HANDBOOK

• INTRODUCTION
• EXPORT CONTROL
• PUBLICATIONS
• COST OF RESEARCH
• INTELLECTUAL PROPERTY
• RESEARCH INTEGRITY
• CONFLICT OF INTEREST
• OFFICE OF SPONSORED PROJECTS
• GENERAL INFORMATION
• KEY AREAS OF RESPONSIBILITY
• BOILERPLATE INFORMATION
• UNIVERSITY RESOURCES
• SPONSORED PROJECTS
• GIFTS TO SUPPORT RESEARCH
• OTHER GIFTS
• SERVICES AND RESOURCES AVAILABLE
• PERSONS AUTHORIZED TO BE PRINCIPAL INVESTIGATORS OR
  CO-PRINCIPAL INVESTIGATORS
• PROPOSAL PREPARATION
• PROPOSAL FORMAT
• PREPARING THE BUDGET
      Direct Costs
      Salaries and Wages
      Fringe Benefits
      Consultants
      Capital Equipment
      Expendable Equipment and Supplies
      Publication Costs
      Travel
      Computer Time
      Subcontracts/Subrecipient Agreements
      Other Direct Costs
      Facilities and Administrative Costs
      On and Off Campus rates
• MATCHING FUNDS/COST-SHARING
• SPECIAL APPROVALS- Animal Welfare, Human Subjects, Biohazardous
  Materials and Radioactive Isotopes, and Recombinant DNA
     Animal Welfare
     Human Subjects
     Recombinant DNA
     Radiation/Radioisotopes & Infectious Agents, Human Blood,
     or Extreme Toxins
• ADMINISTRATIVE REVIEW AND APPROVAL OF PROPOSAL
• PROPOSAL PROCESS CHECKLIST
• THE OSP PROCESSING TIME
• POST-PROPOSAL/PRE-AWARD ADMINISTRATION
     Budget Negotiations with the Sponsor
     Submitting a Revised Budget
     Business Negotiations
• THE AWARD PROCESS
     Award Acceptance and Post-Award Administration
     Subcontract/Subrecipient Agreement Award Development
     Internal Equipment Screening Procedures
     Federal/State Excess Property Program
• POST AWARD ISSUES
     Extensions
     Budget Changes
     Supplemental Funds
     Change of PI
     Leave of Absence
     PI Leaving the University

INTRODUCTION

Faculty and authorized professional research staff are encouraged to seek external financial support for specific projects undertaken to further the mission of the University in teaching, research and public service. Sponsored projects enhance and expand the educational opportunities available to undergraduate and graduate students at the University, permit research, scholarly inquiry, and the development of new knowledge, contribute to the academic achievement and stature of the institution, and assist the University in fulfilling its responsibilities to the state and the nation.

The primary responsibility for the origination, development and preparation of proposals rests with the Principal Investigator (faculty member with rank of Professor, Associate Professor, Assistant Professor, or Instructor; or  professional research staff with title of Director, Research Scientist/Engineer, and Senior Research Scientist/Engineer). All proposals are expected to be germane to the interests and expertise of the Principal Investigator and shall be consistent with and contribute to the mission of the University. While awards for successful projects are made to the University, the Principal Investigator is responsible for the management, execution, and completion of the project, including submission of all required reports. Information, assistance and technical support are provided to the Principal Investigator during the pre-award process by the Office of Sponsored Projects and during the post-award phase by the Contracts and Grants section of the Office of Accounting.

As a public institution, the University will not conduct proprietary research, develop exclusive or proprietary data for a sponsor, conduct any "work-for-hire", or permit a sponsor to direct or control research on campus. University facilities and equipment may not be used by a sponsor's employees or for the specific benefit of a sponsor. The purpose of University research is the discovery and dissemination of new knowledge; the University cannot assume the role of an advocate or a social action agency.

EXPORT COMPLIANCE

(Export control procedures and further information on this area of compliance are highlighted on OSP’s website: http://www.utexas.edu/research/osp/

For additional information on export controls, please link to the following website at Oklahoma State University, used with its permission: http://www.research.okstate.edu/ Then, go to the link "Export/Import (EAR/ITAR) Regulations and Resources".
EAR/ITAR Web Links

Bureau of Industry and Security
EAR/ITAR Related Conferences
Export-Controlled Information
International Traffic in Arms Regulations (ITAR)
Office of Foreign Assets Control (OFAC)

Definitions
Export Control Laws
    - Use Technology Summary Index from the Bureau of Industry and Security
Export Controls (EAR/ITAR) and Embargoes (OFAC)
Export Controls (EAR/ITAR) and Embargoes (OFAC) - By Categories
Export Controls (EAR/ITAR) and Embargoes (OFAC) - By Restriction
Selected Troublesome/Unacceptable Clauses Related to Information Release and Foreign Nationals

Concerns about inappropriate transfer of certain technologies, equipment, products, hardware, software, services, and data outside the U.S. have led to certain U.S. laws and regulations governing U.S. export control/compliance.  UT-Austin is required to comply with U.S. export controls.  Consequences of violating such export laws/regulations can result in monetary penalties, jail time, and loss of export privileges.

Export has a broad definition and generally means: (1) Any oral, written, electronic or visual disclosure; shipment; transfer; or transmission of an article/item, software, technology, information, assistance or technical data out of the U.S. to anyone at a foreign destination; or (2) any oral/written/electronic/visual disclosure of technical data to a foreign person/entity not a US citizen or not a permanent resident alien (Green Card holder) in the U.S. as a "deemed export."  Such a deemed export could occur with lab visits, visiting scientists, foreign students, joint research, joint discussions, partnering, sharing research, phone calls, emails, etc, etc.   It is not a deemed export to be involved with this deemed export process when the recipient is one of your full time regular employee who is not a US citizen or not a permanent resident alien (Green Card holder).  A "deemed re-export" is a transfer of controlled US technology to a third-country national overseas using the deemed export process. You may need to obtain a license to "reexport" an item that was produced or originated in the United States. A "reexport" is the shipment or transmission of an item from one foreign country (i.e., a country other than the United States) to another foreign country.

