Research Administration Office
CONTRACT AND GRANT MANUAL
Chapter 2 -- Proposal Submission and Award Acceptance/Administration
Revised November 9, 1998
[Return to Contract & Grant Manual Contents]

Table of Contents

2-100 INTRODUCTION

2-110 SCOPE

2-120 APPLICABILITY

2-130 ACADEMIC POLICY - UNIVERSITY REGULATION NO. 4

2-200 SOLICITATION AUTHORITY

2-210 WHO MAY SUBMIT PROPOSALS

2-300 RESPONSIBILITIES AND DUTIES

2-400 TYPES OF PROPOSALS

2-410 USING PROCUREMENT CONTRACTS AND GRANT AND COOPERATIVE AGREEMENTS - PUBLIC LAW 97-258 AND 31 USC 6301

2-420 COMPETITION IN CONTRACTING ACT OF 1984 AND AMENDMENTS TO THE SMALL BUSINESS ACT

2-430 MULTIPLE SUBMISSIONS

2-440 TYPES OF SPONSORS

2-500 PROPOSAL REVIEW

2-510 SPECIAL REVIEWS OR COORDINATION

2-511 Use of Words in Proposed Titles Designated for ORUs

2-512 Minor or Temporary Facility Construction

2-520 BUDGET PREPARATION

2-521 General Considerations

2-522 Salaries, Wages, and Fringe Benefits

2-523 Consultants

2-524 Travel

2-525 Services, Supplies, and Miscellaneous Budget Items

2-526 Equipment

2-527 Construction or Modification of a University Facility - Capital Improvement

2-528 Forecasting Increases or Decreases

2-529 Documenting Estimates

2-530 AWARD TERMS AND CONDITIONS ANNOUNCED WITH THE RFP

2-540 PROPRIETARY DATA

2-550 ASSURANCES, REPRESENTATIONS, AND CERTIFICATIONS

2-551 Compliance with Applicable Laws and Regulations

2-552 Cost or Pricing Data

2-560 MULTIPLE UC CAMPUS PROJECTS

2-570 APPROVALS

2-580 ADDITIONAL REVIEW/REPORTING REQUIREMENTS

2-581 Corporate Contract and Grant Information Requirements

2-582 Disclosure of Financial Interest in Private Sponsors of Research and other Conflict of Interest Policies

2-583 Regental Approval

2-584 State Clearinghouse Procedures

2-600 AWARD ACCEPTANCE AND ADMINISTRATION

2-610 AUTHORITY TO ACCEPT AWARDS

2-611 Acknowledgment of Grants from Private Sponsors

2-620 RESPONSIBILITY FOR ADMINISTERING AN AWARD

2-630 TERMS AND CONDITIONS OF AWARDS

2-631 Governing Law

2-632 Awards to Individuals

2-633 Reporting Requirements

2-634 Insurance, Patents, and Data Rights

2-635 Research Based on Reasonable Efforts

2-636 Termination

2-640 ROLE OF THE GENERAL COUNSEL'S OFFICE

2-650 DISCLOSURE OF FINANCIAL INTEREST IN PRIVATE SPONSORS OF RESEARCH - FORM 730-U AND OTHER CONFLICT OF INTEREST POLICIES

2-660 CORPORATE CONTRACT AND GRANT INFORMATION REQUIREMENTS 30

2-670 PRIOR APPROVAL REQUIREMENTS

2-680 AMENDMENTS, MODIFICATIONS, AND CONTINUATIONS

2-700 AWARD TERMINATION/EXPIRATION/CLOSEOUT

2-710 FINAL FINANCIAL REPORT, CONTRACTOR'S RELEASE, REFUNDS, AND CLAIMS 32

2-720 FINAL TECHNICAL REPORT AND OTHER DELIVERABLES

2-730 FINAL INVENTORY REPORT AND TITLE TO PROPERTY

2-740 PATENT AND INVENTION REPORT

2-750 COST-SHARING REPORT

2-760 TRANSFER OF THE PRINCIPAL INVESTIGATOR

2-770 TERMINATION OF SUBAWARDS

2-999 RELATED UNIVERSITY REFERENCES

EXTERNAL REQUIREMENTS--FEDERAL

2-F01 The Competition in Contracting Act of 1984, Public Law 98-369; Amendments to Small Business Act, Public Law 98-72

2-F02 Public Law 97-258 and 31 United States Code 6301 - Using Procurement Contracts and Grant and Cooperative Agreements

2-F03 Executive Order 12372 - Intergovernmental Review of Federal Programs and the Catalog of Federal Domestic Assistance Appendix I: Programs Requiring Executive Order 12372 Review (June 1990)

2-F04 Office of Management and Budget Circular No. A-110 - Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations.Uniform Administrative Requirements - ___.51, Monitoring and Reporting Program Performance.

2-F05 Office of Management and Budget Circular No. A-110 - ___.71, Closeout Procedures

2-F06 Office of Management and Budget Circular No. A-110 - ___.13, Debarment and Suspension, and ___.61, Termination

2-F07 Office of Management and Budget Circular No. A-110 - ___.12, Forms for Applying for Federal Assistance

2-F08 Office of Management and Budget Circular No. A-102.Uniform Administrative Requirements for Grants-In-Aid to State and Local Governments.

2-F09 FAR 15.804 - Cost or Pricing Data; DFARS 215.804-3 - Exemptions

2-F10 Federal Laws and Regulations Applicable to Federally-Sponsored Research Grants

EXTERNAL REQUIREMENTS--STATE

2-S01 State of California Political Reform Act of 1974

2-100 INTRODUCTION

The University encourages a broad spectrum of research and creative activity of the highest possible quality, from basic to applied, across the full range of academic disciplines. The University's commitment stems from its obligation to advance knowledge, to educate both undergraduate and graduate students, and to serve the economic and cultural needs of society. (Faculty Handbook , September, 1986, p. 25.)

In furtherance of these goals, eligible University faculty and other approved University personnel may submit proposals to sponsors for support. Sponsors can be external organizations such as federal, state, local, foreign, and other government entities, private industry, foundations, educational institutions, and charitable organizations. In addition, the University itself acts as a sponsor in its capacity as administrator of intra-University programs under its auspices which award funds on a competitive basis to projects for research, training, or public service.

