A-21 Cost Principles
OMB Circular A-21 establishes principles for determining costs applicable to grants, contracts, and other agreements with educational institutions . The principles are designed to ensure that the federal government bears its fair share of total costs, determined in accordance with generally accepted accounting principles, except where restricted or prohibited by law.
A-110 Administrative Requirements
OMB Circular A-110 sets forth standards for obtaining consistency and uniformity among federal agencies in the administration of grants to and agreements with institutions of higher education, hospitals, and other non-profit organizations.
A-133 Audit Requirements
OMB Circular A-133 sets forth standards for obtaining consistency and uniformity among federal agencies for the audit of states, local governments, and non-profit organizations spending federal awards. The circular was issued pursuant to the Single Audit Act of 1984, P. L. 98-502, and the Single Audit Act Amendments of 1996, P. L. 104-156.
A deliberate effort to deceive. Such action may include plagiarism, fabrication of data, misrepresentation of historical sources, tampering with evidence, selective suppression of unwanted or unacceptable results and theft of ideas.
A number used in PeopleSoft that identifies the type of financial transaction whether it be revenue, expense, asset, liability, etc. Account codes are very beneficial because each code allows for very detailed recording of expenditures.
see “Cost Accounting Standards”
The costs of centralized administrative services within the various levels of an institution (i.e. school, department, and campus). For example, administrative costs include the costs of providing financial information about projects and programs internally and externally. Administrative costs include the following components:
- Departmental Administration - this includes deans’ office salaries, faculty administrative salaries, administrative and clerical salaries, and other non-salary operational costs.
- General Administration - includes the Chancellor's Office, Business Services, Finance, Payroll, Human Resources, Procurement, etc.
- Sponsored Projects Administration - includes the centralized units for grant and contract administration, accounting, and reporting.
- Student Administration - includes Student Financial Aid, Student Finance, and the Registrar’s Office (Note: Student Administration is not generally allocated to federal research.) See “Facilities and Administrative (F&A) Costs”
Part of a school, department, division, center, institute section, or large program.
Administrator (Program Administrator or Administrative Staff)
The individual or individuals designated as the responsible person(s) for G&C related activities and for the activities related to the PeopleSoft program or project.
A written, legally enforceable document between an institution and sponsor normally involving the expectation of an economic benefit on the part of the awardee and the generation of a tangible product, report, service, or other consideration to the sponsor in return for sponsored support. These might include receipt of technical reports or evaluation, testing or evaluation of proprietary products, development or construction of equipment, rights to data, patents, copyrights, consulting services. Agreements can take many forms including grants, cooperative agreements, contracts, sponsored, or any other agreement that is used to fund a sponsored project.
Costs that can be assigned to a UC Denver project relatively easily, in reasonable and realistic proportion to the benefit provided, and with a high degree of accuracy.
Assignment of costs to a PeopleSoft project or other funding source in a reasonable and realistic proportion to the benefit provided because of incurring such costs.
Costs that are acceptable according to sponsor and UC Denver rules and regulations and can be charged appropriately to the sponsored project. The allowability of costs incurred by institutions of higher education is determined in accordance with the provisions of OMB Circular A-21 (which is inclusive of FAR 31.3), the sponsor’s requirements, and institution policy.
The animals used in biomedical research at the UC Denver. The animals include fish, amphibians, mice, rats, hamsters, guinea pigs, rabbits, pigs, sheep, and monkeys.
Application Package (Application)
A completed application for funding (scientific presentation, budget, and any necessary administrative paperwork) plus all necessary internal approval forms (i.e., COMIRB, IACUC, etc.).
Approval of Application for Grant or Contract (Routing Form)
The routing form accompanies the completed contract proposal or grant application, which is subject to review and approval. Signatures on the routing form indicate the PI’s, Department’s and UC Denver's willingness for the proposed project to be undertaken within the terms specified in the proposal and on the routing form. The routing form is for internal use only, not to be sent to the sponsor. This form is also used as UC Denver approval to establish a project when a contract is received unsolicited from an external entity.
Includes cash, checks, stocks, bonds, or other financial paper recorded in PeopleSoft programs or projects; equipment or other personal property given to the UC Denver as a gift; equipment or other personal property purchased with funds administered by UC Denver; equipment or other personal property transferred from another institution to the UC Denver that is recorded in PeopleSoft.
Any non-federal institution, which expends federal awards that must be audited.
An auditor, that is a public accountant or a federal, state or local government audit organization, which meets the general standards specified in generally accepted government auditing standards (GAGAS). The term auditor does not include internal auditors of non-profit organizations.
Deficiencies which an auditor is required to report.
Authorized Institutional Official(s)
Individual(s) authorized by the Board of Regents of the University of Colorado to sign proposals, contracts and/or subrecipient agreements on behalf of UC Denver.
Sponsors and/or UC Denver may require the signature of an authorized institutional official who is designated to give assurances, make commitments, and execute such documents on behalf of UC Denver for the provision of financial assistance or receipt of services to UC Denver. The signature of an authorized institutional official certifies that commitments made on proposals, contracts and subrecipient agreements can be honored; and ensures that all sponsored agreements conform to federal regulations, sponsor guidelines, and applicable institutional policies.
