Handling of AWARDS and SUBAWARDS

Award Process

Once a proposal is submitted to a sponsor, the review process may take from six to nine months before the University receives formal notification about its status. While Principal Investigators may receive preliminary or informal advice from the sponsor, this advice may precede official notification by as much as several months. Because scientific or program approval does not always guarantee funding, no work may be initiated or costs incurred until the sponsor's official written notification is received and accepted by the University. When this notification comes directly to the investigator, the award document and any attachments should immediately be forwarded to the Office of Sponsored Research for handling the process of formal acceptance through Financial Services.

Negotiations

In some instances, the sponsor will wish to negotiate the substance or scope of the work, or the terms and conditions under which an award will be made. Negotiations of the technical aspects of a proposal are generally conducted with the sponsor's program officials; negotiations concerning type of award mechanism, terms, and financial arrangements are conducted with the sponsor's grant or contract officials. The Principal Investigator, Director of Sponsored Research, and the Grants Accountant/Assistant Controller, are responsible for negotiating the technical and contractual aspects of the proposal.

It should be noted, however, that in no case should the technical aspects of the project be negotiated without consultation with the Office of Sponsored Research and Grants Accounting, since any changes in the project scope are likely to affect the cost elements as well as other performance aspects, particularly the time period.  Final Negotiations and signature approval lie with the Executive Vice President and Chief Operating Officer (EVP-COO).

If negotiations do result in any major contractual or technical changes to the original proposal, the proposal, as revised, must be resubmitted for internal approval, following the same procedures as those outlined for the original proposal.

Award Documents

An award may be made in the form of a letter issued by the sponsor or it may consist of a complete contractual document.

Acceptance of an Award

The Office of Sponsored Research is the University's central office for the receipt of notifications of sponsor acceptance or rejection of awards. In cases where an award document is sent directly to the Principal Investigator, as is often the case, such notices should be forwarded to the Office of Sponsored Research immediately. The Director of Sponsored Research will notify the Grants Accountant, the PI's Chair and Dean, the Chancellor and Public Relations using the Notice of Award Memorandum.

Because an award to the University from a sponsor represents a formal obligation by the University, the Principal Investigator and the Office of Sponsored Research must review the provisions of each award offer before the University formally accepts the award. The Principal Investigator must review the document to ensure its conformance with the proposal and that the scope of work, timetables, and deliverables, if any, are acceptable. The Office of Sponsored Research reviews the award to ensure that its provisions are acceptable to the University, identifies any unusual terms and conditions to the Principal Investigator, and conducts any further negotiations with the sponsor, should they be required.

After review, the Office of Sponsored Research submits the appropriate acceptance documents to the sponsor pending any required signature by the EVP-COO. In some cases, the award is not official until the sponsor returns a final signed copy of the award document. If the award contract requires an official Chapman University signature, it must be reviewed and signed by the Executive Vice President and Chief Operating Officer.

No charges may be incurred against a sponsored project until such time as the EVP-COO has formally accepted the award and a University account number has been issued by Grants Accounting. Commitments to personnel or subcontractors, prior to formal institutional processing, will not be honored.

Accountability

As signatories on the Office of Sponsored Research Routing Form for Proposal Submission, Principal Investigators, Department Chairpersons/Directors, and Deans/Unit Budget Heads are considered by the University to be accountable for project implementation as outlined in the proposal. Both technical and administrative content fall within their purview.

Award Accounts

The Office of Sponsored Research prepares and distributes a copy of the award and internal budget to all concerned units within the University.

Please note that the Principal Investigator will need to follow University policies to place people on the payroll or otherwise expend funds.

Upon receipt of the award document, the Office of Sponsored Research will forward a copy to the Director of Contracts and Grants for assignment of an account number. Each project is fiscally accounted for by a separate restricted account.

Expenditures

Authorized Budget
Each project has a budget approved by the sponsor that is reviewed by the Director of Contracts and Grants. The Principal Investigator, in consultation with Office of Sponsored Research and the Director of Contracts and Grants, manages the project budget, expending funds only for allowable costs and keeping expenditures within budget. This is a target document indicating intended categories of fund expenditures; depending on the sponsor's award provisions, it may be modified, as required, in the course of project performance. Some sponsors have restrictions as to the kinds and amounts of modifications that may be made in the budget. Budget modifications should be requested through the Grants Accountant and the Office of Sponsored Research.

