Department Administration 101

Workshop Case Study

“Big TimeUniversity”

Introduction.

You have just assumed the position of Departmental Administrator for a large medical department at a major research university – Big Time University! Sitting proudly in your spacious cubicle, you begin your first day on the job knowing that you will be responsible for all the important research conducted in your department! While organizing your desk, you look up and see Professor Jones at your door. After introducing herself and welcoming you to the department, Professor Jones states the real reason for her visit. She explains that your predecessor, while being a really nice person, never was able to provide much assistance managing the complexities of a multi-grant funded lab. Things are really a mess, and Dr. Jones pleads for your assistance in getting things organized.

She currently has two grants that fund her lab, plus institutional support for her 9 month salary and the salary of a lab technician. The two grants are from:

AGENCYPERIODANNUAL $CURRENT BAL.

1) NSF3 years ( Begin March)$300,000$240,000

3) Am. Cancer Soc.2 years (Begin January)$ 50,000$ 25,000

Total$350,000$265,000

You determine that Dr. Jones has the following on-going annual expenses:

2 months of her summer salary at $8,000 per month
3 post-docs at a salary of $32,000 per year each
2 graduate students at an annual salary of $21,000 each
1 lab technician at $42,000
graduate student tuition $10,000 per year
$2,500 in previous year travel costs
$21,000 in previous year supply costs

After reviewing the four approved grant budgets, you discover the following:

2 months of summer support in NSF
2 post-doc in NSF, 1 in ACS
2 grad students in NSF
1 lab tech in NSF
Equipment budgets of $15,000 – NSF

Big Time University, like other Colleges and Universities, has its costing policies governed by OMB Circular A-21. Through intense negotiations, Bobby Pennypincher, BTU’s Controller, has negotiated a Facilities and Administration rate with the cognizant agency of 50% based on “Modified Total Direct Costs”, or MTDC. BTU’s fringe benefits rate is 30% for faculty (not on summer salary) and staff, 20% for post-docs.

Question: Assuming the following: 1) annual funding is the same for each grant budget year; 2) expenses escalate by 4% per year; 3) approved agency budgets remain unchanged; 4) none of the budgeted equipment money has been spent in the current project budget year– can you meet Dr. Jones projected obligations for the 7-1-03 to 6-30-04 fiscal year? Would you recommend any changes (budget revisions, staff changes, delayed equipment purchases, etc.) to Dr. Jones?

Announcement of Budget Cut

It’s June, and you are gazing out your window as a gentle Autumn breeze carries golden leaves across the quad. All is well! You have worked hard to make the required changes in Dr. Jones lab, but it has been worth the effort. She has been extremely grateful, and you are feeling a real sense of accomplishment. Suddenly, Dr. Jones, with a frightened look upon her face, appears at your door. She has just received an e-mail from her NSF program officer announcing that effective immediately and for the duration of the award, her grant will be cut by 20%. The pro-rata cut for the first 6 months of grant year is $30,000. For the remaining two years it is $60,000 per year.

Question: What options would you suggest to Dr. Jones? If the decision is made to reduce personnel, what factors must be considered? Note that the post-docs signed two- year contracts, the graduate students are all guaranteed support by the department, and there is a university rule that 120 days notice must be given before any personnel can be laid off. What other issues would you consider?

It’s June 30th , 2:00PM, you just finish a call with your grants office involving a proposal that must be submitted by the end of the day. One more stop and it will be ready to be picked up and sent via federal express by the agency deadline. You have a 3:00 meeting with the Chair to discuss a salary and start-up package for a new faculty candidate, no problem - you are prepared. A few additional budget items and you are ready to take a long July 4th holiday with your family. Boy do you need it! These long hours have really been tough, but you have five consecutive days off. What a relief!

As you spin in your chair from your computer screen to answer the telephone, the lights go out. You wait for the emergency power to come on, but it doesn’t. You have a critical animal facility in your building that must be kept within a certain temperature range. It has been a particularly warm Fall and without cooling, you only have a few hours before the situation becomes critical. Your main computer servers are on battery backup, but that will last only 30 minutes. The power has now been out five minutes. Everyone looks to you for guidance. What do you do?

Haven’t heard from Dr. Jones in a while, but you did get an e-mail from the grants office announcing that her new NIH grant will be funded effective October 1 next year. This will offer considerable flexibility with her lab’s financing. You check you e-mail. Here’s one from Dr. Jones. She has been in Europe for the past few weeks at two consecutive conferences. While attending a major international conference in Budapest, she met a rising star in her field who was looking for a two year post-doc appointment in the US. What luck! The new NSF grant has funding for a post-doc for two years. Dr. Jones asks, can you get everything arranged for him to arrive three months from now? An H-1 visa is required. What do you do?

December 10. The semester is about over. Only a week till graduation. Many of the students will be gone, and you’ll be able to get caught up on all those things that have been piling up. The phone rings, remember that Hungarian post-doc that you moved “heaven and earth” to get on board for Dr. Jones. Well, things just aren’t working as anticipated. Dr. Jones wants to discuss terminating him. You set the meeting for this afternoon at 3:00. What issues must you consider? How do you prepare for the meeting? Who on campus might you contact for assistance? Guidance?

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