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SPONSORED PROGRAMS OPERATIONS GUIDE

    
Purpose and Procedures

Purpose. This document sets forth basic policies of the University applicable to the acceptance and administration of grant, contract, and cooperative agreement funds received from outside sponsors to support instructional, research, public service, student aid, or other recognized University functions or objectives, and the mission of the University.

Regent's Rules. The Board delegates to each chief administrative officer authority to execute contracts or grant proposals for sponsored research from or with third parties, including institutional support grants. Funds shall not be encumbered or expended prior to execution of the contract or grant by the chief administrative authority. The chief business officer or designee must approve the business aspects of contracts or agreements prior to execution. A contract for sponsored research from a foreign government or agency thereof or with an institution, enterprise, or individual subject to the jurisdiction of a foreign government shall be submitted to the Board for approval as an agenda item or via the institutional docket. Reference Regent's Rules 13.01 (29 Aug 96)

System Business Memorandum. Certain sponsored research agreements including those containing alterations to the Intellectual Property Policy must be submitted to the System for approval. Reference Business Memoranda 45-04-98 (01 Apr 98)

UTSA Policy. Any formal proposal requesting project support from an external funding organization must be approved before it is submitted to the organization. Funding organizations include all federal, state, county and local government agencies; foundations; nonprofit organizations; private corporations; and private groups and individuals who award grants to universities, contract with universities or otherwise enter into agreements with universities to provide funds to support specific projects, for the performance of a specific scope of work. Formal proposals include all final submissions to governmental grant programs, proposed contracts and proposed cooperative agreements which formally propose specific obligations or commitments of the University.

Proposals being submitted to a funding organization which are renewal applications or continuation applications must be approved before they can be submitted, as well as proposals which are being revised and re-submitted to a funding organization.

A grant or contract must be approved by the appropriate University administrators, including the Division Director, Dean, Director of the Office of Research Development and either the Associate Vice President for Graduate Studies and Research or the Vice President for Business Affairs. The Associate Vice President for Graduate Studies and Research is authorized to sign grant and cooperative agreement documents on behalf of the University, whereas the Vice President for Business Affairs is authorized to sign contract documents on behalf of the University. Faculty are not authorized to sign for the University.

The final version of the proposal needs approval as outlined previously. No changes will be permitted in proposals after they have received final approval, except when specifically authorized by the Director of the Office of Research Development. If a proposal is submitted to a funding organization with changes that were made after the proposal was approved and that were not authorized by the Director of the Office of Research Development, the University will withdraw the proposal. Proposals which have not been fully approved may not be delivered to a funding organization. Any proposals delivered to a funding organization which have not been fully approved by the University will be withdrawn by the University. All proposals which have been approved by the University administration become the property of the University and are University and State documents. Reference UTSA Handbook of Operating Procedures 9.32 (17 Dec 98)

Grant Proposals and Applications. The Regents Rules provide that only the President and the Vice President for Business Affairs or his designate may legally bind the University in contractual agreements. When there is any question as to whether the purpose of a prospective grant is outside the stated "role and scope" of the University or the proposing University unit or department, the appropriate vice president must give approval prior to submission of the application. Normally, agencies require an official University acceptance of the award documents, and, in such cases, the documents must be forwarded to either Associate Vice President for Research Development or to the Vice President for Business Affairs.

Contract Proposals and Execution. The Regents Rules provide that only the President and the Vice President for Business Affairs or his designate may legally bind the University in contractual agreements. Accordingly, University policy requires all formal contracts be submitted to the Office of the Vice President for Business Affairs for review and subsequent execution on behalf of the University; however, proposals for contracts may be processed through the Office of Research Development following established University procedures.

Publicity. All publicity regarding the award of any grant or execution of any contract or agreement must be submitted through the Office of University Communications.

Procedures. Since there is a wide variance in the administration of grant, contract, and cooperative agreement transactions and funds, written procedures are necessary for the maintenance of adequate control of such funds within the framework of the basic procedures set forth herein. Such procedures must provide for sufficient prior review of proposals, applications, and agreements to ensure all personnel responsible for the commitment of University resources (personnel, facilities, and equipment), and the administration and servicing of proposed agreements, are fully cognizant of obligations to be incurred.

    
Clarification of Terminology

The terms "gifts", "grants", "cooperative agreements", and "contracts" are often used synonymously and are grouped together in source classification of institutional funds; however in view of the considerable differences in policies pertaining to acceptance procedures and program administration, the following general distinctions will be observed in this Operations Guide:

Gifts (including Bequests). This term designates funds or property voluntarily bestowed upon the University without expectation of return or compensation or a deliverable on the part of the donor. The University of Texas at San Antonio seeks through responsible activities to encourage and derive sustaining gift support from alumni and interested friends, including corporate entities. The University, through the University administration and the Office of University Advancement, has a well organized program for encouraging and soliciting gifts for the support of the University's various functional purposes and activities. The proper functioning of these programs requires each organizational unit to develop internal procedures to ensure all gifts to the University are properly channeled through or reported to the appropriate office.

