Basic Terms in Contract and Grant Administration
A-21 "Cost Principles for Educational Institutions," a circular published by the
Federal Office of Management and Budget (OMB) that establishes the principles for
determining the costs applicable to grants, contracts, and other government agreements
with educational institutions (also known as Sponsored Projects).OMB Circular A-21
defines allowable costs as those that are: 1. Reasonable; 2. Allocable to the project; and 3.
Given consistent treatment by use of generally accepted accounting principles. They must
also conform to any limitations or exclusions set forth by the sponsor award terms or
OMB Circular A-21.
Accelerated Work: Expenses that need to be charged to a project because work planned
for a future budget period is begun in the current budget period.
ACCOUNT (EFS): Account is used to specify the balance sheet, expenditure,
revenue, or statistical account on financial transactions. The account table stores
an account type identifier that indicates whether the account is an asset, liability,
equity (fund balance), expense, revenue, or statistical type account. Account
classifies the nature of the transaction. It answers the questions: “What type of
activity generated this income?” “What did we incur expenditures for?” “Is this an
asset or liability?” Account is always required on all financial transactions, and
consists of six numeric characters.
Actuals Ledger (EFS): The Actuals Ledger is where detailed transactions are stored.
(Other types of ledgers include Budget, Summary, Consolidated, etc.).
Advance Account: An account established before the award process has been completed
in order to facilitate administrative establishment of the project.
Advance Payment: A type of payment in which payment is received before financial
reports are submitted.
ALLOCABLE COSTS are costs that (1) are applicable to subaward work, (2) benefit
both the subaward and other work and can be distributed in reasonable proportion to the
benefits received, and (3) are necessary to the overall operation of the business
ALLOWABLE COSTS are costs that the sponsor will reimburse under the subaward
(i.e.: subcontract, subagreement, subrecipient agreement, subgrant) to which they are
charged. In general, a cost is allowable if it is (1) reasonable, (2) allocable (see below),
(3) applicable to subaward work, (3) in conformity with the requirements and limitations
of the subaward and, (4) in conformity with generally accepted sound business practices.
A cost that requires the sponsor’s prior consent is not an allowable cost until that consent
has been obtained.
Amendment: Any change made to an existing sponsored agreement.
Animal and/or human subjects approval: University approval obtained by a PI to
conduct research that involves experiments on or treatment of animal or human subjects.
If animals are involved, approval is obtained from the IACUC Committee. If humans are
involved, approval is obtained from the IRB Committee.
Asset (EFS): The entries on a balance sheet showing all properties, both tangible and
intangible, and claims against others that may be applied to cover liabilities of the
business. Assets can include cash, stock and inventories.
Attribute (EFS): Attribute is an optional feature that can be used to provide additional
information about a ChartField. An attribute is not tied to an individual transaction and
cannot be used in trees or combo edits.
Award Amount: Funds that have been obligated by a funding agency for a particular
project. This term is used for both original award and supplements; it can mean monies or
equipment.
Award Notification: Prepared by the SPA, summarizes the essential terms of the grant
or contract, including the period of performance, the amount of funding and method of
payment, the F&A rate, and the dates on which any technical and financial reports are
due.
Balance Sheet Account (EFS): Balance sheet account indicates assets, liabilities, and
fund balances within a fund. Assets minus liabilities must equal fund balance within
each fund. When transactions are made between funds, the system automatically creates
an offsetting balance sheet account entry (intraunit processing).
Bilateral Agreement: An agreement that both parties must sign before the award is
granted.
Broad Agency Announcement (BAA): An announcement that is general in nature and
that identifies areas of research interest, including criteria for selecting proposals, and
soliciting the participation of all offerers capable of satisfying the government’s needs.
Budget: The detailed statement outlining estimated project costs to support work under a
grant or contract.
Budget Period: The interval of time--usually twelve months--into which the project
period is divided for budgetary and funding purposes.
Budget Reference (EFS): A ChartField used to identify unique budgets where there are
overlapping budget periods.
Budget Unit (EFS): An identification code that represents a high-level organization of
business information. A business unit maintains its own set of books, ledger and
financial transactions
Carryforward (EFS): Carryfoward is the sum of inception-to-date revenues, less
expenses, less net transfers. Carryforward will be key to defining balancing within
PeopleSoft. All ChartFields are capable of “balancing” within PeopleSoft; however, there
is a need to separate the need to balance from the ability to roll forward an end of year
balance.
CAS: Cost Accounting Standards
CFR: Code of Federal Regulations
CFDA (The Catalog of Federal Domestic Assistance) is a government-wide
compendium of Federal programs, projects, services, and activities that provide
assistance or benefits to the American public. It contains financial and nonfinancial
assistance programs administered by departments and establishments of the Federal
government. Number assigned to the program As the basic reference source of Federal
programs, the primary purpose of the Catalog is to assist users in identifying programs
that meet specific objectives of the potential applicant, and to obtain general information
on Federal assistance programs. In addition, the intent of the Catalog is to improve
coordination and communication between the Federal government and State and local
governments.
