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SPONSORED PROGRAMS OPERATIONS GUIDE

      
Acceptance of Grants, Contracts, and Other Agreements

Acceptance of Grants, Contracts, and Cooperative Agreements. It is the policy of the University to accept support of research, special investigations, training, demonstrations, the establishment of institutes, and other projects or activities closely related to the normal programs and recognized objectives of the instruction, research and public service functions of the University. This policy assures the endorsement and support of acceptable proposals from individual (or groups of) faculty and/or staff members for contracts, grants and other sponsored programs. Such outside support must be integrated with the instruction, research and public service functions of the University.

Grants, Contracts, and Cooperative Agreements to be in the Name of the University of Texas at San Antonio. All grants, contracts and cooperative agreements must be made in the name of the University of Texas at San Antonio. The Associate Vice President for Graduate Studies and Research is authorized to sign grant and cooperative agreement documents on behalf of the University. The Vice President for Business Affairs of his designate is authorized to sign contract documents on behalf of the University. Faculty are not authorized to sign for the University.

Notification of Acceptance. The Office Grants & Contracts Administration is responsible for advising the principal investigator or project director and other interested administrators of the acceptance of a grant or the execution of a contract. Upon notification that a proposal has been funded. the Office of Grants & Contracts Administration will report the award to the Board of Regents, via the docket. A NOTICE OF AWARD is prepared which authorizes the PI/PD to proceed in accordance with the technical and fiscal aspects of the award. The NOTICE OF AWARD also initiates the set-up of the account in the accounting system.

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.

Limitations. In accepting a grant or contract from a federal agency, private corporation or other awarding agency, the University agrees to perform the specified project under the terms and conditions of the grant, contract, or agreement on a "best efforts" basis and to expend the funds provided in accordance with the specifications of the granting agency; however, the University cannot accept any grant or contract or enter into any agreement contrary to State of Texas law, or University policies and procedures.

University travel regulations must be followed for reimbursing travel costs of individuals traveling as part of the work performed under a grant, contract or cooperative agreement.

All purchasing under grants, contracts or cooperative agreements must be in accordance with the State of Texas Procurement Code, and University policy and procedures. Expenditures for obligations incurred under grants, contracts or agreements cannot be made for purposes other than those for which state funds could otherwise be expended and as stipulated by the grant or contract conditions.

      
Account Assignments & Accounting Classifications

Grants and contracts may be grouped into two major accounting classifications: Unrestricted grants and contracts; and restricted grants and contracts.

UTSA Policy. When an award is received in the Office of Research Development and the terms and conditions are accepted by the authorized official for the University, the award is transferred to the Office of Grants and Contracts Administration. A 26 account is established if the funding organization declares the funds to be a grant, contract or cooperative agreement; the funding organization restricts the use of funds to a specific project; the funding organization requires fiscal monitoring for allowability of expenditures; a receivable is specified; financial reporting is required; progress or technical reports are required.

Unrestricted Grants and Contracts. General program support grants to the University which do not require separate accounting for the expenditure of funds are to be accounted for as General Current Funds/Unrestricted Revenue of the University when received. The use of this classification must be approved by the Office of Grants & Contracts Administration. Once approved, the documents indicating the source and nature of such funds must be transmitted to the Accounting Office at the time of the request for the establishment of an appropriate revenue account to properly designate the source of such funds. Normally, there are relatively few "unrestricted grants" received by the University. Use of this classification will result in the grant not being accounted for and classified as a sponsored program activity.

Restricted Grants and Contracts. Practically all grant and contract funds received by the University are Restricted Current Funds which mandate separate accounts be established for each such grant or contract to document and account for the receipt and expenditure of such funds for the "restricted" purpose or project for which they were intended.

Assignment of Accounts. The University will be informed of the acceptance of a proposal by an award notice from the sponsor received by the Office of Research Development. Once the terms and conditions are accepted and approved by both the authorized official for the University and the PI/PD, the award is transferred to the Office of Grants & Contracts Administration. The Office of Grants & Contracts Administration will assign an appropriate account number and notify appropriate individuals of such assignments.

List of Standard Subaccounts

The Office of Grants and Contracts reviews the award for special conditions, reporting requirements, cost sharing agreements, budgets, and expiration date. Each of these items is noted on the front of the award notice and the account numbers are assigned. Notices of the award are then mailed to the Principal Investigator/Project Director. Much of this information is available through the DEFINE System (Command: CA3, Screens 1-9).

Prior to Award Notification. Due to extenuating circumstances, a department may require the assignment of an account number to a proposed project prior to the receipt of a formal award. The Office of Grants & Contracts Administration will review written requests from division heads for the assignment of an account number for a sponsored project prior to the receipt of formal award notification from the sponsor. Due to the risk involved, sufficient justification must be evident in the request to permit a pending account to be established. To qualify formal approval of the proposal must have occurred, an explanation of the circumstances detailing the need for an account prior to the formal award must be provided, an indication of the evidence an award is eminent (e.g., informal communication with an identified sponsor official) must be submitted, the desired start date must be specified, and the identification of the academic account which will absorb any unallowable costs incurred as a result of establishing the sponsored program account prior to award.

Pre-Award Cost. Certain federal agencies allow institutions to approve pre-award costs on grants and cooperative agreements up to ninety days prior to the award start date. Please note that pre-award costs should never include proposal costs. Approval to incur pre-award costs is entirely at the University's risk; therefore, written requests must be sent through the Dean to the Office of Grants and Contracts Administration for review. The Office of Grants & Contracts Administration will contact the appropriate University official on a case by case basis.

Funding Delays. For contracts that experience funding delays, requests to incur expenditures require the approval of the College Dean and the appropriate Vice President. In both cases, the point to be clarified is the source of funds to cover pre-award expenditures, should the proposed grant or contract not be funded.

    
Accounting & Disbursements

To assist in project management, every PI/PD should keep internal accounting records of purchases and encumbrances to stay current with commitments made during the project. The Office of Accounting is responsible for the official University accounting records. However, the records in this office may not be timely enough to provide an up-to-date account profile. Pending charges may be known by the PI/PD several weeks before they appear on the official University records.

