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Sponsored project accounts (entity 5) are established when funds are awarded to the University by external sources in support of research, instruction, training, or service under an agreement that includes any one of the following:
Investigators who plan to obtain sponsored project funding should consult with staff of the Office of Research, especially when non-standard agreements, including those offered by industrial and pharmaceutical firms, are anticipated. Sponsored projects are charged indirect costs, whether identified in the award or not, unless the funding agency has a written policy that precludes such recovery and the University would accept the award with this restriction. The rates to be applied will be consistent with rates negotiated with the Federal Government by the University. Exceptions to the use of the applicable, full indirect cost rate must be approved prior to the submission of the proposal.
Such requests for exceptions to the rule must be directed to the Associate Provost for Research or Senior Vice Chancellor, Health Sciences, whichever is appropriate, who may choose to accept or reject an alternative indirect cost arrangement.
Gift accounts (usually entity 4) are established when outside sources provide funds that do not entail any of the conditions cited above. However, under certain circumstances gifts may be "restricted" due to other restraints or obligations imposed by the sponsor. In all cases, early consultation with the Office of Research is advised.