Auxiliary Fund (or Auxiliary and Self-Funded Activities Fund)
Activities that are self-supporting by nature and the activities fund their own operations through internal or external sales of goods or services. Services provided do not produce any research-related deliverables for a sponsor. These activities include PeopleSoft fund 20, 26, 28 and 29.
Award or Award Document
Funds provided from a sponsor for support of a sponsored project or program at UC Denver. This term is used for the original award, and subsequent supplements or modifications; it can mean monies or equipment and could also be referred to as an agreement.
The term used to describe the institution receiving support of a sponsored project or program.
An itemized summary of anticipated expenditure activity for a given period and activity with an identified means for financing. In some cases a budget is the amount of spending authority awarded by a sponsor that the institution has a legal claim to collect.
A portion of the budget detailed by type of expenditure such as personnel, travel, equipment, etc.
The period established in the award document during which sponsorship is allocated to begin and end.
Describes the requirement by UC Denver that clinical trial projects funded by industrial sponsors are to be kept in a positive cash position financially throughout the term of the agreement.
Conflict of Interest - A certification that requires an authorized institutional official to certify that the institution has implemented and is enforcing a written policy on conflicts of interest. Consistent with federal regulations, the institution certifies that all financial disclosures required by the conflict of interest policy were made; and that conflicts of interests, if any, were, or prior to the institution’s expenditure of any funds under the award, will be satisfactorily managed, reduced or eliminated in accordance with the institution’s conflict of interest policy and/or disclosed to the sponsor (as required by the sponsor).
According to the Board of Regents Policy Statement, Final Wording of Resolution on Classified Research: June 19, 1986, the University policy defines classified research as follows: ".(1) research that has a security classification established by a federal agency and (2) industrially sponsored proprietary research for which the sponsor requires a delay in publication in excess of six months". The policy continues to explain that two exemptions apply to this definition. The policy states the following, “Not included in this policy are routine testing services provided to industry by the University whose results are not publishable. Faculty members shall not perform classified research in University of Colorado facilities under the one-sixth rule (personal consulting) without specific approval of the University president, as provided in this policy.”
A prospective evaluation of a company's technology or product (pharmaceutical, surgical procedure, medical device, vaccine, diagnostic test or technique) in phase I, II, III, and IV human studies.
Cognizant Audit Agency
The office or staff that is designated to perform audits on behalf of the federal government for sponsored projects at an institution. The cognizant audit agency for UC Denver is the Department of Health and Human Services (DHHS).
Colorado Multiple Institutional Review Board (COMIRB)
A consortium of health care facilities made up of UC Denver, Colorado Prevention Center, Denver Health Medical Center, Denver Veterans Affairs Medical Center, The Children's Hospital, and University of Colorado Hospital. COMIRB is a board established to review biomedical and behavioral research involving human subjects conducted at or supported by each of the given institutions.
See “Continuing (Continuation) Support”
The act of preserving, promoting, protecting, and sustaining the research effort and those individuals and institutions who are responsible for the conduct, administration, and reporting of sponsored research.
Conflict of Interest
Refers to situations in which financial or other personal considerations may compromise, or have the appearance of compromising, an employee’s professional judgment in administration, management, instruction, research and other professional activities. See Certifications, Conflict of Interest (Financial Interest Disclosure)
A consortium is two or more institutions (subrecipients) working on the same research project, either of which are funded directly by the sponsor or one prime institution is funded and then contracts the funds to the other members of the consortium.
A consultant is an individual whose expertise is required by the principal investigator to perform the project. A consultant is paid with a consultant voucher after it has been determined by UC Denver that the individual meets the legal criteria to be a consultant.
Continuing (Continuation) Support
On-going support provided by an agency for more than one budget period. A continuation proposal is normally submitted at the end of each budget period in order to receive the next increment of funding. Continuation proposals may be competing (i.e. they are placed in competition with other proposals for funding) or non-competing (referred to as renewal proposals).
A contract is a written agreement to acquire services from UC Denver with a primarly benefit to the sponsor. For an award to be considered a contract, it normally must contain all of the following elements:
- The parties to the agreement must be clearly identified.
- Detailed financial and legal requirements must be included with a specific statement of work to be performed.
- A specific set of deliverables and/or reports to the sponsor is defined.
- Legally binding contract clauses are included (period of the contract, termination terms, etc.).
- Authorized signatures by all parties to the contract.
Federal contracts are a procurement award, subject to applicable Federal Acquisition Regulations (FAR). According to the FAR, a contract is a mutually binding legal relationship obligating the seller to furnish the supplies or services and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriate funds and that, except as otherwise authorized, are in writing.
In addition to bilateral instruments, contracts include awards and notices of awards, job orders or task letters issued under basic ordering agreements, letter contacts, orders such as purchase orders, under which the contract becomes effective by written acceptance or performance and bilateral contract modifications. Contracts do not include grants and cooperative agreements covered by 31 USC 6301. (For a discussion as to various types of federal contracts, see FAR Part 16). "Federal contracts are used when the benefit of the activity is to accrue to the federal government."(A Guide to Managing Federal Grants for Colleges and Universities, page 300:3, revised July, 1997)
A funding mechanism used by federal sponsors making assistance awards, when a program requires more agency involvement and restrictions than a grant but requires less agency supervision than a contract. Cooperative Agreements are subject to applicable OMB Regulations. Substantial technical involvement between the sponsor and the awardee is expected and will be identified in the agreement.
