Gifts & Grants: What is the Difference? and Record Retention at UW

1. Gifts & Grants: What is the Difference?and Record Retention at UW Faculty Brown Bag Series February 17, 2011 Gerberding Hall 142, University of Washington

2. Barbara Benson, Director, Records Management Services Record retention at UW

3. THE HUSKY HARNESS RECORDS COMPLIANCE IN WASHINGTON STATE

4. Records Management • The application of systematic control to recorded information • A logical and practical approach to the creation, maintenance, use and disposition of records, and therefore to the information those records contain.

5. What is a Record? Everything…… • Word and Excel files • Email • Notes on a cocktail napkin • Records in the cloud, like Gmail accounts • Metadata • Databases • Text messages • Social media

6. Definition of a Record RCW 40.14.010 Definition and classification of public records. As used in this chapter, the term "public records" shall include any paper, correspondence, completed form, bound record book, photograph, film, sound recording, map drawing, machine-readable material, compact disc meeting current industry ISO specifications, or other document, regardless of physical form or characteristics, and including such copies thereof, that have been made by or received by any agency of the state of Washingtonin connection with the transaction of public business.

7. Recordkeeping Responsibility Every record, electronic or paper, has a specific amount of time that it must be retained before it is destroyed (Records Retention Period) Retention periods are based on state, federal, private sponsor requirements, and our administrative use of the records. Working with the University Community, retention periods are identified by the UW Records Management Office and approved by the State Records Committee.

8. Preservation And Destruction of Public Records RCW 40.14 • Defines a record • Establishes authority for records retention and destruction • Requires the Records Management program at the UW

9. What is Records Management? COMPLIANCE

10. UW Compliance Responsibility It is the general policy of the University to: • Create only the records it needs. • Retain records according to legally approved records retention schedules. • Maintain active and inactive records in appropriate format, storage equipment, and locations. • Discard records when no longer required. • Preserve records of historical significance. • Identify and protect vital records.

11. Why Care…What Is The Business Case? • Reduce Costs--Save time, save space, save money • Reduce Risk--Poor audit findings • Minimize Legal Exposure • Storage may be cheap, but litigation is expensive • Continuity of Business Operations in Case of a Disaster • Protect the Rights and Interests of Employees, Students and Patients • Eliminates the need to produce records which have reached the end of their retention period–and—have been destroyed

12. Penalties For Non-Compliance Public Records Requests $100 per day per item • PAWS v. UW (1994) • Department of Corrections (2008) Fined $750,000 for not releasing records in an electronic format.

13. An Average of $20 Million Litigation • A corporation is sued for fraud. It fails to fully search and preserve records appropriately. Plaintiff awarded $1.6 billion. Coleman Holdings v. Morgan Stanley • Employee sues corporation. Defendant deletes some emails and loses back-up tapes. Judge tells jury to assume the missing emails would have hurt the corporation. Plaintiff wins $29.3 million.Zubulake v. USB Warburg • Microsoft spends an average of $20 million per litigation

14. Do You Know Where Your Records Are? • Paper Records • Electronic Records

15. UW General Records Retention Schedule • UW-GS 1 Committees, Councils, Associations And Boards  • UW-GS 2 Environmental Health & Safety/Facilities Services Records  • UW-GS 3 Curriculum Records  • UW-GS 4 Materials That May Be Disposed of Without A Specific Retention Period  • UW-GS 5 Electronic Mail  • UW-GS 6 Financial Records (For non-grant/contract funded budgets)  • UW-GS 7 Research and Grant/Contract Records  • UW-GS 8 Personnel and Payroll Records  • UW-GS 9 Student Records  • UW-GS 10 General Office Administration Records  • UW-GS11 Publication Records http://f2.washington.edu/fm/recmgt/retentionschedules/gs/general

16. Research Data Retention Biomedical Treatment or Intervention (Drug, Device or Surgical Procedure/Intervention): Research documentation and data. Reviewed by the full IRB.   Official Copy: Principal Investigator Retention: 30 years after close of study Non-Biomedical Treatment or Intervention (Non Drug, Device or Surgical Procedure/Intervention): Includes surveys, blood draws, interviews, records review. May be reviewed by the full IRB or subcommittee.  Official Copy: Principal InvestigatorRetention: 6 years after close of study