Chartfield (EFS): A PeopleSoft term describing a field that stores a value, chosen from
a table of valid values. PeopleSoft uses ChartField functionality to capture, access, and
report its financial information; a sequence of ChartField values identifies a financial
transaction. Each ChartField operates independently functioning similar to a “slot
machine” and may have a many-to-one relationship with other ChartFields.
Chartfield String (EFS): Indicates a combination of ChartFields and the level at which
accounting charges/credits are applied. The terms “ChartField string” and “account
string” are used interchangeably.
Class (EFS): A ChartField that identifies the purpose of a program or project. Class
codes are defined based on reporting requirements from external sources. For example, a
value for Class would be established for the purpose of instruction. This is similar to the
function code in CUFS.
Classified Research: Research sponsored by a Federal government entity that involves
restrictions imposed, by agreement or otherwise, on the distribution or publication of the
research findings, or results for a specified period or for an indefinite duration following
completion of the research.
Clinical Trial(CT)/Clinical Study(CS): A special category of activity that combines
research with the testing of practical applications in biomedicine. Clinical trials/studies
are usually funded by commercial sponsors seeking approval of new pharmaceutical
products or treatments.
Close-out: The completion of all work on a sponsored project, followed by the
accounting of all costs and the filing of all required final reports; financial, technical,
patents and inventions, and any other reports required by the sponsor.
Competing Proposals: Proposals that are submitted for the first time or unfunded
proposals that are resubmitted; must compete for research funds. Ongoing projects must
compete again (renewal) if the term of the original award has expired.
Conflict of Interest: A conflict of interest occurs when an employee compromises
professional judgment in carrying out University teaching, research, outreach, or public
service activities because of an external relationship that directly or indirectly affects the
financial or business interests of the employee, an immediate family member, or an
associated entity.
Continuation Project (Non-Competing): Applicable to grants and cooperative
agreements only. A project approved for multiple-year funding, although funds are
typically committed only one year at a time. At the end of the initial budget period,
progress on the project is assessed. If satisfactory, an award is made for the next budget
period, subject to the availability of funds. Continuation projects do not compete with
new project proposals and are not subjected to peer review after beyond the initial project
approval.
Consortium: A consortium includes two or more institutions working on the same
research project. Each institution may be funded directly by the supporting agency or one
prime institution may subaward out the funds to the other members of the consortium.
Contract: A contract is an agreement to acquire services that primarily benefit the
sponsor. For an award to be considered a contract, it normally must contain all of the
following elements:
• Detailed financial and legal requirements and a specific statement of work to be
performed.
• A specific set of deliverables and/or reports to the sponsor.
• Separate accounting procedures.
• Legally binding contract clauses.
• Benefits of the project accrue first to the sponsor, then to the University, then to the
nation.
CONTRACT (Procurement): A contract is the appropriate agreement to be used in a
relationship between the federal government and a recipient whenever (1) the principal
purpose of the relationship is to acquire, by purchase, lease, or barter, property or services
for the direct benefit or use of the federal government; or (2) an executive agency
determines in a specific instance that the use of a type of procurement contract is
appropriate.
COOPERATIVE AGREEMENT (financial assistance/support): A cooperative
agreement is the appropriate agreement to be used in a relationship between the federal
government and a recipient whenever (1) the principal purpose of the relationship is the
transfer of money, property, services or anything of value to the state or local government
or other recipient in order to accomplish a public purpose of support or stimulation
authorized by federal statue, rather than acquisition, by purchase, lease, or barter, of
property or services for the direct benefit or use of the federal government; and (2)
substantial involvement is anticipated between the executive agency, acting for the
federal government, and the state or local government or other recipient during
performance of the contemplated activity.
Copyright: A copyright protects an original work, set down in a fixed form or medium
of expression, e g., texts, computer software, visual and audio materials. It protects the
embodiment of an idea, as opposed to the idea itself. A copyright term is 75 years from
the date of publication or 100 years from the time the work was created.
Cost Accounting Standards (CAS): Federally mandated accounting standards intended
to ensure uniformity in budgeting and spending funds. Incorporated into the 1996 A-21
Revision, cost accounting standards include requirements for acceptable and consistent
cost accounting practices for recipients of Federal funds.
COST ANALYSIS: Cost Analysis is the review, evaluation and analysis of each of the
elements of the subawardee's cost proposal, including lower-tier subawards/subcontracts
and purchase orders proposed.
COST CONTRACT: A cost reimbursement contract in which the contractor receives no
fee. Such a contract may be appropriate for research and development work, particularly
with educational institutions, hospitals or other nonprofit organizations.
COST OVERRUN: Direct costs incurred and charged to a sponsored project in excess
of the awarded amount.
COST REALISM STUDY: Cost Realism Study is the process of independently
reviewing and evaluating specific elements of the subawardee’s proposed cost to
determine whether the estimated proposed cost elements are realistic for the work to be
performed, reflect a clear understanding of the requirements; and are consistent with the
various elements of the subawardee’s technical proposal.
Cost Reimbursement (CR): A type of agreement whereby payments are based on actual
allowable costs incurred in performance of the work.