Co-Principal Investigator (Co-PI)
One investigator sharing equal responsibility for the direction of a research program. (PHS and NIH do not recognize the concept of co-principal investigator.)
Cost Accounting Standards (CAS)
Four accounting standards universities must be in compliance with in order to accept federal award funding.
Cost Reimbursement Agreement
A type of agreement where the payment method is based on actual, allocable, allowable costs incurred in performance of the work.
The portion (cost) of a sponsored project or program that is not supported by the sponsor. Cost sharing consists of three types: mandatory, obligatory and voluntary (see separate definition for each type of cost sharing). Cost sharing is usually provided through contributed effort by principal investigators or their staff at UC Denver and paid from unrestricted fund, auxiliary and self-funded activity fund and/or gift programs.
The transfer of a cost incurred initially on one UC Denver program/project and subsequently transferred to a sponsored project. A cost transfer does not include items posted to a suspense account or program that are cleared to the appropriate project on a timely basis (less than 60 days from the original posting).
A 501(C)(3) organization for the sole purpose of raising and managing private funds for the University.
Debarment and Suspension Certification
An individual PeopleSoft project or program in which the expenditures and encumbrances have exceeded the revenues and/or the budget. A PeopleSoft project or program is considered to be in deficit if there is a negative balance, regardless of the cause.
Debarment and Suspension A certification assuring a sponsor that the research personnel and the institution are not presently declared ineligible for receiving federal support, have not been convicted of fraud or a criminal offense in the performance of a federal award, are not in violation of federal or state statutes, are not presently indicted for criminal or civil charges and have not within a three-year period preceding the proposal had one or more federal, state or local transaction terminated for cause or default.
Delinquent Federal Debt - A certification provided to a sponsor that the institution is not delinquent on the repayment of any federal debt.
- Drug-Free Workplace - A certification assuring a sponsor that the institution does and will continue to provide a drug-free workplace as required by the Drug-Free Workplace Act of 1988.
- Lobbying - A certification assuring a sponsor that no federally appropriated funds or any other non-federal funds have been paid or will be paid for influencing any federal official or employee in connection with the awarding of any agreement.
- Misconduct in Science - A certification that the institution has established administrative policies dealing with and reporting possible misconduct in science, and that it will comply with the policies and requirements as published in the sponsor’s regulations.
Delinquent Federal Debt Certification
Costs that can be identified with a specific UC Denver activity on a project, or that can be assigned to such activities relatively easily with a high degree of accuracy and is permitted by OMB Circular A-21.
Educational institutions that received aggregate sponsored agreements totaling $25 million or more during their most recently completed fiscal year must disclose their cost accounting practices by filing a Disclosure Statement (DS-2).
"Any inventive idea and/or its reduction to practice which relates to: new processes methods of producing a new and useful industrial result; machines; any produced article which is useful in trade; any composition of matter, including chemical compounds and mechanical mixtures; any new plant; any new design in connection with the production or manufacture of an article; any new computer hardware and/or software programs; and any improvement upon existing systems or processes." University of Colorado Denver Faculty Handbook, Academic Principles, Professional Rights and Responsibilities, and Related Policies, VIII. Discovery and Patents, 1998, page V-16.
".Any individual or group of individuals responsible for a discovery." University of Colorado Denver Faculty Handbook, Academic Principles, Professional Rights and Responsibilities, and Related Policies, VIII. Discovery and Patents, 1998, page V-16.
Discoveries in which the University has an Interest
"Discoveries made while performing duties required by a third-party grant or contract, and/or made with the use of University facilities, space, or equipment, and/or made as a result of the use of funds, supplied or administered by the University, and/or made in fulfillment of an included person's work responsibilities." University of Colorado Denver Faculty Handbook, Academic Principles, Professional Rights and Responsibilities, and Related Policies, VIII. Discovery and Patents, 1998, page V-16.
Property provided by an outside party for specific activities related to a sponsored project or program of the institution; title to the property passes to the institution at essentially no cost.
Drug-Free Workplace Certification
Effective Start Date
The date in the award document stated to be the beginning date of the activity and budget period of the award.
The amount of time, usually expressed as a percentage of the total, that a faculty member or other employee spends on a project or program. Effort is certified and documented through the electronic Personnel Effort Reporting (ePER) System at UC Denver.
A specific amount of funds that have been set aside in a PeopleSoft project for the receipt of an order or the payment of an invoice. Encumbrances reduce the available balance of a PeopleSoft project.
Equipment (Property or Capital Equipment)
Equipment is an article of non-expendable, tangible equipment having a useful life of more than one year and an acquisition cost of $5,000 or more. This includes equipment purchased or acquired via transfer, donation, and equipment being constructed where component parts may be less than $5,000 each, but the total cost will be $5,000 or more. Equipment is not a replacement part or component returning a piece of equipment to its original condition. If a component increases the capability of the original equipment and has an acquisition cost which meets or exceeds the established equipment cost thresholds, it is considered a capital item.
Policy implementation by some federal sponsors delegating certain prior approval authorities to grantee institutions. This delegation allows for internal institution approval of administrative and spending actions, thus reducing delays in project progress.
External In-kind Contributions
Represent the value of non-cash contributions made by sources outside of the UC Denver for a sponsored program or project. Examples of non-cash contributions include non-UC Denver employees working on a program or project, the useof donated equipment if specifically required by the sponsor,or the useof donated supplies.
