Interim policy implementing Executive Order 890, Administration of Grants and Contracts in support of Sponsored Programs Dated January 7, 2004; Partially supercedes EM 83-001
Executive Memorandum 04-004
June 17, 2004
From: Paul J. Zingg, President
Subject: Interim policy implementing Executive Order 890, Administration of Grants and Contracts in support of Sponsored Programs Dated January 7, 2004; Partially supercedes EM 83-001
INTERIM POLICY IMPLEMENTING EXECUTIVE ORDER 890
The CSU Chancellor’s Office has issued EO 890 under the authority of Section 2 of Chapter III of the Standing Order of the Board of Trustees with reference to Division 8 (commencing with Section 89000), Part 55, Chapter 7, Article 1 of the Education Code and Subchapter 6 (commencing with Section 42000) of Chapter 1 of Title 5 of the California Code of Regulations and related policies adopted by the Board of Trustees. The EO applies to all Sponsored Programs applied for, awarded to, and/or administered by any campus of the California State University, the Office of the Chancellor, or any Auxiliary.
In keeping with the requirements of EO 890, CSU, Chico issues the following policy to implement the requirements of the Executive Order, including the incorporation of those requirements into this implementing policy. Executive Order 890 requirements appear in italics below. This interim policy, which will become effective on July 1, 2004, supercedes EM 83-001 with regard to the topics covered below. It will become policy upon review and approval by the Academic Senate.
"Auxiliary" means an Auxiliary Organization as defined in Executive Order No. 698.
"Contract" means an agreement between the University or Auxiliary and a Sponsor to provide an economic benefit, generally in the form of services, for compensation. The agreement is binding and creates a quid pro quo relationship between the parties.
"Grant" means a financial contribution to a Recipient to carry out an approved project or activity. A Grant generally anticipates no substantial programmatic involvement of the Sponsor with the Recipient during performance of the project or activity, but Sponsors usually request an accounting of the use of funds and of results of the project or activity. The University or Auxiliary may commit resources or services as a condition of the Grant.
“Office of Sponsored Programs” (OSP) is the CSU, Chico office delegated the responsibility and authority to review, approve, submit, negotiate, and accept Grants and Contracts on behalf of the University and its Auxiliary Organizations. Proposals cannot be submitted nor awards accepted without OSP review and approval. In most cases, OSP will also oversee the management of Grants and Contracts.
"Principal Investigator" (PI) means the individual (whether referred to in the Contract or Grant as a Principal Investigator, Project Director, or other similar term) designated by the Sponsored Program Administrator to be responsible for ensuring compliance with the academic, scientific, technical, financial, and administrative aspects and for day-to-day management of the Sponsored Program.
"Recipient" means the University or Auxiliary awarded a Contract or Grant. The Recipient is the University or Auxiliary, as the case may be, even if a particular component is designated in the award document, and shall not be an individual, department, or other constituent unit.
"Sponsor" means the party paying for the services or other economic benefit under a Contract or providing the financial contribution for a project or activity under a Grant.
"Sponsored Program(s)" means all work performed under Grants or Contracts funded by non-CSU funding sources (including non-CSU- funded Contracts and Grants that are subsequently subcontracted to another campus).
"Sponsored Program(s) Administrator" means the entity (University Auxiliary) designated by the Recipient to administer the Sponsored Program.
"Sponsored Program Records" include, but are not limited to, accepted proposals and applications; Contracts or Grant agreements; program reports and data; correspondence; budgets and supporting financial documentation; supporting human resources documentation; and other records relating to receipt, review, award, evaluation, status, and monitoring of the Sponsored Program.
"Sponsored Program Work Product" means any work created in the performance of a Sponsored Program. Unless the Contract or Grant states otherwise, Sponsored Program Work product does not include journal articles, lectures, images, books, or other works that are subject to copyright protection and have been created through independent academic effort and based on the findings of the Sponsored Program.
“University" means one of the campuses of the California State University or the Office of the Chancellor.