Cost-Sharing: A general term, used as a noun or adjective, that can describe virtually
any type of arrangement in which more than one party supports research, equipment
acquisition, demonstration projects, programs, or institutions. Example: A University
receives a grant for a project estimated to have a total cost of $100,000. The sponsor
agrees to pay 75% ($75,000) and the University agrees to pay 25% ($25,000). The
$25,000 is the cost-sharing component.
Cost Transfer: A cost transfer is a system that allows department administrators to
correct objects and move or transfer payroll and non-payroll expenses from one
account/fund to a different account/fund source.
DeptID (EFS): DeptID identifies the organization at the University where budgets,
staff, or academic programs are managed. It represents one or more of
the following
• A management unit of fiscal responsibility, OR
• A hiring authority for staff or a unique department designation required for
effective human resource management (Human
Resource system), OR
• A distinct academic program which requires a unique department designation for
effective management of academic programs (Student Administration system).
One set of DeptID values will be shared by all Enterprise systems (Financial,
Student, and Human Resources). A DeptID value answers the question, “What is
the level of responsibility at which I need to be able to isolate a group of financial
resources, employees, or academic programs to support effective management of
financial, human, and academic resources?” DeptID is required on all transactions,
and consists of five numeric characters. Use of ranges, sight recognition, and
smart coding for DeptID are notsupported.
Deficit (also known as Overdrafts): The condition where total expenditure and
encumbrances exceed an appropriation.
Direct Costs: Clearly identifiable costs related to a specific project. General categories of
direct costs include, but are not limited to, salaries and wages, fringe benefits, supplies,
contractual services, travel and communication, equipment, and computer use.
EFS The Enterprise Financial System The new PeopleSoft financial system will replace
and integrate virtually all the University’s financial systems on all campuses in July
2008: CUFS, Financial Forms Nirvana, Electronic Grants Management System internal
(EGMSi), JD Edwards, and a variety of subsidiary and redundant systems. Also starting
at that time, the new financial system will be used for financial reporting and financial
data retrieval, replacing the financial reporting and data currently provided by the Data
Warehouse, UM Reports, and Financial Reports on the Web.
Effort: The amount of time, usually expressed as a percentage of total effort (100%) that
a faculty member or other employees spend on a project. Effort is certified and
documented through the Effort Reporting System.
EFFORT CERTIFICATON: Federal requirement of OMB Circular A-21 that all effort
applied to federally-sponsored contracts or grants be verified after the fact to see that
effort reasonably reflects the planned distribution of pay.
Electronic Research Administration (ERA): Conducting research administration by
utilizing electronic resources such as the internet, the web, form templates, databases, and
other electronic tools.
Encumbrance (also known as a lien): A transaction that reflects University’s legal
obligation to pay for goods or services ordered through a formal purchase order or
various maintenance, consultant, rental and lease agreements.
Expanded Authorities: Policy implementation by some Federal granting agencies which
delegate certain prior approval authorities to grantee institutions. This delegation allows
for internal University approval of administrative and spending actions, thus avoiding
delays in project progress
Expense (EFS): Account type used to describe an item of business outlay chargeable
against revenue for a specified period.
Equipment: Any item purchased at a unit consistent with University policies for
capitalization. (The capitalization level is $2500 and greater and a useful life of over two
years).
External Sales: An exchange of tangible or intangible property or services between the
University and external customers for monetary consideration. External sales may be
subject to federal and state taxes.
Facilities and Administrative Costs (F&A or Indirect Costs): Facilities and
Administrative Costs are actual costs incurred during the normal business activities of an
organization that cannot be readily identified with or directly charged to a specific project
or activity. Include instruction and departmental research, library services, public service,
and other institutional activities. F&A costs are real, auditable costs incurred by the
University each time it accepts an award for a sponsored project. If the University does
not collect full reimbursement for these costs, other University resources must be used to
subsidize them.
Federal Acquisition Regulations (FAR): FAR was established to codify the uniform
policies for the acquisition of supplies and services by executive agencies, normally
applied to RFPs and Federal contracts.
Federal Demonstration Partnership (FDP): The Federal Demonstration Partnership is
a cooperative initiative among Federal agencies and institutional recipients of Federal
funds. It was established to increase research productivity by streamlining the
administrative process and minimizing the administrative burden on PIs while
maintaining effective stewardship of Federal funds. Under the FDP a researcher, as a
recipient of Federal grants, has management flexibility which includes ninety-day pre-
spending authority, institutionally approved no-cost extensions up to one additional year,
and automatic carryover of unobligated funds from one budget period to the next.
FFATA: The Federal Funding Accountability and Transparency Act (FFATA) was
signed on September 26, 2006. The intent is to empower every American with the ability
to hold the government accountable for each spending decision. The end result is to
reduce wasteful spending in the government. The FFATA legislation requires
information on federal awards (federal financial assistance and expenditures) be made
available to the public via a single, searchable website. Federal awards include grants,
subgrants, loans, awards, cooperative agreements and other forms of financial assistance
as well as contracts, subcontracts, purchase orders, task orders, and delivery orders.
