Finance Basics for New Biomedical Laboratory Managers and Primary Investigators Kay Miller IT 5340 Digital Storytelling

g 6/27/10 Summary (as it will appear in the course shell) As a Primary Investigator or Laboratory Manager on a medical research project, you are conducting research that has the potential to save thousands of lives. In order to conduct your research now and for years to come, you must have adequate sources of funding. It is often challenging to get the funding to fulfill all that you want to do for your projects. It can be more challenging still to maintain financial solvency. This five lesson course will give you an overview of ways to obtain funding, use grant money, get out of debt if you happen to go over budget and maintain a positive balance for your accounts. Of course, there are many details that are not addressed in this course. Please see the resources and web links included with each lesson for more information and regulations regarding grant funding.

Questions Essential Question: How does a financially healthy scientist result in a healthy public? Curriculum Questions: 1. How will I fund my research? 2. What can I do after the money is awarded? 3. What if I don't get the funding I need? 4. What should I do if my lab goes into debt? 5. How can I restore and maintain the financial health of my laboratory?

Objectives By the end of this unit, learners will know: 1. How to obtain funding from the NIH and other funding organizations 2. How to budget for grants and contracts 3. Basic institutional rules for using funding 4. How to handle debt if it occurs, using resources provided by the University

Audience The audience for this course will be composed mainly of research physicians, faculty in biomedical sciences, and laboratory managers. Most of the audience members hold Ph.D.'s or other advanced degrees in biological sciences. As Primary Investigators (PI's), all have conducted research before and have been in positions of authority and responsibility before. Some audience members will be leading a lab for the first time, other will simply be new to the institution (a hypothetical university based largely on the University of Colorado Denver). Laboratory managers are not necessarily Ph.D.'s or M.D.'s, but

they most likely hold M.S. or B.S. degrees. Laboratory managers, regardless of educational background are all very experienced in scientific research and laboratory procedures. Procedures I How will diversity be incorporated in to the unit? There won't be much diversity in learning ability among audience members. In order to achieve a position that would lead to this instruction, participants would have to be driven, well educated, and experienced in their fields. There may be people for whom English is a second, third, or even fourth language. To accommodate this, the language used in instruction will not be loaded with nuance such as jargon or idiomatic expressions. Clarity and straightforward presentation is essential to ensure that all audience members understand. However, the language will not be simplified so much that it insults the audience's intelligence or speaks down to them. The audience is also likely to have ethnic, racial, religious and gender diversity. The instruction will therefore be knowledgeable of and sensitive to religious beliefs and different cultural values. Women and people of color report feeling underrepresented and excluded in discussions about science, so the instruction will be inclusive of these groups (http://www.awis.org/). Procedures II How will the Digital Story be integrated? The Digital Story will appear at the beginning of the course and will serve as an overview for the entire unit. The story will not contain all of the details about the hows pertaining to obtaining and using funding; it will focus mainly on the whys the emotional impact of starting a new lab and risking the loss of a career due to poor planning and poor use of resources. This overview should serve as a mental model for the subsequent course information and make details easier to remember.

Lessons (detailed lesson plans are pending) Lesson 1 How will I fund my research? Resources 1. National Institutes of Health (NIH) A major funder of health-related research. National Institutes of Health If you have previously performed research as www.NIH.gov a secondary investigator or a post-doctoral student, chances are you have sought funding University site on finding from the NIH before. funding for your research The NIH has many rules for how funding can http://www.ucdenver.edu/academ be used. Your budget must be planned very carefully, ics/research/AboutUs/GrantsCon tractsOffice/grants/funding/Page as the NIH does not allow deviations from s/Funding-Resources.aspx the agreed-upon budget. Changing your budget after the grant has University site on setting up been awarded can be difficult and will not contracts always be possible.

2. Private Investors (usually pharmaceutical companies) Private companies usually provide less money per project than the NIH, but allow for more flexibility with the budget. Typically, your research must involve the use of one of the funding company's products. 3. Sub-Awards If a researcher at another institution is doing research that is closely related to your own, you may work with them for a sub-award or sub-recipient contract. With a sub-award, you will be collaborating with the PI of the other institution and the PI will give you a portion of the grant funding that they have received from the NIH or other funding organization.

http://www.ucdenver.edu/academ ics/research/AboutUs/GrantsCon tractsOffice/contracts/Pages/defa ult.aspx

University site on setting up Sub-Awards http://www.ucdenver.edu/academ ics/research/AboutUs/GrantsCon tractsOffice/subcontracts/Pages/d efault.aspx

Lesson 2 What can I do after the money is awarded? 1. The PI(s), the Office of Grants and Contracts (OGC), and the funding organization must all approve and sign the contract. University site on Award Administration Important: do not begin spending http://www.ucdenver.edu/academ money at this point. ics/research/AboutUs/GrantsCon An account must first be set up and real tractsOffice/awardfunds must be available. administration/Pages/default.asp You may not spend from other grants to x pay for research on the new project. 2. Once OGC has all signed paperwork in place, an account will be set up. Account set-up may take up to two weeks. Lesson 3 What if I don't get the funding I need? University site on Budgeting 1. Keep trying! http://www.ucdenver.edu/academ 2. Cut back on what you anticipate being able to do. ics/research/AboutUs/GrantsCon tractsOffice/awardadministration/preaward/Pages/B udgeting.aspx Lesson 4 What should I do if my lab goes into debt? 1. Types of debt: One project or account Multiple projects or accounts Overall negative balance 2. Actions you can take: Within a limited range, you may be able to move salary and other expenses off an account.

University Web resources on auditing and fiscal misconduct are currently unavailable.

This may only be done if the second account is related to the first, such as an extension of a contract. 3. Stop charging to accounts with negative balances immediately. Sometimes your research in a certain area must stop as a result. 4. You may petition the funding organization for an extension of the contract and an increase in funding Note: The NIH requires an annual accounting of all expenditures. To be approved for a renewal award from the NIH, the expenditures must match the agreed-upon budget. Lesson 5 How can I restore and maintain the financial health of my laboratory? 1. The actions in Lesson 4 can help you restore a positive balance. 2. One of the University's internal auditors or accountants can identify areas where spending can be trimmed and can recommend paths to solvency. 3. Maintaining a positive balance might be easier said than done, but careful forethought and planning will help you avoid future pitfalls. Avoid taking on more than you can afford. Always stick to your budget. As important as your research is, the ends (a successful scientific breakthrough) do not justify the means (getting off track financially). It is not worth the risk of having your lab shut down.

Assessments 1. Quizzes of 10-20 questions over key material will be given at the end of each lesson. A score of 80% or higher is required to proceed to the next lesson. 2. One final test will be given at the end of the full course. Again, a score of 80% or higher is required to begin research as a PI. 3. PI's and laboratory managers will be observed twice each year. Observation will include: interviews, a review of expenses and budgets and a discussion of plans for future funding in the next 6-12 months.

Tools and Resources

The self-paced course will be delivered entirely online. To access the course, learners will need: 1. A computer that meets current University specifications 2. Internet access (fast enough to allow for download of Digital Story) 3. Links to the University's Office of Grants and Contracts, the National Institutes of Health, and other websites listed as resources in each lesson.