2-110 SCOPE

This Manual Chapter discusses the administration of proposals and awards for support of research, scholarly or professional training, or public service programs related to research or to scholarly or professional training. (See Section 2-210 on Who May Submit Proposals and Chapter 1-500, Principal Investigator Policy.) The purpose of this Chapter is to outline overall University policies upon which individual campus and Laboratory contract and grant administrative procedures for proposal/award administration are based. The procedures required by each campus or Laboratory are described in its respective contract and grant administration handbook. Since every sponsor has its own guidelines or regulations and these are always subject to change, individual sponsor requirements are not covered in this Chapter. Sponsor requirements must be reviewed in relation to the University policies outlined in this Contract and Grant Manual.

2-120 APPLICABILITY

The policies outlined in this Chapter apply to the submission of proposals and acceptance and administration of awards from extramural sponsors for research, scholarly and professional training, or public service programs related to research or to scholarly or professional training in any University organizational unit where such activity occurs. In addition, they should be used as a guide for intra-University programs as intra-University program terms should be consistent with the policies in this Manual.

Prior to submission or acceptance, all proposals and awards for either extramural or intramural support must be reviewed and approved by the campus or Laboratory Contract and Grant Office or other formally designated office for consistency with campus or Laboratory and Universitywide policies and procedures. This does not apply to: construction grants and contracts to the extent that such awards are subject to the policies and procedures of the University Facilities Manual; work-study programs or awards for student aid grants, scholarships, or loans which are within the scope of campus and Office of the President Student Financial Support Offices; or agreements which establish or modify programs with the Education Abroad Program. Policies relating to the solicitation of gifts and endowments are covered in the Development Policy and Administration Manual and summarized in Chapter 9 of this Manual.

2-130 ACADEMIC POLICY - UNIVERSITY REGULATION NO. 4

University Regulation No. 4 states the general policy of the University concerning professional or scholarly services to external individuals or organizations including business, industry, governments, or other educational institutions. This regulation describes, in part, the types of such services which the University considers appropriate for its faculty to undertake. "Routine tests of a commonplace type" are specifically proscribed. The full text of University Regulation No. 4 can be found in Chapter 1, Sections 1-320 and 1-330, of this Manual and in the Academic Personnel Manual Section APM 020, Special Services to Individuals and Organizations.

2-200 SOLICITATION AUTHORITY

"The Regents of the University of California" is the name of the corporation established under the Constitution of the State and charged with administering the University as a public trust. The governing body of the Corporation is known as the Board of Regents. No solicitation or application for extramural support of research, training, or public service programs shall be made officially in the name of The Regents without the prior approval of The Regents or of an authorized official of the University. This authorization is by formal delegation of contract and grant authority.

Standing Order 100.4(dd) authorizes the President to solicit and accept or execute such proposals and awards, with stated exceptions. The President has redelegated this authority to the Senior Vice President - Business and Finance, Vice President - Agriculture and Natural Resources, the Director of Federal Governmental Relations, Chancellors, and Laboratory Directors who have, in turn, redelegated their authority, with varying levels and limitations, to the appropriate Vice Chancellors, Deans, Directors, and Contract and Grant Officers. For a discussion of the legal authorities related to the solicitation of proposals, see Chapter 13 of this Manual.

2-210 WHO MAY SUBMIT PROPOSALS

The Principal Investigator policy, which describes who is eligible to submit proposals, is outlined in Chapter 1-500 of this Manual. It is also reprinted in the Faculty Handbook. Members of the Academic Senate and appointees in other eligible title groups listed in the policy may submit proposals. With the approval of a Chancellor, Vice President, or the Dean of University Extension, University personnel with other faculty and staff titles not listed may submit proposals, subject to certain conditions. (See Chapter 1-530.)

2-300 RESPONSIBILITIES AND DUTIES

Chapter 10, Sections 10-310 through 10-350, of this Manual describe the responsibilities and duties of Contract and Grant Officers, Principal Investigators, Deans, Provosts, Department Chairs, Organized Research Unit Directors, and other administrators of contract and grant related services in relation to the submission of proposals and acceptance of extramural awards.

2-400 TYPES OF PROPOSALS

There are basically two types of proposals: solicited and unsolicited. Their formats differ according to the type of sponsor, the purpose of the award, and the type of award instrument.

A solicited proposal responds to a specific formal sponsor solicitation. A proposal is considered unsolicited when it is submitted in conformance with the sponsor's general guidelines or general invitation to submit unsolicited proposals, but not in response to a project-specific sponsor solicitation. This distinction is important for federal awards in the context of the Competition in Contracting Act as described below in Sections 2-420 and 2-F01.

The format and the content of a solicited proposal are influenced by the type of award instrument which the sponsor plans to use. The type of award instrument is in turn based on a number of factors, including the benefit or service which the sponsor expects to receive and the relationship which the sponsor plans to have with the project. Described below in Section 2-410 are the federal definitions of the three basic types of award instruments: grants, contracts, and cooperative agreements.

Technically speaking, in the federal system, a Request for Applications (RFA) is issued for grant awards, and a Request for Proposals (RFP), an Invitation for Bid (IFB), a Request for Quotations (RFQ) or Broad Agency Announcement (BAA) generally result in contracts. However, this strict use of these terms is generally made only by federal agencies. It is not uncommon to find other sponsors using the term Request for Proposals when the award instrument is a grant.

Chapter 19 of this Manual, "Research Funding Systems," discusses in more detail types of award instruments and their relationship to the sponsor and the work to be done.

2-410 USING PROCUREMENT CONTRACTS AND GRANT AND COOPERATIVE AGREEMENTS - PUBLIC LAW 97-258 AND 31 USC 6301

The section of Public Law 97-258 entitled Using Procurement Contracts and Grant and Cooperative Agreements describes the circumstances under which the federal government should use a contract, grant, or cooperative agreement. (See 2-F02.) This section is a revision of the Federal Grant and Cooperative Agreement Act of 1978 which was repealed and recodified in Public Law 97-258 and 31 United States Code (USC) 6301. According to the Code, a contract should be used when:

(1) the principal purpose of the instrument is to acquire (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; or

(2) the agency decides in a specific instance that the use of a procurement contract is appropriate.

Most contracts are issued on either a fixed price or a cost reimbursement basis. In a firm fixed price contract, the contractor agrees to supply the deliverables at specified times for a fixed price agreed upon at the time of the award. In cost reimbursement contracts with universities, the contractor generally receives the actual costs incurred in the performance of the contract up to a specified maximum amount.

31 USC 6301 states that a grant shall be used when:

(1) the principal purpose of the relationship is to transfer a thing of value to the State or local government or other recipient to carry out a public purpose of support or stimulation authorized by a law...and

(2) substantial involvement is not expected between the [agency and recipient]...

The Code states that a cooperative agreement shall be used for the same purpose as a grant except that substantial involvement is anticipated between the sponsor and the recipient.

2-420 COMPETITION IN CONTRACTING ACT OF 1984 AND AMENDMENTS TO THE SMALL BUSINESS ACT

The purpose of these two Acts is to "obtain full and open competition through use of competitive procedures..." Both Acts apply to the procurement of property or services by any federal agency. (See 2-F01.) The Competition in Contracting Act, Public Law 98-369, is implemented in the Federal Acquisition Regulations (FAR) Part 6. The Amendments to the Small Business Act, Public Law 98-72, are implemented in FAR Part 5. These Acts apply only to federal agency procurements, that is, solicitations which will result in contracts.

Any exceptions to the requirement for full and open competition as described in the regulations for both Acts require an extensive procedural determination by specific federal agency personnel that a proposal or contract fulfills the exception criteria. The exceptions allowed in FAR 6.302 are:

6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements;

6.302-2 Unusual and compelling urgency;

6.302-3 Industrial mobilization; or engineering, developmental, or research capacity;

6.302-4 International agreement; and,

6.302-5 Authorized or required by statute.

Federal agencies interpret and implement these regulations in various ways. Some agencies often use the exception under 6.302-3 to award universities sole source contracts based on unsolicited proposals which contain unique or innovative concepts. In addition, agencies are now publishing Broad Agency Announcements (BAA) to solicit proposals. Any contract or grant awarded in response to a BAA is considered to have been competitively solicited. Information on specific agency responses to these regulations is provided via Contract and Grant Memo.

Public Law 98-72 requires publication in the Commerce Business Daily (CBD) of "all proposed competitive and non-competitive civilian and defense procurement actions of $10,000 and above from any Federal department, establishment or agency..." No CBD notice is required if the procurement results from acceptance of "an unsolicited proposal that demonstrates a unique or innovative research concept and publication of such unsolicited proposal would improperly disclose the originality of thought or innovativeness of the proposed research." Some federal agencies apply this exception to unsolicited proposals from universities. However, each federal agency interprets and implements this exception in its own way. University policy concerning the protection of information in unsolicited proposals is provided in Chapter 17 of this Manual. Guidance is also provided via Contract and Grant Memos.

2-430 MULTIPLE SUBMISSIONS

Multiple proposal submissions, that is, the simultaneous submission of proposals for an essentially identical research, training, or public service project for extramural funding to two or more agencies, may be made. The multiple submission should be disclosed in the proposals. This is necessary to avoid conflicts in patent rights and other commitments should two or more sponsors jointly offer support for the same project.

Authority to approve multiple submissions does not include the authority to undertake fund-raising campaigns for either partial or total support of a research, training, or public service project. If the intention behind multiple submissions is to conduct a fund-raising campaign, such an activity is subject to the provisions of the Development Policy and Administration Manual. The policy on fund-raising campaigns, and the authority to approve such campaigns are outlined in Chapter 9-300, of this Manual.

2-440 TYPES OF SPONSORS

The types of sponsors that fund research, training, or public service projects at the University include: federal, state, municipal, county, foreign, and other governmental entities; private nonprofit sponsors such as foundations; private for-profit sponsors such as corporations; and educational institutions. In addition, the Office of the President, campuses, and Laboratories also administer programs that award funds on a competitive basis. These University-administered internal programs are described in Chapter 10-253 of this Manual. They are to be distinguished from multiple campus projects, described in Chapter 10-240, for which the source of the funding is an extramural sponsor.

2-500 PROPOSAL REVIEW

Campus and Laboratory Contract and Grant Offices provide guidance to Principal Investigators on the preparation of proposals for extramural sponsors as well as for intra-University programs. Contract and Grant Offices are responsible for the review of proposals for research, scholarly or professional training, or public service related either to research or to scholarly or professional training. The purpose of this review is to assure that proposals comply with applicable University policies and sponsor guidelines or regulations. Authority to approve a proposal by signing it rests with University officials, who have formal delegation of contract and grant authority, or their designees.

At a minimum, a proposal normally describes the scope of the work proposed, states how much it will cost, and names the responsible Principal Investigator or Project Director. For purposes of reporting proposals and awards to the Corporate Contract and Grant Information System (CGX), it is important that the proposal have a descriptive title. The scope of work must be as explicit as possible in proposals submitted to commercial sponsors in order to avoid any conflicts over patent rights given to the sponsor.

2-510 SPECIAL REVIEWS OR COORDINATION

Each Contract and Grant Office requires that proposals be submitted to it with a completed proposal approval form. This approval form is developed by the Contract and Grant Office to provide a checklist of items to be addressed as part of the proposal development, approvals required in accordance with University policies, and signatures required from other University officials. (See Section 2-570 below.)

Questions concerning the use of animal or human subjects, recombinant DNA, and hazardous materials are included to assure compliance with federal and state regulations and University policies governing these areas. Chapters 18, Protection of Research Subjects, and 3, Environmental Health and Safety, of this Manual provide further information on these subjects.

Approvals by Department Chairs, Unit Heads, or Deans are needed in order to assure the appropriateness of any commitments of University resources required by the proposed project as well as the appropriateness of the project in accordance with University Regulation No. 4. (See Section 2-130.) Such commitments may include laboratory space, computer facilities, cost of renovations, personnel, and cost sharing. The Principal Investigator's proposed effort, salary, and any leave or release time in the proposal require the approval signatures of the Department Chair, Unit Head, or Dean, as applicable, according to local procedures.

2-511 Use of Words in Proposed Titles Designated for ORUs

The Administrative Policies and Procedures Concerning Organized Research Units (March 8, 1982) state that titles for sponsored research projects should not inappropriately use terms that would represent the project as an approved University Organized Research Unit. Names such as Program, Group, Institute, Laboratory, Station, and Center should not be used as formal labels on research projects that are not ORUs.

The exception to this policy is for the use of the term "Center." According to a February 1, 1971 memorandum from then Vice President Angus E. Taylor to Chancellors,

...if the proposal is for the establishment of one of the [NIH] Specialized Centers for Research and the grant award is predicated on uniform nomenclature, an exception to University policy may be made. In such a case (1) the name or initials of the sponsoring agency should be included in the project title (e.g., "NICHE Center for Population Research," "NHLI Center for Research on Arteriosclerosis") and (2) the proposal should state that the term "Center" is used in conformity with the sponsor's nomenclature and does not imply University approval of an Organized Research Unit.

The above procedure has subsequently been used with other federal agencies which have established "Center" grant programs since the memo was issued.

The designation "Project" is recommended for a research project that may evolve into an ORU after a trial period of operation. See Chapter 10-140 of this Manual for further information on Organized Research Units.

2-512 Minor or Temporary Facility Construction

The contract and grant delegations of authority to Chancellors and Laboratory Directors and, subsequently, to Contract and Grant Officers as described in Chapter 13, Sections 13-700 and 13-900, of this Manual do not include proposals or awards which would involve amendments to the campus Capital Improvement Program, i.e., construction or renovation of facilities. Chancellors are delegated certain authority to approve amendments to the Capital Improvement Program for non-State funded minor capital improvement projects and to solicit and accept or execute extramural grants and contracts for construction of facilities as described in Chapter 13-1210. Review and approval of a proposal or award which involves construction or renovation of facilities should be in accordance with that Section of this Manual.

2-520 BUDGET PREPARATION

Budgets should be prepared in accordance with the sponsor's guidelines or regulations and University policies. They should sufficiently cover all anticipated costs, both direct and indirect, which would be incurred under the work proposed. In order to ensure appropriate indirect cost recovery, proposals must comply with existing policies on indirect costs. Chapters 5 - Cost Sharing, 6 - Financial - General, 7 - Budgets and Expenditures, and 8 - Indirect Costs in this Manual provide other pertinent information for budget development. Additional guidance is issued via Contract and Grant Memo.

2-521 General Considerations

The budget section of a proposal represents the Principal Investigator's best estimate of the costs that will be incurred by the proposed project. Such estimates should be based on the standards outlined in Sections 2-522 through 2-527, as supplemented by the information contained in Section 2-528 on forecasting long-range needs and in 2-529 on documenting the method for determining cost estimates. These sections describe some of the cost elements that may be anticipated for a proposed project. Additional allowable costs not described here, such as subcontracts, computer costs, and rent, are described in Chapter 7-200 of this Manual.

Proposal budgets should be as detailed as the sponsor's instructions require. Where the sponsor requires specific estimates for selected cost elements, the following standards should be adhered to in order to arrive at reasonable and consistent budget amounts for those kinds of costs. When a cost not generally allowed except by special approval of the sponsor is deemed necessary to carry out the proposed project, it should be included as a specific item in the proposal.

2-522 Salaries, Wages, and Fringe Benefits

Salaries, wages, and fringe benefits must be estimated consistently, regardless of the fund source and in accordance with an approved pay plan, rate or schedule, and published University policy. (Also see Academic Personnel Manual, Section 600 or 660.)

Proposed University personnel salaries should be in accordance with the current academic or staff salary schedules for each particular job classification. Projected range adjustments, merit increases, and fringe benefit increases/decreases should be specified in accordance with annual guidance provided by the Office of the President Research Administration Office. (Also see Section 2-528 for forecasting increases or decreases.) Compensation must be in accordance with Academic Personnel Manual Sections 600ff, especially Section 660-16 for faculty; Personnel Policies for Staff Members: Compensation - 30 Salary; and Senior Management Personnel Policies: II-30, Salaries and II-71 Senior Management Supplemental Benefit Program. University policies on compensation conform with OMB Circular A-21, Cost Principles for Educational Institutions, Section J.6., Compensation for personal services. (See Chapter 6-F01 of this Manual.)

In no event should extramural support be used as a means to increase the regular academic salary of a University faculty member. Faculty may receive additional compensation for extramurally-funded research activities as described below.

Academic Personnel Manual (APM) Section 660-16 states that no academic year, full-time appointee shall receive additional compensation from University sources for services directly related to the appointee's recognized duties during the academic year, that is, from the beginning of the Fall [term], as established in the University calendar, through the end of the Spring [term].

Extra compensation may be paid to full-time faculty members only during quarters when the faculty member is not under a service appointment.

APM 660-16 goes on to say that no academic year, full-time appointee shall receive compensation at a rate higher than the appointee's regular annual salary for any additional duties performed during the period between the spring and the fall terms. No agreement between the University and a sponsor shall include provisions for a higher rate.

The monthly rate of extra compensation may not exceed one-ninth of the regular academic salary for an academic year appointee or one-eleventh of the eleven month salary for an eleven-month appointee. (See Academic Personnel Manual Section 600, Appendix 1)

Faculty members participating in the University's health sciences compensation plans may receive compensation above the fiscal year salary rate in accordance with plans approved by The Regents and guidelines established by the Chancellors and approved by the President.

A member of the faculty on sabbatical leave at partial salary may receive additional salary for time devoted to certain contract or grant projects of not more than the difference between the sabbatical leave salary and the applicable full-time University salary for the period involved, providing that funds have been made available for this specific purpose by the funding agency. Collection of this sabbatical leave salary augmentation does not affect any eligibility which the faculty member has for employment during off-duty months when not on sabbatical leave. (See APM 740-18 for additional information and restrictions on compensation during sabbatical leave.)

Other circumstances and restrictions for faculty receiving additional compensation are described in the Academic Personnel Manual Sections 600ff. These include additional compensation for services as a consultant, lecture fees or honoraria, and manuscript reading fees.

Personnel employed in the Professional Research classification (including those in the Professional Research, Specialist, and the Postgraduate Series and Research Assistants) under contracts or grants should have approved titles and remuneration in accordance with the appropriate provisions of the Academic Personnel Manual , including APM Sections 310, 330, and 410.

2-523 Consultants

According to Business and Finance Bulletin BUS-34 Securing the Services of Independent Consultants, consultants can be used

...only when a determination has been made that the services are so urgent, special, temporary, or highly technical that they cannot be performed economically or satisfactorily by existing University staff during the course of their normal University responsibilities or duties. (Section IV.A.)

It is not appropriate to use a consultant agreement to obtain routine, non-advisory services of an individual. University policies and procedures for contracting with consultants are in Chapter 16-440 of this Manual and in Business and Finance Bulletins BUS-34 and BUS-43, Part 7, Employee-Vendor Relationships. In addition, sponsors may restrict payments to consultants and/or require prior approval of consultant agreements. The policy on faculty serving as consultants on projects conducted under the auspices of the University is in Academic Personnel Manual Section 664, Additional Compensation/Services as Faculty Consultant.

2-524 Travel

Estimates of travel costs should be made for each day of travel using Business and Finance Bulletin G-28, Policy and Regulations Governing Travel, as a guide, supplemented by published hotel rates, advice from travel agents, and other appropriate sources. Mileage rates information is provided via Contract and Grant Memo.

2-525 Services, Supplies, and Miscellaneous Budget Items

Good faith estimates of costs of services and miscellaneous items should be made based on past experience and telephone or written quotations. (Also see BUS-43, Materiel Management, Parts 3 and 4.)

2-526 Equipment

Estimates of the cost of each item or piece of equipment listed should be based on a catalogue, telephone, or written quotation. The estimated cost should include sales tax, shipping, and assembly, if necessary. (See Section II.B.1. of Accounting Manual Chapter P-415-2, Plant Accounting: Cost and Reconciling Inventorial Equipment Acquisitions.) Sales tax is not included if, at the time of purchase, title to the piece of equipment vests in the federal government. Generally, under federal grants, and also under federal contracts when the equipment costs less than $5,000, title vests in the University at the point of acquisition and sales tax is payable. (Also see BUS-43, Materiel Management, Part 3; Accounting Manual Chapter T-182-73, Taxes: Sales and Use Tax, Section V.A.2; and Chapters 7-221 and 15-220 in this Manual.)

If a piece of equipment is to be fabricated, the cost of its components plus, all materials, supplies, and services from outside vendors or authorized internal recharge activities used in the fabrication process are exempt from indirect costs if title is retained by the University and the item has a useful life expectancy of more than one year. Department labor, travel or other operating expenses associated with the fabrication such as salaries of Principal Investigators, graduate student researchers, or other comparable personnel who participate in the fabrication process are not included in the acquisition cost of the item and are subject to indirect costs. If the fabricated piece of equipment is a deliverable and title is not retained by the University, all costs of its fabrication are subject to indirect costs. If the fabricated item has a life expectancy of less than one year, it does not meet the definition of equipment and all fabrication costs are subject to indirect costs. For more information on the treatment of fabricated property see Accounting Manual Chapter P-415-32, and Contract and Grant Manual sections 7-205 and 15-240.

For further information about equipment and definitions, see Chapter 7-205 and 15-122 of this Manual.

2-527 Construction or Modification of a University Facility - Capital Improvement

Any construction or modification of a University facility, whether a major or minor capital improvement, to be paid for with extramural funds is subject to the same review and approvals as those made with regular University funds. The Chancellors' delegation of authority to approve solicitations to extramural sponsors which include construction or modification of a campus facility is outlined in Chapter 13-1210 of this Manual.

2-528 Forecasting Increases or Decreases

The Principal Investigator is ultimately responsible for project cost estimates. Campuses may develop policies for proposal budget preparation that include escalating or de-escalating factors. These policies should result in forecasting overall increases or decreases in a manner that is consistent campus-wide and reasonable, considering such factors as historical cost patterns for that campus and probable trends. In addition, the Office of the President Research Administration Office issues guidance to campuses on forecasting salary and fringe benefit increases or decreases.

2-529 Documenting Estimates

Campuses should have procedures for verifying cost estimates in proposal budgets. Records on how estimated costs were determined must be kept. Supporting documentation should be in writing and show clearly and in sufficient detail how each proposed cost element amount was developed. For example, supporting documentation for salaries and wages would include the name, academic rank or payroll title, and salary step of each employee on the proposed budget. If a particular position is not filled, the proposed salary generally should not be higher than the middle step for that title.

2-530 AWARD TERMS AND CONDITIONS ANNOUNCED WITH THE RFP

Award terms and conditions announced with the RFP need to be reviewed for compliance with University policies. Any comments on or exceptions to terms and conditions must be submitted to the sponsor with the proposal. Award terms and conditions are discussed in Section 2-630 below.

2-540 PROPRIETARY DATA

If a proposal contains proprietary data, the applicable sections must be marked as such. In RFPs and RFAs which the sponsor thinks would solicit proprietary data, the sponsor usually has instructions on how to note on the proposal cover page and the applicable sections that the proposal contains proprietary data. See Chapter 11-600 of this Manual for further information on this subject.

2-550 ASSURANCES, REPRESENTATIONS, AND CERTIFICATIONS

Federal and State agencies usually require that various assurances, representations, and certifications be submitted with proposals. These assurances, representations, and certifications are concerned with compliance with laws and regulations governing such areas as equal opportunity and affirmative action, clean air and water, labor surplus areas, and defaults on loans. The number of such representations, certifications, and assurances vary from agency to agency and, from time to time, within the same agency as new ones continue to be required. However, a number of basic requirements common to most federal agencies can be identified. They are based on current Federal Acquisition Regulations (FAR and FAR supplements) that are usually derived from federal statutory requirements or Executive Orders. Often the wording and format of a representation, certification, or assurance is specified either in the acquisition regulation or in the statute from which the regulation is derived.

While most federal agencies require that representations, certifications, and assurances be included with every proposal, some agencies allow one annual campus signature on certain representations and certifications. In addition, some federal and State agencies include them in their awards rather than in proposals.

Because the representations, certifications, and assurances required by federal and State agencies are constantly subject to change, this Manual does not attempt to provide a complete list. Section 2-F10 does provide a list of certain assurances that are normally required in connection with federal research grants. For representations and certifications required in connection with federal contracts and other new assurances, the Office of the President Research Administration Office investigates the applicability of each new requirement and provides operational guidance and procedures as needed through Contract and Grant Memos. In addition to the assurances listed in Section 2-F10, some specific representations, certifications, and assurances are discussed in the chapters which cover their applicable subject areas. These include: Chapter 3 - Environmental Health and Safety; Chapter 12 - Labor Standards; Chapter 14 - Nondiscrimination/Affirmative Action; and Chapter 16 - Purchasing.

2-551 Compliance with Applicable Laws and Regulations

The University makes every effort to comply with all applicable federal, State, and local laws and regulations. University systems and procedures are designed to ensure such compliance with existing laws and regulations. Various University offices are responsible for designing and implementing any necessary changes in University systems and procedures to comply with new laws and regulations.

When an agency requires certification or assurance of compliance with specific applicable laws or regulations, there are three things to consider:

1. Compliance is only being required as applicable. If the law or regulation is not applicable to the University or program being funded, then it is preferable to line out this certification or assurance in the proposal or award. The agency can be provided with documentation verifying the University's exemption from the law or regulation. An alternative to deleting a certification or assurance not applicable to the University would be to add the words "if applicable to the University" after the clause.

2. The official certifying on behalf of the University is not expected to investigate whether there are any specific instances of non-compliance within the University; general knowledge that there is a policy and procedure in place to deal with the law or regulation is sufficient.