Disbursement Approval Process
All disbursement of grant funds (Check Requests, Purchase Requisitions, Travel Reimbursements, Cost Transfers, etc.) requires the following procedure: The Principal Investigator must sign his/her approval, either hard copy or electronically, whichever is appropriate.  If seeking approval for themselves, disbursements are forwarded to the Office of Sponsored Research for approval by the Director.  The OSR Director checks the budget for sufficiency of funds, whether the cost is allowable by and allocable to the grant.  If approved, the OSR Director forwards the signed disbursement form to the Director of Contracts and Grants, who, once again, checks the budget and allowability of the disbursement.  If seeking approval for direct payment to someone other than themselves, or to a vendor, the PI approved disbursements are forwarded to the C&G Director who checks the budget and allowability of the disbursement, forwards the signed form to the appropriate disbursement office.  No other signatures are required for purely grant expenditures.  However, if the transaction involves funds being transferred into or out of accounts overseen by a department chair and/or a school dean, then their signatures are additionally required after the PI approves the request. Disbursement of expenditures charged to indirect cost accounts follows the same procedure as grant accounts, except it can be initiated by the PI, chair, or dean, whoever has authority over the specific indirect cost allocation, followed by OSR and C&G.

Commitment of University Resources
Persons making unauthorized commitments of University resources may become personally responsible for those commitments. For example, the University will not recognize obligations for subcontracts or consultant service agreements that have been entered into without institutional clearance. Contracts of this nature are signed for the University by the Executive Vice President and Chief Operating Officer.

Budget Revision and Extension
Once a grant has been awarded and work is proceeding, Principal Investigators may need to revise their approved budget or to seek a no-cost extension of the duration of the award.  To pursue this, Principal Investigators will send an email to the Directors of Sponsored Research and Contracts and Grants outlining their specific request.  Each funding agency has unique requirements and procedures for requesting such changes which are specified in the terms and conditions an award.  Once the appropriate course of action is identified, by the PI and Contracts & Grants, the request will be send to the Director of Sponsored Research, who will then seek agency approval, if necessary.

SUBAWARDS

Subawards to the University from another institution
Subawards to the University are handled through the Office of Sponsored Research and the Office of Contracts and Grants in the same manner as an award from an external sponsor.  These offices will provide the awarding institution the documentation they require in collaboration with the University principal investigator.  Once awarded the subaward is monitored internally as any grant would be, and by the awarding institution in accordance with their policies and procedures as expressed in the subaward.

Reporting Requirements

Technical Reporting
With few exceptions, every sponsor requires a stipulated number of reports during the life of the project as well as a final report. Preparation of the technical report(s) is the responsibility of the Principal Investigator, who must make certain that such reports are delivered to the sponsor in a timely manner and in the required format. The importance of the submission of such a report(s) on a timely basis cannot be overstated. In a grant or contract arrangement, unlike gifts, the sponsor expects to be informed of results. Negligence by the Principal Investigator may substantially affect his or her (and the University's) ability to receive other support from the sponsor; it may also result in a loss of payment for costs already incurred.

Reporting of Financial Data
The Grants Accountant in the Controllers Office is responsible for the preparation of billings and financial reports to project sponsors. Principal Investigators should not prepare and send billings or provide financial reports to sponsors. Some sponsors request that technical and financial reports be combined and submitted through the Office of Sponsored Research. Sponsor requests for special billings or reports should be directed to the Grants Accountant in the Controller's Office.

Records Retention
At a minimum, records pertaining to grant/contract income, expenses and correspondence must be retained for a period of five (5) years, beginning with the final closing date of the award period.

CLOSEOUT

Check to assure that Technical Reports have responded to the sponsors requirements for progress, objectives and deliverables, and indicate all publications generated by this funded project.

Check to assure that all final financial reports  meet the sponsors requirements and include a clear statement of expenditures.

Report inventions made in connection with this project.

Report on property acquired in connection with this project, including items purchased by the sponsor, the PI's unit, or by a subcontractor.

Prepare a Grant Completion Checklist in consultation with the Director of Contracts and Grants during the course of the Closout process and submit it to the Office of Sponsored Research.