Whether an item requires an export license depends upon four considerations:  the item’s technical characteristics, the destination, the end-user, and the end-use – that is, WHAT are you exporting? WHERE are you exporting? WHO will receive the item/information? WHAT will the item/information be used for?

U.S. Dept. of State - Arms Export Control Act (AECA)/International Traffic in Arms Regulations (ITAR) apply to defense articles, defense services, and defense technical data) specifically for military application (inherent capability and design - not necessarily end use), so listed under one of the twenty-one (21) categories in the ITAR "United States Munitions List" (USML).

U.S. Dept. of Commerce - Export Administration Act (EAA)/Export Administration Regulations (EAR) apply to civilian-only use and military/civilian "dual use" items, services, and technical data, so listed under one of ten (10) categories in the "Commodity Control List" (CCL) of the EAR. 

A complete on-line version of the EAR and ITAR (including the critical technology list) is available[1]: The complete text of ITAR and the USML are available online at the Government Publishing Office website (http://www.access.gpo.gov/nara/cfr/index.html#page1). The complete text of ITAR and the USML are also available online at the Federation of American Scientists website: http://www.fas.org/spp/starwars/offdocs/itar .

The complete text of the Code of Federal Regulations (CFR) is available online at the Government Publishing Office web site. The CCL can be found here (PDF).

For a university like UT-Austin, one thing that qualifies for both an ITAR export license exclusion and an EAR export license exception is "Fundamental Research" (release to foreign national in US only), based on National Security Decision Directive 189 (NSDD 189).  Fundamental Research includes basic (with no application) or applied (applies to meet a need) research in science and/or engineering at an accredited institution of higher learning in the U.S. where the resulting information, in some cases, is ordinarily published  (EAR) and shared broadly in the scientific community and, in other cases, where the resulting information has been or is about to be published (ITAR).    University research will not be deemed to qualify as Fundamental Research if - under EAR but possibly not under ITAR - (1) the university accepts any restrictions on the publication of the information resulting from the research, other than limited prepublication reviews by research sponsors to prevent inadvertent divulging of proprietary/confidential information provided to the university by the sponsor or to insure that publication will not compromise patent rights of the sponsor; or (2) the research is federally funded and specific access or dissemination controls regarding the resulting information have been accepted by the university or the researcher.  Language restricting a university not to provide access to foreign nationals on an unclassified program or language requiring prior Sponsor approval on publications are not acceptable and will cause loss of the Fundamental Research Exclusion/Exception on that program. 

An even broader exclusion is the Public Domain Exclusion where the technical data or non encrypted software is published (library, patent, conference, website, general science) and available to the public.

Ultimate Destination Specific Requirements:

Defense:  Certain countries are subject to U.S. export sanctions with regard to defense articles, defense services, and defense technical data exports, and are thus prohibited destinations for defense article, defense services, and defense technical data exports. These countries are stated in two U.S. Government embargoed country lists - State Department's Embargoed Country List (http://pmdtc.org/country.htm) and the Treasury Department's Embargoed Country List For Exports  (http://www.treas.gov/offices/enforcement/ofac/programs/).
As of October 2003, the following twenty two (22) countries are listed by combining these two lists: Cuba, Iran, Libya, Sudan,  Afghanistan, Angola, Burma, Belarus, China (PRC), Cyprus, Haiti, Indonesia, Iraq, Liberia, North Korea, Rwanda, Somalia, Syria, Vietnam, Yemen, Zaire and Zimbabwe.

Dual Use (including civilian-only use): Certain countries are subject to U.S. export sanctions with regard to dual use items, dual use services, and dual use technical data exports, and are thus prohibited destinations for dual use items, dual use services, and dual use technical data. These countries are stated in two (2) U.S. Government embargoed country lists - Commerce Department's Embargoed Country List ( http://www.bis.doc.gov/licensing/exportingbasics.htm) and the Treasury Department's Embargoed Country List For Exports (http://www.treas.gov/offices/enforcement/ofac/programs/). As of October 2003, the following four (4) countries are listed by combining these lists: Cuba, Iran, Libya and Sudan. Exports of dual use items, dual use services, and dual use technical data are prohibited to these four (4) countries, except as otherwise stated in the sanctions regulations for each of the four (4) countries and except as stated in the Trade Sanctions reform Act (TSRA).

End User Requirements:

Defense :  As of October 2003, end users-type U.S. export sanctions, in the case of defense articles, defense services, and defense technical data exports, are stated on three (3) U.S. Government "bad guy lists"- State Department's list of Debarred Persons (http://www.pmdtc.org/debar059.htm), State Department's list of Proliferators (http://www.treas.gov/offices/enforcement/ofac/programs/wmd/wmd.txt), and Treasury Department's list of Specially Designated Nationals (http://www.ustreas.gov/offices/enforcement/ofac/sdn/index.html).
These lists identify prohibited end users to whom exports of defense articles cannot be made.

Dual Use (including civilian-only use): As of August 2003, end users-type U.S. export sanctions, in the case of dual use items, dual use services, and dual use technical data exports, are stated on five (5) U.S. Government "bad guy lists." - Commerce Department's list of Denied Persons (http://www.bis.doc.gov/DPL/Default.shtm), Commerce Department's Entity List (http://www.bis.doc.gov/Entities/Default.htm), Commerce Department's list of Unverified End Users (http://www.bxa.doc.gov/Enforcement/UnverifiedList/Unverified_Parties6_14_02.html), State Department's list of Proliferators (http://www.treas.gov/offices/enforcement/ofac/programs/wmd/wmd.txt); and Treasury Department's list of Specially Designated Nationals (http://www.ustreas.gov/offices/enforcement/ofac/sdn/index.html). Three (3) of these lists (the Commerce Department's list of Denied Persons, the Commerce Department's list of Proliferators, and the Treasury Department's list of Specially Designated Nationals) identify prohibited end users to whom exports of dual use items cannot be made. However, the other two lists (Commerce Department's Entity List and Commerce Department's list of Unverified End Users) identify restricted end users to whom exports of dual use items cannot be made without a Commerce Department export license, unless otherwise allowed by law or regulation.