3. If the official certifying on behalf of the University is aware of material violations of the law or regulations, then the certification should not be signed. The Office of the President Research Administration Office should be notified of any such violation.

If a federal granting agency requests a general assurance of compliance with applicable federal laws and regulations, the certification should be signed with the understanding that it applies to the list of cross-cutting requirements published by the Office of Management and Budget, Directory of Policy Requirements and Administrative Standards for Federal Aid Programs (last published in 1985). See Section 2-F10 for a list of federal laws and regulations that are applicable to federally sponsored research grants to the University. (See also Contract and Grant Memo 95-12, Certifications Related to Federal Contracts and Grants.)

2-552 Cost or Pricing Data

In accordance with FAR 15.804 - Cost or Pricing Data, federal contract proposals over $100,000 must disclose relevant cost or pricing data to enable the government to analyze proposed costs in order to ensure that they are fair and reasonable. Federal agencies may require that a Certificate of Current Cost or Pricing Data be signed. By signing such a Certificate, the Contract and Grant Officer is certifying that the "cost or pricing data are accurate, complete, and current..." (See Section 2-F09.) The proposed budget could be reduced in an award if the cost or pricing data are found to be incorrect.

The Department of Defense does not require non-profit educational institutions and other non-profit organizations to certify cost data in proposals for DOD-funded cost-reimbursement contracts or subcontracts. The DOD waiver of this requirement applies only to signing the Certificate of Current Cost or Pricing Data, not to the submission of the actual data.

2-560 MULTIPLE UC CAMPUS PROJECTS

When a Principal Investigator wants to involve more than one UC campus in a proposed project, one campus serves as the prime campus and the other campuses involved are considered participating campuses. University policy regarding administration of extramurally funded, multiple UC campus projects is presented in Chapter 10, Sections 10-240 through 10-248, of this Manual. Operating guidance for multiple UC campus projects is provided via Contract and Grant Operating Guidance Memos.

2-570 APPROVALS

All formal proposals submitted to extramural sponsors as well as intra-University programs should have the signed approval of the Principal Investigator, the Department Chair, and the Unit Head or Dean, as applicable. Formal proposals must also have approval of the Contract and Grant Officer with delegated authority to sign such proposals. (See Chapter 13.) Required approvals for participating campuses on multiple UC campus projects are described in Chapter 10-241 of this Manual. Required approvals may be on the internal campus/Laboratory contracts and grants proposal cover sheet and/or the sponsor's proposal face page as appropriate. (See Section 2-510 above.) For information about the submission process for informal proposals, see Chapter 1-510 in this Manual.

2-580 ADDITIONAL REVIEW/REPORTING REQUIREMENTS

2-581 Corporate Contract and Grant Information Requirements

All proposal and awards must be reported to the Contract and Grant Reporting System (CGX) as described in Chapter 10-420. Detailed instructions are issued via Contract and Grant Memos.

2-582 Disclosure of Financial Interest in Private Sponsors of Research and Other Conflict of Interest Policies

The State of California Fair Political Practices Commission has mandated that a Principal Investigator must disclose direct or indirect financial interest in a private sponsor of research which is funded in whole or in part:

1. through a contract or grant of $250 or more; or

2. by a gift from a non-governmental entity which is earmarked by a donor for a specific research project or a specific Principal Investigator, provided the amount of the gift, or the aggregate over a 12-month period, from the same donor is $250 or more.

These requirements are mandated by State regulations under the State of California Political Reform Act of 1974. (See Section 2-S01.)

The University Policy on Disclosure of Financial Interest in Private Sponsors of Research was issued by the Office of the President on April 26, 1984, and Guidelines for Disclosure and Review of Principal Investigator's Financial Interest in Private Sponsors of Research was issued on April 27, 1984. The disclosure statement required by the April 26, 1984 Policy, Form 730-U, Principal Investigator's Statement of Economic Interests, may be submitted to the Contract and Grant Office along with any research proposal for over $250 to a private sponsor. If it is not submitted at that time, it must be filed before final acceptance of the contract, grant, or gift, and

1. when funding is renewed; and

2. within 90 days after expiration in the case of a contract or grant, or after funds have been completely expended, in the case of a gift. (Also see Section 2-650 below.)

When an interest of a Principal Investigator in a sponsor is disclosed, a campus committee must review whether the contract, grant or gift can be accepted.

Other applicable University policies related to conflict of interest are summarized in Business and Finance Bulletin G-39, Conflict of Interest Policy and Compendium of Specialized University Policies, Guidelines, and Regulations Related to Conflict of Interest.

2-583 Regental Approval

Standing Order 100.4(dd) states the conditions under which a proposal for extramural support must be submitted to The Regents for authorized University approval. A general discussion of Regental approval can be found in Chapter 10, Sections 10-211 through 10-217. Procedures for submitting proposals for Regental approval are issued via Contract and Grant Memos.

2-584 State Clearinghouse Procedures

Executive Order 12372 on intergovernmental review of federal programs allows states to set up procedures for reviewing federal assistance programs which affect them. The Order requires federal agencies to either follow State recommendations on proposed federal funding or explain their reasons for not doing so. (See Section 2-F03.) The specific programs of federal agencies which require clearinghouse submission are noted in the Catalog of Federal Domestic Assistance Appendix I: Programs Requiring Executive Order 12372 Review. A sample dated June 1990 of Appendix I is provided in Section 2-F03. As Appendix I is subject to change, a current Appendix or the agency RFP or RFA should be consulted. The federal agency issuing the RFP or RFA is responsible for specifying if the submission of an SF-424 is required for the specific program. The University is not responsible for making this determination.

At the time a proposal for a federal program which requires review by the state is submitted to the federal agency, a copy of Standard Form SF-424 is submitted for the proposed project to the state "single point of contact" (See Section 2-F07) along with the narrative portion of the proposal. In California, the required copy of the SF-424 is submitted to:

Office of Planning and Research
State Clearinghouse
1400 Tenth Street, Room 121
Sacramento, CA. 95814

Telephone: ATSS 485-0613; (916) 445-0613

Some campuses are also required to submit this material to a local clearinghouse, such as a local consortium of city governments, where there is one, at the time the proposal is submitted to the federal agency.

