SUBJECT:

American Recovery and Reinvestment Act of 2009 (ARRA)

In the coming months, due to the impact of the ARRA stimulus program, the University of California expects to receive a significant increase in sponsored research funding.

Because ARRA-funded projects require much greater reporting requirements than are routinely associated with federal awards, the UC Office of the President has recommended that ARRA projects be considered "Major Projects" and that the departmental administrative support costs associated with the expanded reporting requirements be charged directly to sponsored projects supported by Recovery Act funds (See Memo Operating Guidance No. 09-02 dated April 8, 2009 located on Blink at http://blink.ucsd.edu/go/ARRAdirectcosts)

The Council on Government Relations (COGR) Board also has issued a statement that it is reasonable for institutions to include direct salary charges for administrative and clerical salaries in ARRA applications. According to COGR, the inclusion of such costs as a direct charge will not jeopardize the application from being selected for funding.

UCSD proposals submitted for ARRA funds should include a direct labor allocation for 5% of an FTE for departmental administrative support salaries for ARRA-funded projects. The 5% represents 8 hours per month for department staff to manage the expanded financial management and reporting anticipated for these awards.

The proposal budget justification should include a rationale for requesting departmental administrative support costs in the form of administrative and/or clerical salaries. Here is sample language recommended by COGR:

Due to the extraordinary administrative oversight and reporting activities associated with awards made under the American Recovery and Reinvestment Act, this proposal includes 5% 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: "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."

All administrative support directly charged to the 5% administrative support allocation will require quarterly effort certification.

If you have any questions or require any additional information please contact Mark Cooper at 858-534-1110 or Lynelle Gehrke at 858-534-0243.

Steve Relyea Vice Chancellor - Business Affairs Arthur B. Ellis Vice Chancellor - Research