Understanding Impact of Federal Agency Directives on UIUC Awards Portfolio
Explore the immediate impact of federal agency directives on the UIUC federal award portfolio, including delayed reviews, funding delays, and restrictions on DEI activities. Learn about challenges to indirect costs and what to do in case of an active grant subject to agency pause.
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Presentation Transcript
Federally Sponsored Research Challenges April 8, 2025 April 8, 2025 BMG Meeting BMG Meeting
What is the impact of the What is the impact of the agency directives agency directives on the UIUC federal award UIUC federal award portfolio? portfolio? on the
Immediate Impact Immediate Impact Proposal: Delayed Reviews Solicitations removed or postponed Active Awards: Restrictions on DEI activities Suspension, pause and stop work orders Terminations Funding delays
FY 24 Sponsored Programs Portfolio FY 24 Sponsored Programs Portfolio Federal Sponsors All Sponsors Proposals $2.2B $3B Awards $461M $788M Expenditures $934M $1B
UIUC New Federal Awards UIUC New Federal Awards January 20 January 20th th to April 1 to April 1st st w/ Pass Through UIUC as Prime 118 66 61 20 FY24 FY25
What about the challenges What about the challenges to our to our indirect costs indirect costs? ?
Effective F&A Rates by Sponsor Type Effective F&A Rates by Sponsor Type FY 24 Sponsored Expenditures FY 24 Sponsored Expenditures
What are we to do if an What are we to do if an active grant is subject to an active grant is subject to an agency agency pause pause ? ?
The term The term pause Uniform Guidance. Pauses are Uniform Guidance. Pauses are being used to stop the processing of being used to stop the processing of award actions and payments while award actions and payments while an agency reviews their active an agency reviews their active awards. awards. pause is not defined in is not defined in
Has SPA suspended the use Has SPA suspended the use of of Anticipation Accounts Anticipation Accounts on federal projects? on federal projects?
No! No! But SPA is counseling units to But SPA is counseling units to be cautious in the current be cautious in the current environment given the financial environment given the financial implications to the unit could be implications to the unit could be significant. significant.
What are some of the more What are some of the more common myths common myths that SPA is hearing? hearing? that SPA is
Existing Awards are not impacted Nearly all awards are impacted. Excluded are expenditures related to immigration enforcement, law enforcement, the military, public safety, and the intelligence community; and other critical, acute, or emergency spending, as determined by the relevant Agency Head.
SPA receives the Full Award up front Federal awards are generally awarded with an obligated amount that provides us with the opportunity to expend this amount within the award period of performance. Nearly all of awards are cost-reimbursable. We are paid only after we have expended the funds.
Encumbered Funds are Immune from Impact Encumbered funds are unspent and are protected in our accounting system but are not immune from a termination notice. We do consider some expenses Noncancellable Obligations i.e., renting a remote research facility for a year. However, in our recently terminated awards we were not provided the opportunity to negotiate noncancellable obligations.
SPA is Paying Subs even if we are not Paid Not necessarily. SPA s position is we will pay our subs on impacted federal awards if UIUC is being paid as the prime. Our sub terms say the following: The funding for this SUBAWARD is subject to and contingent upon the continuing availability of PRIME AWARD funds for this purpose. As of today, we are paying subawards for all active awards.
What to Expect What to Expect R&D investments will focus on US global competitiveness and national security Reduced funding for Climate/Clean Energy and Biomedical and more of a focus on emerging technologies e.g., AI, quantum, advanced computing, advanced manufacturing, biotechnology Continued restructuring of federal agencies, layoffs and changes in leadership Intense scrutiny on DEI activities Increased scrutiny on F&A
Campus Communication Campus Communication SPA Website: Agency Directives Concerning Presidential E.O. s Campus Federal Policy Updates Website Campus Federal Updates Newsletter Campus Working Group to monitor federal developments
QUESTIONS QUESTIONS