The PI/PD will receive a monthly statement of account from the Office of Accounting which lists each transaction by date. The statement includes an object class analysis to assist in tracking expenditures. For any month without activity, there will be no statement of account generated.

All transactions posted to a specific subaccount can be viewed through DEFINE (Command: GT1). A profile of each subaccount is available through Command: GB1.

    
Personnel

Staff Appointments.
Preamble. The relatively short term institutional commitment for grant funded positions allows more opportunity for streamlining the hiring process for classified staff and students. The following processes have eliminated submission of organizational chart, audit forms, and job description by using the information on the Staff Requisition Form and a brief memo to establish a job title and to ensure administrative signature approval; and eliminated justification memo for any salary offer up to 25% (same as UT Austin) of the minimum for staff positions and no justification memo for student positions.

Step 1. Complete Staff Requisition and forward within Division/College for appropriate signatures. Audit paperwork will not be required when the Staff Requisition Form identifies the major duties and the form is thoroughly completed. Job title may be left blank if unknown.

Step 2. Submit completed Staff Requisition to Human Resources with a brief memo that identifies that the position is a grant funded position and the dates position is expected to remain active; to whom this position will report; who this position supervises, if anyone; and any additional major duties with percentages not outlined on the staff requisition.

Step 3. Human Resources will assign the appropriate job title and post the position.

Step 4. Human Resource will screen all applications/resumes and forward all applications where minimum requirements are met.

Step 5. Department interviews and selects candidate. Contact Human Resources to close position prior to candidate selection so that applications of any additional candidates who have applied may be forwarded to the department for consideration.

Step 6. Department makes job offer. Any salary offers 25% or more above the minimum of the range for the job title must be approved by Human Resources prior to the offer being made.

Step 7. When offer has been accepted, complete Staffing. Recruitment Form and submit to Human Resources. Notify Human Resources of new employee and start date.

Step 8. Department submits electronic appointment.

Student Appointments.
Preamble. The relatively short term institutional commitment for grant funded positions allows more opportunity for streamlining the hiring process for classified staff and students. The following processes have eliminated submission of organizational chart, audit forms, and job description by using the information on the Staff Requisition Form and a brief memo to establish a job title and to ensure administrative signature approval; and eliminated justification memo for any salary offer up to 25% (same as UT Austin) of the minimum for staff positions and no justification memo for student positions.

Step 1. Refer to Student Employment Policy and Basic Rate Schedule to determine title and pay. Student Employment Policy available in Human Resources. Determine most appropriate student title. Allowable maximum number of hours to be worked by a student is determined by hiring department as long as the number of hours does not to interfere with his/her academic career. Benefits eligibility is specified in each title description. Upper salary range should be reserved for employees with upper level education and more extensive experience. Departments should record and maintain wage structure explanation.

Step 2. Posting not required.

Step 3. Departments may choose to post. Post in department or with Student Employment and Internships Department. Posting should state: "UTSA is an equal opportunity employer/affirmative action employer."

Step 4. Posting should state where to apply in department. Interview applicants.

Step 5. Certification of student status should be verified by the employing department prior to the offer of employment and the creation of the appointing PAF. Departments can verify student status through ISIS system or students may submit the Certification of Student Status Form (can be obtained in HR) to the hiring department.

Step 6. Select most qualified applicant.

Step 7. If hiring packets not available in the department, contact Human Resources. Have student complete employment forms on the first day of work. Return the completed forms to HR so that the student can be entered into the system to get paid.

Step 8. Complete and process either electronic or paper Personnel Action Form. Forward for appropriate signature approval. Forward to Human Resources.

Postdoctoral Fellows.
UTSA Policy. The title of Postdoctoral Fellow is used for traditional postdoctoral appointments, normally funded from extramural grant or contract support. Nominees for this title must hold a doctoral degree, have research experience in the area of the appointment, and be capable of conducting sophisticated research under the guidance of a tenure-track or tenured faculty member. An appointment is normally for a period of one year, but may be renewed on an annual basis up to a total of three years. Because of the temporary nature of the positions, there is no requirement that the position be advertised, although faculty may do so if they desire.

Deans will establish a salary range for Postdoctoral Fellows within their College, according to national norms. The range should fall within the boundaries of $20,000 and $45, 000. Use of the upper 25 % of the College range should be restricted to unusual situations. Postdoctoral fellows will be paid a salary, not a stipend, and the budget from which the salary is paid must include the appropriate fringe benefits and indirect costs. "Post Doctoral Fellow" is an Administrative and Professional Title to be appointed as a monthly employee in the '12' subaccount.

Final approval for Postdoctoral Fellow appointments will be made by the Dean of the College. Copies of curriculum vitae of appointed Fellows, along with other pertinent background information, must remain on file in the Office of the Dean for a minimum of 4 years. At periodic intervals, the Dean of Graduate Studies and Associate Vice President for Research will review the files for compliance with the above guidelines and for consistency within disciplines and the college.

Faculty members desiring to hire a Postdoctoral Fellow should obtain approvals from the Dean of the College for both the nominee and the salary before making a verbal or written offer. For all Postdoctoral Fellow positions funded by external grants or contracts, faculty members must present verification from the Office of Grants and Contracts to the Dean that funds are available to support the requested salary, the appropriate fringe benefits, and associated indirect costs. Postdoctoral Fellows must be informed that the position is normally for a period of one year, as noted in the above guidelines.

Student Employees.
Purpose. In the past, Human Resources required documentation for any student employee appointed above the base rate for the job title. Under the new guidelines, each Vice President or Dean will determine the appropriate salary for each student worker based on the employee's education and experience and retain the appropriate documentation should any exceptions be made to the pay structure.

