Account Lifecycle: The Beginning Session 2 Award Establishment - PowerPoint PPT Presentation

Slide1 l.jpg
1 / 67

Policy Training Program for the Lifecycle of an Account. Account Lifecycle: The Beginning Session 2 Award Establishment. Team Members. Suzanne Bennett, Electrical and Computer Engineering Jeanette Greener, Discovery Park Christy Haddock, Vice President for Research

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.

Download Presentation

Account Lifecycle: The Beginning Session 2 Award Establishment

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript

Slide1 l.jpg

Policy Training Program for the Lifecycle of an Account

Account Lifecycle: The Beginning

Session 2

Award Establishment

Team members l.jpg

Team Members

Suzanne Bennett, Electrical and Computer Engineering

Jeanette Greener, Discovery Park

Christy Haddock, Vice President for Research

Meagan Kramer, Sponsored Program Services

Mary Millsaps, Sponsored Program Services

Helen Moschinger, Sponsored Program Services

Patty Oswalt, Pharmacy

Becky White, Sponsored Program Services

Slide3 l.jpg


Notice To Proceed (NTP)

Electronic Award Notices

Award Set Up



Course Content

Slide4 l.jpg

Upon completion of this course you will understand:

The role of the contract analyst and what governs their actions

The Notice to Proceed (NTP) process

The importance of electronic award information requests and award notices

The issues of Award Set Up

Course Objectives

Contracting l.jpg


  • What is a Contract?

    • A Contract is a promise or set of promises to do (or not do) something.

    • Creates a legal duty to perform the promise which is enforceable through the courts.

    • There are many different names for contracts, all create obligations on the part of the University.

Contracting6 l.jpg


Types of Contracts: Spectrum of Sponsor Influence

GiftsMOU/MOA GrantContract

(no consideration)

Teaming Agreement Cooperative Agreement

Each represents a “legally binding agreement,” no matter what we call it.

Contracting7 l.jpg

Purchasing – University dollars going out (not subcontracts for sponsored projects)

Purchasing Agreements

License Agreements

SPS/Fed/State Contracting Team – (work closely with the Young and DP PreAward Teams)

Federal and State of Indiana Contracts/Grants

University Pass-through from the Federal and State of Indiana

Associated Subcontracts

Miscellaneous agreements

SPS/Industrial Foundation Group

Contracts with Industry and Non-Profits, regardless of the prime

Associated Subcontracts

Material Transfer Agreements

Confidential Non-disclosure Agreements


Why are the University Contracting offices organized the way they are?

Contracting8 l.jpg


  • Contract Analyst role:

  • It is the role of the contract analyst, to ensure that:

    • The University can and should meet the obligations as written.

    • The contract truly reflects the University’s understanding of the activity.

    • Any contract the University enters into is in compliance with Federal and State Law and University Policy.

Contracting9 l.jpg


Current Strategic Plan Goals

  • Launching tomorrow’s leaders (Education of our students)

  • Promoting discovery with delivery (Research for the greater good and economic development)

  • Meeting global challenges (international collaborations)

Contracting10 l.jpg

Statement of Work – Academic Approvals

Regulatory Approvals

Budget – Are all costs covered?

System Assessment – Can we meet the terms as written?


Factors for Consideration

Contracting11 l.jpg

The Proposal!!

Discussions with


Business Office

SPS Post Award

Other central offices impacted


Where does the analyst get this information?

Contracting12 l.jpg


  • Contract Analyst’s role:

  • It is the role of the contract analyst, to ensure that:

    • The University can and should meet the obligations as written.

    • The contract truly reflects the University’s understanding of the activity.

    • Any contract the University enters into is in compliance with Federal and State Law and University Policy.

Contracting13 l.jpg

Federal Law

OMB Circulars A-21 and A-110

Federal Acquisition Regulations (FAR)

State Law

State Disclosure Laws

Conflicts of Interest

University Policies (Approved by the Board of Trustees)


What governs the terms and conditions the University can accept?

Contracting14 l.jpg

Types protected by law

Patents, Copyrights, Trademarks and Trade Secrets

Other types mentioned in contracts

Information, Data, Know-How


What is Intellectual Property?

Contracting15 l.jpg

VIII.4.1 Intellectual Property

Except for Copyrights to Instructional and Scholarly Works, the University retains ownership of all IP developed by Purdue employees and students involving or relating to the use of University Resources


University’s policy on Intellectual Property

Contracting16 l.jpg

Licensing Revenue for PI, Department and University

Right to Publish

Academic/Scholarly Works

Student Theses

Right to pursue related research


What does the ownership of IP impact?

Contracting17 l.jpg

Contract Review Board

Director of SPS

Associate Vice President for Research

Director of Office of Technology and Commercialization (Office of PRF that licenses Purdue IP)


What happens if the analyst can’t arrive at a compromise that is within University policies?

They determine appropriateness based on the given situation.

Contracting example situation l.jpg

Contracting – Example Situation

Acme Corp is insisting on owning all data and restricting publication rights.

Who might be involved in resolving this for the University?

Contracting example answer l.jpg

Contracting – Example Answer

  • Contract Analyst

  • Principal Investigator

  • Industrial Foundation Group Assistant Director

  • Contract Review Board

  • Department Head or Dean

Contracting20 l.jpg

Signature Delegation

When is Gift not a Gift?

How can we work together to make the process more efficient?


Other Points of Interest

Contracting21 l.jpg

Legal Entity: The Trustees of Purdue University

Bylaws of the Board of Trustees

Signature Delegation Authority granted to Executive Vice President and Treasurer and is managed by the Director of Purchasing

Agreements requiring PI acknowledgement: Confidential Non-Disclosure Agreements and Material Transfer Agreements


Why can’t faculty sign their own contracts?

Contracting22 l.jpg

Expressed or implied expectation of economic benefit back to the donor (favorable IP terms)


When is a gift not a gift? (IRS determination)

A gift with strings attached – Managed by SPS

  • Financial management requirements

  • Financial reporting requirements

  • Repayment provisions

Contracting example situation23 l.jpg

Contracting – Example Situation

NanoTech Inc. gives Professor Little a gift that comes with an award letter. In the award letter it states that by accepting this gift, Purdue agrees to grant NanoTech the first right to license to any developed IP.

Is this a gift, and how would you handle this award letter?

Contracting example answer24 l.jpg

Contracting – Example Answer

  • NO!!

  • Get award letter to SPS/IFG for review

  • Inform PI he may need a proposal

Contracting25 l.jpg

DO – Communicate, Communicate, Communicate!!

DO – Ask questions of the PI and contracting office

DO – Involve the appropriate contracting office early & often

DO – Have fiscal information necessary for account set up

KNOW – What resources are available to you

Standard Contract Templates – available on the SPS website

COEUS Negotiation Record

assigned analyst


How can we work together to effectively navigate through the contracting process?

Contracting26 l.jpg


Coeus Negotiation Record

Contracting27 l.jpg


Contracting28 l.jpg


Bottom Line:

Contract and file must stand on its own years after the active participants are no longer involved.

Contracting example situation29 l.jpg

Professor Thomas brings a contract to you and asks you to get it to the appropriate office.

What questions would you want to ask at this point?

Contracting – Example Situation

Contracting example answer30 l.jpg

Contracting – Example Answer

Who are the parties involved in the agreement?

What activity is this contract governing?

Is there money involved?

Is this related to an already submitted proposal?

Contracting31 l.jpg



SPS Website - contracting tab

Generic email for sponsored program contracting groups

Contracting32 l.jpg



Notice to proceed l.jpg

Notice to Proceed

Notice to Proceed


Notice to proceed34 l.jpg

Notice to Proceed

What is a Notice to Proceed (NTP)?

  • A NTP is a line of credit established to allow a project to begin prior to receipt of a fully executed award.

  • If the award fails to materialize the liability for expenses is the responsibility of the department or University, depending upon who is financially backing it.

Notice to proceed35 l.jpg

Notice to Proceed

Why should I request a NTP?

  • A NTP must be requested if a PI wants to begin incurring any costs prior to receipt of an award document.

  • Eliminates the need for correcting documents as it allows charges that benefit a project to be incurred on that project.

  • Eliminates questions that may arise due to cost transfers from general funds or other sponsored projects.

  • Assures proper regulatory approvals are in place prior to the start of the research.

Example situation l.jpg

Example Situation

PI Smith brings a purchase request for sheep to the business office.

What questions should you ask?

Example answer l.jpg

Example Answer

  • The department should ask the following questions:

  • Is this department or sponsor research?

  • If sponsor research, is there already a sponsored account for this purchase?

  • Is there an approved animal protocol for this purchase?

  • Regardless of the source of funding, if there is not an approved protocol the purchase cannot be made.

Notice to proceed38 l.jpg

Notice to Proceed

When would SPS authorize a University Backed NTP?

  • Before the university will establish a NTP the following must be confirmed by the fiscal office of the sponsor:

    • The beginning and ending date of the project

    • The award amount

    • Confirmation of the estimated receipt date of the fully executed agreement

Notice to proceed39 l.jpg

Notice to Proceed

When should a Department back a NTP?

  • Department must back NTP if fiscal information cannot be confirmed and department wishes to allow expenditures.

  • The department is already backing the research if expenses for a project are being incurred on departmental funds.

  • Regulatory compliance approvals must be complete prior to establishment of a NTP regardless of the backing.

Notice to proceed40 l.jpg

Notice to Proceed

Why is it important to run the NTP report monthly?

  • Monitoring of the monthly NTP report is needed for the following reasons:

    • If the NTP is department backed and all NTP funds have been exhausted or NTP end date has passed, the department will need to assess if they want to continue the NTP. If the decision to not continue the NTP is made all charging to the account must stop.

    • If the NTP is University backed, SPS may need to make additional contact with the sponsor to check the status of the award to determine if extending the NTP is appropriate.

    • Monitoring the status of the award is important as any expenses incurred while on NTP are the liability of the department or the University.

Notice to proceed41 l.jpg

Notice to Proceed


NTP Form

Account Management Guidelines for SPS Funds

SPS Staff Directory

Notice to proceed42 l.jpg

Notice to Proceed


Electronic award information requests notices l.jpg

Electronic Award Information Requests & Notices

Electronic Award Information Requests & Notices

Electronic award information requests notices44 l.jpg

Electronic Award Information Requests & Notices

Why is it important to understand electronic award information requests?

  • They inform the business office that a proposal has been funded.

  • Provide accurate information to SPS based upon PI responses to ensure the award is set up correctly.

    • # of internal orders, RCC for each account, Co-PI for each account, budget for each account, credit split if different, AIMS access

Electronic award information requests notices45 l.jpg

Electronic Award Information Requests & Notices

Why is it crucial to understand electronic award notice emails and award documentation?

  • Award notice gives key pieces of information regarding the grant.

  • Business offices should review the grant to verify accuracy at award setup.

  • Award documentation is attached as a reference tool to outline sponsor requirements.

Award set up l.jpg

Award Set Up

Award Set Up

Award set up47 l.jpg

Award Set Up

What are some possible issues when setting up a new SPS award?

  • General sponsor understanding

  • Items out of the ordinary

  • Reporting requirements

  • Cost sharing

  • Subcontracts

  • Award budget deviations from the proposal

  • Regulatory

Award set up48 l.jpg

Award Set Up

General sponsor understanding

  • To determine the budget / spending flexibility (prior approval requirements)

  • Restricted costs vary according to sponsors

    • Prior approval may need to be obtained before allocating expenses not awarded by the sponsor.

Award set up49 l.jpg

Award Set Up

Items out of the ordinary

  • Fully review the award to highlight terms that could impact grant management.

    • Unique categories (task, projects, sub-project, or programs) and reporting requirements.

    • Unusual project periods

    • Incremental funding

    • Salary restrictions (NIH salary cap, NSF 2/9)

    • Specific budgetary restrictions

Example situation50 l.jpg

Example Situation

PI Jones has been awarded a new grant that has five distinct tasks. The sponsor requires financial reporting by task.

