Sponsored Programs - Post Award                                   UPPS No. 02.02.02

Texas State University-San Marcos
UPPS No. 02.02.02
Issue No. 41
Effective Date: 12/18/2002

Review: July 1 E5Y

01.   POLICY STATEMENTS

01.01 We at Texas State are committed to excellence in undergraduate, graduate, and continuing education through the preservation and transmission of knowledge, as well as the generation of knowledge through research, scholarship, and creative expression. This procedure contributes to the implementation of this policy.

01.02 This policy provides general guidelines for the administration of sponsored programs.  The Grants and Contracts Administration Office (GCA) has the authority and responsibility for promulgating policies and procedures related to post-award activities for sponsored programs.  This may include, but is not limited to, UPPS’s, divisional PPS’s, and the Grants and Contracts Administration Handbook.  The latter is available online at http://www.TxState.edu/gca/GCAHandbook.html.

01.03  Sponsored programs must be administered and funds expended in accordance with federal and state regulations, as well as Texas State University System and university policies and procedures.  In cases in which the funding source has more restrictive policies, the funding source policies will prevail.

01.04  Awards made under sponsored programs are the property of the University.

01.05  Failure to comply with this policy, applicable regulations, and sponsor guidelines can result in financial losses for the University, as well as jeopardizing current and future sponsored programs.  Non-compliance may result in administrative action.

02.   DEFINITIONS

02.01  Sponsored Programs–Externally funded grants and contracts are defined in the following sections.

02.02  Contract–An agreement between the University and another entity/sponsor to provide an economic benefit for which compensation paid is paid to the University. Both the University and sponsor receive benefit from the contractual relationship. There is a written agreement, often negotiated, between the University and sponsor, which is enforceable by law, and creates a quid pro quo relationship between the University and the sponsor.

02.02  Grant–Funding awarded to the University as additional resources to support instruction, research or public service. Grants are usually given to accomplish a specific purpose.

02.04  Sub-awards and sub-contracts–A sub-award or sub-contract is a contractual agreement with an individual or entity outside of Texas State to perform a significant portion of the scope of work. To qualify as a sub-awardee or sub-contractor, the work must be integral to the completion of the scope of work of the award (made to the University).

02.05  Sponsor–The governmental agency or commercial organization that makes an award directly to Texas State. The award document is the paperwork processed by the sponsor and sent to SWT specifying the terms under which the program will be conducted.

02.06  Principal Investigator (PI)–The individual responsible for the conduct of research or other activity described in a proposal for a sponsored program.

02.07  Acceptance of Awards–Written approval from the Office of Sponsored Programs, Grants and Contracts Administration, or other university authorized contracting official constitutes acceptance of awards. Generally, this takes the form of a written contract.

03.   PROCUREMENT PROCEDURES

03.01  Refer to UPPS No. 05.02.02, “Texas State Purchasing Policy ” for purchasing guidelines.

03.02  Refer to UPPS No. 03.04.01, "Contracted Services, Including Consultants, Speakers, Other Sources" for general guidelines in obtaining the services of consultants/lecturers.

03.03   Procurement cards– P-cards should be used for incidental office supply purchases only. Limits will be determined by the budget amount of supplies and materials in the sponsor-approved budget. Refer to university P-card policies and procedures, available online at http://www.vpfss.txstate.edu/PURCHASE/p_card.html

04.   TRAVEL PROCEDURES

04.01  Refer to the Texas State Travel Office website at http://www.vpfss.txstate.edu/gao/travel/ for university guidelines regarding travel.

04.02 Refer to FSS Division Policy 03.04.01 regarding participant travel.

05.   PROCEDURES FOR ACCEPTANCE OF THE AWARD

05.01 Application or Award Acceptance– A sponsored program is not operational until the University has accepted it. Principal investigators are not authorized to enter into any agreements on behalf of the University. [Refer to UPPS No. 03.04.02 “Contracting Authority to Commit the University” and UPPS No. 03.04.04, “ Approval of Contracts”.]

05.02  Expenditures should not be made from any university account before establishment of the sponsored program account. Texas State will not assume liability for payment of obligations incurred prior to an award being accepted by the University.  Principal investigators who expend funds without authorization may be held personally liable for such expenditures.

05.03  An account number may be established, on a provisional basis, prior to written confirmation of the award if the Sponsored Programs Office deems that an award is imminent.  A written confirmation from the principal investigator’s department chair and dean/director identifying another account to be used if funding is not available must be received by the Grants and Contracts Administration Office prior to establishment of the account.

06.   SUB-AWARDS AND SUB-CONTRACTS PROCEDURES

06.01  Sub-awards and/or sub-contracts must be documented as a contractual agreement when an individual or entity outside the University is to perform a significant portion of the scope of work under a sponsored program agreement awarded to the University. 

06.02  GCA prepares and executes the contractual agreements for all sub-awards and/or sub-contracts.  The Principal Investigator is responsible for consulting with GCA to initiate and/or renew such agreements.

07.   BUDGETARY CONTROLS

07.01 The principal investigator will work with Grants and Contracts Administration and will follow program guidelines and commitments.  Budget revisions will be made consistent with guidelines from the sponsor.  Budget revisions are subject to university approval.

