Sponsored Programs FAQ

What is a sponsored project?

A sponsored project is one (whether Instruction, Research, Public Service, or Other) which an entity (usually external to the University and its related organizations) agrees to fund, at least partially, based on a proposal (which should be in writing) submitted by the department/principal investigator through the appropriate Sponsored Programs office and approved by the respective Vice President. An unsolicited sponsored project may be approved by the appropriate Vice President (Sponsored Programs office) assuming adequate written instructions and budget information is provided in the award document.

How do I know when to submit my proposal in the name of the University of Georgia Research Foundation, Inc. (UGARF), instead of the University?

All research proposals should be submitted in the name of the University of Georgia Research Foundation, Inc. All others should be solicited in the name of the University.

What is the difference between the University of Georgia Foundation and the University of Georgia Research Foundation, Inc.?

The University of Georgia Foundation is set up to accept unrestricted gifts whereas the University of Georgia Research Foundation, Inc. is set up to accept all restricted research projects.

Can gifts payable to the University for use by a principal investigator for his/her general area of research or other endeavor be deposited to a University account?

Yes, the check and letter of transmittal from the donor indicating the funds are considered a gift (as opposed to a grant or contract for specific services) to be used for general purposes of the intended faculty member can be sent along with a copy of the Gift/Grant Transmittal Form directly to the Post Award Accounting Department to be deposited to a "various income" restricted account. While the sponsor can generally restrict the purpose of the gift, there must be a complete renunciation of all rights. There can be no claim on intellectual property, financial reporting, billing, or program reports other than those published in the open scientific literature, etc.

What's the purpose of a Departmental Sales account and why can't my small sponsored projects be accounted for in one?

A Departmental Sales account is used to deposit incidental income resulting from such things as repetitive tests and analysis performed in a University lab environment where the service may be offered to many users primarily within the University or, on occasion, to external organizations. It should also be used to deposit incidental income (i.e. honoraria payments) resulting when a faculty member receives small checks for assistance to outside units while being paid on University payroll. A sponsored project, on the other hand, is for on-going non repetitive effort involving many different processes for the same outside organization, usually based on very specific procedure.

Why are some clinical trials accounted for in Departmental Sales accounts and others in sponsored accounts?

It is University policy to account for clinical trials in a Research Departmental Sales account when the sponsor is unable to pay associated indirect costs. When it is possible to collect associated indirect costs, the agreement to perform the trials should be negotiated in the name of the University of Georgia Research Foundation, Inc. The agreement will be subcontracted in total to the University where a sponsored account will be established to account for the project. This procedure will facilitate the proper accounting for indirect costs (including returning the agreed upon portion to the department).

When is money received from a sponsor as "stipend" paid as a stipend (aid) and when should it be paid to the recipient in the form of salaries?

Sponsors often refer to payments to participants as "stipends", without regard to how the University plans to make payment. This causes a great deal of confusion, especially in view of strict guidelines prescribed for the University by the IRS when there is an employer/employee relationship created. Basically, the budget should be developed based on whether or not the payment will be for services rendered. If this service creates an employer/employee relationship with the University, the recipient must be placed on the payroll and the budget submitted to the sponsor should include the salary category of expenditure. However, if the funds are intended to be strictly aid payments and services will not be provided to the University, the payment must be as a stipend (aid) payment on a check request and included in the budget to the sponsor as "stipends".

F&A Cost Rate

Please click here for more information about F&A Cost Rate

What is "cost sharing" and how does it work?

Cost sharing is any cost of a project not paid by the sponsor. It can be mandatory (required by the sponsor) or voluntary (offered or performed by the University). When cost sharing is referred to in any way in the project budget or narrative (mandatory or voluntary), a separate general cost sharing account will be established by the Post Award Accounting Department at the time the sponsored account is established. That cost sharing account number should be used when making all University expenditures applicable to the project which will not be paid for by the sponsor.

What is "program income" and how is it accounted for on University records?

Program income is any income resulting as a by-product of a sponsored project. An example might be a sponsored project funded to conduct a specific workshop. The sponsor could authorize the University to charge the participants fees which would be used to offset the total costs of the workshop. The sponsor would commit to covering any cost which exceeds the workshop fees (program income). When developing the project budget, that income would be estimated and considered when anticipating total expenditures. The program income account would be established along with the regular sponsored account by the Post Award Accounting Department at the time of the award. All workshop fee income would be deposited to the program income account and expended as needed along with funds provided by the sponsor. The income and disbursements for the regular sponsored and program income accounts would be maintained separately.

What can I do to start spending on a sponsored project which has been proposed to a sponsor before the award reaches the University?

The department should complete the "Pending Award Request Form" and forward it to the appropriate Sponsored Programs office. This form serves as a letter of guarantee from the department head requesting an account be established in advance of the award with the understanding that, should the award not be received, the department will cover all unreimbursed expenditures. Pending awards should be used as the last resort since the process significantly increases the associated administrative effort (the award has to be handled twice - once to create the pending account and again when the final award is processed). Additionally, it is important that costs incurred during the "Pending Award" status fall within the final approved award project period, including any applicable preaward (90 day) period.

What are preaward costs and when can they be incurred?

Preaward costs are costs incurred by the University for a specific project prior to the project begin date. Several federal programs permit, at the risk of the grantee (University), preaward costs to be incurred within the ninety calendar day period immediately proceeding the effective date of an award.

How do I know what fringe benefit rates to use in my sponsored project proposals?

The fringe benefit rates to use in proposals are normally distributed early in November of each year. These rates are for budgeting purposes only. Actual fringe benefit rates for each individual will be charged to the sponsored projects. This practice is approved by the cognizant federal agency as part of the University's negotiated Indirect Cost Rate Agreement.

Can more than one account be established to administer a sponsored project?

Yes, when more than one department has significant responsibilities for the completion of a project, additional restricted accounts may be established, as necessary. Generally, one account in the home department of the principal investigator is established for the purpose of collecting all sponsored costs for the project. Individuals from other home departments should be paid from the established sponsored account thereby resulting in release time in their respective departmental budgets.

When multiple departmental sponsored accounts are established to complete a project which has cost sharing requirements, can multiple cost sharing accounts also be established?

Yes, associated cost sharing accounts will be established by the Post Award Accounting Department, as appropriate. If the proposal budget is not clear as to which departments will cost share, just call the Post Award Accounting Department and request what is needed.

Cost Sharing Accounts

Please click here for information about Cost Sharing Accounts.

Who is responsible for the preparation of invoices and financial reports to the sponsors?

The Department of Post Award Accounting has been assigned these responsibilities under normal circumstances. However, where invoices are based on specific tasks or deliverables, such as number of counseled clients or specific tests, where those costs cannot be differentiated from other costs recorded on the University Account Status Reports, the department may be approved to submit invoices to the sponsor. Additionally, when awards are accepted by a department which require highly detailed invoices or reports not conforming to the University's standard format capabilities, such as number of hours worked or copies of detail transactions, the department will be expected to provide that information to the Department of Post Award Accounting to be reconciled to the University Account Status Reports and forwarded to the sponsor.

What do I need to do when my fixed-price contracts are complete and there are remaining funds available to use?

The principal investigator should ask the department head to send a letter through the Sponsored Programs office to the Department of Post Award Accounting indicating the project is complete, all final program reports have been accepted by the sponsor, and request that the account end date be open-ended. Post Award Accounting will confirm with the department that all funds due the University have been received, the reasonableness of the cash balance, and open-end the account, as appropriate. The remaining funds can then be used for any "State approved" expenditure. The applicable indirect costs will continue to be charged to the account until all funds have been depleted and the account has been closed.