E.O. 890: Sponsored Programs provide significant benefit to the California State University (CSU) and further its educational mission by facilitating research, workshops, conferences, institutes, and other projects that enrich the scholarly endeavors of faculty and students and enhance the services provided by the University to California communities. This Executive Order sets policy to be followed by each campus and any Auxiliary administering Sponsored Programs to ensure that the University or Auxiliary maximizes the benefits of Sponsored Programs and supports faculty, students, and administrators in effectively securing and carrying out Sponsored Programs.
The President of each campus is responsible for the educational effectiveness, academic excellence, and general welfare of the campus over which s/he presides. . The President shall require that the University and the Auxiliary operate in conformity with applicable law and the policies of the CSU and the campus when proposing and administering Sponsored Programs. Sound management and administration of Sponsored Programs requires coordination among organizationally separate units and individuals on the campus, and therefore the University President will identify for each area of policy the campus official responsible for implementing that area of this policy as further delineated in Section 3.1.2 below.
E.O 890: Each campus shall establish a written policy on the management of Sponsored Programs that incorporates the components outlined in this executive order and that is consistent with policies relating to risk management, environmental health and safety, conflicts of interest, research misconduct and other applicable CSU and campus policies. In the event that a given Contract or Grant contains terms and conditions that are not in conflict with but are more restrictive than those provided in this implementing policy, the more restrictive terms and conditions of the Contract or Grant shall prevail.
SPONSORED PROGRAM ADMINISTRATION
Proposal Submission, Review, and Approval
Pre-Award Review and Approval of Proposal Submission
E.O. 890: Proposals for Sponsored Programs shall not be submitted to the Sponsor without prior written approval of the president of the University or the president's university designee and of the chief financial officer of the University or the chief financial officer's university designee.
By this policy, the Vice Provost for Research is appointed as the designee for the University President and the Associate Vice President for Business and Finance is appointed as the designee for the University’s chief financial officer (Vice President for Business and Finance). This designation is made to insure timely approval of proposals prior to submission to external Sponsors. In the absence or other unavailability of the Vice Provost for Research, the Director of Sponsored Programs may provide prior approval for proposal submission.
In addition, this policy requires that prior written approval be obtained from the Principal Investigator’s home administrative unit manager(s) if the proposal includes cost sharing and/or assigned time for a university employee. Further, if a proposed project intends to use significant resources of other campus units outside the project director’s home administrative unit, the Principal Investigator must obtain prior approval from the unit manager whose unit will provide such resources. Finally, it is the project director’s responsibility early in the development process to inform his/her unit manager(s) (i.e. , department chair and dean) of his/her intent to submit a proposal and its purpose and budget, including cost sharing and assigned time.
The Office of Sponsored Programs is designated as the campus office having authority to review and approve proposals prior to submission and to insure campus, system and Sponsor guidelines and policies are followed in proposing and submitting proposals. Proposals, including preliminary proposals, shall not be submitted to any Sponsor without prior review and approval obtained through OSP.
Proposals submitted using the campus name must be submitted through the OSP. In order to meet Sponsor and campus requirements, such as the prior approval requirements listed above, draft proposals and budgets must be delivered to OSP at least seven working days prior to the Sponsor’s submission date. Proposals that do not meet this time requirement may not be completed in time to meet the Sponsor’s deadline.
Proposals with forms required by a potential sponsor that must have the signature of an authorized institutional representative may only be signed by the Vice Provost for Research or designated OSP managers.
When a proposal uses significant resources of a unit other than those of the project director’s home administrative unit, a Special Campus Services Agreement can be required to ensure that the resources are available and approved by the manager of the unit providing the resources. Project expenditures for securing such resources cannot begin until a signed Special Campus Services Agreement has been approved by OSP.
E.O. 890: Awards of Contracts or Grants shall not be accepted without prior written approval by appropriate officials of the University and Auxiliary responsible for the following areas, if applicable: (a) academic/programmatic; (b) fiscal, (c) health and safety; (d) human and animal subject research; (e) space; (f) major technical resources and equipment; and (g) risk management.
The Office of Sponsored Programs will manage the University’s pre-acceptance approval process that will provide for the review and written approval by campus officials appropriate to each submitted proposal. Policies and procedures are currently in place to obtain such approvals using the Proposal Routing Form. (See Policy on Approval and Submission of Proposals and Acceptance of Awards and Policy on Project Director’s Duties and Responsibilities on the OSP website under Policies. ) Awards will not be accepted without obtaining such approvals. OSP is designated as the campus unit responsible for reviewing, approving, and negotiating award documents. Only the Vice Provost for Research or other specifically designated officials may sign and accept award documents on behalf of the campus.