No solicitation of gift funds or property shall be made by anyone in the name of, or for the benefit of, the University without the prior approval of the President or the Vice President for University Advancement. By administrative authority, all fund-raising activities of the University and its units are under the administrative supervision of the Vice President for University Advancement. The Office for Development, operating under the Vice President for University Advancement is the duly designated fund-raising agency for the University.

Any dean, director, faculty, or staff member who wishes to undertake any type of fund-raising program or solicitation of contributions in the name of the University from alumni, business, industry, foundations or friends, or who seeks to establish a fund-raising program, shall follow the guidelines established for this purpose by University Advancement. For institutional accounting and administrative purposes, "gifts" are classified into the following two main categories:

Unrestricted Gifts. This term designates gifts upon which the donor has not placed definite restrictions as to method or purpose of expenditure, therefore leaving the determination of the appropriate use of such funds to the University. This term may also be applied to gifts received under a continuing solicitation program for general support of an institutional activity (such as the institution's athletic program where anticipated gifts are budgeted as a regular funding source).

Restricted Gifts. This term designates gifts upon which the donor has identified definite restrictions on the purpose for which or the conditions under which such funds may be expended or disbursed. The University will make every effort to fulfill that purpose and conditions; however, full discretion is maintained by the University as to its use.

Grants and Contracts. The distinction between "grants" and "contracts" is less pronounced than between these terms and "gifts." In many cases, the distinction depends only on whether the sponsor or grantor designates the governing document as a "grant" or as a "contract." General definitions are as follows:

Grants. Funds received from outside sources for the purpose of supporting the public service, research or instruction functions in a specific area of mutual interest to the institution and the grantor. The governing documents furnished by the grantor at the time of such grant awards usually designate the funds as "grants" and specify the degree of accounting and reporting obligations on such funds.

It is the University practice to establish a 26 account for funds received from an external organization, if any of the following apply:

• The funding agency declares the funds to be a grant, contract or cooperative agreement.
• The funding agency requires fiscal monitoring for allowability of expenditures; and requires financial reporting.
• The funding agency initially provides only a partial payment of the awarded amount and a receivable account must be established for the balance of payments.
• The funding agency must be billed.
• A deliverable and/or technical reports are specified in the terms and conditions provided by the funding agency.

Contract Funds. Funds received by the institution for specific services rendered to agencies, corporations, or others under negotiated contracts. These contracts are formal written documents which specify the rights and obligations of the parties involved.

Cooperative Agreements. A "cooperative agreement" is the appropriate relationship between the federal government and a recipient when the principal purpose of the relationship is to transfer money, property, services, or anything of value to the state or local government or other recipient in order to accomplish a public purpose. Such purpose may be categorized by support or stimulation authorized by federal statute, rather than acquisition, by purchase, lease, or barter, of property or services for the direct benefit or use of the federal government. Substantial involvement is anticipated between the executive agency, acting for the federal government, and the state or local government or other recipient during performance of the contemplated activity.

    
Characteristics of Grants, Contracts and Cooperative Agreements

    
Management Principles and Practices

The Council on Governmental Relations (COGR) publishes a document titled Managing Externally Funded Programs at Colleges and Universities: A Guideline to Good Management Practices. The following management principles and practices are excerpts from that publication which are applicable to University of Texas at San Antonio. The full text is available at http://www.cogr.edu/ .

Fiscal Administration.

Proposal Costing. The University must have a proposal costing and budget administration system which provides for consistency in preparation of proposal budgets to satisfy both internal procedures and external regulations.

Allowable Costs. The University must have in place a financial control system which identifies and limits costs to those allowable by each sponsor in amounts that are properly allocable.

Financial Accounting and Reporting. The University must have an established financial management system which complies with federal, state, and institutional regulations.

Cash Management. The University must have a cash management system which complies with federal, internal and, if necessary, state regulations and which provides adequate control and necessary flexibility to make timely deposits and disbursements

Procurement. The University must have a procurement system for the acquisition of goods and services in a competitive, fair, and timely manner with special emphasis placed on acquisitions for research.

Property Management. The University must have a property management system governing both federal and non-federal property.

Personnel. The University must have an adequate personnel staff to provide a personnel management program to enable it to accomplish its goals and objectives. This program provides safeguards to ensure the University complies with laws and regulations regarding recruiting, hiring, conditions and terminations of employment.

