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When funds are received by the university the funds shall
be classified in accordance with a proper designation.
Among the various designations used by the university are
GIFT and GRANT (or SPONSORED RESEARCH).
As funds are received they must be properly classified.
Depending on the facts and the circumstances, some indicators may be more
significant than others; however, no single indicator is determinative of the
classification of a particular transaction.
In order to assist in properly characterizing a receipt of funds, the
following guidelines are used.
GIFT:
- An unconditional voluntary transfer to the university.
- The university has complete discretion in the use of the funds,
or the use is for general support for a specific area or purpose.
- Beyond a designation of the use, the donor does not impose contractual
requirements on the award.
- Any subsequent reporting on the use of the funds to the donor is not
a condition of the receipt of the funds.
- Absence of "quid pro quo".
GRANT (SPONSORED RESEARCH):
- Characterization of the donor/grantor.
If the transfer is accompanied by donor/grantor language that
characterizes the transaction as a "grant" or
"contract", it is evidence that the
donor/grantor expects something in return for the transfer.
Therefore, it is evidence of sponsored research.
- The award/transfer binds the university to a set of terms and conditions.
- The award is directed at satisfying specific grantor requirements.
- The transfer was solicited through written proposals that include
deliverables.
- The university must maintain compliance with an approved line item budget.
- Deviations
from the originally approved budget must be approved by the grantor.
- A product is returned to the grantor, or grantor maintains any level
of exclusive use of any product that resulted from the transfer.
Even if the exclusivity is temporal and not in perpetuity.
- Unexpended funds must be returned to the grantor.
- There are provisions for audits by or on behalf of the grantor.
- The transfer obligates the recipient to submit to submit detailed
financial reports. These reports may be periodically or upon completion.
- The transfer obligates the investigator to report project results or
convey rights tangible or intangible properties resulting from the project.
Examples of tangible properties include, but are not limited to,
equipment, records, technical reports, theses, or dissertations.
Intangible properties include rights in data, copyrights, or inventions.
- The agreement seeks considerations such as indemnification or imposes
other terms that require legal accountability.
- The agreement binds the investigator to a line of scholarly or
scientific inquiry that follows a plan, provides for systematic evaluation,
or seeks to meet stated performance goals.
- The grantor places restrictions on publication of data from studies
supported by the transfer. Even if the restriction
is temporal, and short lived.
- Studies are performed on subsatnces/products/process, etc.,
which are owned or controlled by the grantor.
- The donor/grantor retains the right to revoke the award.
PROCESS:
When a request for a new account is received by the
Controller’s office, and it has been determined that the contribution/transfer
to the university is for sponsored research, the following process will be
followed:
If the request was for a "Sponsored Research" account,
the Controller’s office will notify the requestor of the classification
of the account, create the new account and forward the information to
the Office of Sponsored Research (OSR).
If the request was for an account other than a "Sponsored Research"
account, the Controller’s office will notify the requestor of the
classification of the account, create the new account, and submit the
request to the OSR. The OSR will then begin to process the account per
the OSR procedures.
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