End Uses Requirements:

End uses requirements (set out in EAR Part 744) broadly prohibit uses of items, services, and technical data related to weapons of mass destruction (missiles, nuclear weapons, chemical weapons, and biological weapons) and maritime nuclear propulsion.

PUBLICATIONS

Publication of new knowledge developed under sponsored projects is a fundamental responsibility of the University. The University retains the right to publish all work done under sponsored projects and Principal Investigators are encouraged to use all appropriate channels to disseminate the results of their work. Publication delays of a reasonable period are allowed to permit filing of a patent application, to permit review for possible premature disclosure of patent application information and to review for inadvertent disclosure of a sponsor's confidential information. In all cases, the final decision to publish rests with the University.

COST OF RESEARCH

The University expects external sponsors to pay the actual costs of conducting the sponsored project. These costs include both the direct and the facilities and administrative cost obligations incurred by the University in the conduct of a project. The direct costs, that is, those costs that are clearly identified with and benefit a specific research project, include salaries, fringe benefits, equipment, supplies, travel and other expenses. The facilities and administrative costs are those institutional research infrastructure costs that cannot be readily attributed to an individual project or monitored on an individual basis and include building and equipment use, operations, maintenance and utilities, general, departmental and sponsored projects administration, library, and capital improvements. Each sponsored project is expected to pay its proportional share of these research infrastructure costs. This payment is based on the facilities and administrative cost rate that is negotiated annually (or multiple years) between the University and the U.S. Department of Health and Human Services. Since the facilities and administrative cost rate is based on the level of existing facilities and administrative costs associated with research, the facilities and administrative cost income received by the University (and all other institutions of higher education) is a reimbursement for actual costs incurred. All research project budgets should include facilities and administrative costs as determined by this federally negotiated facilities and administrative cost rate. Exceptions to this policy may be considered if the sponsor has an established, written policy applicable to all potential proposers which deviates from these rates. All deviations are subject to UT Austin administrative approval in advance.

INTELLECTUAL PROPERTY

The development, ownership, management, use and marketing of intellectual property developed at the University are governed by The Intellectual Property Policy of The University of Texas System.  The policy may be found at the following site:  http://www.utsystem.edu/OGC/IntellectualProperty/polguide.htm.

Intellectual property is any invention, creation, discovery, scientific or technological development, computer software, or other forms of expression of an idea arising from the activities of personnel covered by System policy. The System policy does not apply to faculty-authored written or visual work, except computer software, produced in the author's professional field, and such faculty- authored work is owned by the creator.

When intellectual property results from work at the University that the creator believes may be of value, the creator must disclose such intellectual property to the University's Intellectual Property Committee. Additional information regarding the process of invention disclosure is available through the Committee.

Negotiations with sponsors relating to intellectual property matters are the responsibility of the Office of Sponsored Projects in consultation with the Office of Technology Licensing and Intellectual Property and the University of Texas System as appropriate.  Licensing agreements for the technology is handled by the Office of Technology Licensing and Intellectual Property (http://www.otc.utexas.edu/).

RESEARCH INTEGRITY

Scholars and research personnel of the University are expected to adhere to the highest ethical standards for all research and scholarly work. It is the responsibility of every research investigator to maintain the integrity of research projects by keeping accurate, permanent, and auditable records of all experimental protocols, data, and findings. Misconduct in science and other scholarly activities is absolutely incompatible with the standards of the University and all allegations of such behavior will be handled promptly.  The University's policy regarding research integrity may be found at the following site: www.utexas.edu/policies/hoppm/11.B.01.html.

CONFLICT OF INTEREST

This policy is established to comply with the regulations of the Public Health Service (PHS) and the National Science Foundation (NSF), and the responsibility of The University of Texas at Austin, to promote objectivity in research by requiring that an employee of The University who applies for grants or cooperative agreements from the federal government for research or other educational activities or otherwise submits a proposal for sponsored research funding from any entity insures that there is no reasonable expectation that the design, conduct, and reporting of research will be biased by any Significant Financial Interest of an Investigator responsible for the research or other educational activity. Based upon federal regulations and The University's objective to maintain a research environment that promotes faithful attention to high ethical standards, this policy relating to conflicts of interest is to be administered in conjunction with Texas laws setting forth standards of conduct, Texas Government Code, Chapter 572, and the Code of Ethics of The University of Texas System, Part One, Chapter III , Section 4, Regent's Rules and Regulations (see Attachment One to HOP § 5.11).

OFFICE OF SPONSORED PROJECTS

The Office of Sponsored Projects (OSP) serves as the coordinating office for externally funded research projects submitted by The University of Texas at Austin. The goal of the OSP is to assist faculty and professional research staff in their efforts to secure external funding.

The OSP staff provides technical assistance to Principal Investigators during proposal preparation (budget, special instructions, etc.), serves as an information source for and monitors compliance with applicable University and sponsor policies and requirements, handles all administrative matters with sponsors, including contract negotiations, and serves as a liaison with the Contracts and Grants section of the Office of Accounting during the post-award phases of a project. The staff reviews proposals before submission to the sponsor and advises the Principal Investigators of any omissions, necessary corrections or other items that might strengthen the presentation to the funding agency.

GENERAL INFORMATION

Key Areas of Responsibility for OSP 

•          Review of sponsor guidelines
•          Review of compliance issues
•          Representations and Certifications
•          Review budget
•          Negotiate Revised Budget
•          Additional budget detail

•          Check status of pending proposals
•          Notify principal investigator if additional technical information is requested by sponsor

•         Read and review terms and conditions of incoming awards
•         Contact sponsor and negotiate unacceptable terms
•         Notify principal investigator of special terms and conditions and obtain approval
          of final document.
•         Enter award information into The University of Texas Electronic Proposal System
          and Electronic Database
•         Generate notice of award to the Contracts and Grants Section of the Office of
          Accounting
•         Prepare and negotiate subcontracts to outside entities

•         Initiate requests for pre-award costs, credit and authorization to spend available
          funds to facilitate continuity of research.
•         Assist in the management of complex projects (e.g., projects requiring internal
          subcontracts or split accounts)

•         Assist with routine requests to sponsor (no cost extensions, rebudgeting requests,
          leave of absence of principal investigator, etc.)
•         Remind principal investigators of specific requirements for submission of progress
          reports for non-competing award
•         Assist principal investigator transferring to another institution with the transfer of
          active research projects
•         Assist in the submission of final reports to sponsor by notifying the principal
          investigator of delinquent reports

•         Provide monthly report of proposals and awards to colleges and organized research
          units
•         Provide annual report of proposals and awards to the Vice President for Research
•         Provide annual report of faculty awards to the Office of the Provost
•         Prepare and disseminate information to faculty, departments, organized research unit,
          etc as requested.

Liaison with federal agencies for surplus research equipment Serve as the Security Officer for the University

Boilerplate Information for Proposals

UNIVERSITY RESOURCES

General information about the University which you may wish to incorporate into your proposal's resources and environment section may be found at the site listed below. This site includes information about the University's library system as well as financial and computing resources: www.utexas.edu/opa/.

SPONSORED PROJECTS

•         A specific program of work or research is proposed to or required by the sponsor;
•         The sponsor requires an authorized institutional signature;
•         The sponsor requires or expects one or more progress reports, a final report, financial
          reports and/or a formal accounting of how the funds were expended;
•         There are intellectual property, confidentiality and/or publication conditions associated
          with the receipt of funds.

GIFTS TO SUPPORT RESEARCH

The University is pleased to accept unrestricted gifts of funds to support the general research of a Principal Investigator. When unrestricted funds are provided by a donor to the University without any terms, conditions or other obligations, the funds are not subject to facilities and administrative costs charges. The original gift award letter from the donor and the accompanying check should be forwarded to the OSP upon receipt for processing. The OSP will forward appropriate paperwork to the Contracts and Grants section of the Office of Accounting so that an appropriate 26-"no overhead" account can be set up for the funds.  All funds from various sources may be placed into one account.  This account would become a various donors account.  Researchers are encouraged to request one various donors account for all unrestricted gifts.

OTHER GIFTS

Solicitation of philanthropic gifts from foundations, individuals or other sources for non-research activities and the processing of non-cash gifts of equipment and other items of use in research programs are coordinated through UT Austin's Development Office. Any Principal Investigator-initiated proposal for equipment in response to a program announcement or Request for Proposal should be processed through OSP, just like other sponsored projects.

SERVICES AND RESOURCES AVAILABLE

The Office of Sponsored Projects goal is to assist Principal Investigators in their efforts to secure external funding. This is accomplished by providing the following services and resources to faculty and professional research staff:

* UT Austin internal Proposal Review Forms, facilities and administrative cost rate agreements, IRS determination letters proving our non-profit status, and other required certifications;
* standard guidelines and application materials for major funding agencies such as the National Science Foundation and the National Institutes of Health; and assistance in obtaining other sponsor materials;
* information about and interpretation of special procedures or policies related to sponsor requirements
* assistance in development of cover letters and special sponsor-required assurances and certifications;
* Intellectual Property Policy information and guidance;
* Annual Register of Grant Support (available at the OSP and UT Austin General Library): details on more than 2,400 current opportunities sponsored by foundations, corporations, government agencies, and professional and educational associations;
* Foundation Directory, The (available at the OSP and UT Austin General Library): lists >over 3,000 foundations and is the standard reference work for information about nongovernmental grants in the U.S.;
* The Commerce Business Daily (available at UT Austin General Library) provides daily reports on the Federal government's purchases, sales, and contracts as well as Requests For Proposals (RFPs) announcements;
* The Regional Foundation Library (RFL) is a non-circulating resource library located in Room 4.110 of the Lake Austin Centre (3001 Lake Austin Blvd.). The purpose of the RFL is to provide the most current and comprehensive information available on private and corporate philanthropy and grantsmanship. Contact the RFL at 471-5041 for further information.
If you are interested in submitting a proposal to a foundation:
* coordinate your efforts with UT Austin Development Office's Foundations and Corporations Development Officer prior to submitting a proposal to the OSP. The Development staff may have additional information about foundation guidelines that will assist in preparing the proposal.

PERSONS AUTHORIZED TO BE PRINCIPAL INVESTIGATORS OR CO-PRINCIPAL INVESTIGATORS

When the University accepts a grant or contract from an external sponsor, the University assumes responsibility for the proper performance of the stated project, for the fiscal management of the funds received, and for accountability to the sponsor. Since the institutional responsibility for meeting these obligations is vested in the Principal Investigator, only individuals in the categories shown below are authorized to be Principal Investigators or Co-Principal Investigators for sponsored projects. In rare instances others may be authorized, and then only with the prior written approval of the Office of the Vice President for Research.

* Tenure or Tenure-track faculty (Professor, Associate Professor, Assistant Professor, and Instructor);
* Directors (code 1000);
* Research Scientists/Engineers  and Senior Research Scientists/Engineers

If you wish to request PI status for an individual, submit your request in writing via the Office of Sponsored Projects to the Vice President for Research.  Your request should include a vita and a statement regarding the individuals qualifications to serve as a PI or Co-PI on the project in question.  Requests for PI status from the College of Natural Sciences must first be routed through the relevant department chair, then the Office of the Dean.