07.02  If a sponsored program account is over-expended or costs are disallowed, the principal investigator (PI) has primary responsibility for taking corrective action.  The PI has thirty (30) from date of notification by the sponsor and/or GCA to take corrective action.  If the PI does not respond within that time frame, GCA will identify an account(s) for reimbursement.  Such accounts may include earned facilities and administration (indirect cost) accounts in the following order:  PI, Chair, Dean/Director, and Vice President.  After such charges are made, they will not be reversed. 

08.   HUMAN RESOURCES PROCEDURES

08.01  All full-time and part-time staff positions on sponsored agreements are subject to the same hiring procedures as all other University positions.  Refer to Human Resources Policy UPPS No. 04.04.03 on staff employment for procedures on hiring personnel.

08.02  Costs of personnel are allowable on research agreements to the extent supported by actual effort performed on the project and approved in the award budget

08.03  Staff and graduate students are appointed through the Human Resources Office and paid by RBC (request for budget change).  The principal investigator or account manager is responsible for generation of the RBC and acquiring the appropriate approvals.  Grants and Contracts Administration approves all RBC’s on sponsored programs.  Refer to UPPS No. 03.02.02, “RBC Processing ”.

08.04 Refer to UPPS No. 04.04.12for issues regarding compensation In excess of base salary.

08.05 Refer to > UPPS No. 04.04.11, University Classification and Compensation Policy” for guidelines for salary adjustments.  Salary adjustments for personnel being paid either full-time or part-time from a research contract or grant must be funded by the sponsor. Therefore, estimated annual salary increases should be included in the sponsored program application.

Requested salary increases must be consistent with those for other university personnel.  Salary guidelines proposed by the sponsored agreement will be allowed only to the extent that compliance is maintained with the current University Pay Plan.  The same rate of increase will be available for employees paid from sponsored program accounts as for other university employees.

09.   REPORTING PROCEDURES

09.01 Technical, Program and Financial Reporting – Terms of the sponsored program generally require that a written final technical, financial or progress report be submitted to the sponsor within a specified period of time. The sponsor may require more frequent or other types of reporting. The principal investigator is responsible for the preparation and submission of technical reports and other required deliverables. The principal investigator must comply with all of the terms and conditions imposed by the sponsor.

10.   RESPONSIBILITIES

10.01 Grants and Contracts Administration is dedicated to providing administrative support to project managers of externally-funded programs while maintaining the fiscal integrity of Texas State University.  The primary responsibilities of the office include:

a.   Review and sign contracts for sponsored agreements. [Refer to UPPS No. 03.04.02, “Contracting Authority to Commit the University”]

b.   Establish, maintain and close sponsored program accounts.

c,   Interpret and enforce sponsor, university and other administrative policies.

d.   Monitor expenditures for compliance with sponsor and university policies and procedures, including timely review of operating reports.

e.   Prepare and monitor sub-award agreements and subcontracts.

f.   Work with faculty and staff to provide accurate and timely financial information.

g.  Prepare financial reports to sponsors.

h.  Carry out cash management responsibilities associated with the funding of sponsored projects.

i.   Act as a liaison with other university administrative support units, sponsors, and auditors.

j.   Advise on post award business and financial matters.

k.  Invoice review and submission to sponsor.

l.  Approve changes in contractual obligations under the sponsored program agreement.

10.02  The principal investigator has a fiduciary responsibility for the proper fiscal management and conduct of the project.  The responsibilities of the principal investigator include, but are not limited to:

a.   Serve as the account manager of the sponsored program.  Refer to UPPS No. 03.01.09, “Fiscal Responsibilities of Account Managers,” UPPS No. 03.01.05, “Recognition and Associated Cash-handling Procedures” and UPPS No. 02.02.01, “Applying for Sponsored Programs”, Section 06.02.

b.   Assure compliance with all the terms and conditions imposed by the sponsor.      

c.   Ensure that project funds are managed efficiently and effectively within approved budgets. 

d.   Prepare and submit technical reports and any other required deliverables by sponsor deadlines. 

e.   Record and document expenditures made for any matching commitments included in the project agreement.  Also, must assure that matching funds comply with sponsor guidelines.

f.   Notify the Grants and Contracts Administration Office (GCA) of any needed program changes, including contract amendments, so that GCA can obtain sponsor approval.

g.   Consult with GCA to initiate and/or revise sub-awards and/or sub-contracts.

10.03  Department chairs, dean/directors and vice presidents are responsible for monitoring the work performed under sponsored programs, to assure compliance. This includes, but is not limited to, performing adequate reviews to assure that the PI’s perform their duties (per Section 10.02 above). 

10.04  All administrators in the chain of command for a PI share the responsibility for helping to ensure overall sponsored program compliance. The University is ultimately, legally and financially responsible and accountable to the sponsor for the performance of the activity funded and the proper use of funds.  The full cooperation and vigilance of the principal investigator is essential to assure that the University accomplishes its stewardship role. 

11.   REVIEWERS OF THIS UPPS

11.01  Reviewers of this UPPS include the following:

12.   CERTIFICATION STATEMENT

This UPPS has been approved by the following individuals in their official capacities, and represents Texas State policy and procedure from the date of this document until superseded.

Ms. Kathy Wallace, Interim Director of Grants & Contract Administration; senior reviewer of this UPPS

Dr. Carolyn Conn, Associate VP-Financial Services/Treasurer; reviewer of this UPPS

Mr. Bill Nance, Vice President for Finance and Support Services

Dr. Denise M. Trauth, President