Final Report: The final technical or financial report required by the sponsor to complete
a research project
Fin EmplID (EFS): Fin EmplID is a conditional ChartField to be used when the
financial activity must be identified with a specific employee. Fin EmplID
provides an additional level of detail below DeptID or Program, or cross-DeptID
or cross-Program information pertaining to a single employee. Fin EmplID
answers the question, “If this financial activity needs to be tracked by individual
employee, to which employee should this transaction be assigned?” Fin EmplID
consists of eight numeric digits, assigned by Human Resources. Its use in a
ChartField String is conditional, depending on the program value used. Units may
set internal policies requiring the use of Fin EmplID without the requirement
becoming a system edit. In this situation, monitoring, enforcement, and ensuring
data integrity is the responsibility of the unit, not central administration. In some
instances, specific program values have been established to require use of Fin
EmplID.
Firm Fixed-Price (FFP): A type of agreement whereby payment is not based on actual
cost expended but upon a mutually agreed upon price.
Fiscal Year (FY): Any twelve-month period for which annual accounts are kept (at
UCM, July 1 through June 30).
FIXED FEE: In a "fixed fee" award, the PI agrees to accomplish project objectives
within a specific timeframe for a set dollar amount per patient, per hour, or other unit.
The total award amount is based on an estimated number of units and is subject to
downward adjustment based on the actual number of units completed. Sponsor approval
is required to exceed the estimated number of units. The fee per unit remains constant,
even if the actual cost per unit is above or below that amount. Any overexpenditures are
the responsibility of the department, and earned unspent revenue does not revert to the
sponsor. If the deliverables are not completed within the award period, the contract must
be extended.
FIXED PRICE: In a "fixed price" award, the PI agrees to accomplish project objectives
within a specific timeframe for a set dollar amount. If the deliverables are not completed
within the award period, the contract must be extended. The award amount also remains
constant, even if actual costs for the project are above or below it. Any overexpenditures
are the responsibility of the department, and unspent funds do not revert to the sponsor.
Function (EFS): The Function code indicates the purpose of a project or program,
such as instruction or research. Instruction and research are different functions,
and departments would need a separate program or project for each. Function
codes are grouped into the following categories:
-Instruction Function Codes
• Research Function Codes
• Public Service Function Codes
• Institutional Support Function Codes
• Academic Support Function Codes
• Student Services Function Codes
• Auxiliary Enterprises Function Codes
• Scholarships and Fellowships Function Codes
• Agency Activity Function Codes
Function codes are four characters long and identify the purpose of
an expenditure. They answer the question, “How does this transaction
accomplish the mission of the University?” Function codes are always
required on all transactions when program or project are applicable.
However, function code will not be entered on individual transactions.
Instead, function is attached to either Program or Project and is
inferred when either of these ChartFields is chosen. Each program or
project can have only one function code attributed to it.
Whenever a department or unit starts performing tasks that are
different from the nature of the work they have been doing, the impact
on function coding must be taken into consideration. For example, if a
department that typically instructs starts to conduct research activities
as well, a new Program must be identified with a research function
code. As a rule of thumb, any single activity that is equal to or greater than
both $100,000 and 25 percent of the total program or project costs
should be separated for the assignment of the appropriate Function
code. To identify and code federally unallowable costs, departments
should separately budget and expend the salaries and benefits for
any person who spends more than 25 percent of total effort in
any particular month performing any of the OMB Circular A-21
unallowable activities (see University Policy, Charging of Direct and
Facilities and Administrative [Indirect] Costs for details).
Fund (EFS): Fund accounting classifies resources for accounting and reporting
purposes in accordance with regulations, restrictions, or limitations imposed by
donors, parties outside of the University, or the Board of Regents.
A fund is an accounting entity with self-balancing sets of accounts that record cash
and other financial resources (assets), with related liabilities, fund equity (net
assets) and other corresponding changes.
The Fund ChartField answers the question: “What broad restrictions or reporting
requirements have been imposed on these funds?” Fund values are always
required on transactions, and consist of four numeric characters.
Fund Balance (EFS): Fund balance is equal to assets minus liabilities within a fund.
General Ledger (EFS): The General Ledger of the U of MN is the official record of the
University’s budgeting and financial transactions. The General Ledger includes budget
transactions, revenue and expense transactions, encumbrances, assets, liabilities and fund
balances.
u
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 furnishings, air conditioning equipment, reproduction and printing
equipment, motor vehicles, and automatic data processing equipment.
GIFT: A unilateral transfer of money, property, or other assets to the recipient for the
recipient’s ownership and use, by a donor who makes no claims on the recipient in
connection with the gift. Gifts normally have the following characteristics:
• The circumstances of the gift allow the recipient significant freedom.
• No deliverables are involved.
• Separate accounting procedures are not required.
• Benefits of the project are to accrue to the nation and the world.
• The donor receives no audit reports.
GRANT: An agreement to transfer money, property, services, or anything of value to
accomplish a purpose, such as provide support or assistance in an area of interest to the
grantor. For an award to be considered a grant, it normally will contain the following
elements:
1. The statement of work allows the project director significant freedom to change
emphasis within the general area of work as the project progresses.