UTSA Policy. Each Dean or Vice President is responsible for establishing and maintaining their respective student title pay structure within the pay ranges provided on the attached Basic Rate Schedule for Student Titles. The Dean or Vice President must establish a pay structure appropriate for the student employees in their units based on the student's level of education with the upper end of the pay range reserved for employees with more extensive education and experience. These pay structures must be approved in Human Resources prior to implementation and should be updated annually. The Dean's or Vice President's Office will monitor the student employee appointments to assure that the recruitment, hiring, and compensation of student employees is equitable, free of discrimination, and in conformity with UTSA's Affirmative Action Policy and the unit's own established pay guidelines.

This process will be discussed in more detail during the end of the fiscal year Budget Workshops held in late August and the Internal Control Workshops held in the fall of each year.

Basic Rate Schedule for Student Titles

Although latitude is permitted for paying student employees within the established salary range, the upper end of the range should be reserved for employees with upper level education and more extensive experience.

Appointments to Classified Titles. Students appointed to positions not requiring enrollment as a student as a condition of employment should be appointed to the appropriate classified titles published in the current Classified Pay Plan. Students appointed in classified titles for 50% time or greater and 4.5 months or longer are considered regular employees and are subject to the Teacher Retirement System, vacation and sick leave, holiday policies, and all other benefits received by classified employees.

Nonclassified Student Titles. The following student titles are utilized at UTSA and require enrollment as a student:

All student employees, except Student Assistants (Work Study Students), must be appointed electronically or with a paper Personnel Action Form (PAF). Current rates of pay and salary ranges for student titles are listed on the Basic Rate Schedule for Student Titles in the Personnel Manual. All student employees must be paid within the established salary range for the title. Concurrent appointments are allowed with all positions if the student employee's total appointment does not exceed workload limitations stipulated herein. Student Assistants are appointed by the Office of Student Financial Aid.

Student employees appointed for twenty hours per week and for 4.5 months or longer will be eligible for premium sharing and group employee insurance coverages. Student employees are not eligible for vacation, sick leave, holidays, or retirement.

Each Dean or Vice President is responsible for establishing and maintaining their respective student title structure within the Student Employee Basic Rate Schedule for Student Titles. Although latitude is permitted in paying student employees within the established salary range, the payment in the upper end of the range should reserved for employees with more extensive education and experience. These pay structures must be approved by Human Resources prior to implementation and should be updated annually.

Student Assistants. (Work Study Students) work hours are limited to no more than an average of 19 hours per week over a four and one-half day period of time. Paperwork and appointments are handled by the Office of Student Financial Aid.

Tutors and Student Reader/Graders. Work Hours are limited to no more than an average of 19 hours per week over a four and one-half period of time. They are paid on an hourly basis. Students appointed in these titles do not qualify for resident (in-state) tuition.

Graduate Research Assistants and Undergraduate Research Assistants are limited to a total employment of 20 hours per week. Appointments for less than 20 hours per week should be on an hourly basis. These titles require certification of enrollment as a full-time student as defined by the UTSA academic catalogs for each long session (a total of 3 hours for graduate students and 6 hours for undergraduate students during the summer sessions), Certification by the Director of Admissions and Registrar and acknowledgment by the student appointee should be submitted to the employing department prior to the creation of the appointing PAF. Approval of the appointing PAF by the Vice President or Dean will not take place until this completed form is received. Students appointed 20 hours per week for the entire semester in either of these titles will qualify for resident (in-state) tuition. Detailed job descriptions are available in Human Resources.

Student Interns paid by UTSA are limited to total employment of no more than 20 hours per week. Student Interns must be earning academic credit for their appointment, which must be approved and coordinated by the appropriate academic unit. An approved internship course form should be forwarded to the employing department prior to the creation the appointing PAF. Approval of the appointing PAF by the Vice President or Dean will not take place until this completed form is received.

Graduate Assistants are limited to total employment of 20 hours per week and may be paid on an hourly or monthly basis. Certification of enrollment as a full-time student as defined by the UTSA graduate catalog is required. Certification by the Director of Admissions and Registrar and acknowledgment by the student appointee should be submitted to the employing department prior to the creation of the appointing PAF. Approval of the appointing PAF by the Vice President or Dean will not take place until this completed form is received. This title does not qualify the student employee for resident (in-state) tuition. Detailed job descriptions are available in Human Resources.

Teaching Assistants are limited to total employment of 20 hours per week. If appointed 20 hours per week, Teaching Assistants qualify for resident (in-state) tuition. Concurrent appointments for Teaching Assistants are discouraged. However, with the advance approval of the Division Director, the Dean of the College, and the Provost and Vice President for Academic Affairs, a student employee may concurrently hold more than one appointment so long as the total percent time does not exceed 20 hours per week. Teaching Assistants are paid on a salaried basis regardless of the number of hours appointed each week.

References: Faculty Recruitment Manual.

Selection of all student employees must be in conformity with UTSA's Affirmative Action policies. Each department or unit employing students is responsible for ensuring that all recruitment and employment activities are free of discrimination.

Supplemental Pay to UTSA Employees.
In accordance with rules, regulations and policies of The University of Texas System, prior written approval must be obtained before UT San Antonio's funds from any source, including grant and contract funds, may be expended for the following categories of supplemental payments to employees of UTSA:

• Administrative Supplements
• Fees for Research Consulting (Sponsored Programs)
• Fees for Professional Services/Guest Lectures
• Fees for Extended/Continuing Education, Correspondence/Extension Center Teaching
• Fees for Managing/Participating in Coaching Schools, Clinics, or Camps

Definitions. "Research Consulting" refers only to consulting which is specifically authorized in a grant or contract proposal and is in the approved budget for the grant or contract. "Consulting Services" includes studies conducted for, and advice rendered to, a state agency that does not involve the traditional relationship of employer and employee or routine service that is necessary to the functioning of the agency's program.

Administrative Supplements.

OMB Circular A-21 Guidelines. Administrative supplements which result in an increase to base salary can not be paid from grants and contracts.