E.O. 890: The campus policy shall provide notice to all personnel responsible for the preparation of proposals and applications for Sponsored Programs that, if awarded, the Recipient of the Contract or Grant shall be Sponsored Programs for the University or Auxiliary and not an individual, department, or other constituent unit.
The CSU, Chico Research Foundation shall serve as the campus Sponsored Program Administrator, and in most cases the Recipient as well, and shall be responsible for the management of each sponsored program award unless otherwise assigned in writing by the Vice Provost for Research. The Office of Sponsored Programs is designated as the campus office overseeing the receipt and management of Sponsored Programs. Campus departments and individuals cannot be recipients of grants or contracts except in the case of individuals when the Sponsor requires an individual to be the Recipient.
Amendment of Contract or Grant
E.O. 890: The campus policy shall specify the approvals necessary to amend a Contract or Grant.
A grant or contract may be amended with the approval of the Sponsor, the project’s Principal Investigator, and an authorized individual from the Office of Sponsored Programs. If the amendment involves cost sharing or assigned time, the PI’s administrative unit manager(s) must approve as well. If an amendment significantly increases the risk associated with the project, additional approvals may be required prior to accepting the amendment as determined by the Vice Provost for Research and/or the Director of Sponsored Programs. Amendments must be in writing. Only the Vice Provost for Research or an authorized individual from OSP shall sign or otherwise provide legal assent to a grant or contract amendment.
Service Order Agreements
Contracts awarded to the Research Foundation and managed by the Office of Sponsored Programs range on a continuum from straightforward agreements with small dollar amounts and minimal liability to large dollar amounts, complex contracts, and/or greater exposure to risk. It is impractical and inefficient to administer small-scale standard Contracts (which typically amount to a service order to deliver a product or service) in the same manner as larger, more complex ones.
Recognizing these two factors, and in accordance with existing Research Foundation policy and practice, the Research Foundation and OSP will continue the practice that these smaller-scale Contracts, termed Service Order Agreements, need only the approval of the Vice Provost for Research or his/her designee and will not need to undergo the full routing and approval process required of other Contracts and Grants. Typically, these Agreements are ordering a product or service (such as a map, an economic profile, a study, or a workshop) from one of the Research Foundation-sponsored Centers on campus (e.g. , Geographical Information Center, Education For the Future, Academic Technologies, Archaeology Research Program, Northeastern California Information Center, Center for Math and Science, or Center for Economic Development). Generally speaking, these Agreements will be characterized by the following:
- Each Contract normally will be for an amount not to exceed $10,000
- Each Contract will be a fixed price, non-Federal agreement;
- Each Contract will be a simple, straightforward agreement, involving the standard kind of work that a center or other Research Foundation program was established to do, and which involve a minimum level of risk;
- Each Contract will be administered in accordance with good business practice and controls, including attention to potential Conflicts of Interest;
- Each center or program’s Service Order Agreements will be managed through a generic Mini Contract Account established for this purpose (not in individual accounts of their own);
- Unrecovered funds will be the responsibility of the home administrative unit for that account, not the Research Foundation’s General Fund.
Performance of Grants and Contracts
Administration of Sponsored Programs
E.O. 890: Prior to acceptance, the Recipient will designate either the University or an Auxiliary to administer the Contract or Grant. This entity shall be the Sponsored Program Administrator. The Sponsored Program Administrator is legally responsible and accountable to the Sponsor for the use of the funds provided and the performance of the Sponsored Program.
The CSU, Chico Research Foundation shall serve as the campus Sponsored Program Administrator, and usually the Recipient as well, and shall be responsible for the management of each sponsored program award unless otherwise assigned. The Vice Provost for Research may make exceptions in writing to this assignment on a case-by-case basis.