2. Deliverables are minimal, usually consisting of reports only.
3. Separate accounting procedures are required.
Grant/Contract Administrator: University employee who helps manage the sponsored
project.
Grant/Contract Officer: Sponsor’s employee who is officially responsible for the
project’s business management.
Grantee: A grantee is the recipient of a grant. When the University accepts a grant
award, on behalf of an individual, it becomes the grantee.
IACUC: Institutional Animal Case and Use Committee
IBC: Institutional Biosafety Committee
Inception to date: A time period reflecting information collected since the inception or
start of an award.
Indirect Costs: See “Facilities and Administration” The Federal government has
replaced “indirect costs” with the term ‘facilities and administration(F&A) costs.”
Indirect Cost Rate or F&A Cost Rate: A composite rate applied to sponsored projects
as a percentage of the sponsored project's direct costs for the purpose of charging the
sponsored project its share of the University's indirect/F&A costs. The Federally
negotiated Indirect/F&A Cost Rates for research and other sponsored activities are
developed by the University in accordance with OMB Circular A-21 and negotiated with
the Department of Health and Human Services (DHHS), the University's Federal
cognizant agency. Example: "The indirect costs for a project are computed by
multiplying the direct costs by the indirect cost rate." The University uses the term "F&A
cost rate" on its forms.
Informed Consent: The voluntary agreement obtained from a subject (or the subject’s
legally authorized representative) who is agreeing to participate in research or related
activity, before participating in that activity. The consent must permit the individual (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.
In-Kind Contribution: A non-cash commitment (such as contributed effort, facilities
use, or supplies) to share the costs of a sponsored project. The University considers "inkind" to be interchangeable with "matching" but the term may refer to costs borne by an
external organization, for example when individuals at another organization volunteer
their time.
Institutional Authorized Officials: Your contract and grant officer/analyst: individuals
authorized by the Regents of the University of California to sign grants, contracts, and
agreements on behalf of the Regents.
Intellectual Property (IP) : Results of research conducted by the University that have
potential value for practical applications or other uses by the public. Major examples of
intellectual property are inventions, computer software, biological materials, and original
writings. When is it in the interest of the University, or otherwise necessary, a patent or
copyright is obtained to protect intellectual property rights.
Inquiry (EFS): Delivered on-line reporting tool to view financial information from the
journal or ledger.
Internal Services Organization (ISO): University unit whose primary mission is to
provide goods and/or services to other University units.
Invention: A patentable invention is any new and useful process, machine, article of
manufacture, or composition of matter, or new and useful improvement thereof (35
United States Code 101).
Inventor: All personnel who produce a development that must be disclosed to the Office
of Technology Commercialization in accordance with the Regents' Patents and
Technology Transfer Policy.
Invoicing: For some extramural awards, the sponsor initiates payment only after
receiving an invoice with or without expenditure breakdown. Invoices are prepared based
on general ledger expenses and are submitted to sponsors and payments of invoices are
recorded.
IPAS: Institutional Prior Approval System
IRB: Institutional Review Board (for human subjects research)
Journal Entry (EFS): Journal Entry (JE) represents a document type and journal
source. The document type JE would be used to indicate journal entries involving
transfer of funds, moving expenses and correcting entries.
Key Personnel: The personnel considered to be of primary importance to the successful
conduct of a research project. The term usually applies to the senior members of the
project staff.
Letter of Credit: A type of payment in which funds to cover project expenses are
transferred to the University's commercial bank from the Federal Reserve Bank.
Liability (EFS): A financial obligation recorded in the general ledger.
License: Legal permission from a patent owner to practice an invention. The license term
is negotiated with the licensee.
Mandatory Cost Sharing: Matching that is required by the sponsor, is stated on the
Notice of Grant/Contract Award (NOGA), must be documented, and must be reported to
the sponsor.
Mandatory Matching: Matching that is required by the sponsor, is stated on the Notice
of Grant/Contract Award (NOGA), must be documented, and must be reported to the
sponsor.
Matching: The terms "cost sharing," "matching," and "in-kind" refer to that portion of
the total project costs not borne by the sponsor. The University generally refers to
matching when looking at nonlabor items. Cash funds are usually required by sponsors
for equipment acquisition programs, specialized research centers, or other multidisciplinary programs. Typically these funds are provided by the institution.
Material Transfer Agreement (MTA): A Material Transfer Agreement (MTA) is a
written agreement entered into by a provider and a recipient of research material. The
purpose of the MTA is to protect the intellectual and other property rights of the provider
while permitting research with the material to proceed.
Memo Liens: Unofficial commitment based on spending requests that have not yet been
approved or encumbered.
Modification: Any change made to an existing sponsored agreement.
Modified Total Direct Cost (MTDC): Base upon which the Federally negotiated F&A
rates are applied. MTDC is derived by excluding certain costs from the direct cost total.
Exclusions include: equipment, patient care, alterations and renovations, space rental,
tuition remission, subawards to other UC campuses, and in all other subawards, any
amount beyond the first $25,000.