UTSA Policy. In instances where a payment is authorized for work performed on a grant or contract, such payments must be specifically identified in the grant proposal and budget, must be treated as a "buy-out" during the regular 9 month academic appointment period or as summer salary and may not exceed the budgeted amount. Such compensation must be clearly explained in the proposal budget and/or budget narrative. A copy of any special terms and conditions imposed by the sponsoring agency should accompany the proposal. Any changes to the approved budget must be forwarded to the Office of Research Development for approval.

Administrative supplements, which are not paid from grants and contracts, may be authorized only for the purpose of compensating a UTSA employee for specific additional duties to be performed for a specifically defined period of time.

Letter of Appointment. Administrative supplements are included as part of the regular payroll records of the UTSA employee receiving the supplements and will be reflected in the annual Letter of Appointment.

Fees for Research Consulting (Sponsored Programs).

OMB Circular A-21. Compliance with the requirements of currently applicable Federal Guidelines, in particular OMB Circular A-21, is mandatory for payment of research consulting fees to UTSA employees from federal grant and contract funds. According to OMB Circular A-21, intra-university consulting is assumed to be undertaken as a university obligation requiring no compensation in addition to full-time base salary. This principle also applies to faculty members who function as research consultants or who otherwise contribute to the work under a sponsored agreement which is under the direction of another faculty member of the same institution. These requirements will also be observed for research consulting paid from non-federal sponsored programs.

Exceptions to OMB Circular A-21 guidelines are restricted to unusual cases which may dictate and/or justify a different treatment; however, to be considered as an unusual case the work performed must very clearly be across departmental lines or must involve grant or contract activities or operations at separate or remote operations and the nature of the work to be performed by the employee must be as a research consultant, and the work performed by the consultant is in addition to his/her regular departmental workload. Such work must be clearly beyond the scope of service that can reasonably be expected of the faculty member. Such consulting arrangements require the prior written approval of the President or his/her designee and must be specifically authorized in the grant or contract agreement or specifically approved in writing by the sponsoring agency.

The basis for computing charges to sponsored projects will be the faculty members budgeted academic salary rate as reflected in the institutions annual Operating Budget. This principle must be consistently applied to all faculty members of the institution and charges to sponsored projects may not exceed the proportionate share of the faculty members budgeted salary attributable to work performed on the contract or grant. The basis for computing the charge for a faculty members services must be documented when it is submitted for approval. The estimated number of days and/or hours of the faculty members time must be provided, and the proposed "rate" must be consistent with the faculty members budgeted academic salary rate.

UTSA Policy. Fees for research consulting in addition to full-time or part-time salaries, shall not be paid to institutional employees, except in cases where unusual circumstances justify such payments as determined by the President or his/her designee. In most cases of research consulting, the unit or program requesting such consulting, especially if it is to require more than minimal involvement should make every effort to provide release time for the consultant. In such cases, the consultant would not receive direct compensation but the consulting would be considered a part of his/her normal institutional workload.

Limitations. The estimated number of days and/or hours of the faculty member's time must be provided and the proposed rate must be calculated dividing their academic rate by 1560 hours to get an hourly rate.

Justification. When supplemental payments are justified, such payments must be fully documented outlining the duties, duration, and compensation proposed. All such payments to institutional employees must be approved in advance and paid through the AUTHORIZATION FOR SERVICES AGREEMENT. No such duties are to be undertaken until approval has been received from the Vice President for Business Affairs. Such payments are subject to applicable IRS regulations regarding withholding taxes, and also subject to other payroll fringe benefits deductions and payroll charges, as appropriate.

The employees immediate supervisor is responsible for ensuring that the employee is satisfactorily performing those duties and responsibilities for which the employee is being compensated on either a full-time or part-time basis.

Certification & Procedural Requirements for Supplemental Pay to UTSA Employees from Sponsored Programs for Research Consulting. To obtain prior written approval for such services in advance the AUTHORIZATION FOR SERVICES AGREEMENT must be completed along with appropriate documentation and submitted through the Office of Grants and Contracts Administration to the Office of the Vice President for Business Affairs not less than five (5) working days prior to the date on which the proposed services are to be provided. Individuals shall be selected on the basis of qualifications and expertise (considering the nature and extent of the services to be performed), and the statement of justification must document that the services are essential to the operations of the University. Written documentation of the individuals professional qualifications must be submitted with the AUTHORIZATION FOR SERVICES AGREEMENT.

A payroll voucher, with a copy of the form attached, must be submitted to the Payroll Office to initiate payment to the employee. The basis for computing the rate of payment must be shown on the Authorization for Services Agreement form.
Reference UTSA Handbook of Operating Procedures 4.7 (14 Apr 99)

Fees for Professional Services & Guest Lectures by Regular UT San Antonio Employees.

The following guidelines also apply to specific short-term assignments involving professional services, guest lecturing, and teaching duties for full-time administrators and other non-faculty employees of UTSA.

UTSA Policy. Fees for lecturing or other professional services, in addition to full-time or part-time salaries, shall not be paid to institutional employees, except in cases where unusual circumstances justify such payments as determined by the President or his/her designee. When supplemental payments are justified, such payments must be fully documented on the AUTHORIZATION FOR SERVICES AGREEMENT. All such payments to institutional employees must be paid through the UTSA payroll system, and are subject to applicable IRS regulations regarding withholding taxes, and also subject to other payroll fringe benefits deductions and payroll charges, as appropriate.

Certification and/or Procedural Requirements for Payments to UTSA Employees for Service as Professional Services and Guest Lectures. To obtain prior written approval for such services, the AUTHORIZATION FOR SERVICES AGREEMENT must be completed along with appropriate documentation and submitted through administrative channels to the Vice President for Business Affairs not less than five (5) working days prior to the date on which the proposed services are to be provided. Individuals shall be selected on the basis of qualifications and expertise (considering the nature and extent of the services to be performed), and the statement of justification must document that the services are essential to the operations of the University. Written documentation of the individuals professional qualifications must be submitted with the AUTHORIZATION FOR SERVICES AGREEMENT.
Reference UTSA Handbook of Operating Procedures 4.7 (14 Apr 99)

Fees for Research Consultants, Consulting Services, Professional Services, & Guest Lectures.