2-600 AWARD ACCEPTANCE AND ADMINISTRATION

All extramural awards to the University of California for research, training, or public service are made in the University's corporate name, "The Regents of the University of California." The responsibility for reviewing the terms and conditions of awards before they are accepted on behalf of The Regents rests on those who have been delegated authority to approve, accept, and execute such awards, as described in Sections 2-200 and 2-610. University officials who are authorized to sign awards which obligate the University should insure that these awards are properly reviewed. A checklist for review of Contracts and Grants is outlined in Chapter 13-333. The responsibility for implementing the terms of an award involve various University offices as noted below in Section 2-620.

2-610 AUTHORITY TO ACCEPT AWARDS

Standing Order 100.4(dd) authorizes the President to accept or execute awards, with stated exceptions. The President has redelegated this authority to the Senior Vice President - Business and Finance, Vice President - Agriculture and Natural Resources, the Director of Federal Governmental Relations, Chancellors, and Laboratory Directors who have, in turn, redelegated their authority, with varying levels and limitations, to the appropriate Vice Chancellors, Deans, Directors, and Contract and Grant Officers. For a discussion of the legal authorities related to the solicitation of proposals, see Chapter 13 of this Manual.

When an award is accepted by The Regents, it means that the University has agreed to comply with all the terms of that award. Thus, it is important for campuses and Laboratories to have procedures in place to ensure that awards are legally accepted only by authorized University officials. Legal acceptance can take many forms, including: counter-signature on a bilateral agreement; spending the funds when a unilateral award is made; and signing a proposal that is counter-signed by the sponsor (e.g. an RFQ).

2-611 Acknowledgment of Grants from Private Sponsors

In addition to being accepted under the authority described above in Section 2-610, grants from private sponsors may also be acknowledged by other University officials or the Principal Investigator. Such acknowledgments are handled in accordance with campus procedures and in a manner appropriate to the requirements of the sponsor and the nature of the grant.

2-620 RESPONSIBILITY FOR ADMINISTERING AN AWARD

The duties and responsibilities of University faculty and staff involved in the administration of an award are outlined in Chapter 10, Sections 10-300 through 10-350. Responsibilities for specific areas of award administration are described in the chapters for those subject areas such as financial responsibilities in Chapter 6 and patent duties in Chapter 11 of this Manual.

2-630 TERMS AND CONDITIONS OF AWARDS

Awards for sponsored projects or programs are made to the Corporation, i.e., The Regents of the University of California, and commitments made under agreements are commitments of the Corporation. The terms and conditions of awards must be in accordance with University policy. Applicable policies are discussed in this Manual under specific chapter titles. Any exceptions to such policies must have the required reviews and approvals discussed in those chapters. Additional guidelines and procedures are issued as needed via Contract and Grant Memos.

2-631 Governing Law

Agreements which contain a "Governing Law" clause should state that the agreement is governed by the laws of the State of California. Agreements which name governing laws of other states should be reviewed by General Counsel's Office as described in Section 2-640, below.

2-632 Awards to Individuals

As stated above in Section 2-630, sponsoring agencies make awards to the corporation, not to the individual. However, occasionally, a sponsor offers an award directly to a Principal Investigator or Project Director. Consistent with considerations of University of California policies regarding conflict of interest (See Chapter 1-800), a Principal Investigator or Project Director may make an agreement concerning that portion of his or her time and effort which is not already committed to the University, which does not interfere with performance of University duties, and which does not involve unauthorized use of University space, facilities, or resources on a significant scale. ("Faculty Code of Conduct", Academic Personal Manual - APM 015.) Personal awards which involve University staff time already committed to the University are not permitted.

When an honorific award to a specific faculty member is made to The Regents, it cannot be accepted unless it is in compliance with University policies as described in this Manual.

2-633 Reporting Requirements

Any sponsor required financial and technical reports should be reasonable, i.e., within the generally accepted standards for such requirements. Any excessive reporting requirements, such as those which the campus' financial systems cannot readily accommodate, deadlines which cannot reasonably be met, or overly-frequent reports, should be modified to the extent possible. The Office of the President Research Administration Office is available to assist in achieving such modifications when campus efforts are rejected by the sponsor.

2-634 Insurance, Patents, and Data Rights

Any requirements in an RFP or RFA concerning such areas as insurance, patents, and data rights must be in accordance with University policies. Chapter 21 and Chapter 11 of this Manual cover these areas.

2-635 Research Based on Reasonable Efforts

Since research results cannot be guaranteed, University research is conducted on a "reasonable efforts" basis. The University receives no fee or profit on its research. While agreements may require a final report and may outline standards for that report, provisions which guarantee research results, impose penalties for failure to make progress by firm deadlines, or condition payment on the sponsor's satisfaction with the results are generally not acceptable. Such provisions create an unfunded liability for the University as the sponsor may refuse to pay the costs incurred for the work performed. However, Principal Investigators or Program Directors are obligated to conduct sponsored projects of the highest possible quality. (Faculty Handbook, September, 1995.)

When a sponsor wants a final product which conforms with sponsor specifications, it may indicate that the sponsor is more interested in purchasing a good or service than in supporting research of interest to and directed by the University. Such a project indeed might be appropriate public service; however, "job shop" product outputs if accompanied by unacceptable terms which create an unfunded liability are normally not appropriate to the University's mission and should not be accepted.

2-636 Termination

Any termination clause should assure that, in the event an agreement is terminated by the sponsor for any reason, the sponsor will pay the University for all costs incurred to date of termination and for all uncancelable obligations. (Also see Chapter 7-222 of this Manual.)

2-640 REVIEW OF ROUTINE AGREEMENTS AND THE ROLE OF THE GENERAL COUNSEL'S OFFICE

The University official who is delegated authority to sign agreements is responsible for making the determination as to whether legal advice is needed from the General Counsel's Office, and, if it is, to obtain this advice prior to execution. Chapter 13-330 through 13-334 discusses the responsibility of the General Counsel in providing advice on contract and grant documents. See Chapter 13-333 for the Checklist for Review of Contracts and Grants developed by General Counsel's Office.

2-650 DISCLOSURE OF FINANCIAL INTEREST IN PRIVATE SPONSORS OF RESEARCH - FORM 730-U AND OTHER CONFLICT OF INTEREST POLICIES

As discussed in Section 2-582, Form 730-U, Principal Investigator's Statement of Economic Interests, is required before acceptance of an award. If Form 730-U is not filed with the proposal submission, it must be filed before final acceptance of an award to which it applies, when funding is renewed, and within 90 days after the expiration of the award.

Other applicable University policies related to conflict of interest are summarized in Business and Finance Bulletin G-39, Conflict of Interest Policy and Compendium of Specialized University Policies, Guidelines, and Regulations Related to Conflict of Interest.