Extramural Support (Sponsored Research)
Extramural support is funding for research, training, or public service projects provided by federal or private sources outside the University. See “Sponsored Project”.
See “Facilities and Administrative (F&A) Costs”.
Facilities and Administrative (F&A) Costs
Also referred to as indirect costs, overhead, overhead costs, or administrative costs. For sponsored project costing purposes, F&A costs are those costs that are incurred for common or joint objectives (research, instruction, public service, or patient care) and, therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other UC Denver activity. Federal guidelines refer to these costs as “facility and administrative” costs.
OMB Circular A-21 defines facility costs as “depreciation and use allowances; interest on debt associated with certain buildings, equipment and capital improvements, operation and maintenance expenses and library expenses”. Administrative costs are defined as “general administration and general expenses, departmental administration, sponsored projects’ administration, student administration and services, and all other types of expenditures not listed specifically under one of the subcategories of facilities.”
If the UC Denver treats a particular type of cost as F&A cost of sponsored agreements, all costs incurred for the same purpose in like circumstances must be treated as F&A costs of all activities at the UC Denver. F&A costs are real, auditable costs incurred by UC Denver each time it accepts an award for a sponsored project. If UC Denver does not collect full reimbursement for these costs, other UC Denver resources must be used to subsidize them.
Facilities and Administrative Cost Rates
The rates used to recover the F&A costs of a sponsored project. Negotiated, approved rates are to be used for all agreements with the federal government and for most non-federal projects, as allowable.
Facilities and Administrative Cost Recovery (Indirect Cost Recovery)
The reimbursement (by sponsors) of the F&A costs on sponsored projects.
Facilities and Administrative Cost Recovery Rate
The percentage rate normally applied to modified total direct costs in order to derive facilities and administrative cost recovery (some sponsors use total direct costs or another base for calculating allowable F&A costs instead of modified total direct costs).
Facilities and Administrative Cost Recovery Revenue
The actual amount of F&A cost reimbursement received from the sponsors of UC Denver projects. This revenue is recorded in the Unrestricted Fund and is considered reimbursement for incurred F&A costs.
Facility Costs (Facilities Costs)
Costs incurred to pay for physical space including utilities, routine maintenance and repairs, and custodial services. These costs include the following components:
- Building Use Allowance is the equivalent of depreciation on non-federally funded portions of buildings.
- Equipment Depreciation is the actual depreciation on non-sponsored equipment only.
- Operations and Maintenance consists of facility costs such as electricity, steam, chilled water, plant operations, maintenance and repairs, health and safety, grounds maintenance, security, etc.
- Library includes Denison Memorial Library costs.
See “Facilities and Administrative (F&A) Costs”
Federal Acquisition Regulation (FAR)
Federal Acquisition Regulations was established to codify uniform policies and procedures for acquisition of supplies and services by the federal government.
Federally Sponsored Agreement
Any agreement between the institution and the federal government, or any agreement received by the institution where the original source of funding is from the federal government.
See “Certifications; Conflict of Interest”
See “PeopleSoft Financial System”.
A type of agreement where the payment method is not based on actual costs expended, but on a mutually agreed upon set price.
A fixed-rate agreement is a type of agreement where the payment method is not based on actual costs expended, but upon a mutually agreed upon rate per activity performed.
When an agreement is signed by the authorized institutional signature of all parties to the agreement.
The Chancellor, deans, vice chancellors, associate and assistant vice chancellors, Controller, Superintendent of the Colorado Psychiatric Hospital, or their designee.
Funds Under the Control of UC Denver
Include funds recorded in any program or project of the University’s financial system.
General Purpose Equipment
Equipment that is not limited to use for research, scientific, or other technical activities. Examples of general purpose equipment include office equipment and furnishing, air conditioning equipment, motor vehicles, and automatic data processing equipment.
Generally Accepted Accounting Principles
Generally accepted auditing standards issued by the American Institute of Certified Public Accountants (AICPA).
Charitable contributions for use by the institution exclusively to fulfill its exempt purpose(s). Cash or non-cash items bestowed voluntarily to the UC Denver without any expectation of a tangible good or service being provided in return and there can be no expectation of economic benefit on the part of the donor. A gift should not include any of the issues identified as a sponsored project. Gift funds are recorded in PeopleSoft as programs.
Government Donated Property
Property donated or transferred to the institution by a municipality, county, state agency, or the federal government.
Government Furnished Equipment
Equipment provided to the institution by the federal government or government contractor; title may or may not remain with the government.
Grants involve one or more of the following characteristics:
- the award is directed at satisfying specific sponsor requirements. Toward this end, a proposal submission or award letter may contain terms specifying the scope of work or line of inquiry, performance targets, timeframe, level of personnel, etc.;
- a line item budget detailing expenditures by activity, function, and project period that must be adhered to as a condition of funding. Deviations from the approved budget may require approval of the sponsor;
- the award involves issues requiring institution review including the use of human subjects or laboratory animals. Assignment of patents or copyrights, ownership of data or equipment, allocation of institution space, or research involving recOMBinant DNA, radioactive or biohazard materials;
- a specific period of performance proscribed to the sponsor;
- there are provisions for audits by or on behalf of the sponsor; and/or
- the sponsor requires a detailed financial report and/or technical report at intervals during the grant period or upon completion of the grant.
