External Funding
Definitions
To grant or declare as merited or due. If, after consideration, an outside agency decides a proposal has merit and worth, an agreement is drawn between the funding agency, project director and Indiana University for services. This agreement is called an award. An award is a legal, binding document for services in lieu of funds to perform the original outline of the proposal submitted.
Once a signed award is received and reviewed by the research office, it is forwarded to the Contract & Grant Administration office for processing. At this time, a University account is assigned and a budget is entered according to the agreement, for receipt of income and expenditure of funds granted by the agency. Besides physical location of the award documentation and correspondence being housed in Contract & Grant Administration, pertinent contract/grant information is electronically housed within the C&G portion of Financial Information System to accommodate institutional reporting requirements.
Carryover funds - The amount of remaining funds in a budget period carried forward to the next budget period within a project period. Requirements to obtain these funds will vary with the granting agencies; for example, USDE requires the request for carryover be submitted 45 days prior to expiration of the budget period. NIH, if under expanded authorities, is an automatic carryover with limitations on the percentage carried forward. Refer to each agency for requirements.
Cost sharing or matching is defined as that portion of the costs of a project or program that is not borne by the sponsoring agency.
There are two type of cost sharing, mandatory and voluntary. Mandatory is required by the sponsoring agency as a condition of the award. Voluntary contribution is not a required commitment by the agency, but offered by the grantee. When an award is given based upon a proposal that has cost sharing/matching commitments, whether mandatory or voluntary, this becomes a condition of the award. The cost is considered a financial commitment and must be documented and auditable. As of January 1, 1999, cost share expenditures are tracked in sub-accounts of C&G accounts.
In order to include an item as cost sharing it must be:
verifiable
not included as cost share to another grant or contract account without agency approval
necessary and reasonable to the project
allowable and allocable under applicable cost principles
not funded from another grant or contract without agency approval
incurred within the time frame of the project
Additional information regarding cost share can be found in OMB Circular A-110, section 23 or visit our website at < http://www.fms.indiana.edu/cg/imp_notice/99-2.asp > for guidelines and procedures.
Expendable and Nonexpendable Equipment
Equipment: Expendable ---- An item having an acquisition value less than $1,000 and a normal life expectancy of two years or more. .
Equipment: Non-Expendable ---- An item having an acquisition value of $1,000 or more and a normal life expectancy of two years or more.
How items should be budgeted in a proposal:
Non-expendable capital equipment should be budgeted in the equipment category of a proposal and excluded from the calculation of indirect costs. Expendable equipment and expendable computer equipment should be budgeted in the Supplies and Expense or Other category of the budget. Indirect cost is calculated on expendable equipment. Object code 4910 will be used for expendable equipment under $500, and object code 5200/5215 will be used for expendable equipment between $500 - $1,000.
For further information see Indiana University Important Notice #96-2 dated April 29, 1996.
This code defines the nature of the externally sponsored program being conducted for a grant or contract. It is a 2 to 4 digit identifier found in the Account Maintenance Screen as the High Ed Cd (Higher Education Code) within the Indiana University Financial Information System (FIS). Those related to contracts and grants are:
IN -- Instruction
A grant/contract involving training or instruction.
IPR -- Individual or Project Research
Research activity that is normally managed within the academic department that is budgeted and accounted for separately. The research activity has a specified time frame and a stated goal or purpose as a result of a contract, grant or specific allocation of institutional resources.
IRC -- Institutes and Research Centers
All activity specifically organized to produce research outcomes that are separately budgeted and accounted for. This also includes projects budgeted and accounted for under university general fund accounts considered as university cost-sharing. This does NOT include the 21 federally funded research centers.
PSSR -- Patient Service-Sponsored Programs (Community Clinical Patient Services)
Activity centers that provide non-instructional clinical services that benefit patients from the "community at large." These services are provided directly by faculty physicians or through consulting, laboratory or other services usually rendered under the auspices of a hospital or clinic.
CSSR -- Community Services-Sponsored Programs
Activity centers that include those services established and maintained by the institution to provide services to the general community or special sectors within the community. The primary intent of establishing these programs is to provide services that are beneficial to groups and individuals outside of the institution. These programs may be of incidental benefit to the faculty, staff, or students; but the primary benefits would accrue to the general public.
PBSP -- Public Broadcasting-Sponsored Programs
Activities that are associated with the operation and maintenance of broadcasting services intended primarily for the public.
PRD -- Public Relations and Development
The outcome of this grant will serve/enhance the community or group of individuals.
LIB -- Libraries
Activities that directly support the collection, cataloging, storage and distribution of published materials, primarily in support of the institution's academic programs. The library must be a cataloged library to be included. This does not include the maintenance of published reference materials in academic departments.
M&G -- Museums and Galleries
These activities relate to the collection, preservation, and exhibition of animate and inanimate historical materials, art objects and scientific displays.
S&F -- Scholarships & Fellowships
The agency is supporting a grant that awards funds for use by students to cover such expenses as tuition, supplies, travel, etc., dependent upon agency regulations.
What is a line of credit? For Indiana University, a line of credit is an agreement between IU and an external sponsor (normally a federal agency). This agreement allows IU to request and receive funds directly into the university's designated bank account for grant expenditures as they occur. IU must adhere to the agency regulations and guidelines regarding this funding. The total amount of a line of credit from an agency is limited to the amount of funding awarded to IU for grants by the agency. Indiana University has several lines of credit for its grant accounts. The three larger lines of credit and the agencies involved are United States Department of Education, Department of Health and Human Services, and National Science Foundation.
Program Officer - This person is responsible for technical, scientific, or programmatic matters in dealing with the administration of grants. This individual reviews and monitors scientific progress to ensure that the scientific objectives of the research program are being pursued effectively and successfully. All questions or correspondence dealing with research progress, changes in research direction, unique scientific opportunities, or any other scientific needs should be addressed to the Program Officer.
To propose, make an offer. A proposal is a written document developed by an individual for presentation to an outside organization. Ideas for possible research or services are put forward to agencies for their review and consideration. If the ideas proposed to the agency are favorable to both parties involved, an award agreement would be initiated granting the researcher a designated dollar amount for use in their outlined mission.
When a Project Director makes the decision to apply for a contract or grant from an outside agency, a written proposal must be sent to either Research and Sponsored Programs < http://www.iupui.edu/~resgrad/ > in Indianapolis (if physical office location is at IUPUI) or to the Sponsored Research Services office of the Research and University Graduate School < http://www.indiana.edu/~rugs/index.html > on the Bloomington campus (for Bloomington & all Regional campus locations, except IUPUI). These offices are responsible for making sure that all agency/federal regulations are applied and that certifications are included. Once reviewed, the proposal is signed and forwarded to the agency for their funding consideration.
An underwrite (or advance account) is an account that is set up at the department's request in advance of receiving a fully signed award document. The department is required to provide a departmental account that will guarantee all expenses in case the award is not received at Indiana University. An underwrite is used when an award is delayed and the department wants to charge expenses to the proper account up front instead of using a department account and then transferring charges when the award is received.