Master Agreement between University and Auxiliary for Administration of Sponsored Programs
E.O. 890: The University and the Auxiliary shall enter into a master agreement setting forth the roles and responsibilities of each party with regard to the administration of Sponsored Programs by an Auxiliary. The Auxiliary shall agree, among other things, to:
- Indemnify, defend, and save harmless the University from all loss, damage, or liability that may be suffered or incurred by the University caused by, arising out of, or in any way connected with the administration of Sponsored Programs by the Auxiliary; and
- Carry adequate insurance in accordance with CSU policy (see Executive Order No. 849).
E.O. 890: The Sponsored Program Administrator shall prepare an implementation plan for each Contract or Grant award that shall include, but not be limited to, the following, if not already specified in the Contract or Grant or master agreement:
- Identification of the Principal Investigator and staffing needs for the Sponsored Program;
- Identification of the funds and resources available, the projected budget, and other fiscal administrative requirements; and
- Identification of the person or entity responsible for security, ownership, custody, and retention of the Sponsored Program Work Product and Records after completion of the Sponsored Program.
The proposal, award documents, and OSP’s award notification packet for the PI shall serve as the combined means by which the implementation plan will be recorded and conveyed in writing.
Human Resources Policy
E.O. 890: Each campus shall include in its policy the minimum qualifications and normal responsibilities of Principal Investigator(s) for Sponsored Programs beyond those imposed by the Sponsor. The qualifications of a Principal Investigator shall include, but not be limited to, employment by the University or Auxiliary. Campus policy may establish limited exceptions for the appointment of Principal Investigators who are not employees of the University or Auxiliary, but who are officially affiliated with the University, such as individuals with emeritus status or visiting professors or researchers. The campus policy shall include provisions for reassigning the responsibilities of the Principal Investigator(s) in case of the incumbent Principal Investigator’s resignation, incapacitation, or failure or refusal to perform the duties adequately. The campus policy shall also address the distribution of responsibilities among Principal Investigators for multi-institutional Sponsored Programs.
Principal Investigators can include individuals with FERP or emeritus status, visiting professors, or researchers. Academic officers (President, Provost, Vice Provost for Research, Dean) may appoint other individuals who are deemed qualified by academic background, training, and experience to serve as PI on projects. This is done on a case-by-case basis when the academic officer finds benefits to the campus when the Sponsored Program serves a campus or a community interest.
PI responsibilities are set forth in the campus Policy on Project Director’s Duties and Responsibilities (see OSP website under Policies). Generally, these duties and responsibilities include PIs being responsible for the proposal submitted and once funded for the overall conduct of the project. PIs assume primary responsibility for the technical (programmatic) conduct and the management of the project to insure that contractual/award terms and conditions are met and to make certain the project stays within budget and that expenditures are reasonable, allowable, and allocable to the project.
Should a PI be unable to continue his/her duties as PI due to leaving the university, incapacitation, or failure or refusal to perform the duties, the Vice Provost for Research, the manager(s) of the PI’s home administrative unit, and the Research Foundation’s Executive Director shall develop and implement a plan for replacing the PI or terminating the project. As appropriate, related campus policies will be followed.
Distribution of PI responsibilities on a multi-institutional project will be worked out in conjunction with the project partners on a case-by-case basis. Generally appropriate responsibilities will be based upon who is responsible as delineated in the proposal and award documents for particular aspects of the work and which partner is the prime recipient. For this campus, the PI will assume the duties and responsibilities for his/her share of the work as found in the campus Policy on Project Director’s Duties and Responsibilities (see OSP website under Policies). Where necessary, the Vice Provost for Research will confer with appropriate campus and partner officials to determine the distribution of responsibilities.
E.O. 890: The Sponsored Program Administrator shall be the employer of the Principal Investigator and other employees with regard to work performed in furtherance of each Sponsored Program. The Sponsored Program Administrator shall be responsible for the assignment, evaluation, and termination of Sponsored Program employees and for other employer obligations associated with the performance and payment under the Sponsored Program, all in accordance with campus policy for the administration of Contracts and Grants. This employer role applies regardless of whether the employee is being paid directly by the University or Auxiliary or whether the University is being reimbursed by the Auxiliary for agreeing to reassign an employee from selected University duties in order to work on the Contract or Grant.