Federal grants are assistance awards subject to applicable OMB Regulations and provide funds to educational institutions, foundations, local governments, state agencies and other nonprofit organization to accomplish a public purpose of support or stimulation authorized by federal statute. No substantial technical involvement is expected between the sponsor and the grantee.
Grantee (Grantee Institution)
A grantee is the recipient of a grant. When the institution accepts a grant award, on behalf of an individual, the institution becomes the grantee.
A human subject is a living person about whom a principal investigator conducting the research obtains data through intervention or interaction with the individual and also obtains that persons private identifying information.
Information from which the identity of a human subject is or may be readily ascertained or associated.
A relationship that exists with an individual or firm who is responsible to the UC Denver for the results of certain work but is not subject to the UC Denver's control with respect to the means and methods of accomplishing those results. Further, an independent contractor generally:
- Has a place of business and a business listing in a directory when the services are offered to the public.
- Selects the clients and is free to work for one or more during any given period of time.
- Determines the time and place where work shall be performed.
- Provides the tools and materials needed to perform the work.
- Does not participate directly or indirectly in benefit programs of the UC Denver. For example, the individual is not covered by the UC Denver for Workers' Compensation covering injury to the worker, for public liability covering injury to others, or for unemployment compensation.
- May agree to perform specific services for a fixed price and generally does not receive regular amounts at stated intervals.
"Indirect cost" is the terminology formerly used by the federal government to refer to what is currently referred to as "facilities and administrative costs". See “Facilities and Administrative (F&A) Costs”.
The voluntary agreement obtained from a human subject (or the subject’s legally authorized representative) prior to the human subject participating in research or a related activity. The consent must permit the human subject (or legally authorized representative) to exercise free power of choice without undue inducement or any element of deceit, fraud, force, duress, or other form of coercion or constraint.
A non-cash commitment (such as contributed effort, facilities use, or supplies) to share the costs of a sponsored project. See ”External In-Kind Contributions”.
Areas within the State of Colorado and to the immediate area outside of the state as a necessary part of an otherwise “in-state” trip. See “Out-of-State Travel” and “International Travel”.
Institutional Animal Care & Use Committee (IACUC)
IACUC ensures that all animals in experimental research are used appropriately and treated in accordance with the highest standards of humane care.
See Authorized Signature
An agreement whereby two or more public agencies of the State of Colorado may contract with each other provided that such agreements are authorized by the governing bodies of each agency and that the contracts are executed in accordance with Colorado Fiscal Policies (also referred to as "Memoranda of Understanding" or "Memoranda of Agreement").
A process, effected by an institution's management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:
- Effectiveness and efficiency of operations;
- Reliability of financial reporting; and
- Compliance with applicable laws and regulations.
Internal Control Pertaining to the Compliance Requirements for Federal Projects
A process, effected by an institution’s management and other personnel--designed to provide reasonable assurance regarding the achievement of the following objectives for federal projects:
- Transactions are properly recorded and accounted for to:
- Permit the preparation of reliable financial statements and federal reports;
- Maintain accountability over assets; and
- Demonstrate compliance with laws, regulations, and other compliance requirements;
- Transactions are executed in compliance with:
- Laws, regulations, and the provisions of agreements that could have a direct and material effect on a federal program; and
- Any other laws and regulations that are identified in the compliance supplement; and
- Funds, property, and other assets are safeguarded against loss from unauthorized use or disposition.
Includes travel to any destination not considered in-state or out-of-state.
Investigators and Key Personnel
For the purpose of this tutorial, the term includes the party’s spouse and dependent children.
Invitation to Bid/Request for Proposal (RFP)
Written documents soliciting pricing and/or technical proposals to supply goods or services as specified in the requesting document. Correct use of RFP’s constitute full and open competition.
Key personnel are all individuals who contribute in a substantive way to the scientific development or execution of the project, whether or not salaries are requested. Typically, key personnel have a Ph.D. or M.D., but may also include the master’s or baccalaureate level, and can be consultants and collaborators provided they contribute in a substantive way to the research.
Any money, fee, commission, credit, gift, gratuity, thing of value, or compensation of any kind which is provided, directly or indirectly, to a contractor, contractor’s employee, subrecipient or subrecipient’s employee for the purpose of improperly obtaining or rewarding favorable treatment in connection with an agreement.
Letter of Intent
A letter of intent advises a sponsor that an proposal will be submitted in response to their solicitation. The letter may contain general program information, unofficial cost estimates, and a request for specific application guidelines, instructions and forms.
Property provided by an outside party for use by the institution for sponsored projects or research related activities; title to the property does not pass to the institution.
A method for identifying a physical location where payments for Sponsored Research are to be sent by sponsors. For more information refer to Fiscal Policy 4-1 or contact G&C.
Mandatory Cost Share
Cost share that is contractually required by the sponsor. It is required by a sponsor as a condition of an award and usually refers to an overall percentage of total costs to be contributed. When cost sharing is required, and thus mandatory, it will be stated in the award document. The most common example of mandatory cost sharing is the commitment of time and effort by UC Denver faculty or staff that is required by the sponsor as a condition of getting the award.
A cash commitment to share the costs of a sponsored project.
Misconduct in Science
Any legally binding change(s) made to an existing written agreement, which needs an authorized signature or institutional action acknowledging its agreement to the change(s).
