Office of Research and Project Administration

This is to notify you of updated ORPA processes regarding the creation and distribution of the internal Notice of Award (NOA).  All changes noted below will be effective starting this Monday, March 26, 2007.  For ease of reading, I have also attached this notice as a Word document.

NOAs for Clinical Trials:

·    Previous process:  The first NOA was generated only when the first check was received, which could sometimes be months after the contract was fully signed.  The original checks were received by the department and often sent to ORPA for deposit. 

·    New process: ORPA will generate a NOA as soon as the contract is fully signed.  There will be no budget attached to that first NOA.   The Project Period (right column on the first page on the NOA) will reflect the total amount anticipated while the Budget Period (left column) will reflect zero funds.  The first NOA will provide the account number and the terms and conditions of the clinical trial agreement.  As in the past, additional NOAs will be generated and the Budget incrementally increased as checks are received.

In addition, all original clinical trial checks should now be sent to ORACS for deposit.  The departments should not deposit the checks themselves nor should they send them to ORPA for deposit.  However, the department will need to send a copy of the checks to ORPA for the creation of the NOA.  Please make sure that the account number and PI are clearly identified on the checks. In addition, if the checks are for reimbursement of costs that do not get assessed indirects (e.g. such as WIRB fees), please identify that on the checks to ensure that the NOAs appropriately reflect the exclusion of indirects. 

NOAs for Industry-Sponsored Research, Testing or Service Agreements (this does not impact grants for non-industry sponsors such as NIH, NSF, NY State contracts, County contracts, foundations or voluntary health organizations such as the American Heart Association or the American Cancer Society):     

·     Previous process: The first NOA, and therefore the ledgers, were set-up for the total anticipated amount to be received by the sponsor.  However, most of these types of agreements are paid as milestones are met or per a payment schedule identified in the agreement.  By setting up the NOA for the whole amount, it led the departments to believe, when looking at the ledgers, that the funds had already been received in full when clearly, that was not the case.

·     New process for fixed-price research, testing or service agreements paid according to a payment schedule:  Just like the new clinical trial NOA process mentioned above, ORPA will now generate an initial “zero budget” NOA.  Additional NOAs will be generated and the budget increased as checks are received.  The initial NOA will identify the account number and the terms and conditions of the agreement.  When ORPA emails the first NOA for such agreements, we will identify the page number in the contract where you can find the payment schedule.  In addition, the NOA, under the Fiscal Consideration section (usually on the 2^nd or 3^rd page of the NOA) will identify if the contract is fixed-price or cost-reimbursable. 

For fixed-price agreements, the department will have to notify ORACS when the milestones, identified in the payment schedule of the agreement, have been met.  ORACS will then generate an invoice and submit to the sponsor for payment.   ORACS will notify the departments by email that an invoice has been submitted.  When the check is received by ORACS, they will notify ORPA who, in turn, will generate a NOA to increase the budget by the amount received.  Therefore, issuance of a NOA will confirm that payment has been received.  This new process will hopefully allow the PIs and departments to better monitor the spending on the account as well as ensure completion of the milestones.   

-          Process for cost-reimbursement research, testing or service agreements:  If these agreements are on a cost-reimbursement basis (e.g. invoices and payments are made as costs are posted on the ledger), the NOAs will be set-up for the total amount anticipated.  ORACS will generate the invoices, usually on a quarterly basis, per the costs reflected on the ledger.  The department and the PIs can monitor these accounts as any other cost-reimbursable research grant.  Again, as noted above, the initial NOA will identify, in the Fiscal Consideration section, if it is a fixed-price or cost-reimbursement contract. 

-          Process for fixed-price research, testing or service agreement paid through automatic payments:  A few research agreements are fixed-price but do not require any invoices to be generated; the sponsor has agreed to automatically pay the total amount (e.g. they can either agree to pay the contract in full at time of signatures or automatically pay on a fixed schedule).   For these types of agreements, the initial NOA will be set-up for the total amount anticipated as nothing is required to trigger an invoice.  ORACS will be responsible for ensuring that the funds are received as expected.  The NOA will identify in the Fiscal Consideration section if automatic payment applies.   

If you have any concerns or questions regarding these changes, do not hesitate to contact your ORPA Research Administrator.

 

Anthony Beckman - x5-1502

Donna Beyea - x5-8037

Marlene Boutet - x3-3960

Brenda Kavanaugh - x5-1504

Jane Tolbert - x5-4210

Cheryl Williams - x5-1503
 

Marlene Boutet
Senior Research Administrator
University of Rochester
Office of Research & Project Administration
517 Hylan Bldg.
Rochester, NY  14627
phone: 585-273-3960
fax: 585-275-9492
email: mboutet@orpa.rochester.edu