Since campus policy (3.2.1 above) establishes that in most instances the CSU, Chico Research Foundation shall serve as the grant or contract Recipient and the Sponsored Program Administrator, in those situations the Research Foundation will serve as the employer of anyone who works on a Grant or Contract. Project employees are expected to abide by the provisions and processes outlined in the Research Foundation's Employee Handbook , and all performance-related problems related to grants and contracts work are to be reported immediately to the Foundation Human Resources Office. Depending on the circumstances of each case, the Research Foundation may request assistance from and engage in cooperative activities with the University to investigate or otherwise resolve the matter in question. In the rare occasions when the Sponsored Programs Administrator is the University or other Auxiliary, employees encountering performance or behavioral problems directly related to the conduct of a Sponsored Program should contact the appropriate supervisor and/or the appropriate human resources office and/or the manager of the PI’s home administrative unit for assistance.
E.O. 890: The campus will develop a process for monitoring employment, including additional employment through Contracts and Grants, and shall comply with the limits established by the CSU Additional Employment Policy. (See HR 2001-28 at http://www.calstate.edu/HRAdm/policies.shtml. )
E.O. 890: Each campus policy shall provide for a procedure for processing complaints of research misconduct or other employee misconduct in connection with Sponsored Programs. Employees working on Sponsored Programs who are also CSU employees shall remain subject to consequences for unprofessional behavior, failure or refusal to perform duties adequately, or other misconduct within the administration of the Sponsored Program and to the University’s discipline system.
Policies and procedures related to allegations of misconduct in research/integrity are found in EM 89-036 as well as section 27 of the FPPP. These policies, or subsequent policies and procedures, will be followed as well as federal and state rules and regulations current at the time allegations are made.
Other types of misconduct falling under employment, as defined above, on a Grant or Contract shall be handled as set forth in 3.3.2 above.
Conflict of Interest
E.O. 890: Each campus shall maintain a policy that complies with conflict of interest requirements of the law and applicable CSU Sponsored Program Administrator and Sponsor policies and shall alert Principal Investigators to these requirements. (See http://www.calstate.edu/HRAdm/policies/coi.shtml.)
Currently EM 96-087 is the campus policy for complying with the various state and federal regulatory requirements regarding conflict of interest. This policy, or subsequent policies and procedures, will be followed as well as federal and state rules and regulations current at the time an issue arises.
E.O. 890: Each campus shall maintain a policy regarding nepotism in the administration of Sponsored Programs that is consistent with CSU policy. (See http://www.calstate.edu/HRAdm/policies.shtml. )
The campus and Sponsored Program Administrator policies will be followed with regard to nepotism. Currently, the campus policy is EM 02-009 and the Research Foundation policy is found in its Employee Handbook.
Conduct of Research
E.O. 890: Each campus shall identify specific University official(s), in the case of Sponsored Programs requiring scholarly research, who are to be responsible for assisting the Sponsored Program Administrator by providing oversight of the conduct of research and ensuring progress toward fulfillment of Contract or Grant requirements.
Generally, the campus policy (see Policy on Project Director’s Duties and Responsibilities on the OSP website) designates deans as the parties responsible for assisting the Sponsored Program Administrator in the oversight of research and other Sponsored Programs conducted by their respective faculty and staff. For Sponsored Programs conducted by personnel outside an academic college or school, oversight assistance will be the responsibility of the administrative unit manager of the PI. Appropriate University administrative unit managers will work collaboratively with representatives of the Sponsored Programs Administrator to resolve problems that may arise on Sponsored Programs.
Human Subjects Research
E.O. 890: Each campus shall establish a policy for the protection of the rights and welfare of human subjects in research in which the institution is engaged. The institution is engaged when its employees, students, or other individuals performing institutionally designated activities or exercising institutionally delegated authority or responsibility (i) intervene or interact with living people for research purposes or (ii) obtain individually identifiable private information for research purposes, (See 45 CFR 46,101 at http://ohrp.osophs.dhhs.gov/humansubjects/guidance/45cfr46.htm. ) The campus policy shall be adopted and reviewed periodically for consistency with applicable laws and regulations, including but not limited to Title 45, Code of Federal Regulations, Part 46. Campuses conducting research funded by the Department of Health and Human Services must have a Federal-wide Assurance approved by the Office of Human Research Protections. When establishing or revising the campus policy, the campus should review the policy guidance provided by the Office for Human Research Protections of the United States Department of Health and Human Services and the accreditation standards of the Association for the Accreditation of Human Research Protection Programs. The campus president or designee is authorized to take appropriate action to implement regulations required by funding and regulatory agencies for the protection of human subjects in research. The campus will maintain one or more Institutional Review Boards, appointed by the president or designee, to ensure adequate review of research protocols involving human subjects, and the University shall be responsible for ensuring that these protocols are followed. The campus policy shall incorporate provisions for adequate training of research personnel and for multi-institutional Sponsored Programs.