Modified Total Direct Costs (MTDC)
The direct costs of a sponsored project less certain direct costs that are not considered by the federal government to be eligible for applying the F&A cost recovery rate. The excluded direct costs are negotiated with the federal government, but typically include items such as capital equipment.
Provides for an additional period of performance without additional funding to accomplish project goals. Approval may be handled internally in certain circumstances or sought externally from the sponsor via a modification.
See “Continuing” or “Continuation Support”
Any corporation, trust, association, cooperative, or other organization that is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest; is not organized primarily for profit; and uses its net proceeds to maintain, improve, or expand its operations. The term includes non-profit institutions of higher education and hospitals.
Obligatory Cost Share
Also known as committed cost share, it is cost share that is offered in the proposal by UC Denver. The cost share was not a requirement to obtain the award, but once offered becomes a requirement.
A project in which more than 50% of the total effort of the project (excluding subrecipient agreements) is conducted at an off-campus location by UC Denver employees. Off-campus is defined as locations other than UC Denver owned or operated facilities.
Office of Management and Budget (OMB)
OMB leads development of government-wide policies meant to assure that agreements are managed properly and that federal dollars are spent in accordance with applicable laws and regulations.
Office of Management and Budget (OMB) Circulars
The OMB Circulars apply to all federally funded awards whether it be grants or contracts. Depending on type of entity being considered, there will be three OMB Circulars that apply:
Educational Institutions (even if part of a state or local government)
- A-21 for Cost Principles
- A-110 for Administrative Requirements, and
- A-133 for Audit Requirements
States, local governments, and Indian Tribes:
- A-87 for Cost Principles
- A-102 for Administrative Requirements, and
- A-133 for Audit Requirements
- A-122 for Cost Principles
- A-110 for Administrative Requirements, and
- A-133 for Audit Requirements
See “Office of Management and Budget (OMB) Circulars”
A project in which more than 50% of the total effort of the project (excluding subrecipient agreements) is conducted at in UC Denver owned or operated facilities.
Travel other than in Colorado and within the continental United States, including the District of Columbia, Alaska, Canada, Hawaii, and Mexico. (When the federal government sponsors the travel, Mexico is considered international travel.) See “In-State Travel” and “International Travel”.
A process utilized by some federal and private sponsors, whereby committees of research investigators in the same area of research or with the necessary expertise (from other institutions) review and recommend applications to the sponsor.
PeopleSoft Financial System (PeopleSoft)
The centralized computer based financial system for the University that processes on-line purchasing documents, provides financial status updates and produces monthly accounting reports.
Performance Effort Report (PER) Form
Effort reporting and certification form required for compliance with federal regulations.
Services or benefits purchased by the UC Denver where the UC Denver is to receive direct benefit. Individuals or firms performing these services are considered independent contractors and are not considered employees of the UC Denver.
A budget category including both salary and the applicable fringe benefits budgeting rates. Personnel include faculty, staff and students employed by UC Denver. External personnel should be identified in the budget and paid as either a subrecipient (may also be called consortium/contractual) or as a consultant, as appropriate.
The period after the actual receipt and set-up by G&C of an award document or fully executed agreement through the projects
technical report, final financial report, closeout from the PeopleSoft financial system, and audit resolution.
The period of time during which a proposal or draft contract is developed, reviewed, submitted to a sponsor, and, if necessary, negotiated prior to actual receipt of an award document or fully executed agreement.
Costs which are incurred before the beginning dates of an award or budget period but can be associated with a specific project.
Preaward Guarantee Letter (Request for Preaward Program/Project Authorization)
This form is to be used when a department wishes to establish a UC Denver grant or contract PeopleSoft program or project prior to the receipt of the award document for a new or competing continuation award. By making this request, the PI and department are acknowledging that the department carries full financial responsibility for any costs incurred prior to the receipt of the award. Should the sponsor decide that any or all Preaward expenditures are unallowable, the department will have to transfer all Preaward expenditures to an appropriate alternative source of UC Denver funding.
The time period prior to the receipt of the award from the sponsor.
A project that is set up in PeopleSoft prior to the award documents being received from the sponsor. A Preaward is set-up at of the beginning date of the anticipated award period.
An agreement to test drugs, devices, or other controlled substances for FDA approval or for-profit corporations. A pre-clinical study may involve animal subjects.
The primary or original source of funding.
Principal Investigator (PI)
Typically, a faculty member who submitted a proposal that was accepted and funded by a sponsor. The PI has primary responsibility for technical compliance, completion of programmatic work, and fiscal stewardship of sponsor funds.
Written approval by an authorized official of UC Denver or the sponsor evidencing consent prior to the approved event occurring.
The acquisition of goods and services such as supplies, materials, equipment, consultants or general support services.
Program income is gross income earned by an institution that is directly generated by a sponsored activity or earned as a result of an award. Program income includes, but is not limited to, income from fees for services performed, the use or rental of real or personal property acquired under federally sponsored agreement, the sale of commodities or items fabricated under an award, license fees and royalties on patents and copyrights, and interest on loans made with award funds.
Interest earned on advances of federal funds is not program income. Except as otherwise provided in a federally sponsored agreement, agency regulations or the terms and conditions of the award, program income does not include the receipt of principal on loans, rebates, credits, discounts, etc., or interest earned on any of them.
Project (Project Number)
Known in the past as an account number, this term identifies each award within the PeopleSoft financial system. Projects include both fund 30 and 31 awards. Fund 30 projects include federal, state, & private sponsors. Fund 31 projects include local government sponsors, such as a county.
