Applying for Sponsored Programs                                  UPPS No. 02.02.01

                                                                                               Issue No. 6

                                                                                               Effective Date: 02/29/2008

                                                                                               Review: July 1 ONY

 

 

01.       POLICY STATEMENT

 

01.01  This UPPS provides guidelines for developing and submitting proposals through the Office of Sponsored Programs (OSP).

 

02.       UNIVERSITY PHILOSOPHY AND DEFINITIONS

 

02.01  Texas State encourages faculty and staff to pursue sponsored program activities in their areas of expertise. Because scholarly activities augment teaching, faculty are encouraged and expected to participate in meetings, conventions, and other activities that promote scholarship and creative work, including applying for and administering sponsored programs.

 

02.02  Texas State’s policies apply to all sponsored programs unless the granting agency establishes exceptions. Grant applications that Texas State approves must clearly identify these exceptions. These exceptions may not conflict with federal or state law or with the Regents’ Rules.

 

02.03  Sponsored Program Definition - Sponsored programs are defined as those activities, sponsored whole or in part, by sources external to the University for which there is an expectation (implied or specifically stated) on the part of the sponsor for performance, deliverable or outcome. Sponsored programs are generally conducted by faculty, but may be conducted by staff or members of the University administration. Sponsored programs are awarded through various mechanisms - grants, contracts, non-teaching consulting services, and cooperative agreements, or other legally binding means of transfer. 

 

02.04  Sponsored Programs may support instruction, research and public service activities.  They are identifiable by the following characteristics. A program does not need to include all elements to be considered to be "sponsored."

 

a.    Inclusion/allowance of Indirect Costs/Administrative Costs

 

b.    Percentage of faculty time on project (may or may not be compensated by the sponsor)

 

c.    Expectation of performance or outcome by the sponsor

 

d.    Statement or expectation of a “quid pro quo” relationship between the University and the sponsor

 

e.    Specific description of the activity or work to be conducted (proposal or contract) sometimes known as a Scope of Work

 

f.     A Line Item budget is involved

 

g.    A financial report is required, and the budget/performance is subject to audit

 

h.    All government funds, exclusive of financial aid

 

i.      All corporate research contracts, subcontracts or agreements

 

j.      Defined time period for the work to be conducted

 

k.    Definition of how the funds may be spent and what conditions may apply to residual funds

 

l.      Use of University resources – equipment, space, students – mandate processing through OSP to determine classification, i. e., does the activity qualify as a sponsored program and who must approve the use of these resources.

 

02.05  The following further clarifies definitions relating to sponsored activities:

 

a.    Grant – A type of financial assistance awarded to an organization for the conduct of research or other program as specified in an approved proposal. The proposal typically defines a scope of work or performance. The sponsor makes an award, which may be based upon a competitive review, and establishes terms and conditions for performance. These terms may be generally stated, as in many federal awards, or may specifically describe allowable and unallowable activities and costs. Unless prohibited by sponsor regulations, performance under grant awards may be modified to adjust to project conditions. Such modifications may be approved internally by the University or may require sponsor authorization. Grants may be awarded through simple contractual agreements, letters of authorization, payments of fees, or other similar mechanism. Their defining feature is that they are governed by specific rules and regulations pre-established by the sponsor, and that they provide for some flexibility in the conduct of the activity.

 

b.    Contract – A legally binding arrangement or performance agreement for carrying out a specific service or procuring a product that entails specific obligations for both sponsor and recipient. Contracts are a more restrictive mechanism for securing services than grants, and may specify penalties for non-performance. A Fixed Cost or Fee for Service Agreement is one in which one party pays the other party a predetermined price, regardless of actual costs, for services rendered.  A Cost-Reimbursement Agreement is one in which the sponsor pays for the full costs incurred in the conduct of the work up to an agreed-upon amount, and for which invoices containing back-up information of costs incurred are generally required. A Percent Completion contract is one in which the sponsor contracts for completion of specific tasks, and payment is made upon receipt and approval of a report or other deliverable.

 

Contracts may be awarded for research, assessment, specific work performance, instruction, training, or similar activities. Generally, contracts will define specific details of the legal relationship between the participating entities and will incorporate the description and cost of the work to be performed either as a legally binding attachment or embedded in the contract document. A purchase order may be a form of contract. 

 

c.    Matching Grant – Some sponsors require the applicant to demonstrate commitment to the proposed activity by providing funds in support of the overall project costs. Matching funds may be derived from institutional resources, either in-kind (donated time, space, equipment use, etc.) or cash, or may be generated from other entities (third party). Sometimes the Principle Investigator (PI) (faculty submitting the proposal who will do the work if funded) will include matching or cost sharing to enhance chances of being funded, even if the sponsor does not require matching.