2-660 CORPORATE CONTRACT AND GRANT INFORMATION REQUIREMENTS

All awards must be reported to the Contract and Grant Reporting System (CGX) as described above in Section 2-581 and in Chapter 10-420.

2-670 PRIOR APPROVAL REQUIREMENTS

When a sponsor or the University requires prior approval of actions related to the administration of an award, the campus or Laboratory must have administrative procedures in place which meet prior approval requirements. The terms and conditions of the award should provide specific guidance on the sponsor's requirements for prior approvals. Examples of actions often requiring prior approval at the campus level or by the sponsor, depending on sponsor requirements, are pre-award costs, no-cost extensions, and rebudgeting above an amount restricted by the sponsor.

A change in the scope of work, objectives of the research, or level of effort of the Principal Investigator generally must be approved in writing by the sponsor. Replacing the Principal Investigator generally requires sponsor approval in addition to any required University approvals.

2-680 AMENDMENTS, MODIFICATIONS, AND CONTINUATIONS

The terms and conditions of an award can be changed via amendments, modifications, change orders, supplements, or continuations of the agreement. An amendment or modification is a change in the terms and conditions mutually agreed upon by both parties. A change order is usually a unilateral change in the agreement subject to the clause in the agreement which covers such changes. Acceptance of a changes clause in a agreement is, thus, discouraged because such a clause exposes the conduct of the sponsored project to the unilateral direction of the sponsor.

A delegation of authority resulting from a proposed project which required Regental approval authorizes specific campus or Laboratory officials and staff to sign the original award and includes the authority to execute subsequent amendments, modifications, or continuations to the award as long as the amendment, modification, or continuation does not remove the award from the limitations prescribed in the applicable delegation of authority. For example, if an amendment to such an award adds a new condition requiring Regental approval, then another Regental approval and a new delegation of authority would be necessary. (See Chapter 13.)

Principal Investigators or Project Directors do not have authority to make or execute changes or modifications in the terms of contracts or grants unless they have been specifically by name or title delegated this authority by an authorized University or campus official. They should not attempt to negotiate such changes without the prior knowledge and approval of the Contract and Grant Officer.

2-700 AWARD TERMINATION/EXPIRATION/CLOSEOUT

The expiration of an award on its expected expiration date constitutes an implicit assumption that the University has fulfilled its project performance obligations under the award. An award may also be terminated by the sponsor or the University before its expiration date for various reasons including the transfer of the Principal Investigator to another institution.

A closeout or termination may require the submission of a final invoice and a "Contractor's Release." Other aspects of the award that may need to be cleared are: title to property; satisfactory performance of contractual obligations by the Principal Investigator; and the submission of all required reports including final technical and financial reports, patent and invention reports, inventory report, small business and small disadvantaged business subcontracting plan reports, and cost-sharing report. These reports are discussed below, except for subcontracting plan reports which are discussed in Chapter 16-F02.

2-710 FINAL FINANCIAL REPORT, CONTRACTOR'S RELEASE, REFUNDS, AND CLAIMS

The campus or Laboratory Contract and Grant Accounting Office is responsible for submitting any financial reports required in order to close out the award. The expiration or termination of an agreement usually requires a final invoice or final financial report from the University. In the final invoice or report, the University would request any residual funds due to the University under the award or refund to the sponsor any excess funds not expended. Awards terminated prior to their natural expiration date can also incur additional costs. See Chapter 7-222 on this subject.

When it is determined by the Extramural Funds Accounting Office that no funds are owed to the University for expenses incurred under the award, a signed "Contractor's Release" may be sent to the sponsor. This "release" is an acknowledgment by the University that it has no further claims against the sponsor. A contractor's release is not usually required for a grant award.

2-720 FINAL TECHNICAL REPORT AND OTHER DELIVERABLES

The Principal Investigator is responsible for submission of any final technical report required under the terms of an award as well as other agreed upon deliverables such as data, graphs or software. Failure on the part of the Principal Investigator to deliver any required technical reports to the sponsor in a timely matter may affect future funding from that sponsor to all campuses of the University. In addition, the terms of many contracts provide that final payments will not be made until the required final reports have been submitted. Thus, late or incomplete reports also affect the receipt of the final payment to the University. Some method of assuring timely submission of reports should, therefore, be established.

2-730 FINAL INVENTORY REPORT AND TITLE TO PROPERTY

The sponsor's policies on title to property must be followed when closing out an award. Many sponsors request a property inventory report whether or not title to such property is retained by the University. When such title is not retained at the time of acquisition, it is incumbent upon the Contract and Grant Officer to request title at termination. The campus Equipment or Materiel Management Office is generally responsible for completing the final inventory report.

2-740 PATENT AND INVENTION REPORT

If required by the sponsor, a final Report of Patents or Inventions is completed by the Principal Investigator, whether or not the report is negative. If a patentable idea, invention or discovery is made during the course of the sponsored project, the disclosure of such must be made through the Office of Technology Transfer, Office of the President, or the campus or Laboratory equivalent.

2-750 COST-SHARING REPORT

If the sponsor requires cost sharing and requests a report of this cost sharing as part of the close-out of the award, such a report is generated by the unit which administered the award and is completed in conjunction with the campus or Laboratory Accounting Office.

2-760 TRANSFER OF THE PRINCIPAL INVESTIGATOR

In the case of a termination of an award because the Principal Investigator is leaving the University and wants to continue the project at a new institution, written approvals from the sponsor, the campus, and the recipient institution are required. The campus or Laboratory Accounting Office must determine the balance of funds in the project to be transferred. If these funds are in a campus account, the campus must refund the surplus or send the balance to the new institution in accordance with the sponsor's guidance. If the campus has not received the balance of funds available to the project, the sponsor de-obligates that balance to the campus and re-obligates it to the other institution. If the Principal Investigator wants to transfer equipment associated with the project, the campus is responsible for review of the title and consideration of whether approval of the transfer will be given. (See Business and Finance Bulletin BUS-38, Disposal of Excess Material.)

2-770 TERMINATION OF SUBAWARDS

Before termination of any sub-award issued from the University to another institution, all financial, technical, property, patent, and other reports required should be received from the sub-awardee along with a statement that it releases the University from all further claims under the sub-award. The University Principal Investigator should indicate that the sub-award was carried out in accordance with the work statement. Subrecipient monitoring procedures are issued via Contract and Grant Memo.

2-999 RELATED UNIVERSITY REFERENCES