Program (Program Number)
Known in the past as an account number, this term identifies each gift within the PeopleSoft financial system. Programs are classified as a fund 34. Fund 34 programs are gift funds accepted by the University of Colorado Foundation as charitable contributions and subsequently transferred to UC Denver for use by the institution exclusively to fulfill its exempt purpose(s).
The period established in the award document during which sponsorship begins and ends.
A grant application, request for funding submitted by a PI to an outside sponsor, or a contract proposal that may directly lead to an award. A set of documents containing a descriptive narrative of an idea and a budget. All formal proposals require an institutional authorized signature to commit institution resources.
An estimate of costs presumed to be incurred in the performance of a given statement of work.
Research sponsored by a nongovernmental entity or individual that involves restrictions on the distribution or publication of the research findings or results following completion, for a specified period or for indefinite duration.
A detailed methodology used to outline the conduct of a sponsored project.
A cost may be considered reasonable if the nature of the goods or services acquired or applied, and the amount involved therefore, reflect the action that a prudent person would have taken under the circumstances prevailing at the time the decision to incur the cost was made. Major considerations involved in the determination of the reasonableness of a cost are:
- Whether or not the cost is of a type generally recognized as necessary for the operation of the institution or the performance of the sponsored agreement;
- The restraints or requirements imposed by such factors as arm's-length bargaining, federal and state laws and regulations, and sponsored agreement terms and conditions;
- Whether or not the individuals concerned acted with due prudence in the circumstances, considering their responsibilities to the institution, its employees, its students, the federal government, and the public at large; and
- The extent to which the actions taken with respect to the incurrence of the cost are consistent with established institutional policies and practices applicable to the work of the institution generally, including sponsored agreements.
Process by which funds available for spending are reallocated between budget categories to allow best use of funds to accomplish project goals. Rebudgeting constitutes a change made to the sponsors awarded budget, and may require prior approval by the sponsor.
The original copies of all accounting and financial forms and transaction documentation related to a sponsored project or program or other funding of the UC Denver.
Research and Related Activities
All formal investigative efforts (whether funded or unfunded) by faculty, students, and staff that are designed to develop or contribute to generalized knowledge, including analyses of secondary data.
Request for Applications (RFA)
Any resulting awards would normally be funded by a grant. The RFA instructions include the information necessary to complete the application and mailing instructions.
Request for Proposals (RFP)
An RFP contains the detailed information that must be supplied in a proposal. The proposal procedure is often complex and must satisfy very specific requirements. Any resulting award(s) would normally be funded by a contract. See Invitation to Bid.
Funds awarded to UC Denver from outside sources for restricted purposes. The majority of restricted funding is given in the forms of research support for faculty members at UC Denver. The sources are: the federal government, in the form of agreements and private donors, foundations, non-profit organizations, and private corporations in the form of gifts and agreements.
Routing involves the process of completing and sending for approvals the routing form with each application package, proposal, or any other form of request for extramural funding. The signatures required for processing a Routing Form are the PI, Department Chair, Dean or Administrator, and G&C. Other signatures obtained only when applicable include Technology Transfer, Resident Counsel (legal review), Vice Chancellor, and/or Chancellor.
Additional forms that are required in specific situations include:
- Conflict of Interest, Form FID, Part I, Disclosure of Financial Interests Related to Sponsored Research, Existence of “Significant Financial Interest”, and/or Form FID, Part II, Disclosure of Financial Interests Related to Sponsored Research, Description of Financial Interest(s) (Fiscal Policy 4-9);
- Taxability Questionnaire;
- Supplemental Budget and Certification Form (Fiscal Policy 4-1 Clinical Trails);
- Proposal Checklist for Direct Charging of Facilities and Administrative Costs (Fiscal Policy 4-7);
- Facilities and Administrative Costs Variance Request Form (Fiscal Policy 4-4);
- Request for Intellectual Property Variance; and/or
- Request for Publication Variance.
See “Approval of Application for Grant or Contract”
Annual appropriations to the National Institutes of Health and Substance Abuse and Mental Health Administration contain language that does not allow these agencies to reimburse grantees for the direct salaries of individuals at a rate in excess of the level specified in the appropriations language. This limitation is commonly referred to as the salary cap.
Self-funded Activities Fund
See “Auxiliary Fund”.
An organizational unit of the UC Denver that provides a specific type of good or service to other UC Denver departments, may incidentally provide the goods or services to individuals or the general public, and is primarily supported by fees charged to user departments operating programs/projects. The users typically determine the amount of goods or services to obtain. Such goods or services might be purchased from commercial sources, but for reasons of convenience, cost, or control are often provided more effectively through a UC Denver Service Center.
A sponsor-initiated review of a project conducted at the awardee’s institution.
Sole Source Acquisition
Issuing an award to a contractor without full and open competition. This may be done if an award is the result of a collaboration (where the ideas, concepts, and methodology were developed by the two parties jointly) or because only one source is available. There are restrictions on the use of this means of procurement and documentation must show justification for using a sole source acquisition.
Special Purpose Equipment
Equipment which can be used only for research, scientific, or other technical activities.
An external funding agency which enters into an agreement with the institution to support research, instruction, public service or other sponsored activities. Sponsors include private businesses, corporations, foundations and other not-for-profit organizations, other universities, and federal, state and local governments.