 

Cost-sharing has become a major issue in federal awards. Recently, the federal government issued specific guidance on matching funds and the responsibilities of recipients in accounting for these funds.  Failure to comply may result in loss of revenue associated with the specifically funded project, or in general sanctions against the institution. The following are the three types of cost-sharing:

            

1)   Mandatory – Required by the sponsor and specifically referenced in the proposal, budget or other submitted document. Must be accounted for in the institution’s accounting system.

2)   Voluntary Committed – Committed by the institution in the proposal, budget or other submitted document to enhance possibility of funding, but NOT required by the sponsor. Must be accounted for in the institution’s accounting system. (Note: if a proposal is submitted with voluntary cost-sharing, and is subsequently awarded, the status of the cost-sharing converts to Mandatory.)

3)   Voluntary Uncommitted – After the award is received, the University/PI provides more cost sharing than is promised or required. For example, a PI spends more time on the project than originally projected.  Must be tracked and verified, but IS NOT entered into the institution’s cost-sharing system.

 

Funds promised or provided by third parties to a sponsored program must meet the same reporting requirements imposed on the institution.  The recipient (University) is responsible for acquiring and maintaining third party matching documentation.

 

d.    Challenge Grant – A grant that provides monies in response to monies from other sources, usually according to a formula. A challenge grant may, for example, offer two dollars for every one that is obtained from a fund drive. The grant usually has a fixed upper limit, and may have a challenge minimum below which no grant will be made. This form of grant is fairly common in the arts, humanities, and some other fields, but is less common in the sciences. A challenge grant differs from a matching grant in at least one important respect: The amount of money that the recipient organization realizes from a challenge grant may vary widely, depending upon how successful that organization is in meeting the challenge. Matching grants usually award a clearly defined amount and require that a specified sum be obtained before any award is made. 

 

e.    Cooperative Agreement – an award similar to a grant, but in which the sponsor’s staff may be actively involved in proposal preparation, and anticipates having substantial involvement in research activities once the award has been made. 

 

f.     Non-teaching Consulting Services – Consulting as an agent of the University is defined as additional activity beyond duties assigned by the institution, professional in nature and based in the appropriate discipline for which the individual receives additional compensation during the contract year. Consultancy services include addressing the technical and professional needs of communities, groups, agencies, businesses and other entities outside the University. Consulting services are NOT sponsored programs unless the University is the direct recipient of funds, and liable for the conduct of the activity performed by the University employee. In this instance, it is essential that these contracts are managed as sponsored programs, in that they involve coordination of faculty time and effort reporting, and determination of appropriate overload policy interpretation.

 

g.    Training/Workshops/Non-Credit Teaching – Proposals for conducting training/workshops/non-credit teaching functions are considered to be “sponsored programs” if they meet any of the above-stated criteria. 

 

NOTE:  Activities meeting the above criteria may be proposed by the Director of Continuing Education in the same manner as other sponsored programs. OSP will review, process and submit proposals on behalf of that unit as with other colleges and schools. IDC generated from these sponsored activities is subject to the same distribution as other units.

 

h.    Gift – A flexible, irrevocable award of money, equipment, or other property provided by a donor with few or no conditions specified. Gifts may be provided to establish an endowment or to provide direct support for existing programs. Frequently, gifts are used to support developing programs for which other funding is not available. Gifts meet the determination of having no “quid pro quo” relationship with the University, and as such are handled by University Advancement.

 

A gift to an organization implies no responsibility to provide the donor a product, service, technical or scientific report or intellectual property rights. The donor may specify the use of the funds (as in to a specific scholarship fund) or the gift may be unrestricted for use in meeting the needs identified by the recipient organization. 

 

i.      Research gift – A gift for research generally must meet the following conditions:

 

1)    Funds are awarded irrevocably;

2)    The donor does not impose restrictive contractual obligations;

3)    There is no commitment of direct project personnel effort to accomplish the research; and

4)    The funds are designated for scholarly endeavors

 

A research gift may be considered a sponsored project pending discussions with University Advancement.

 

NOTE: OSP serves as the first point of contact for faculty seeking external funds. The Office will review project/program concepts with faculty and seek possible sources of support on their behalf. From time to time, concepts may be forwarded to University Advancement for consideration as a fundraising possibility.

 

j.      Endowment – A fund usually in the form of an income-generating investment, established to provide long-term support for faculty or research positions (e. g., Endowed Chair). Endowments are not considered to be “sponsored activity.”