PROPOSAL PREPARATION

Proposal Format

Many agencies have prescribed formats for proposal preparation, including the required forms for text, biographical data, and budget. Many agencies also have page and type size and character per inch (cpi) limitations for the body (text) of the proposal. For agencies which do not have specific formats, the OSP suggests that the Principal Investigator organize the proposal as follows:

* Transmittal Letter (will be prepared by the OSP during processing of the proposal)
* Title Page
* Technical Abstract
* Table of Contents
* Statement of the Proposed Research Project
* Review of Relevant Literature
* Brief Description of Proposed Activities or Objectives
* Project Design or Procedures
* Project Evaluation
* Project Management
* Personnel Resources
* Institutional Equipment and Facilities
* Project Budget
* Budget Justification
* Curricula Vitae
* References (literature cited)
* Appendices

Preparing the Budget

Direct Costs

Salaries and Wages

To determine total salaries and wages, list the amount of time to be spent by each person, including secretaries and clerical assistants, who will be working on the project. Time should normally be shown in terms of person-months and a percent of full-time effort. Show breakdown between summer and regular academic year for faculty.

- No employee may be scheduled for activities in excess of 100% of effort in any given month.

- Sponsored activities may not result in any employees receiving compensation at a rate in excess of their authorized salary or academic rate. For multi-year projects, the budget should take into consideration any possible salary increases.

- Revisions of OMB A-21 relevant to secretarial and other clerical support: The Principal Investigator needs to justify the need for administrative support to perform the project, and it is the Investigator's judgment that this is the best way to spend the funds.

Fringe Benefits

Fringe benefits are a direct cost to a sponsored project, are clearly related to the salaries and wages to be paid, and are shown as a separate entry in the budget. The Department of Health and Human Services (DHHS) no longer negotiates fringe benefit rates for The University. Fringe benefit costs have been calculated based on historical data. The actual costs for fringe benefits are charged (billed) to the sponsored project at the time the costs are incurred; the amount charged is based on salary, selected benefit package, and other variables applicable to the individual employee. A table that provides an analysis of actual fringe benefits for full time employees is available on the web at the following link: fringe benefits/indirect costs .

If the actual fringe benefit expenses for a project exceed the projected amount included in the budget, it is the responsibility of the Principal Investigator to pay these actual costs from the direct award funds provided by the sponsor. The OSP can provide advice in the preparation of budgets and the Contracts and Grants section of the Office of Accounting can assist in the transfer of funds to the fringe benefit subaccount as may be appropriate.

Consultants

Normally, consultants are paid a consulting fee plus travel expenses. Many Sponsors do not permit payments to consultants and some restrict or limit such payments. If in doubt as to the allowability of consultants or rates paid to consultants, refer to the Sponsor's program literature or contact the OSP. Whenever possible, identify the proposed consultant by name, indicate the number of days of work, daily rate, and provide a curriculum vitae for the consultant in the proposal.

The participation of paid consultants in a sponsored project for periods longer than two weeks should be discussed with the OSP prior to submission of the proposal. UT Austin employees may  be used as consultants on a project if the consultant is from a different department than the principal investigator.  Institutional consulting policies are contained in 3.19 of the Handbook of Operating Procedures and Policy Memorandum 7.205.

Capital Equipment

Equipment means an article of nonexpendable, tangible personal property having a useful life of more than one year and an acquistition cost of of $5,000 or more per acquisitionomponents, other than on-campus machine-shop labor, used to fabricate an item of capital equipment may be considered as capital equipment for budgeting purposes and should be identified for inventory purposes. The on-campus machine-shop labor component is subject to facilities and administrative costs. A separate subaccount is required for each capital equipment item being fabricated.

Expendable Equipment and Supplies

These are items costing less than $5000. Normally, a research project will consume expendable supplies such as laboratory items, teaching aids, computer software, and office supplies. A reasonable amount should be budgeted for these items.

Faculty who anticipate the use of a particularly large number of research animals or animals requiring special care should consult with the Animal Resources Center staff to see whether the funds estimated will be adequate and whether the Animal Resource Center has adequate facilities to accommodate the animals.

Publication Costs

Budget the anticipated cost of publishing the results of the research, keeping in mind that page charges may vary from journal to journal. Consider both page charges and reprint costs.

Travel

If foreign travel is anticipated it must be specified. Travel costs expected to exceed institutional guidelines must be specified. For travel rates, refer to the current procedures noted in the Handbook of Business Procedures. Outside the state, the limits are set by the Federal government and vary by locality. These rates are available in the *DEFINE system on the administrative computer (GG1 command). Federal funds cannot be used to make trips to secure new or additional research support or funds.

Computer Time

Computer time costs should be included as a budget item, if appropriate. If non-Sponsor funded computer time is needed, arrangements must be made in advance with your academic department or research unit.  Overhead applies to all   types of computer time, and to all computer supply budgets.

Subcontracts/Subrecipient Agreements

When a proposal contemplates a subcontract/subrecipient agreement to a named subcontractor, the subcontractor's statement of work and detailed budget, signed by the subcontractor's authorized institutional representative, should be provided with the "Proposal Review Form." If the Principal Investigator(s) has any direct or indirect financial or other interest in the subcontractor/subrecipient organization, a disclosing statement must be submitted to the OSP as well. In the event that the total amount to be subcontracted represents a substantial portion (> 50%) of the proposed direct costs, the Principal Investigator should contact the OSP for guidance.

