Account Lifecycle: The Beginning Session 2 Award Establishment

1. Policy Training Program for the Lifecycle of an Account Account Lifecycle: The Beginning Session 2 Award Establishment

2. 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

3. Contracting Notice To Proceed (NTP) Electronic Award Notices Award Set Up Examples Resources Course Content

4. 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

5. Contracting • 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.

6. Contracting Types of Contracts: Spectrum of Sponsor Influence Gifts MOU/MOA Grant Contract (no consideration) Teaming Agreement Cooperative Agreement Each represents a “legally binding agreement,” no matter what we call it.

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

8. Contracting • 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.

9. Contracting 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)

10. Statement of Work – Academic Approvals Regulatory Approvals Budget – Are all costs covered? System Assessment – Can we meet the terms as written? Contracting Factors for Consideration

11. The Proposal!! Discussions with PI Business Office SPS Post Award Other central offices impacted Contracting Where does the analyst get this information?

12. Contracting • 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.

13. 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) Contracting What governs the terms and conditions the University can accept?

14. Types protected by law Patents, Copyrights, Trademarks and Trade Secrets Other types mentioned in contracts Information, Data, Know-How Contracting What is Intellectual Property?

15. 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 Contracting University’s policy on Intellectual Property http://www.purdue.edu/policies/pages/teach_res_outreach/viii.4.1.htm

16. Licensing Revenue for PI, Department and University Right to Publish Academic/Scholarly Works Student Theses Right to pursue related research Contracting What does the ownership of IP impact?

17. 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) Contracting What happens if the analyst can’t arrive at a compromise that is within University policies? They determine appropriateness based on the given situation.

18. 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?

19. Contracting – Example Answer • Contract Analyst • Principal Investigator • Industrial Foundation Group Assistant Director • Contract Review Board • Department Head or Dean

20. Signature Delegation When is Gift not a Gift? How can we work together to make the process more efficient? Contracting Other Points of Interest

21. 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 Contracting Why can’t faculty sign their own contracts?

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

23. 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?

24. Contracting – Example Answer • NO!! • Get award letter to SPS/IFG for review • Inform PI he may need a proposal

25. 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 spscontr@purdue.edu Contracting How can we work together to effectively navigate through the contracting process?

26. Contracting Coeus Negotiation Record

27. Contracting

28. Contracting Bottom Line: Contract and file must stand on its own years after the active participants are no longer involved.

29. 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

30. 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?

31. Contracting Resources: SPS Website - contracting tab http://www.purdue.edu/sps Generic email for sponsored program contracting groups spscontr@purdue.edu

32. Contracting Questions?

33. Notice to Proceed Notice to Proceed (NTP)

34. 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.

35. 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.

36. Example Situation PI Smith brings a purchase request for sheep to the business office. What questions should you ask?

37. 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.

38. 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

39. 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.

40. 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.

41. Notice to Proceed Resources NTP Form http://www.purdue.edu/sps/pdf/ntp.pdf Account Management Guidelines for SPS Funds http://www.purdue.edu/sps/doc/Account%20Management%20Guidelines%20for20SPS%20Funds.doc SPS Staff Directory http://www.purdue.edu/sps/staffDirectory.htm

42. Notice to Proceed Questions?

43. Electronic Award Information Requests & Notices Electronic Award Information Requests & Notices

44. 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

45. 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.

46. Award Set Up Award Set Up

47. 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

48. 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. http://www.purdue.edu/sps/accountmgmt/priorapproval/index.html

49. 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

50. 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?