UTSA Policy. The following guidelines apply to specific short-term assignments involving research consultants, consulting services, professional services and guest lecturing. The term "consulting services" includes studies conducted for, and advice rendered to, a state agency that does not involve the traditional relationship of employer and employee or routine service that is necessary to the functioning of the agency's program.

Faculty and Staff of Other UT Component Institutions, Employees of Other State of Texas Institutions of Higher Education (Non-UT Components), or Agencies of the State of Texas. The University of Texas at San Antonio may pay consulting fees (whether Research Consulting or Consulting Services) or lecture fees to a regular, budgeted employee of another component institution of The University of Texas System, another higher education institution, or another state agency only when it is determined in advance and in writing by the President that it is in the best interest of UTSA and the State of Texas to do so. Such service by an employee of one component institution for the benefit of another institution or state agency must also be approved in advance and in writing by the President/Head of the institution or agency by which the consultant or lecturer is regularly employed in a budgeted position (the providing institution). Copies of the specific, written authorization must support the voucher prepared by UTSA to pay the employee of the providing institution or agency. Failure to request written approval of the President/Head of either the providing institution or agency or UTSA in advance (15 working days) of the date on which the service or services is/are to begin may result in disapproval by either President/Head and, for this reason, could result in non-payment by UTSA.

Forms requesting services of an employee of a component institution of The University of Texas System or an employee of another Texas public institution of higher education or other agency of the State of Texas must be processed in time to be submitted to the appropriate Vice President not less than fifteen (15) working days in advance of the date the requested services are scheduled to begin.

Individuals Who Are Not State Employees or to Entities Which are Not State Agencies. External consulting services, professional services, guest lecturers, by non-employees of UT San Antonio may at times be necessary.

Payments for consulting services must be handled in accordance with guidelines provided in Texas Government Code, Chapter 2254 and BPM 43-04-98. Where it is anticipated that the total value of a consulting contract will be $15,000 or more, an official Request for Proposals (RFP) must be developed and advertised in The Texas Register as required by applicable state law. Guidelines for development of RFP's may be obtained from the Vice President for Business Affairs or from the Office of Contracting and General Services.

Payment may not be made to providers of consulting services, professional services, guest lecturers or for correspondence course teaching (or similar services) until an appropriate contract or agreement for providing such services has been prepared and processed and approved by the Office of the Vice President for Business Affairs. Sample formats for such contracts or agreements may be obtained from the Office of the Vice President for Business Affairs.

Certification and/or Procedural Requirements for Payments to Consultants, Research Consultants, Guest Lectures, and Providers of Professional Services to Individuals Who Are Not UTSA Employees. To obtain prior written approval for services (with the exception of "Consulting Services" with an anticipated total value of $15,000 or more), the AUTHORIZATION FOR SERVICES AGREEMENT must be completed and submitted through appropriate administrative channels to the appropriate Vice President not less than five (5) working days prior to the date on which the proposed services are to be provided. Individuals shall be selected on the basis of qualifications and expertise (considering the nature and extent of the services to be performed), and the statement of justification must document that the services are essential to the operations of the University. Written documentation of the individuals professional qualifications must be submitted with the AUTHORIZATION FOR SERVICES AGREEMENT.

To obtain prior written approval for "Consulting Services" with an anticipated total value of $15,000 or more, refer to BPM 43-04-98, described above, which describes procedures and requirements for hiring outside consultants.

Complete and appropriate written documentation must be provided before payments may be made from any source of university funds to consultants, research consultants, lecturers, or individuals providing professional services to the University. A copy of the AUTHORIZATION FOR SERVICES AGREEMENT, form must be provided with the voucher submitted for payment. Where appropriate, an official invoice submitted by the individual upon completion of the services for which payment is being made will usually be considered adequate documentation if the invoice is consistent with payment details shown on the AUTHORIZATION FOR SERVICES AGREEMENT form.

All Vouchers submitted for payment to persons who are neither regular nor part-time employees of UTSA must contain or be accompanied by the following information regardless of the source of university funds from which payment is being made:

The authorized signature of the person who has responsibility for administration and control of the funds being disbursed.

The signature of the payee if there is no official invoice included with documentation supporting the request for payment. This signature, if required, must be contained on the applicable signature line in the "Certification" section of the voucher.

The permanent mailing address of the payee. (All checks to the payee will be mailed to the permanent address provided by the payee). All exceptions to this practice must be approved in writing by the Vice President for Business Affairs.

Receipts for transportation, lodging, meals, and other authorized travel expenses must be provided with the voucher requesting payment to the payee for such expenses. Reimbursement of such expenses will not be authorized if such receipts are not provided. Any exceptions to this requirement must be approved in writing by the Vice President for Business Affairs. Expense payments to such shall be made in accordance with currently applicable State of Texas and UT System rules, regulations, and guidelines which govern reimbursement of such expenses to employees of the University and be covered in the related contract for services. To the extent possible, travel and lodging arrangements should take advantage of special contract airfare, rental car and lodging rates which are available to all employees of the University. Direct payment for airline fares and/or rental cars on behalf of non-university employees is not encouraged; however, under certain circumstances direct payment of such expenses may be appropriate if it can be shown that such payments will conserve University funds. Any direct payments of this type must be authorized in advance and in writing by the Vice President for Business Affairs.
Reference UTSA Handbook of Operating Procedures 4.7 (14 Apr 99)

    
Purchasing

General Rule. The University's purchasing regulations must be followed. If you have any questions regarding a particular purchase, please call either Purchasing or the Office of Grants and Contracts for assistance.

Small Purchase Order System (DEFINE Documents). Purchase Requests (PB4's) and Purchase Orders (PBO's) done electronically will automatically route to the Office of Grants and Contracts for approval. If supporting documentation is necessary for a specific purchase, approval will be dependent upon the receipt of the documentation in the Office of Grants and Contracts. Documentation may include equipment screening forms, business expense forms or prior approvals from the sponsoring agency.