Other Direct Costs

Consider, as appropriate, costs for copying, long-distance telephone calls, postage, reference books and materials, tuition and required fees for participating graduate students, equipment maintenance, and contracted services. Revisions of OMB A-21 relevant to office supplies, postage, local telephone costs, and memberships: The Principal Investigator needs to justify the need for these items in relation to the project, and it is the Principal Investigator's judgment that this is the best way to spend the funds.

Facilities and Administrative Costs

Facilities and Administrative(F&A)/indirect costs must be included using UT Austin's federally-negotiated rates unless the federal or not-for-profit sponsor has a statutory policy applicable to all potential proposers which deviates from these rates. All other deviations are subject to UT Austin administrative approval by the Associate Vice President of Research/Director, Office of Sponsored Projects. Sponsor guidelines limiting facilities and administrative costs must be provided with your proposal. Projects funded by the for-profit sector must accrue F&A at the appropriate negotiated rate.

The F&A rate for clinical trials is 25% of total costs..

To calculate the facilities and administrative costs for a project, do the following:

(F&A) a) Calculate the Total Direct Costs (TDC) which is simply the sum of all direct costs (salaries, benefits, supplies, equipment, etc.)

b) Calculate the base against which the F&A rate will be multiplied by subtracting exempt items (capital equipment, graduate student tuition and required fees, stipends, and subcontract/subrecipient agreement costs in excess of the first $25,000 of each subcontract/subrecipient agreement over the life of the subcontract/subrecipient agreement) from TDC. This will give the Modified Total Direct Costs (MTDC).

c) Apply the F&A rate against the MTDC base to calculate the facilities and administrative costs for the project.

d) Add the TDC to the F&A to calculate the Total Project Costs.

TDC - exemptions = MTDC MTDC x F&A rate = F&A TDC + F&A = Total Project Costs

Please note that since the federally-negotiated facilities and administrative cost rates are subject to change annually, Principal Investigators should be prepared to make adjustments in budgets for such changes. See  facilities and administrative costs/fringe benefits rates or contact the Office of Sponsored Projects, (512) 471-6424, for more specific information. For other contact information, see OSP staff directory.

On and Off-Campus Rates

Off campus rates are generally used when the principal investigator or other research staff are actually conducting research away from the campus for a period of no less than one long semester or all three summer months. Costs which are incurred in the field generally qualify for the off campus rate.  It is common for a proposed budget to include both on and off campus budget items.  Prior to submitting your proposal, please contact the Office of Sponsored Projects for assistance.

Matching Funds/Cost-Sharing

If sponsor guidelines require cost-sharing or matching funds (cash contribution or donation of in-kind services such as contributed time and effort by the Principal Investigator and research group members), complete the Cost Sharing Recap Form and provide appropriate letters of commitment from third-party sources. All matching funds or cost-sharing commitments based on the faculty member's academic time and effort must be approved in advance by the Principal Investigator's department chair and dean and be documented on the Cost Sharing Recap Form attached to the proposal when the cumulative total of such commitments are in excess of 25% of the faculty member's academic year time.
Additional Cost Sharing Procedures

Special Approvals - Animal Welfare, Human Subjects, Radiation/Radioisotopes; Infectious Agents, Human Blood or Extreme Toxins; and Recombinant DNA

Animal Welfare:

The University of Texas at Austin has the responsibility to ensure that experimentation with all animals conducted under its auspices (warm/cold-blooded and vertebrates/invertebrates), except human subjects, follows the regulations and guidelines as established by the Animal Welfare Act, the Animal Welfare Regulations (AWRs), and Public Health Service Policy. Copies of these publications are available for review at The University of Texas at Austin's Animal Research Center (ARC).

Researchers and/or teaching faculty who are planning projects involving the use of any animal should contact both the Institutional Animal Care and Use Committee (IACUC) Program Coordinator and ARC Director in the early stages of planning. Required forms for animal utilization are available from the OSP, the ARC or the Office of Research Support and Compliance. The forms are also available on ARC's homepage: http://www.utexas.edu/research/arc. Proposals involving the use of animals must be reviewed and given preliminary approval for submission for funding by the ARC Director prior to being brought to the OSP for processing. Number of copies required are detailed on the animal form. Day-to-day supervision and monitoring of all animal related activities on The University of Texas at Austin campus are the responsibility of the ARC Director. These requirements apply to both funded and non-funded research.

Human Subjects:

UT Austin faculty, staff, students or employees who propose to engage in any research involving the use of human subjects must have prior review and approval of that activity by their Departmental Review Committee and the Institutional Review Board (IRB). It is UT Austin policy that all protocols involving the use of human subjects be reviewed by the DRC and the IRB. The IRB is responsible for safeguarding the rights and welfare of subjects who may be at risk through participation in such activities. These requirements apply to both funded and non-funded research regardless of whether the research is performed at UT or other locations and regardless of whether another IRB has reviewed the protocol.

Please provide an "Application for The Review of a Project Involving Human Subjects" (UT EID required) a Consent Form, Research Protocol, Certificate of Consistency (if needed), Documentation of Compliance, and measurement tools (if applicable). Submit the original and 15 additional sets of the material for IRB review (for research protocols that are exempt from IRB review, or expedited, provide two sets only). Information about the review process, required forms, agenda deadlines and meeting dates are available from the Office of Research Support and Compliance (A3200) website: www.utexas.edu/research/rsc/humanresearch/.

Recombinant DNA:

Projects involving the use of recombinant DNA molecules require initial and subsequent annual review by the DNA/Institutional Biosafety Committee (DNA/IBC). A "Synopsis for Research Involving Recombinant DNA" should be completed, electronically signed and submitted to the IBC. Specific answers are required. Copies of the synopsis will then be forwarded to OSP after DNA/IBC Committee approval. You will receive a signed duplicate after review and approval. These requirements apply to both funded and non-funded research. Required forms and certifications are available at the following website:  www.utexas.edu/research/rsc/ibc/.