The Vice Provost for Research serves as the President’s designee to oversee campus human subjects policy and implementation. The Vice Provost for Research has appointed, and shall appoint as needed in the future, a chair of the Human Subjects in Research Committee (HSRC). The Vice Provost for Research and Chair of the HSRC will insure that campus policy and procedures remain in compliance with federal and state law and regulations. The current campus policy is EM 93-004.
Animal Subjects Research
E.O. 890: The campus shall establish policy for the procurement, housing, care, and use of live non-human vertebrate animals in Sponsored Program research, in instruction and research by employees of the University or Auxiliary in the regular course of their employment, in research by students in satisfaction of University requirements, and in research or instruction using any University property or facility. These campus policies and procedures shall provide for adequate training for research personnel and shall be consistent with the Guide for the Care and Use of Laboratory Animals (Institute for Laboratory Animal Research, Commission on Life Sciences, National Research Council), requirements of the United States Department of Agriculture and regulations implementing the Animal Welfare Act as amended, other applicable laws and regulations, and, as appropriate, provisions of the United States Public Health Service Policy on Humane Care and Use of Laboratory Animals. The campus president or designee is authorized to take appropriate action to implement regulations required by funding and regulatory agencies on the care and use of animals in research and instruction. The campus shall maintain an Institutional Animal Care and Use Committee, appointed by the president or designee, to ensure adequate review of animal facilities, procedures, and research and teaching protocols, and the University shall be responsible for ensuring that these protocols are followed. In connection with the adoption of its policy, the campus is advised to review the United States Government Principles for the Utilization and Care of Vertebrate Animals Used in Testing, Research, and Training.
The Vice Provost for Research serves as the President’s designee to oversee campus animal welfare policy and implementation. The Vice Provost for Research has appointed, and shall appoint as needed in the future, the campus chair of the Animal Care and Use Committee (ACUC). The Vice Provost for Research and Chair of the ACUC will insure that campus policy and procedures remain in compliance with federal and state law and regulations. The current campus policy is EM 93-001 revised.
E.O. 890: Each campus shall establish necessary controls to ensure sound fiscal management of Sponsored Programs, regardless of whether the University or Auxiliary is responsible for Sponsored Program administration. It is the responsibility of the Principal Investigator and the Sponsored Program Administrator to adhere to the fiscal terms and conditions of the Contract or Grant and to comply with University and Auxiliary policies and procedures.
At the time of proposal submission, the Office of Sponsored Programs must approve all proposals prior to submission, including the budget for each proposal, and approve any resulting awards. When the Research Foundation is the Sponsored Program Administrator, OSP will provide fiscal management oversight and maintain necessary controls to insure compliance with Sponsor, CSU, and campus regulations and policies. When the Sponsored Program Administrator is either the University or a campus Auxiliary other than the Research Foundation, the fiscal administration duties and responsibilities will be assumed by the designated Sponsored Program Administrator, which will insure that the Sponsor, CSU, and campus regulations and policies are followed.
E.O. 890: The Sponsored Program Administrator shall be responsible for final certification of project budgets and budget change review procedures. The Principal Investigator for a contract or Grant shall be responsible for executing the project in conformance with the approved budget. Disbursements will not be processed on any account unless both parties have executed a Contract or unless all approvals have been obtained and the Grant or Contract has been accepted. In cases when the Sponsor allows the institution to incur pre-award costs, and the Sponsored Program Administrator has a policy in place to allow pre-award spending, then disbursements may be made prior to receipt of the award document, in accordance with the Sponsor and Sponsored Program Administrator guidelines.