NACUBO: National Association of College and University Business Officers
Non-Competitive Renewal: For multiyear projects, sponsors may require annual
applications for continued funding. These applications do not compete for funds.
Non-Service Payroll: All non-activity-based items which appear in gross earnings for
eligible employees and are not to be included when certifying effort.
Notice of Grant Award (NOGA): A document that provides information regarding the
award's important terms and conditions. It should be referred to by PIs and departments
to provide guidance in managing the project.
No-Cost Extension(NCE): Provides for an additional period of performance to
accomplish project goals. Requests may be handled internally by SPO in certain
circumstances or sought externally from the sponsor.
Non-Payroll Cost Transfers: Also known as Non-PEAR, are non payroll expenditure
adjustment requests. They provide a chance to adjust financial transactions on the general
ledgers. The adjustment requests must be fully explained, justified and approved.
OMB Circular A-21: Office of Management and budget (OMB) circulars give
instructions to the Federal agencies that they are required to implement. The effect is to
provide guidance regarding the maximum requirements for Government agencies and the
minimum standards for institutions.
OMB Circular A-110: Office of Management and Budget Circular A-110, Uniform
Administrative Requirements for Grants and Agreements with Institutions of Higher
Education, Hospitals, and Other Non-Profit Organizations. This document establishes
uniform regulations for each Federal agency to follow in regards to the administration of
projects sponsored by the Federal government. In addition, each Federal agency has its
own regulations that are listed in the Code of Federal Regulations (CFR) and explained in
its policy handbook (if it has one).
Other Sponsored Activities: A broad range of activities that are integral to the
University’s educational, research and public service missions. Some major examples are
art exhibitions, performing art productions, continuing education projects, and the
provision of special resources to the public.
Other Support: All financial resources, whether Federal, non-Federal, commercial or
institutional, available in direct support of an individual's research endeavors, including
but not limited to research grants, cooperative agreements, contracts and/or institutional
awards. Training awards, prizes, or gifts are not included.
Patent: A patent is a grant of property by the United States government to the inventor
giving the owner of the patent the right to exclude others from making, using, offering for
sale, or selling the invention in the U.S. or importing it to this country. A U.S. patent is
granted for 20 years.
PRF Form (Proposal Routing Form): A unique UofM term that refers to the “Proposal
Approval and Submission Sheet” form that must be completed and signed by the PI, the
department head and school dean, before a proposal can be submitted to SPA for review
and submission to a sponsor.
PRICE ANALYSIS: Price Analysis is the process of examining and evaluating a
prospective price without performing cost analysis; that is without evaluating the separate
cost elements and profit of the subawardee included in the proposal.
Principal Investigator (PI): Typically, a faculty member who submitted a proposal that
was funded by an external sponsor, may be referred to as the project director. The PI has
primary responsibility for technical compliance, completion of programmatic work, and
fiscal stewardship of sponsor funds.
Co-PI (Co-PI): Investigators sharing equal responsibility for the direction of a research
program. (PHS/NIH does not recognize the concept of Co-PI.)
Preaward Account: An account established to begin working on a project before the
project start date.
Preaward Costs: Costs incurred prior to the effective date of an award or budget period.
Prior Approval: The requirement for prior written approval to use project funds for
purposes not in the approved budget, or to change aspects of the program from those
originally planned and approved. Prior approval must be obtained before the performance
of the act that requires such approval.
PROGAM (EFS): Program answers the question, “What is the activity for which I
need to capture financial information?” Program describes what is being done –
the activity, or what is being accomplished. Program is required whenever the
Project ChartField is not applicable, and it consists of five alphanumeric
characters. Program is used to track transactions in order to capture information
on a particular activity that is subject to only general budgetary or regulatory
restrictions. Program identifies activities not identified by a project value. (Project
identifies activities that use the project costing module. The project costing module
provides functionality to manage activities with specific budgetary, accounting, or
regulatory requirements. See project definition for further detail.) There are a few
points to keep in mind when working with Programs: 1. Function codes are an
essential element of some of the Universitywide reporting done by central offices.
However, there are other, more specific activities that also need to be
tracked/managed on a University-wide level. Examples include: the President’s
Scholarship Match program, Grant in Aid of Research, Artistry or Scholarship,
and Extension’s collegiate partnerships. 2. Within some Functions, a number of
Programs may sound quite similar—some describe an activity in general terms,
while others describe an activity in finer detail. For example, within Function
0100 (Instruction–Credit Courses) Programs have been set up for: 10031–Credit
Instruction, 10038–Credit Inst Undergraduate,10033–Credit Inst Summer Session,
etc. While one aspect of credit instruction may be important to one unit, a different
parameter may be important for the management of another unit. In these cases,
the RRC Manager (or a leader at the level of a vice president) can determine the
strategy for use of program values within that function code. That person can
determine the level of detail needed to support effective decision-making and
financial management. Program
There are three main types of Program codes:
1. Programs utilized by central administration for uniform use
University-wide
2. Programs defined for common activities and designed for shared
use by multiple departments (Program indicates an activity below
the DeptID level, but may be used by multiple departments).
3. Programs requested for a unique activity within a specific
department.