Radiation and Infectious Agents

Radiation/Radioisotopes and Infectious Agents, Human Blood or Extreme Toxins: Researchers who are planning projects involving radiation/radioisotopes and/or infectious agents, human blood or extreme toxins should contact the Office of Environmental Health and Safety (OEHS). Required forms and certifications are available at the following website: www.utexas.edu/research/osp/forms/inf_ag.doc.

Administrative Review and Approval of Proposal

Before transmittal to the sponsor, the proposal must be approved sequentially by the following UT Austin administrative levels:

* Animal Resources Center (if animals are involved),

* the OEHS Coordinator and Dean's Office for Radiation/Radioisotopes and Infectious Agents, Human Blood or Extreme Toxins (if any of these are involved)

* the Coordinator for Human Subjects and Recombinant DNA, (if any of these are involved),

* the OSP,

* Development Office (if proposal is being submitted to a foundation; the OSP will contact the Development Office to secure its approval and to determine whether the foundation involved has any special requirements regarding proposal submissions),

* Department Chair's (or Unit Director's) and Dean's signatures required only if proposal includes: 1) commitment of additional space facilities; 2) any cost-share commitments; 3) no tuition budgeted for graduate students (only for College of Engineering); 4) any special requirements of department, unit, or college; or 5) any safety-driven modifications or precautions beyond current practice.

All proposals must be accompanied by the "Proposal Review Form". The summary information contained on the completed form facilitates administrative review and approval, and thus helps to expedite processing. Copies of this form can be obtained from the Office of Sponsored Projects.

For each sponsor, a "Proposal Review Form" and original proposal, as well as two copies of the proposal for the OSP files, should be delivered to the OSP for processing at least four working days prior to the date the proposal must be transmitted to the sponsor. Failure to supply the two OSP copies with the original signed proposal will delay the processing of the proposal. Advise the OSP of any proposal submission deadline (distinguish between "be there" date versus "postmark" date). If you wish the OSP to mail the proposal, supply the appropriate number of copies to be mailed to the sponsor together with the original. Overnight mail delivery is done at the Principal Investigator's expense.

Proposal Process Checklist

•         Complete, signed "Original" proposal;
•         Completed, signed "Proposal Review Form";
•         RFP, RFQ or special solicitation guidelines;
•         Two copies of proposal for the OSP files;
•         Additional copies for sponsor if the OSP is to mail;
•         Animal Welfare documentation as applicable;
•         Radiation/Radioisotopes; Infectious Agents, Human Blood or Extreme Toxin
          documentation as applicable
•         Human Subjects documentation as applicable;
•         Recombinant DNA documentation as applicable;
•         Matching funds/Cost-share letter(s) of commitment as applicable;
•         Subcontracts/Subrecipient Agreements documentation as applicable.

The OSP Processing Time

POST-PROPOSAL/PRE-AWARD ADMINISTRATION

Budget Negotiations with the Sponsor

Preliminary budget negotiations are often conducted between the Principal Investigator and the technical contact for the sponsor in order to determine an appropriate level of funding for the program proposed by the Investigator. Such preliminary discussions are encouraged. The Principal Investigator should contact the OSP, however, for established rates for fringe benefits, facilities and administrative costs or other budgetary matters that may impact upon the total support required for the project.

The Principal Investigator should not attempt to negotiate rates for facilities and administrative costs (or fringe benefits) that are different from the federally-approved rates for the University, nor should it be implied that a reduction in the approved rates would be acceptable to the University. Facilities and administrative costs represent substantial, real expenditures incurred by the institution to support each research program, and if these costs are not fully paid by each sponsor, the University must subsidize them from other institutional resources. In the event that a sponsor indicates to the Principal Investigator that it does not wish to pay these costs in full, the OSP should be contacted in order that this office may contact the sponsor for further negotiation regarding this issue.

If formal budget negotiations are required, the OSP will conduct the negotiations, including the confirmation of approved salary, benefits, computer and facilities and administrative cost rates. The OSP will seek the Principal Investigator's input and concurrence for any modifications proposed by the sponsor.

Submitting a Revised Budget

During the course of project negotiations it often becomes necessary to reduce or adjust the budget initially proposed. If this is the case, the Principal Investigator should send the revised budget and any other pertinent information (a revised budget explanation or revised statement of work or project duration may be appropriate) to the OSP for processing prior to sending the revision to the sponsor. A new "Proposal Review Form" is not required in this case as the OSP will update the figures on the one originally authorized.

Business Negotiations

• Terms and Conditions are usually predetermined, however, negotiations may be required.

• Normally, most non-Federal projects require negotiations, especially those agreements with industrial sponsors. Such topics as inventions, publication rights, liability, and ownership of research results are usually the subject of negotiation. The negotiations are coordinated between the OSP personnel, the sponsor, the Principal Investigator, and, as appropriate, the UT System Office of General Counsel. The OSP leads the negotiations with the sponsor.

THE AWARD PROCESS

Award Acceptance and Post-Award Administration

Award documents take many forms depending upon the type of sponsor and project. These documents require review and signature by the official institutional representative authorized to sign on behalf of the institution. The OSP is responsible for award document processing. The Principal Investigator is notified of each new award and its terms and conditions and is asked to accept the award and responsibility for complying with all award requirements by returning a signed acknowledgment to the OSP.

Upon receipt of fully executed award documents or other proof of award, the OSP forwards information to the Contracts and Grants section of the Office of Accounting for assignment of account number and setup of the account. Once the Principal Investigator receives notification of the project account number from the Contracts and Grants section of the Office of Accounting, funds may be encumbered or expended against the project.

The Office of Sponsored Projects plays a dual role in the post-award phase of sponsored project activity. The OSP serves as a central point of contact for sponsor grant or contract officers regarding administrative matters throughout the duration of the project. The OSP also serves as facilitator and advocate for Principal Investigators in all matters pertaining to the non-technical management of their grants and contracts. In addition, the OSP coordinates compliance with each sponsor's requirements for interim and final research reports. Principal Investigators are responsible for submission of all required reports in a timely fashion.