If prior approval has been requested but there is a need to start bidding immediately, a PI/PD may request that the requisition be forwarded to Purchasing with a note that approval will be forthcoming. It is the responsibility of the PI/PD to see that the approval is received prior to placing the order. Without the approval in writing, an order cannot be placed. A word of caution, many agencies will not grant permission retroactively. If there are any doubts about whether to obtain written permission, please contact the Office of Grants and Contracts Administration in advance. Items restricted from purchase on the Small Purchase Order System:

• Advertisements
• Appliances
• Bottle gases
• Controlled substances
• Food
• Live animals
• Maintenance agreements
• Proprietary/Sole source and/or non-competitive procurements
• Radioactive materials
• Rental or lease agreements
• Texas State Contract Items

ProCard. The UTSA Procurement Card (ProCard) offers a simplified method to purchase goods up to $1,000 from vendors who accept the MasterCard. All State and UTSA purchasing policies must be followed when using the ProCard. Items which may not be purchased with the ProCard are listed below. Non-adherence to purchasing procedures will result in the revocation of the Procard.

In addition, principal investigators/project directors (PI/PD) are responsible for complying with any purchasing restrictions specific to their grant.

If purchases are made which are unallowable to a specific grant or contract, the PI/PD will be responsible for finding an alternate account or reimbursing the grant. The ProCard will be revoked.

The ProCard may not be used for the following purchases:

• any single purchase exceeding $1000 (including freight)
• alcoholic beverages
• ammunition
• animals postage
• camera (exceeding $500.00)
• cash advances
• cellular/portable phone (exceeding $500.00)
• computers (exceeding $500.00)
• consulting services
• controlled assets
• controlled substances or prescription drugs
• cylinder gases
• entertainment
• facsimile machines (exceeding $500.00)
• food
• gasoline
• hazardous chemicals or materials
• leases or rentals
• liquid nitrogen
• personal items
• printers (exceeding $500.00)
• purchases outside the USA
• purchases involving equipment trade-in
• radioactive materials
• stereo systems (exceeding $500.00)
• telephone services
• travel (transportation) and related expenses
• video recorder/players (exceeding $500.00)
• weapons

Other Purchases

Books, Subscriptions and Registration Fees. Submit a Local Funds Voucher with Order Form to the Disbursements Office.

Membership Fees. Submit a Local Funds Voucher to Disbursements, after approval has been obtained using the Request for Membership Fee Approval form.

Overnight Mail Services/Ground Transportation. State contracts have been issued with specific carriers to conduct University business. The use of any other carriers must be processed through the Purchasing Department. Please contact either Disbursements of Mail Services for assistance.

Please indicate on the mailing label the proper billing reference number (grant account number) to be charged. Omission of the account number causes inaccurate billings and unnecessary delays in reimbursing the carrier.

It is illegal to charge personal mail to University or grant accounts.

Refreshments. Refreshments for grant sponsored meetings, conferences and workshops that use catering must submit a purchase request to Purchasing. If ARA (on-campus) is used, ARA will submit an IDT to Disbursements. If food is purchased at supermarkets, out-of-pocket reimbursement requires a submission of a Local Funds Voucher with original receipts to the Disbursements Office.

The IRS has determined that payments to UTSA employees and payments to vendors for events/meetings that do not have proper documentation will be treated as personal income to the employee being reimbursed. In an effort to comply with audit guidelines and to avoid the inconsistent processing of these payments, the University must now require that a standard documentation form "Request for Payment of Business Expense" be submitted with all reimbursement or payment requests.

Original receipts must be attached and all information on the form must be completed before any payments can be processes. Payments to vendors for official entertainment expenses and miscellaneous event expenses must be documented in the same manner as employee reimbursements. This form must be submitted with local funds vouchers for reimbursement to individuals; with purchase requests for payments to vendors; and to Aramark for catering of all meetings and events.

     
Rebudgeting

The principal investigator or project director is charged with the responsibility of establishing a project's operating budget and maintaining it within the limits set by the sponsor for the period(s) of the project. Limitations on the rebudgeting of project funds, and requirements to be met in rebudgeting such funds, vary markedly among agencies; consequently, general guidelines and specific procedures are omitted. It is the responsibility of the PI/PD to insure that all requests for budget transfers are in compliance with the sponsoring agencies guidelines. Contact the Office of Grants & Contracts Administration for specific guidelines and requirements.

Requests for major budget revisions (25 % or more of a specific budget level in the absence of guidelines from the sponsor) should be processed through the prescribed review and approving authorities to the Office of Grants & Contracts Administration. If required, that office will forward the request to the sponsor for action. When approval or disapproval authority has been delegated to the University administration by the sponsoring agency, the Director of Grants and Contract Administration will act on the rebudget request.

Re-Budgeting Documentation. A Transfer of Funds form is used to make adjustments between subaccount categories; and copies of the form are available from General Stores. An electronic Transfer of Funds document (VT3) is also available. When transferring funds to salaries, funds must also be transferred to cover associated fringe benefits and indirect costs. The transfer of funds must include a justification/explanation for the transfer.

     
Subcontract Preparation and Negotiation

Subcontracts are one area which require the prior approval of the sponsoring agency. Subcontracts should be addressed in the original proposal to include a detailed scope of work and budget estimate. Agencies will approve/disapprove the arrangement in principal at the time the award is made. However, they may still require that the actual contracting document be submitted for agency review and approval prior to allowing the University to enter into any agreement.

The Office of Grants and Contracts Administration will work with the PI/PD to develop an appropriate subcontract or cooperative agreement. It may be necessary to send the proposed document to the UT System Office of General Counsel for review. Therefore, the PI/PD should contact the Office of Grants and Contracts Administration to discuss the terms and conditions of the agreement at the earliest possible time after the primary grant has been awarded.