Alphanumeric values are used for centrally-defined Programs requiring uniform
usage University-wide. These codes are restricted in their use, and are established
by central administration. Alphanumeric codes are not recommended when a
significant volume of data entry is expected. Numeric values are used for all
activities not tracked within the Projects module which do not fit the requirements
for Alphanumeric codes. Numeric program values can and will be used by
multiple users. In all cases, the Program description and the Function code must
accurately reflect the activity. Required for transactions on all revenue, expense,
and transfer Accounts for all activity not defined by a Project in the Projects
Module. A Program value is used in conjunction with a Project value when
Program activities are used as matching/cost-share. Program is also required for all
balance sheet transactions except cash (10XXXXaccounts), accounts payable
(20XXXX accounts), and fund balance (30XXXX).
Program Announcement: Describes existence of a research opportunity. It may
describe new or expanded interest in a particular extramural program or be a reminder of
a continuing interest in an extramural program.
Program Income: Program income is gross income earned by a research grant recipient
from the activities of the grant, support for which was borne as a direct cost by the grant.
Examples are fees for services performed under the grant, rental or usage fees charged for
use of equipment purchased with grant funds, third party patient reimbursements for
hospital or medical services paid from the grant, funds generated by the sale of
commodities, such as cell lines or research animals developed for or paid for from the
grant, and patent or copyright royalties.
Program/Project Officer: A sponsor's designated official responsible for the technical,
scientific, or programmatic aspects of a particular grant, cooperative agreement, or
contract. Serving as the counterpart to the PI/project director of the grantee/contractor
organization, the program/project officer deals with the grantee/contractor organization
staff to assure programmatic progress.
Progress Report: Periodic, scheduled reports required by the sponsor summarizing
research progress to date. Technical, fiscal, and invention reports may be required.
PROJECT (EFS): Projects are used to track a unique group of accounting
transactions in order to capture information on a particular project activity with
specific budgetary, accounting, or regulatory requirements that are supported by
the the Financial System Project Costing module. Characteristics of valid project
types are identified below. Only those activities managed in the Project Costing
module use the Project ChartField. (A program value identifies activities that do
not use the Project Costing module.) Each project value has an attribute that
identifies a function code. The Project Costing module is required for use with the
following project types:
• Sponsored projects – projects with an external sponsor managed
through the University’s Sponsored Projects Administration
• Construction in progress – building projects which will result in a capitalized
item managed through Facilities Management Use of the Project Costing module
for other project types requires approval by the Office of the Controller. Approved
project types will demonstrate a business need for the functionality provided in the
Project Costing module, and the projects will have at least four of the following
characteristics: • A separate budget with line item budgetary restrictions (by
Account or budget-only Account) • A defined life cycle (specific begin and end
dates) independent of the University’s fiscal year • Support from revenue received
through letter of credit processing • A clearly defined outcome • A principal
investigator Approval for a project type may only be requested by the unit with
primary authority for the project type. If approved, all activity of a project type
uses Project rather than Program. A project value is used in conjunction with a
program value when program activities are used as matching/cost-share.
Project answers the question, “What is the project activity for which I need to
capture financial information?” Project consists of eight numeric characters. All
sponsored projects are assigned values through Sponsored Project Administration
(SPA) while nonsponsored values are assigned by Accounting Service
Project Period (PP): The total time for which support of a project has been
programmatically approved. A project period may consist of one or more budget periods.
Proposal: A set of documents containing a descriptive narrative of an idea and a budget
to be submitted to a funding agency for sponsored support. Some agencies require that
proposals be submitted on preprinted forms, while others have no specific format.
Public Service: Provides support for the purpose of organizing, establishing, providing
or enhancing the delivery of services to a particular community or non-University
audience. Examples: Musical or dramatic productions; tutorial services to potential
University.
OTC: Office for Technology Commercialization. The administrative office that seeks
proprietary protection for University technology, including inventions and copyrightable
materials, and negotiates their transfer to the private sector through licensing or by
participating in starting new companies.
Purchase Order: Authorization sent to a vendor to supply goods or services in return
for payment. It is a document used to encumber funds to be spent in the future and record
obligations prior to
REASONABLE COSTS: A cost is reasonable if, in its nature and amount, it does not
exceed that which would be incurred by a prudent person in the conduct of competitive
business.
Re-budgeting: Process by which funds available for spending are reallocated between
budget categories to allow best use of funds to accomplish project goals.
Request for Applications (RFA): Announcements that indicate the availability of funds
for a research area of specific interest to a sponsor. Proposals submitted in response to
RFAs generally result in a grant award. Specific grant announcements may be published
in the Federal Register and/or specific sponsor publications. The RFA instructions
include the information necessary to complete the application and mailing instructions
Request for Proposal (RFP): Announcements that specify a topic of research, methods
to be used, product to be delivered, and appropriate applicants sought. Proposals
submitted in response to RFPs generally result in a contract award. Notices of Federal
RFPs are published in the Commerce Business Daily.
