies may restrict the transfer of funds among direct cost categories when the federal share of the project exceeds $100,000 and the cumulative amount of the transfer exceeds 10 percent of the total budget.

Any cost allocable to a particular sponsored agreement under the standards provided in Circular A-21 may not be shifted to other sponsored agreements in order to meet deficiencies caused by overruns or other fund considerations, to avoid restrictions imposed by law or by terms of the sponsored agreement, or for other reasons of convenience.

Reporting and Closeout
The Grants and Contracts and Business Services Offices seek to employ procedures that will assure compliance with agency guidelines and auditors' requirements on proper record retention and maintenance.  The grants accountant will notify faculty and staff of impending grant expiration dates to effect timely reports and closeouts.

Account Overdrafts
In order to avoid overdrafts, the grants accountant sends quarterly financial reports to faculty and staff with active grant accounts.  All costs should be reviewed to verify salary charges and to ensure correct allocation of funds.  If, at the end of the grant period, the budget reflects a negative balance, please contact the grants accountant to discuss how the deficit will be covered.  In general, funding agencies do not permit the transfer of funds from one grant account to another in order to resolve overdrafts.  All overdrafts should be resolved within 60 days of expiration so that accounts may be closed out according to agency guidelines.

Project Closeout
The grants accountant will review end of project figures to be included on the final invoice or financial status report.  Unless additional funds are awarded or a no-cost extension is approved, no new charges may be made to the account after the expiration date.  A 90-day allowance is designed to accommodate any encumbrances incurred but not posted prior to the grant expiration date.  Residual funds are handled according to agency guidelines; when guidelines are unclear, the grants accountant will contact the funding agency to determine the disposition of residuals. 

Principal Investigators are responsible for filing all end of project technical reports in addition to any certificates of compliance, invention disclosures, property acquisition reports or other documents that may be requested by the agency.  Please contact the Grants and Contracts office staff for assistance.

For comments or questions about this page contact Beverly Winecoff, 
Office of Grants and Contracts.