When the Recipient is the Research Foundation, the Office of Sponsored Programs shall have responsibility and authority for budget approvals, expenditures, fiscal reports, and budget change proposals and will oversee all aspects of project budgeting. Proposal budgets, award budgets, amended budgets, subaward budgets, and expenditures must be approved by OSP. As further set forth in the campus Policy on Project Director’s Duties and Responsibilities (see OSP website under Policies), the Principal Investigator for a Contract or Grant shall be responsible for executing the project in conformance with the approved budget and both campus and Sponsor regulations governing project expenditures.
PIs or others are not allowed to incur expenses or make disbursements on a project until the project director is officially notified by OSP that a project account has been established. Further, as a general policy, expenditures cannot be charged to other accounts and later transferred to the appropriate account once it is set up. Pre-award expenses cannot be made without prior written approval of the Office of Sponsored Programs. From time to time, the Research Foundation, as the Sponsored Program Administrator, receives letters of commitment from funding agencies that provide approval to proceed with the work of the project and assurances of payment for costs incurred. Under such circumstances, the Research Foundation will treat the commitment letter like an award based on the level of commitment provided in the letter and will set up a project on that basis.
On a case-by-case basis and with authority granted by the Research Foundation Board of Directors, the Vice Provost for Research may approve, in consultation with the Research Foundation’s Executive Director, in writing the establishment of accounts and allow disbursements from such accounts when the Vice Provost for Research determines that sufficient knowledge is available that a project will receive funding and where the Research Foundation is the Recipient. Situations that may require such disbursements include but are not limited to continuing projects with a history of repeated funding when a contract or other award document is not available in a timely manner from the Sponsor and where harm may be done to a project or its clients without continued project activity. In such circumstances, the Vice Provost for Research may require the home administrative unit of the PI to guarantee repayment of funding that is not ultimately secured. Under these circumstances, it is understood that the Research Foundation is committing its funds and has the potential risk of not receiving reimbursement. The Research Foundation Board of Directors will be informed on a regular basis regarding expenditures made in advance of receiving the final award document.
E.O. 890: The Sponsored Program Administrator is responsible for the timely establishment of accounts in accordance with the terms and conditions of the Contract or Grant. Procedures will be in place to define and document approval authority; maintain proper accounting and control of all cash receipts from Contract or Grant billings; review and approve all expenditures for compliance with the Contract or Grant; and ensure completion of accurate and timely reporting for each Contract or Grant. The Principal Investigator is responsible for ensuring that all expenditures are made in compliance with the approved budget, the Contract or Grant, and the Sponsored Program Administrator's policies. The Sponsored Program Administrator's chief financial officer or appropriate designee must authorize payments involving personal expenditures by the Principal Investigator. The Sponsored Program Administrator must certify that funding is available prior to issuance of any personnel action forms.
For Grants and Contracts awarded to the CSU, Chico Research Foundation, the Office of Sponsored Programs, operating under the supervision and direction of the Vice Provost for Research, has the responsibility to approve awards following the guidelines set forth in the Budget section immediately above (3.5.1).
Where the Research Foundation serves as the Sponsored Program Administrator and Recipient for individual Grants and Contracts, OSP will set up accounts in accordance with OSP and sponsor regulations, policies, and procedures. OSP will maintain, and periodically review and change as necessary, policies and procedures for award approval, maintaining proper accounting and control of cash receipts for sponsored project billings and receipts, reviewing and approving all expenditures for compliance with the sponsored project’s award and sponsor regulations as well as CSU and campus regulations and policies, and insuring accurate and timely reporting for each sponsored project. OSP will work with other campus units as appropriate to insure compliance with campus and sponsor regulations in regard to these matters. In addition, acting under the direction and supervision of the Vice Provost for Research and in keeping with established policies and procedures, OSP is designated to act in the capacity of the Research Foundation chief financial officer for the purpose of authorizing payments involving personal expenditures by PIs. When the University or other campus Auxiliary acts as the Sponsored Program Administrator, each entity will take similar actions and designate a chief financial officer to assume the appropriate duties and responsibilities for Grants and Contracts.