Research: Diligent and systematic inquiry or investigation into a subject in order to
discover or revise facts, theories or applications
Revision: A modified and resubmitted request for funding for a project that was
previously not funded because it was either denied by the sponsor or withdrawn by the PI
RSPP: Research Subjects' Protection Programs
SFR: Sponsored Financial Reporting
SPA (Sponsored Projects Administration): The University of Minnesota system-wide
office authorized to submit research proposals and receive awards from external sources
on behalf of the Board of Regents of the University of Minnesota. SPA is also the
fiduciary for the U on grant-related matters.
Special Purpose Equipment: Equipment which can be used only for research or other
technical activities.
SPIN: Sponsored Projects Information Network
Sponsor: An external funding agency which enters into an agreement with the University
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.
Sponsored Research (also referred to as extramural support/funding): Funding for
research, training or public service programs provided by Federal or private sources
outside the University, usually requiring formal acceptance of terms and conditions by
the University related to the performance of the research.
Stipend: A payment made in accordance with preestablished levels, to an individual to
provide for their living expenses during the training period of a fellowship or training
project.
Sub and Object codes: 2 digit Sub codes are general cost categories such as salaries (sub
00, 01, 02), supplies (sub 03), equipment (sub 04), overhead (sub 9H) etc.
4 digit Object codes are further break downs of sub codes. Examples are 1XXX-salaries
and wages, 2XXX-travel costs, 30XX-transportation of things etc. Allowability of
expenditure on extramural funds are monitored by analyzing these cost categories.
Subaward, Subcontract, Subgrant, or Subagreement: A document written under the
authority of, and consistent with, the terms and conditions of an award (a grant, contract
or cooperative agreement), that transfers a portion of the research or substantive effort of
the prime award to another institution or organization.
SUBCONTRACT: FAR (Federal Acquisition Regulations) Part 44.101 defines a
subcontract as follows: “Subcontract”, as used in this part means any contract as defined
in Subpart 2.1 entered into by a subcontractor to furnish supplies or services for
performance of a prime contract or a subcontract. It includes but is not limited to
purchase orders, and change orders and modifications to purchase orders.
SUBCONTRACTOR: FAR Part 44.101 defines a subcontractor as follows:
“Subcontractor”, as used in this part means any supplier, distributor, vendor, or firm that
furnishes supplies or services to or for a prime contractor or another subcontractor.
SUBRECIPIENT: OMB Circular No A-133 Subpart A 105 definitions a subrecipient as
follows: A subrecipient means a non-federal entity that expends Federal awards received
from a pass-through entity to carry out a Federal program, but does not include an
individual that is a beneficiary of such a program. A subrecipient may also be a recipient
of other Federal awards directly from a Federal awarding agency.
SUBRECIPIENT AGREEMENT: A Subrecipient agreement is a complex form of
procurement which (1) is generally issued under a MIT WBS element, (2) provides for
the acquisition of experimental, developmental or research work, and (3) is generally
issued on a cost reimbursement basis.
Supplemental (Rebudgeting or Modification) Proposal: A request to the sponsor for
additional funds for an ongoing project during an already approved performance period.
A supplemental proposal may result from increased costs, modifications in design, or a
desire to add a closely related component to the ongoing project
Terms of Award: All legal requirements imposed on a recipient by the sponsor, whether
by statute, regulation(s), or terms in the award document. The terms of an agreement may
include both standard and special provisions that are considered necessary to protect the
sponsor's interests.
Transaction Type: Loan/cooperative agreement/contract/grant, etc.
Transfer of Funds (TOF): Transfers of funds are initiated to establish budgetary
appropriations and adjust budgetary appropriations.
Tree (EFS): Trees are structures that define various roll-ups in PeopleSoft by using
levels and nodes. Each tree applies to a specific ChartField. Reports access tree nodes to
specify selection criteria and use tree levels for roll-ups and subtotals.
Total Direct Cost (TDC): The total of all direct costs of a project.
Total Project Costs: The total allowable direct and indirect costs of a project.
Trademark: A name, work, symbol, or device which allows the trademark owner to
dictate its use in identifying a product, e.g., logos and brand names.
Unallowable Costs: Unallowable cost means any cost which, under the provisions of any
pertinent law, regulation, or sponsored agreement cannot be included in prices, cost
reimbursements, or settlements under a Government sponsored agreement to which it is
allocable. (CAS 9905.505).
Unilateral Agreement: A type of sponsored agreement that the University does not have
to sign in order to receive funds.
Unobligated or unexpended balance: Unspent fund balance.
Unrestricted Funds: Monies with no requirements or restrictions as to use or
disposition. Grants, contracts, and cooperative agreements are considered to be restricted
funds, while gifts are considered unrestricted funds.
Unsolicited Proposal: Proposals submitted to sponsors that are not in response to an
RFP, RFA, or program announcement.
Voluntary Cost Sharing: Cost sharing that is not required by the sponsor, is stated on
the Notice of Grant/Contract Award (NOGA), and although not reported to the sponsor,
must be documented through established procedures.
Voluntary Matching: Matching that is not required by the sponsor, is stated on the
Notice of Grant/Contract Award (NOGA), and although not reported to the sponsor, must
be documented through established procedures.