Generally, the subcontractor is permitted to bill the University on a monthly basis. The Grants Office will have the PI/PD review the invoice to insure that all charges appear appropriate. The PI/PD prepares a Local Funds Voucher to initiate payment of the invoice.

Any changes, amendments or extensions of subcontracts will be handled through the Office of Grants and Contracts Administration.

    
Cost Transfers

It is recognized that transfers of costs from one project to another are occasionally necessary to correct bookkeeping or clerical errors in an original charge. Also, it is understood closely related work may be supported by more than one funding source and in such cases, a transfer of costs from one source to another may be proper. However, frequent, unexplained, inadequately explained, or tardy transfers can raise serious questions about the propriety of the transfer as well as the reliability of the grantee's accounting and internal control system.

Expenditure Corrections. All PI/PD's should examine Statements of Account and Personnel Effort Reports monthly to determine if all charges have been applied correctly. Each project is expected to be accounted for separately. Error corrections (except for salaries which will be discussed in the next paragraph) should be requested by a written memo, approved by the project's principal investigator/program director, to the Office of Grants and Contracts. The memo must contain a complete explanation and/or justification for making the cost transfer (or correction), the original document number, the amount of the transfer, and the account numbers involved.

Corrections of clerical or bookkeeping errors must include an explanation of how the error occurred. A statement such as "to correct error" or "to transfer to correct project" is not sufficient.

Transfers to and from closely related work are acceptable if the cost is a proper and allowable charge to either project and sufficient justification is given for the propriety of the transfer. However, transferring charges to another sponsored project simply to clear an overdraft is not an acceptable reason. The costs incurred must benefit the account being charged.

Cost transfers requests discovered after 30 days must contain an explanation for the delay in processing. Cost transfers (corrections) submitted after 90 days from the date of the original charge must also include a complete explanation of the circumstances which caused the transfer to be late. Such requests will be reviewed on a case by case basis.

All cost transfers involving grants and contracts must be submitted to the Office of Grants & Contracts Administration for administrative approval and subsequent forwarding to the Accounting Office.

Salary Transfers. Salary transfers may be made if Personnel Effort Reports have been corrected to reflect the transfer. A transfer not documented properly on a Personnel Effort Report is subject to disallowance. If the request for the transfer is made within thirty days of the original charge, the only action required is to correct the Personnel Effort Report and submit the correcting Personnel Action Forms ( PAF's ) to Human Resources. If the charge is more than thirty days old, a justification for the delay must be documented. Retroactive salary transfers may not be done electronically. Paper PAF's must be sent to the Office of Grants and Contracts Administration for approval.

    
Facilities & Administrative Costs

Facilities and Administrative cost rates are determined in accordance with cost principles established by the Office of Management and Budget Circular A-21, "Cost Principles for Educational Institutions." University indirect cost rates are audited and negotiated by a federal agency. Current rates will be supplied to individuals involved with grants and contracts by the Office of Research Development.

Regents' Rules. Proposals regarding overhead rates and specialized rates for fringe benefits, computers, services, and other facilities and equipment chargeable to cost reimbursement contracts and grants shall be negotiated with the appropriate cognizant agency by the institution's chief business officer. The chief business officer shall send a copy of the final negotiated agreement to the Controller.

To the extent that individual cost recoveries from the application of overhead rates are derived from use charges for buildings, other improvements, or equipment, the funds so derived shall be designated for renewals or replacement of such buildings, improvements, or equipment or for other such purposes specified and approved in the budget processes as related to the indirect cost recoveries. Reference Regents' Rule 13.02 ( 29 Aug96 )

UTSA Budget Guideline. University policy provides that the allowable negotiated rate for facilities and administrative costs be included in all proposals submitted to prospective sponsors. Authorized exceptions to this general policy are:

• when legislation establishing the program and/or the appropriations act providing the funding prohibits or limits reimbursement for indirect costs;
• when the sponsor has a written policy governing indirect cost recovery. Verification of a funding organization's published policy regarding a limit or exclusion of indirect costs will be made by the Director of the Office of Research Development; therefore, a copy of the sponsor's policy should accompany the proposal.

If the principal investigator wishes to request a waiver of the indirect cost rate, either in whole or in part, the waiver must be justified to and approved by the Provost and Vice President for Academic Affairs or his designate and the Vice President for Business Affairs.

Allocation of F&A Costs. Initiated in Fiscal Year 1998, it is University policy to return a portion of recovered F&A costs to the University community. The allocations are 10% to principal investigators, 5% to Divisions and/or centers, 5% to the College Deans, 4% to the Office of Research Development and 1% to the Office of Grants and Contracts Administration. The latter two allocations will be initiated with the distribution of FY 2000 funds.

• To be eligible for the F&A return, the grant or contract must recover the full F&A rate available to the University or fall within one of the authorized exceptions listed above.
• Any grants or contracts with waivers approved locally will not be eligible for the allocation of F&A costs.
• The distributed funds must be spent in support of the research effort and in a manner consistent with University regulations concerning "14" accounts.
• The distributed funds cannot be used to enhance the salaries of principal investigators.

Amendment of Facilities & Administrative (F&A) Cost Rates on Federal Programs. If the amount of F&A costs to be charged to a sponsored project changes from the amount included in the proposal and/or grant or contract award, the following guidelines apply to all types of agreements, whether cost-reimbursement or fixed price:

Fixed F&A Cost Rates on Federal Programs. In the event an increase in the negotiated fixed rate occurs during the project period, the budget for indirect costs will be adjusted upwards only if the contract or grant provides for an increase during the term of the project, and if the sponsoring agency provides additional funds for the increase. Consequently, direct costs awarded will not be reduced to fund an increase in indirect costs as a result of a rate increase. If the rate is decreased during the term of the grant or contract, depending on the requirements of the sponsor, the indirect costs funds released may be available for direct costs.

Application of F&A Cost Rate to Non-Federal Programs. Unless the current rate is negotiated as part of the award, proposals will use the indirect cost rate in effect at the time of submission for determining the indirect cost portion of the program's budget. This rate will be applied as a fixed rate for the duration of the project once the program is accepted and supported by the sponsoring agency. Proposals for supplemental funding will use the most recently negotiated rate in effect at the time of submission.