Audits. The University must have an audit management system which demonstrates the institution is well managed, in accordance with its own internal policies and federal regulations. The University's internal auditors and external auditors under appropriate circumstances have full access to the University's records, properties, and personnel as those relate to any given subject under review.

Health, Safety, and Regulatory Compliance

Animal Care. The University must have a system to ensure the existence of polices and procedures which comply with federal, and where necessary, with state and local government regulations, and with the requirements for non-federal sponsors to humanely, efficiently, effectively, and legally use live vertebrate animals in research covered by such regulations.

Biohazards. The University must have a system to ensure the existence of policies and procedures which comply with federal and, where necessary, state and local government regulations, and with requirements for identification, classification and control of biological hazards (biohazards) associated with research (including recombinant DNA).

Health and Safety. The University must be committed to providing a safe and healthy environment for its employees, faculty, students, and visitors.

Human Subjects. The University must have a system which complies with federal and, where necessary, state and local government regulations, and with the requirements of non-federal sponsors to protect the rights, well-being, and personal privacy of human subjects in research.

Insurance (Risk Management). The University must have risk financing mechanisms which comply with federal and, where necessary, state regulations, and provide a reasonable level of protection against unanticipated property loss and liability exposure.

Security. The University must have a system to ensure the existence of regulations concerning security for campus buildings, other University facilities, equipment, and, ff appropriate, classified materials.

Grant and Contract Management.

Agency Management Requirements. The University must have a system to manage externally funded programs in accordance with the requirements of each sponsoring agency.

Program Performance. The University must have a system to ensure adequate performance and reporting of performance of sponsored program activities.

Prior Approvals. The University must have a system for seeking required sponsor prior approvals and for reviewing and granting delegated prior approvals.

     
Processing Funds From External Sources

UTSA Policy. The appropriate processing of funds from external sources is an area of extreme importance to the University. Some general rules governing the processing of external funds are:

Grants, Contract, and Cooperative Agreements. All requests for funding support to external sponsors, including those to industry, private foundations, the state, the federal government, and local government sponsors must be processed through the Office of Research Development. Research Development will obtain all necessary institutional signatures once the proposal has been approved by the appropriate division head(s) and college dean(s). When funds are received in support of a sponsored activity, there should be either a proposal which has been processed through Research Development, a grant, contract or cooperative agreement that Research has reviewed and signed off on, or some arrangement relating to the receipt of project funds which has been agreed to by the Office of Research Development.

Gift Solicitation vs. Grant and Contract Proposals. The clearance and approval procedures for gift solicitations developed by the Office of University Advancement apply only to fund raising efforts from private sources of financial support. These procedures are separate from the approvals required for grant and contract proposals which request funds for a specific research and scholarly project.

Request for Project Support from a Foundation or Corporation. When project support is being sought from a foundation or corporation, the Office of Research Development will coordinate with the Office of University Advancement to insure that grant development efforts do not conflict with University fund raising efforts.

Other. Occasionally, departments receive funds which are not the result of research contracts, grants, cooperative agreements, or gifts. Where there is a question regarding classification of external funding as a grant, contract, or gift, please inform the Vice President for Business Affairs in a brief note of the circumstances surrounding the receipt of these funds. The Vice President for Business Affairs in conjunction with the Office of Research Development and the Office of University Advancement will discuss the matter and determine the appropriate classification and acceptable uses of the funds. After review, the Vice President for Business Affairs will ensure the funds are placed in the appropriate departmental accounts. The provision for or the lack of funding for indirect costs is not relevant in classifying external funding as a grant, contract, or gift.

    
Applicable Regulations

UTSA Policy. The Office of Research Development is required to check all proposals for conformity to applicable University policies and to State and Federal regulations related to research and grants prior to the proposal being submitted to an external funding organization.

Regulations. The Federal Office of Management and Budget (OMB) publishes regulations applicable to all Federal projects:

1. Circular A-21, "Cost Principles for Educational Institutions"
2. Circular A-110, "Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations"
3. Circular A-133, "Audits of States, Local Governments, and Non- Profit Organizations."

Most major Federal agencies publish Handbooks or Manuals which provide rules specific to their grants. The Department of Education relies on EDGAR, published in the Code of Federal Regulations, Section 34.

Defense Federal Acquisition Regulations (DFAR's) and Federal Acquisition Regulations (FAR's) apply to Department of Defense contracts.

Most State and private agencies provide specific Terms and Conditions with award notices.

The "Handbook of Operating Procedures" delineates the policies and procedures established by the University.

Internet Sites

Federal Agencies:

Other Sites of Interest: