Part III - UNM Finance: Practical Applications

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Standard Accounting Resource Manual (SARM)

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1 University of New Mexico
Albuquerque, NM 87131

Appendix 4 - HSC Policy on Principal Investigator Effort on Sponsored Project

December 4, 2008      

To:           All HSC Faculty and Staff

From:       Richard S. Larson, MD, PhD, VP for Translational Research, Ava Lovell, VP for Finance

RE:  HSC Policy on Principal Investigator Effort on Sponsored Project

Effective December 4, 2008 it will be the policy of the Health Sciences Center that all sponsored project agreements processed for award, whether cost reimbursement, fixed price, clinical trial, flat fee, purchase order, or deliverable based, have a minimum of 1% level of effort from the principal investigator as a direct charge (or committed and tracked cost share).   This minimum effort helps to ensures that there is adequate guidance, monitoring, and management by the HSC principal investigator by showing a reasonable, measurable, outcome towards each project.  This policy fulfills new OIG requirements.

Circumstances where this policy does not apply are the following:

  • Where the Sponsoring Agency does not allow principal investigator effort
  • Equipment and Instrumentation Grants
  • Doctoral Dissertation Grants
  • Student or Diversity Supplement Grants
  • Administrative Supplement Grants to Adjust F&A Only
  • ‘Mentors’ on Institutional or Individual Training Grants
  • Conference Support, CME or Grand Rounds Awards
  • Construction and/or Renovation Grants
  • Some Career Development Awards and/or Scholar Awards


As of December 4th the HSC PreAward Office will review all Award Budget Sheets (ABS) to ensure that a minimum of 1% PI effort (and fringe) is internally budgeted upon Award.  Fiscal Monitors in Contract & Grant Accounting will also monitor that this effort is actually being charged and is recorded on subsequent Effort Certifications.  We encourage your Department Accountants to do the same. 

Thank you in advance for your compliance and support of our quest for continued excellence.   Please call upon your Financial Services representative if you have questions.  

cc: Rena Vinyard; Associate Director Financial Services/PreAward

      Mike Schwantes, Director Fin Sys & Restricted Accounting