How can the grant be established in Purdue’s system to accommodate this requirement?

Example answer51 l.jpg

Example Answer

  • Separate internal orders should be established for each task.

  • Sponsored program titles can be tailored to help identify each task.

Award set up52 l.jpg

Award Set Up

Reporting Requirements

Awareness of required reports & responsible party





Principal Investigator


Invention (in cooperation with OVPR)

Award set up53 l.jpg

Award Set Up

Cost Sharing

  • Commitments and account set up can be rather complex.

    • Multiple departments, colleges and the OVPR

    • Various funds and types

    • What was committed (i.e. Salary? Equipment?)

  • Cost share accounts should be set up with the same thought process used for the sponsor dollar accounts.

  • Multiple areas contributing to one account

Communication and oversight are critical at award setup!

Award set up54 l.jpg

Award Set Up


  • Subcontract negotiations begin after Purdue’s agreement is executed and the account is established.

  • Post award will work with the appropriate contracting office to initiate the subcontract process.

  • An updated status of the negotiation for subcontracts can be found in the COEUS negotiation module.

Example situation55 l.jpg

Example Situation

A new award has three subcontracts in the budget. Two of the subcontracts were fully executed within the month of the award.

What may be holding up execution of the final subcontract?

Example answer56 l.jpg

Example Answer

  • Missing/incomplete budget or statement of work from the subcontractor

  • Missing letter of concurrence from the subcontractor’s sponsored programs office (for University subs)

  • Pending regulatory approvals from the subcontractor

  • Other negotiation issue (terms, payment method, governing law, e.g.)

Award set up57 l.jpg

Award Set Up

Award budget deviations from the proposal

  • If award amount is different than proposed amount, SPS will work with business office.

  • Change in award amount may impact cost share commitment.

    • A revised form 32 will be requested, if needed

Award set up58 l.jpg

Award Set Up


  • Regulatory approvals MUST be in place before account is set up.

    • Human Subjects*

    • Vertebrate Animals*

    • Recombinant DNA*

    • Radioactive Materials*

    • Biohazard*

    • Export Control*

    • Lasers (Class 3 or 4)

    • Federal Good Laboratory Practice

*status can be found in COEUS negotiation record

Award set up59 l.jpg

Award Set Up

What is the impact of assigning a responsible cost center (RCC)?

  • Grant Level RCC – overall management

  • Sponsored Program Level RCC – administratively responsible for expenditures

  • Correct assignment is essential for account management reports and routing for SRM approvals.

  • Create an account for each department involved.

Example situation60 l.jpg

Example Situation

The business office received an award notification for Professor Purdue, four months later the business office realized that the account isn’t showing up on their account balance listing report.

What could be wrong and what should be done to correct this?

Example answer61 l.jpg

Example Answer

The wrong RCC could be listed in the sponsored program and this could have been caught upon the award set up review by the business office.

long term issue – expenses weren’t tracked for that department which impacts the research incentive funds

Award set up62 l.jpg

Award Set Up

What’s the impact of the “Credit Split”?

  • Proposal Reports

  • Award Reports

Award set up63 l.jpg

Award Set Up

What is the impact of the additional data tab?

The RCC on a sponsored program will receive expenditure credit.

Allows for flexibility to allocate expenditure credit among multiple academic departments and add DP centers.

Award set up64 l.jpg

Award Set Up

Additional Data Tab - GMPROGRAM

Award set up65 l.jpg

Award Set Up

Why does SPS track interest earnings on grants where the interest goes back to the project?

When required by the sponsor to ensure that any interest on the cash balance is credited to the grant.

Allows the interest earned to be used by the project.

This is not a common requirement of sponsors and is most often from foundations.

Electronic award information requests notices and award set up l.jpg

Electronic Award Information Requests & Notices and Award Set Up


Account Management Guidelines for SPS Funds

GM Account Set Up checklist

OVPR website for Regulatory compliance

Award set up67 l.jpg

Award Set Up


  • Login