Research, instructional, or public service activities that are related to the mission of the UC Denver and sponsored by external agencies or entities. F&A cost recovery is not a factor in determining whether funding is a sponsored project. Proposal/award issues that require administration by G&C include any one of the following:
- the award is an agreement from a governmental entity;
- sponsor support is directed to satisfy specific, programmatic objectives that are to be accomplished within a specific time and budget framework;
- the sponsor is entitled to receive some deliverable, such as a detailed technical report of research results or a report of expenditures;
- there is a provision for audits by or on behalf of the sponsor;
- the funding is for a project with compliance issues including, but not limited to: human subjects, animal use, biohazards, and biosafety;
- publication restrictions, patent, or licensing rights are requested by the sponsor.
See “Extramural Support”.
Sponsored Research Agreement
An agreement between UC Denver and a sponsor which stipulates the terms and conditions under which specific work is performed; these terms and conditions may include scope of work, period of performance, payments, patents, publication, advertising, use of experimental compounds or drugs, indemnification and reports.
Standing Purchase Order
A mechanism for encumbering funds and securing goods or services from a vendor.
Statement of Work
A detailed description of the expectation(s) of the sponsor for the work performed by the awardee. The description may include the purpose or objective(s) of the work to be performed, an explanation of the work to be performed inclusive of special personnel, supplies, material, equipment or travel needed, a timetable or schedule of the work to be performed, a specification of how the work’s progress or results are measured, and/or identification of any deliverables such as reports, products, or expected outcomes.
Streamlined Non-Competing Award Process (SNAP)
A simplified process for the submission of information to National Institutes of Health prior to the issuance of a non-competing award.
A subrecipient agreement (can also be termed a subaward or subcontract) is an agreement that is entered into when two (or more) qualifying legal entities/institutions are working collaboratively on a sponsored project. Each institution has its own PI, and one of the institutions is the prime awardee. The PI at the collaborating institution has responsibility for programmatic decision making on their portion of the project and may be able to co-author publications. The recipient of the subrecipient agreement is also responsible for adhering to all applicable sponsor and federal requirements.
A subrecipient agreement does not include technical assistance, or direct payments of any kind to individuals, for goods or services that fall within their normal business operations and/or when they provide similar goods or services to many different purchasers operating in a competitive environment. This also includes goods or services that are ancillary to the project.
According to State of Colorado Fiscal Rules and UC Denver Fiscal Policies a subrecipient agreement is required in G&C when there is the need to acquire personal services costing over $25,000 (per Project Period); and/or protecting the interest of the UC Denver can only be accomplished by using a subrecipient agreement because other commitment vouchers are not considered sufficient to adequately protect UC Denver.
The procurement of goods and services as outlines herein does not qualify as a subrecipient agreement, and falls under the purview of the Procurement Services Center. Issuances of subrecipient agreements under a prime award are subject to compliance with applicable federal law and all subrecipients are subject to the terms and conditions of the prime award and the normal purchasing requirements of the State of Colorado.
The legal entity to which a subrecipient agreement is made and which is accountable to the UC Denver for the use of the funds provided.
An increase in the amount of funding by the sponsor to an existing award. Supplemental funding generally increases the award and extends the award period. See “Modification”.
Suspension is an action by a federal sponsor that temporarily withdraws federal sponsorship under an award, pending corrective action by the recipient or pending a decision to terminate the award by the federal sponsor. Suspension of an award is a separate action from suspension under federal agency regulations implementing E.Os 12549 and 12689, "Debarment and Suspension."
The time period of an agreement (i.e. the start and end dates).
The cancellation of sponsorship, in whole or in part, under an agreement at any time prior to the date of completion.
Time and Effort
See “No Cost Extension”
Include moving assets from one location to another at no cost but do not include the sale of assets covered in Fiscal Policy, Capital Equipment, Chapter 1, Policy 2.
UC Denver Foundation Development Office
The office designated to raise and manage gift funds for UC Denver.
UC Denver Gift Program
The financial system program number that is used to expend gift funds transferred from the CU Foundation.
Any cost which, under the provisions of any pertinent law, regulation or contract, cannot be included in prices, cost reimbursements, or settlements to which it is allocable.
- For financial reports prepared on a cash basis, this term means the amount of obligations incurred by the awardee that have not been paid.
- For reports prepared on an accrued expenditure basis, they represent the amount of obligations incurred by the awardee for which an outlay has not been recorded.
The portion of the funds authorized by the federal sponsor that has not been obligated by the awardee and is determined by deducting the cumulative obligations from the cumulative funds authorized.
The term used to describe the resources available primarily from funds appropriated by the State of Colorado General Assembly. These resources include state general funds, student tuition and fees, facilities and administrative cost recoveries, and patient revenues generated by the Colorado Psychiatric Hospital and the School of Dentistry Dental Clinics.
Voluntary Cost Share
Cost share that is provided in excess of obligatory or mandatory cost sharing requirements. It is a commitment of time or other spending in support of asponsored program or project over and above that required by the award or agreed toin order to obtain the award.
Examples of voluntary cost sharing include:
- additional time spent on a program or project that is 5% or more above that which is budgeted or required by the award;
- laboratory supplies or travel expenditures paid by a source other than the sponsored program or project; and/or
- cost overruns on a program and/or project.