 

k.    Internships – An externally supported opportunity for an individual (student or faculty member) to engage in an extended learning activity.  If the University is the recipient of internship funds and the funding mechanism contains specific details concerning the obligation of the institution or the intern, the activity is treated as a sponsored program and must be internally approved and submitted as such.

 

l.      Congressional/Legislative Allocations – In certain circumstances, federal or state governing bodies may directly appropriate funds to the University for specific purposes. It is important that the purpose of these funds represents the intent of the funding entity. In the case of most federal and state appropriations, the most common conveyance mechanism is to attach these funds to an existing agency program, and to request a proposal describing how the University will utilize these in keeping with the general intent of that specific program’s mandate. An award is then made to the University by the agency. In this circumstance, the federal or state regulations and restrictions applied to all recipients of funds under that agency program apply to the use of funds awarded to the University. For this reason, proposals requesting support under direct appropriations become sponsored programs so that they may be accounted for and managed properly.

 

NOTE:  Definition courtesy of Georgia Southern University

 

03.       PROCEDURES FOR APPLYING FOR GRANTS AND CONTRACTS

 

03.01  The Associate Vice President for Research (AVPR) is responsible for submitting proposals to public and private funding agencies, except for proposals that require submission by the Development Foundation.

 

03.02  Faculty and staff must submit all proposals for research or sponsored programs (whether for grants or contracts) through OSP. They must submit all proposals for permanent endowments, scholarships, and capital improvements through the Vice President for University Advancement. Proposals not submitted thru proper university channels are subject to recall at the AVPR’s discretion.

 

03.03  The AVPR will build opportunities by developing partnerships between departments, collaborating with other universities and industries, and establishing affiliations with potential funding agencies and the U.S. Congress.

 

03.04  The Office of the AVPR will also enhance the University’s academic environment by promoting and supporting grant opportunities. The AVPR’s Office of Proposal Development will assist PIs to identify potential funding sources and build collaborations with other entities. When a funding opportunity is identified, the PI has prime responsibility for developing the proposal.  

 

03.05  Proposal Preparation

 

a.    Only the following are eligible to serve as a PI on a sponsored program: (1) full-time tenured and tenure-track faculty; (2) full-time research faculty; (3) certain directors of research program centers or institutes; and (4) full-time staff employees. The college dean and the AVPR may approve exceptions to this policy.

 

b.   University faculty and staff who wish to submit a proposal to an external funding source must first contact their chair, dean, or director to discuss the proposal plans.

 

c.    After gaining chair, dean, or director support for the proposed project, the faculty or staff member (who will be the PI of the project) must contact OSP to begin working with OSP on the proposal through the proposal management system, GAMS.

 

d.   Other responsibilities of the PI include the following:

 

1)   The PI bears the primary responsibility for the accuracy of all material in the proposal and for compliance with all federal, state, private, Texas State University System, and Texas State regulations such as those relating to scientific misconduct in research, disclosure of financial conflicts of interest, and management of human research subjects or lab animals. He or she has the responsibility to become informed about those regulations, with guidance from OSP.

2)   Completing the grant application thru GAMS.

3)   Developing and verifying all financial data with OSP prior to routing the proposal. OSP will determine that the requested facilities and administration costs conform to the University’s federally negotiated rate or are the maximum allowed by the funding source. PIs are not authorized to negotiate sponsored program agreement terms with prospective funders. The AVPR must approve all deviations from the current negotiated rate in writing.

4)   Identifying all requirements for space needed to operate the contract or grant. If the needed space is not available and under the control of the department chair, the dean must be consulted to identify available space under the control of the college. If space is not available within the college, the PI must add a request for rent or lease funds in the contract or grant budget to obtain space. If space is needed to ensure the success of the sponsored program, the PI must make arrangements at the department  or college level for additional space before the proposal is submitted to the Office of Sponsored Programs. Please see UPPS No. 08.01.01.

5)   Determining, with the assistance of OSP, which University review boards must review the proposal for compliance with state and federal guidelines concerning research activities. The PI must receive his or her approval prior to submitting of their proposal.  Relevant university review boards include, the Institutional Review Board on the Use of Human Subjects in Research (see UPPS No. 02.02.03) and the Institutional Animal Care and Use Committee (see UPPS No. 02.02.05).

6)   Identifying, with assistance from OSP, any technology needs. The PI must notify the Vice President for Information Technology and the Assistant Vice President for Technology Resources of needs for additional university technology and needs for technical support required of Technology Resources.