17. Electronic Records • Support mission-critical operations • Rapidly increasing volume • Often more complete than paper • Contains unique information unavailable elsewhere • Auditable/Admissible in Court • May have a relatively long retention period • Exist in just about every format from a word document to email, to a Facebook page, to a web page • Issues: • We know they are a record • We know they are subject to records retention schedules • Must ensure not deleted before the retention period ends • Should ensure deleted at the end of the retention period

18. Where Are They Located? • Network and E-mail Servers • Desktop and laptop computers • Home-based computers • Blackberries, Smart Phones, and Tablets • Storage devices: Backup tapes, ‘local’ Disk Drives, CDs/DVD’s, flash drives, diskettes, Offsite Storage, network storage

19. Email and Other Electronic Records • Each employee is individually responsible for handling and maintaining records (including University email and other electronic records) in accordance with University policy and requirements. • Records that have a specific retention period can be printed and filed in the paper filing system, or can be retained electronically. • If records/email messages are retained electronically, employees are responsible for making sure that they remain accessible and readable for the full retention period.

20. Records That Can Be Destroyed Some electronic records (especially email) have a very transitory value. They have no administrative, legal, fiscal, or archival retention requirements and can therefore be deleted as soon as they have fulfilled their reference purpose. (See UW General Records Retention Schedule, Section 04) • Preliminary drafts • Duplicates • Hard copy printouts from a database • Information that also exists in another format • Routine replies/requests for information • Emails sent as reference or for informational distribution • Emails used to set-up or accept meetings

21. Records That Must Be Retained Other electronic records that contain evidence of official University actions, decisions, approvals, or transactions must be retained according to an approved retention schedule. • Policy and procedure directives • Research Documentation • Protocols, lab notebooks and other research documentation, consent forms, adverse event reports • Approvals for purchase/hire or other actions to be taken • Final reports or recommendations • Receipts for purchases over $75.00 and/or made with a ProCard or CTA

22. Records Management FAQ: Paper Storage Q: Where can I send my paper research records for storage? A: The University Records Center provides inactive storage for paper research records which have not yet reached the end of their retention period. Contact urc@uw.edu for more information. The UWMed Records Center provides inactive storage for paper research records created by the School of Medicine which have not yet reached the end of their retention period. Contact Christine Taylor, ct24@uw.edu for more information

23. Records Management FAQ:Transfer of Research Data Q: What happens to my research records if I leave the UW? (See GIM 37 Transfer of Research Data from the University) A: Research Data whose retention period has expired may be transferred to another institution with the approval of the dean or his or her designee. Research Data whose retention period has not expired must be retained, regardless of physical location, in accordance with UW General Records Retention Schedule requirements.

24. THANK YOU Barbara Benson, Director Records Management Services http://f2.washington.edu/fm/recmgt/ bbenson@uw.edu 543-7950

25. Lynne Chronister, Asst Vice Provost for Research & Director, OSP Gifts & grants: What is the Difference?

26. Definition – “Gift” • An unconditional, voluntary, non-reciprocal transfer of assets (including unconditional promises) to a not-for-profit organization. • The donor may have certain expectations but there cannot be any actual control over expenditures of funds or any quid pro quo. • The donor may not benefit from the execution of the gift.

27. Legal vs. Accounting Definitions • Legal: A gift is a voluntary transfer of property to another made gratuitously and without consideration. A contract is a promise or promises constituting an agreement between the parties that gives each a legal duty to the other and also the right to seek a remedy for breach. A grant shares attributes of both a gift and a contract.