If the award documentation is delayed, procedures are available to obtain a letter of credit for a limited period of time. Contact the OSP with information regarding the amount of credit needed. After the award information is verified by a representative of the sponsoring agency with the authority to commit funds, overdraft approval may be given. Credit will be limited to emergency expenses. Many Federal agencies allow pre-award costs up to 90 days prior to the start date of a grant. If pre-award costs are required, the above procedures for verification will be followed and pre-award costs may be approved.

Subcontract/Subrecipient Agreement Award Development

The OSP has the overall responsibility for issuing and monitoring subcontracts/subrecipient agreements under sponsored project awards. The OSP will maintain documentation relative to subcontract/subrecipient agreement placement and any modification thereof. The accounting and payment function is performed by the Contracts and Grants section of the Office of Accounting.

OSP will negotiate all subcontracts and subrecipient agreements in accordance with standard business practices and, as appropriate, the Federal Acquisition Regulation and/or OMB Circulars A-21, A-110, and A-133, and the negotiation shall be documented in a negotiation memorandum to the subcontract/subrecipient file. These agreements will comply with all standard and special provisions of individual awards. After the subcontract/subrecipient agreement is fully executed and work has commenced, it is the responsibility of the principal investigator to:  1) review all invoices from the subcontractor/subrecipient to determine if the charges are appropriate; 2) prepare a voucher to make payment for all appropriate charges; 3) monitor the progress of the subcontractor/subrecipient and; 4) obtain all required deliverables from the subcontractor/subrecipient.

National Science Foundation Excess Research Equipment Program

NSF grantees are eligible for free Federal Excess laboratory equipment under the condition that the property is used as part of the grant activity and subsequently for scientific research or education purposes.

For a comprehensive guide to obtaining excess equipment, Principal Investigators should contact Margaret Hoard in OSP (471-6288, mhoard@mail.utexas.edu) and visit the Users and Screeners Association Website at http://usa-fepp.org/.

POST AWARD ISSUES

Extensions:

One of the most frequently asked questions from Principal Investigators or their assistants is what do I need to do in order to extend my project without additional funds.  The answer to that question depends on the source of funding.  The following should assist you in answering that question.

Federal Funds -  If the award is from a Federal sponsor and the terms and conditions of the award are noted as Federal Demonstration Partnership (FDP), the University has the option of extending the project for a period up to 12 months without having to contact the sponsor for permission.  The following sponsors usually issue FDP awards:  National Science Foundation, National Institutes of Health, National Aeronautics and Space Administration, Department of Energy, Environmental Protection Agency (only if the extension will not cause the project period to exceed 5 years). If you want an extension on a project which qualifies under the above conditions, contact your accountant in the Contracts and Grants Section of Accounting: www.utexas.edu/business/accounting/services/assign.html.

If the one-year extension has already been used, subsequent extension requests must be submitted through OSP.  The request should be in writing and should provide a justification for the extension.  The justification should relate to the completion of the scientific objectives not that funds are remaining.   Requests for no cost extensions to NSF must be submitted through FastLane. Sponsor approved no cost extensions must be submitted prior to the expiration date of the grant.  NSF requires that the request be submitted 45 days prior to expiration.  Please note that these requests generally take one to two months to process and approve.  Consider the processing time when deciding when to submit your request. Non-Federal  Requests for extension should be submitted in writing and routed through OSP.  The requests should include a programmatic justification for the extension.  The University has no provision for extending these projects without sponsor approval.  As with federal awards, these requests should be made prior to the expiration date and with ample lead-time.  A three-month lead time is suggested in order to have an approved extension prior to the original expiration date.

Budget Changes:

If you want to revise your budget and the sponsor guidelines do not allow for it, you will need to request your revisions in writing.  The request must be processed through OSP.  If you have questions about what is allowed, please contact your accountant in Contracts and Grants.  You can find your accountant by viewing the following site: www.utexas.edu/business/accounting/services/assign.html.

Supplemental Funds Requests:

Requests for additional funding on an existing project are processed as proposals through OSP.  You will need the following items:  1) Proposal Review Form; 2)  budget; 3) statement of work for the additional effort; and 4) updated certification for all compliance issues if necessary.   Please make a notation of your current grant number on the Proposal Review Form.

Change of Principal Investigator:

If a change of principal investigator is required on a project, a letter must be sent to the sponsor.  The letter should be endorsed by the current PI, the proposed PI, and OSP.  The letter should outline the qualifications of the new PI.

Leave of Absence:

If you plan to be away from the University and you have a sponsored project, you will need to notify your sponsor in writing of your absence.  Your letter will need to address how you plan to maintain oversight of your project during your absence.  This letter needs to be signed by OSP.

I'm leaving. How do I take my grant with me?

Transferring a grant to another institution is a complicated process and requires proper timing to allow for the transfer and to allow for start-up at the new institution.  Some sponsors have specific forms which must be completed to obtain a transfer.  Other sponsors have no formal guidelines for transfers.  There are general procedures that need to be followed here to prepare for a transfer.  Please note the following steps in preparing for a grant transfer: Select an arbitrary expiration date for your project.  In order to relinquish the project, Contracts and Grants must be able to determine the residual funds remaining after all obligations have cleared.  It takes at least 30 days after the expiration date to obtain this information.

If you purchased equipment and want to take this equipment with you when you move, you must obtain approval from your Chair, Dean, and the Business Manager's office. You will need to submit non-competing continuations for the next year's funds through your new institution. Grants from the National Institutes of Health require the completion of an NIH Relinquishing Interests Form.

Grants from NSF require completion of an NSF Grant Transfer Form.Once the grant has been relinquished, the sponsor will re-award the grant to the new institution.