Changes in Indirect Cost and Computation. An increase in the base amount to which an indirect cost rate is applied, must be authorized by the same administrative offices which approved the original budget and/or the sponsor in accordance with the terms of the grant or contract. If the approved revision results in an increase in the allowable indirect costs recovery, the budget for indirect costs will be adjusted accordingly. A decrease in the base does not require an amendment to budgeted indirect costs unless the sponsoring agency, upon request by the University, authorizes the rebudgeting of funds from indirect costs to direct costs categories.

     
Facilities & Administrative Cost Allowances and Disallowances

The Office of Management and Budget (OMB) Circular No. A-21 prescribes the general policies and guidelines applicable to the costs charged to federally-funded research grants, contracts, and other agreements with educational institutions. The Circular is enforced through audits, primarily conducted by the Department of Health and Human Services and the Department of Defense.

The OMB has moved to exclude certain costs from indirect cost reimbursements paid to colleges and universities receiving federal research grants.

Summary of Revisions of OMB Circular No. A-21. The revisions will prohibit colleges and universities conducting federally-supported research from seeking indirect cost reimbursement for the following expenses:

Entertainment and Alcoholic Beverages. Costs of entertainment, including amusement, diversion, and social activities, such as tickets to shows or sporting events and related meals, lodging, rentals, transportation and gratuities, and all costs of alcoholic beverages.

Officers' Housing and Personal Living Expenses. Costs related to housing or personal living expenses (e.g., depreciation, maintenance, furnishings, utilities, rent, etc.), of the institution's officers, including housing and housing allowances, regardless of whether the cost is reportable as taxable income to the employees.

Goods or Services for Personal Use. Costs of goods or services for personal use of the institution's officers or employees, including such costs related to automobiles (including transportation to and from work) furnished by the institution regardless of whether the cost is reported as taxable income to the employee.

Memberships. Costs of membership in any civic, social, community organization, dining or country club or organization.

Donations and Contributions. Costs of contributions or donations, regardless of the recipient.

Advertising and Public Relations. Costs of advertising designed to promote the institution or its activities, and of promotional items and memorabilia, including models, gifts, and souvenirs. Costs of convocations, meeting rooms, hospitality suites, and other special facilities used in conjunction with shows and other special events.

Lobbying. Costs prohibited by 31 USC 1352 (1989) (the so-called "Byrd Amendment"), and 55 FR 6736 (2/26/90) and the Office of Management and Budget government-wide guidance and notice published at 54 FR 52306 (12/20/89) and 55 FR 24540 (6/15/90).

Travel. Costs for travel exceeding the lowest available commercial discount fares, or standard (coach or equivalent) fares and all travel and subsistence costs of the institution's trustees, regardless of the purpose of the trip. Cost of travel by institution-owned, -leased, or -chartered aircraft shall not exceed the cost of allowable commercial air travel.

Severance Pay. Costs incurred in making any payment (commonly known as a "golden parachute payment") in an amount in excess of the normal severance paid by the institution to an employee upon termination of employment.

Defense of Fraud. Costs incurred in defense of any civil or criminal fraud, claims, appeals, patent infringements, or similar proceeding (including filing of any false certification) brought by the United States where the institution is found liable or has pleaded nolo contendere.

Fines and Penalties. Payments of fines and penalties resulting from violations of, or failure to comply with, federal, state, local, or foreign laws and regulations, except where such payments are agreed to in advance.

Insurance Against Defects. Costs of insurance with respect to any costs incurred to correct defects in the institution's materials or workmanship.

Alumni Activities. Costs incurred for, or in support of, alumni activities and similar services.

Selling and Marketing. Costs of selling and marketing any products or services of the institution unless the recruitment of personnel required for the performance by the institution of obligations arising under sponsored agreements; the procurement of goods and services for the performance of sponsored agreements; the disposal of scrap or surplus materials acquired in the performance of a sponsored agreement; other specific purposes necessary to meet the requirements of a sponsored agreement; or the costs associated with sponsored program proposals.

    
Close-Out Process

Ninety, sixty, and thirty days before the expiration date of a project, a reminder notice is sent to the principal investigator. These notices serve to remind the principal investigator to begin closing down the project and make sure all applicable costs are in. Particular attention should be paid to payroll documents to ensure all persons working on the project are transferred to other funding sources.

Grants & Contracts Administration personnel will work closely with the division to ensure the project is closed out on a timely basis. Federal projects must be closed out in 60 days. However, this includes time needed by Grants& Contracts Administration personnel to prepare final financial reports.

To enable timely reporting of expenses to sponsoring agencies, all documents to charge or to correct charges to sponsored projects must be received in the Office of Grants and Contracts Administration within thirty days after the expiration date of the project. If the PI/PD is aware of costs that cannot be charged within that time period, the Office of Grants and Contracts must be notified. This is to ensure that inaccurate financial reports are not submitted to sponsoring agencies. Generally, all materials and supplies must be received and services rendered prior to the expiration date of a project.

Most projects require the submission of a technical report. Failure to submit this report may result in penalties to the University to include non-payment. The PI/PD will be contacted for an immediate resolution to any such problems.

Inventories are required at the close of contracts and some grants. Usually, equipment purchased on grants becomes the property of UTSA and will be inventoried with other division equipment annually. However, if the equipment becomes surplus to the needs of the division or is no longer being used for federal projects the Office of Grants and Contracts Administration should be notified.

Patent/invention reports are required on contracts and some grants. These reports provide a listing of inventions or new technology resulting from the project.

Encumbrances Near or After Termination Date. Items not received during an award period are not considered by an agency to be of benefit to the project, and are routinely disallowed on audit even if they were legitimate charges at the time the order was placed. Therefore, orders for supplies and equipment must be placed well in advance of the expiration date to ensure delivery and utilization prior to the expiration date.