Also, when the Research Foundation is the Sponsored Program Administrator, personnel action forms can only be issued with approval of the Office of Sponsored Programs and the Foundation’s human resources office. Employment on a Grant or Contract cannot begin prior to completion of a personnel action form and the approval of OSP and the Foundation’s human resources office (see Research Foundation website under Guide to Applicant Review and Selection and the Employee Handbook).
E.O. 890: The Sponsored Program Administrator shall ensure that all fiscal reports (including final reports) and billings are prepared and submitted, on a timely basis, to Sponsors in accordance with the terms and conditions of the Contract or Grant.
Where the Research Foundation is the Sponsored Program Administrator for Grants and Contracts, OSP will be responsible for preparing and submitting fiscal reports. Fiscal reports cannot be submitted without approval of OSP. Where the University or other campus Auxiliary is the Sponsored Program Administrator, the chief financial officer of that entity will assume responsibility for fiscal reporting.
All appropriate indirect and direct costs shall be recovered for Sponsored Programs in accordance with CSU policy, University and Auxiliary policies, and/or other funding agency requirements.
The Sponsored Program Administrator has reasonable discretionary authority to recover appropriate direct and indirect costs on sponsored programs. Where the Research Foundation is the Sponsored Program Administrator, the President of the Research Foundation, Vice Provost for Research, and the Director of Sponsored Programs each have discretionary authority to determine the appropriate indirect costs to be charged on each Grant or Contract as long as the rate applied does not exceed established campus rates nor violate appropriate Sponsor or other regulations governing indirect costs.
E.O. 890: In some cases, the University may share or match costs associated with a Sponsored Program instead of recovering indirect and/or direct costs. When there is cost sharing or matching in connection with a Sponsored Program, the Sponsored Program Administrator, in conjunction with the Principal Investigator, must document actual costs shared or matching contributions in a manner consistent with the campus cost allocation plans, Sponsor requirements, and in the case of federal Contracts or Grants requirements as stated in OMB Circular A-l10.
OSP will serve as the campus office to approve cost sharing on Sponsored Program proposals and to obtain appropriate campus approvals for the use of cost sharing. For Sponsored Programs managed through the Research Foundation, OSP will provide direction and approval in gathering supporting documentation for invoicing and audit purposes of cost sharing applied to individual Grants and Contracts. In the case of the University or other Auxiliary serving as the Sponsored Program Administrator, the chief financial officer of the appropriate entity will develop and oversee policies and procedures for documenting and approving cost share.
Sponsored Program Work Product and Records
Work Product and Records Policy
E.O.890: Each campus shall develop a policy and procedures regarding the security, ownership, and retention of Sponsored Program Work Products and Sponsored Program Records. This policy must be compatible with University and CSU policy pertaining to intellectual property. Any Contract or Grant that provides for ownership or license of Work Product or Sponsored Program Records to any person or entity other than the University shall provide the University with a free-of-cost, nonexclusive license to use the Sponsored Program Work Product and the right to access and use Sponsored Program Records for purposes consistent with the educational mission of the University.
Where such limited rights cannot be obtained, the Vice Provost for Research, in consultation with the PI and the PI’s home administrative unit manager (i.e. , dean), will determine if the campus should proceed with the accepting the award due to other benefits that in the opinion of the Vice Provost for Research outweigh obtaining the limited rights set forth in E.O. 890.
E.O. 890: Retention of Sponsored Program Records refers to the storage, preservation, or disposal of records once the Sponsored Program is complete. Each campus’s policy for Sponsored Program record retention shall comply with applicable law and University and Auxiliary policy, and will establish a schedule that specifies a) the period of time to retain Sponsored Program records after the Sponsored Program has been completed; b) disposal of records no longer needed; c) the preservation of records of historical value; and (d) procedures for complying with the Sponsor's record retention requirements.
OSP is be responsible for setting and implementing record retention policies for Grants and Contracts in keeping with Sponsor requirements.
SYSTEM OFFICE ROLE/RESPONSIBILITY
E.O.890: Legal advice concerning Contract or Grant administration that might affect the CSU or the University will be coordinated through the CSU Office of General Counsel.
E.O. 890: The offices of Academic Affairs, Business and Finance, and Human Resources in the Office of the Chancellor will each be responsible for their respective policy functions in the maintenance and support of the requirements of this executive order. (05/19/04)