28. Gift or Grant?The Legal Perspective • Legal vs. accounting definitions • What difference does the distinction make? • Legal protections for the institution • Accountability of the institution • Cost reimbursement • Conflicts of interest • Intellectual property • Other legal considerations

29. Gift-Supported Research • Research can clearly be supported by a gift • Gift classification must be bona fide (e.g.,not just to avoid indirect cost assessment) • Gift classification does not alter: • legal risks and accountability associated with research • treatment of research for cost accounting purposes

30. Documents/Regulatory Issues • Internal Revenue Service (UBIT) • FASB (private/GASB(public) • CASE Reporting Standards • OMB A-21 (Organized Research) • HHS/ONR • Dept of Justice • FDA (21 CFR part 54) • Sponsor/Donor Requirements

31. Availability of Legal Protections • Normally a gift transaction gives no opportunity to: • obtain indemnification from the provider of the funds for liability the recipient might incur in performing the research • clarify key issues re allocation of rights (e.g., intellectual property, publication) • limit risks arising from alleged “side agreements” and informal understandings

32. Other Issues • Anti-kickback • Conflict of Interest • Material Transfer Agreements • Clinical Investigations

33. Internal Issues • Proposal Development and Submission • Award Receipt (donor letter vs. award document) • Account Establishment (unrestricted Vs. restricted) • Expending (allowable Vs. unallowable) • Reporting (FASB 116-118, GASB) • Auditing

34. General Issues • Use of the Award will govern treatment as a gift or grant (e.g., clinical investigation) • Transaction method will govern treatment as a gift or grant (award document or gift agreement)

35. General Issues • Matching Funds: when a gift matches grant funds, it must be transferred to the grant account NOTE: matching funds become federal if matching federal funds. • Gov’t money cannot be a restricted or unrestricted gift • Researchers may not take a tax benefit when supporting their own research

36. Con’t • Hiding Organized Research in a gift account may be perceived as fraud • A gift should not result in Intellectual Property Rights for the donor. • There is no indemnification from liability in performing research under a gift designation

37. Con’t • Gift funds used for research and related activities will affect either the instructional or research F&A base. • A gift must have charitable intent: hard to justify a gift & contract to the same project. • If the donor puts restrictions on a gift, it may be classified as a restricted gift, but the donor may not accrue benefit.

38. Regulatory Compliance Issues • Conflict of Interest Regulations apply to gifts and grants • IRB protections and approvals must be followed • Animal Care and Use protections apply. • Basically all UW compliance policies apply to gifts and grants and contracts.

39. Gift or Grant? • Dr. Miller has received an award from the Mellon Foundation to update the laboratory and to build an on-site residence for a research assistant at the Kruger National Park in South Africa.  • Dr. Miller has her own contacts at Mellon and did not check with the Foundation or the Sponsored Research Office before submitting her proposal to Mellon.  • The award arrived--to the surprise of everyone--in the form of a check for $500K and only one requirement--that any interest earned on the funding be reinvested in the Project.  • The Foundation says it is a gift since it is from a private foundation.  The Office of Sponsored Projects thinks that it is a grant. 

40. Gift, Grant or Grey? • Dr. Green owns 25% equity in a start up company. • He gifts the university $50,000 to carry out research in his laboratory. • He states that there are no strings attached.

41. Gift, Grant or Grey? • Dr. Harris accepts $100,000 from ATV Pharmaceutical company for a clinical investigation. • She signs the contract and puts the money into her Development account. • The study cost $40,000 to complete. The other funds are used for her independent research.

42. Grey? • Dr. Smith is thrilled to have received a $5000 grant from the State Arts Council and funds from the city to start an Arts in the Park program. • The Development Office writes donor thank you notes to both organizations.

43. Grey? • Dr. Appleby consulted for Regis Inc., a high tech computing company, and received a check for $15,000. • She donated the check to the University for her work in digital signatures. • Who is the donor? • Can Dr. Appleby deduct the funds from her federal income taxes?

44. Thank You • An archived version of this webinar will be posted to the OSP website, as well as a copy of this PowerPoint. • Join us next month for two more sessions: • Export Control, Data Security and Dual Use IssuesGarrett Steele and Jim Poland • FDA Approvals, IND, IDE and Clinical TrialsAnn Melvin and Lynn Rose