Chris Dillon, CVM Finance; Michelle Fagan-McGraw, VPM; Jason ...

Chris Dillon, CVM Finance; Michelle Fagan-McGraw, VPM; Jason Jacobs, SPA
02.15.2012

VERY IMPORTANT to read the RFA or RFP closely and follow all
guidelines/instructions
A proposal can be rejected if it exceeds the funding cap by $1.00
A proposal can be rejected if the narrative exceeds the page limit by one
paragraph
Is there a plan in the proposal to monitor project performance at each
foreign site?
F&A (IDC) can vary by sponsor. The NIH caps IDC at 8% for foreign
subawards under NIH Grants at U.S. Educational Institutions
Does the RFA/RFP require matching and/or cost-sharing? The match/costshare
must be documented in the proposal in a letter signed by PI and
must be listed on the PRF signed by Dept Head and Dean

Budgeting for an International Activity:
◦ General Program Costs
◦ Faculty and Staff Salary Support (inclusive of university provided
benefits costs)
◦ Supplies/Services
◦ Sourcing, Allowable Costs
◦ Other Costs
At this stage the budgeting process is the
same as always!

◦ Travel
◦ Determine how often travel will be needed?
◦ Planning Meetings
◦ Special Events
◦ Sub-Award Monitoring
◦ Unexpected Travel
◦ Air transportation
◦ Fly America Act
◦ http://travel.umn.edu/flyamerica.php
◦ Ticket classes and costing
◦ Ground transportation
◦ airport transport, taxi/car rental
◦ Visas
◦ Airport transfer costs

◦ Per Diem
◦ International per diem rates:
◦ http://aoprals.state.gov/web920/per_diem.asp
◦ How will this be paid?
◦ Is this a cash based community?
◦ What countries currency is expected?
◦ How will you get cash in-country?
◦ Discount for meals provided at events or meeting
◦ Lodging
◦ International lodging rates:
◦ http://aoprals.state.gov/web920/per_diem.asp
◦ What is included in the quoted rate? Provided meals should be
deducted from the daily per diem paid to faculty, staff, and
participants.

•Cash procurement costs (Western Union)
•Equipment transportation costs/customs fees
•Cultural Insurance Service International (CISI) costs
•Wire transfer fees
•FEDEX invoices for payments to expats, third country nationals, and
vendors
•Determine costs for currency conversion using OANDA as basis
•Expat costs such as Living Quarter Allowances, post pay, other HR costs
•Translation and Interpretation costs
•Visa costs (tourist vs business)

◦ Cultural norm costs vs. sponsored allowable costs
◦ Opening and closing dinners
◦ Teas, social events (alcohol)
◦ Host gifts, honoraria, sitting fees, participant gifts
◦ Supplies
◦ What will you bring?
◦ What will you purchase in-country?
◦ Many items may not be readily available in the event locale.
◦ Audio-Video Equipment
◦ What does the venue provide?
◦ What is the rental rate if needed?
◦ Converts needed
◦ International Project Specific
• Unavoidable Changes
• Per diem changes (after your budget is established)
• Currency exchange rate fluctuation

Travel per diem payments for non-UMN participants
◦ Pay after the fact or during a meeting/conference
What are the cultural and financial sensitivities (cash vs check
vs wire)?
Purchase locally, import or traveler transported procurements
Sourcing local prices versus tourist or foreign rates
How will cash be handled or vendor setups in EFS required
Discuss situations with sponsor

No direct deposit in non-US banks
Reimbursing in local currency vs USD
Language and time zone issues with 1-HELP for international
post employees
Ucard can not be issued remotely
Some third party national employees need visas to visit UMN
Moving costs, deployment costs, repatriation costs
Registration of travel with GPS Alliance (expat, nationals, third
country nationals, and US-based faculty and staff)

Talk with local staff on best place to keep cash (hotel safe,
room safe, luggage, other)
Give traveler an emergency calling tree for financial issues
and security issues
Develop plans and scenarios to help avoid payment and
vendor disputes
Make sure to get your faculty and staff to register with GPS
Alliance and make sure they understand the CISI insurance
coverage
Discuss risks and liability with Departments and Colleges,
determine how unallowable costs due to safety or loss will be
paid

Prior to issuing a foreign subaward under a U of MN Grant, the foreign
site must answer the question “has your organization been audited by a
U.S. Government audit agency or by an independent CPA firm for the
most recently completed Fiscal Year?” If “No”, the site will need to answer a financial
questionnaire about their accounting practices and procedures
The subaward will have to follow the terms of the prime award for:
-Rebudgetting
-prior approvals
-no-cost extension
-change in Key Personnel
-allowable costs
-change in scope
The type of subaward whether fixed price or cost-reimbursable will also be governed
by the prime award

Foreign Organizations may not have the resources to pay for expenses up
front in the third world setting
They lack the resources for payroll, supplies, transportation, etc.
Advance payments are allowable by some sponsors
USAID allows a one month advance on some of their projects. The
advance allows the organization to cover payroll, supplies, transportation,
etc.
The NIH is cost-reimbursable and does not have an advance mechanism.
One must invoice for the previous months expenses
This is normally not an issue for established foreign institutions, but it
comes up a lot with new organizations in the third world
What currency is to be used? The U of MN writes all subaward
agreements in US Dollars

Eastern Europe—what happened to the $$$$????
Chris are you there? I am being held at the hotel and
can’t leave or they will arrest me.
So I have to carry this basket full of cash through the streets
of Chiang Mai because you ran out or 1000 Baht notes?

http://www.ospa.umn.edu/
http://www.grad.umn.edu/oii/workshops/Internationa
lResearchCollaborations.html
http://international.cfans.umn.edu/
http://www.oanda.com/currency/converter/
http://global.umn.edu/travelregistry/

Jason Jacobs
Principal Grant Administrator
Sponsored Projects Administration
j-jaco@umn.edu
(612) 626-7718
Chris Dillon
Operations & Finance Administrator
USAID RESPOND Project
cdillon@umn.edu
(612) 626-8019
Michelle McGraw
Project Manager
USAID RESPOND Project
mcgra175@umn.edu
(612)625-8728

©2009 Regents of the University of Minnesota. All rights reserved. The University of Minnesota is an equal opportunity educator and employer.
This presentation is available in alternative formats upon request. Direct requests to genox003@umn.edu or 612.624.5599.