7)   Identifying the amount and source of matching funds, both monetary and in-kind, as well as making sure that the account manager for these funds has approved the pledge in writing Pledges of indirect cost as all or part of a match are prohibited, unless approved in writing by the AVPR.

8)   Ensuring, with help from OSP, that the proposal complies with pertinent state, federal, or private policy such as those relating to scientific misconduct in research or disclosure of financial conflicts of interest, coordination of Financial Aid, and management of human subjects and lab animals.

9)   Ensuring, with help from OSP, that the proposal complies with Affirmative Action regulations and that it meets any other regulations that might apply, such as those mandated by section 504 of the 1973 Rehabilitation Act, the 1990 Americans with Disabilities Act and other relevant federal and state laws pertaining to persons with disabilities.

10) Submitting the complete proposal to OSP at least five working days before the submittal deadline.

 

03.06  Timeline: The PI must provide for enough time for adequate review of the proposal by the chair, dean, or director. The PI should release the proposal through GAMS for routing and approvals at least five working days before the submission deadline of the funding source (see Section 04. below).

 

Special Consideration: Note that if an award is received, and faculty, staff, or students are employed on that award, the PI must follow all university Human Resources policies and procedures for those employees.

 

04.       REVIEW PROCEDURES

 

04.01  PIs must receive approval for their proposals by releasing their proposal for routing and approvals through the GAMS proposal management system. The proposal shall include at a minimum:

 

a.   A draft narrative

 

b.   Complete budget

 

c.   Completion of the internal processing form

 

05.       NOTIFICATION PROCEDURES

 

05.01  The funding source may send the notification of acceptance or rejection to any of a number of different locations. The office receiving the notification must forward it to OSP. Failure to do so will delay establishment of a Texas State account for accepted grants.

 

05.02  The action required as a result of the rejection of a proposal varies from one proposal to another. Therefore, the PI or OSP will determine the proper individuals to notify concerning the rejection notification.

 

05.03  When the potential funding source is a corporation or foundation, the Director of Proposal Development will notify University Advancement regarding a proposed submission, an acceptance or a rejection.

 

06.       AWARD IMPLEMENTATION

 

06.01   A sponsored program is not operational until both the University and the source providing the funding have signed a contract or award. Awards at Texas State are made to the University and are not personal grants or contracts to the PI. Only the President or his or her designee can obligate the University and are the only persons authorized to sign a grant or contract. No commitment, financial or otherwise, can be made until the University has received a signed copy of the contract or a formal award in writing or, in some cases, until the Director of the Office of Sponsored Programs, is assured by the funding source that such award is in transit. If a PI deems it necessary to begin work prior to the receipt of an executed agreement, an expenditure account can be established in accordance with the rules located in UPPS No. 02.02.02, Section 05.03. In the event that a PI or other individual not authorized as a contracting official signs a contract or award with a funding source, that individual may be held personally liable for any expenditure or obligation of university resources to the contract or award subsequently determined to be invalid. Additionally, the University may take disciplinary action against that individual including revocation of the individual’s status as a PI.

 

06.02  Acceptance of the award constitutes a commitment by the PI to comply throughout the grant period with all policies of the Texas State University System, University, all state and federal regulations, and all funding agency requirements. If the PI does not comply, the AVPR or the Director of OSP will take appropriate steps to ensure that the contractual obligations of the University under terms of the award are set. These steps may include removing the PI from the grant or contract and prohibiting him or her from future work as a PI.

 

06.03  When the award notification is received by OSP, the Director will review the financial terms of the agreement and, provided such terms are satisfactory, will establish a Texas State account. In the event that terms are not satisfactory, the Director of OSP will attempt to renegotiate the terms and conditions of the award. If negotiations are not successful and the terms are considered unacceptable, the AVPR may reject the award on behalf of the University.

 

06.04  Expenditures from all sources other than the appropriate Texas State account, even prior to the establishment of a Texas State account, are personal liabilities of the person making the expenditure and will not be reimbursed from university funds. Exceptions due to extraordinary circumstances require approval of the Director of OSP.

 

06.05  Refer to UPPS No. 02.02.02 for policies regarding the managing of a grant once it is awarded.

 

07.       REVIEWERS OF THIS UPPS

 

07.01      Reviewers of this UPPS include the following:

 

Position                                                          Date

 

Associate Vice President for Research   July 1 ONY

and Director of Federal Relations

 

Director, Sponsored Programs                  July 1 ONY

 

08.       CERTIFICATION STATEMENT

 

This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.

 

Associate Vice President for Research and Director of Federal Relations; senior reviewer of this UPPS

 

Provost and Vice President for Academic Affairs

 

President