1. The award instrument is an agreement that binds the University to a set of terms and conditions and requires institutional endorsement by the Office of Research.
   
   
2. The agreement obligates the investigator to a line of scholarly or scientific inquiry that follows a plan, provides for orderly testing or evaluation, and/or seeks to meet stated performance goals.
   
   
3. The agreement establishes an understanding of how funds will be used or includes a line item budget that identifies expenses by activity, function, or project period.
   
   
4. The agreement requires fiscal accountability as evidenced by the submission of financial reports to the sponsor, an audit provision, or the return of unexpended funds at the conclusion of the project.
   
   
5. The agreement obligates the investigator to report project results or convey rights to tangible or intangible properties resulting from the project. Examples of tangible properties include equipment, records, technical reports, theses, or dissertations. Intangible properties include rights in data, copyrights, or patents.
   
   
6. The agreement seeks considerations such as indemnification or imposes other terms that require legal accountability.
   
   

   Investigators and administrative staff are reminded that
   for any projects that encompass one or more of the above
   criteria you must provide to the Office of Research the
   complete proposal with all attachments, and a fully executed
   Form 0136 signed by the appropriate Chairperson and Dean,
   or Director and responsible upper-level administrator.

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.

July 1991
Revised 10/03