¶¶Òõ̽̽

While most external support is clearly identifiable as either a sponsored project, gift, or Income and Expense (I/E) activity, there are some cases where determining the nature of the funding requires more thoughtful consideration. For example, the term grant does not necessarily determine the classification of an award. Likewise, an agreement from a philanthropic funder may contain contractual terms and conditions that require its classification as a sponsored project.

If an activity or an agreement includes elements of more than one external funding type, the final determination will be made by:

• Sponsored Project Administration, 
• ¶¶Òõ̽̽ Foundation,
• Financial Accounting, Costing, and Treasury Services. 

A sponsored project is a transaction between ¶¶Òõ̽̽ and the sponsor in which the sponsor supports a specific scope of work carried out by ¶¶Òõ̽̽ for the purpose of research, public service, instruction, or other sponsored activity.  Sponsored projects may be funded by a Federal, State, or local government, non-profit organizations, and any number of commercial, industrial, or private entities.

Common Characteristics of Sponsored Projects

Note that the funding need not meet all of the below criteria to be considered a sponsored project.

• Statement of work
• Formal proposal or award document exists, often requiring the endorsement of an authorized official
• Detailed financial accountability
  • Project plan with a line-item budget
  • Specified period of performance
  • Cost reimbursable accounting and/or detailed financial reporting
  • Requirement to return any unspent funds at the end of the period of performance
  • Accountability under the terms of the Uniform Guidance
  • Effort reporting
• Indirect costs are allowed, and project can be renewed or extended in most circumstances
• Activity results in generalizable knowledge intended to be shared broadly with the scientific community 
• Contractual terms that establish acceptance of risk by both parties, such as liability, indemnification, or insurance
• Regulatory compliance requirements, including Export Controls, Conflict of Interest, etc.
• The funder is from any level of Government – federal, state, local or foreign, including flow thru transactions
• The agreement is made in a form of a subaward to ¶¶Òõ̽̽ 
• ¶¶Òõ̽̽ proposal includes subawards to other institutions
• Cost sharing is required and must be tracked through ¶¶Òõ̽̽ accounting system; detailed transaction information must be reported to sponsor
• Restrictive Intellectual Property terms are included in the agreement.

Note that the funding does not need to meet all of the above criteria to be considered a sponsored project.

A gift is money or another item of value given to the University or the ¶¶Òõ̽̽ Foundation by a donor who expects nothing significant of value in return, other than recognition and disposition of the gift in accordance with the donor’s wishes.  In general, a gift is made by a person but can also be from a philanthropic non-governmental entity (corporation, foundation, nonprofit, etc.) for the benefit of society (as opposed to the economic benefit of the funder).  ¶¶Òõ̽̽ Foundation is responsible for the administration of gifts.

Common Characteristics of a Gift

• A proposal may be submitted to the potential donor that includes a description of the proposed activities, with the understanding that the description of the proposed activities is not intended as a commitment to a specific line of inquiry for the donor’s economic benefit.
• May be accompanied by an agreement that restricts the use of funds for a particular purpose. 
• No contractual requirements are imposed beyond responsible stewardship.
• No deliverables for the donor’s economic benefit; for example, no rights to tangible or intangible property.
• No formal fiscal accountability to the donor beyond periodic progress reports and summary of expenditures.  These are considered requirements of stewardship. 
• Charitable tax deduction
• Typically does not contain a specified period of performance.
• Does not require cost reimbursable accounting.

Income and Expense activities are unique, specific and limited functions performed at the procurement of another and for the benefit of or on behalf of a specific party (the customer).  I/E activities are characterized by sales of goods or a provision of services and are sometimes referred to as auxiliary services (e.g. Residential Life, The ¶¶Òõ̽̽ Bookstore, etc.).  I/E activities are expected to be self-supporting, designed to generate sufficient revenue to recover expenses associated with I/E activities.  I/E customers may include organizations external to the university, internal constituents (e.g. students, departments) and sponsored projects.

At times, units with I/E may receive an agreement or a request for a proposal.  These must be reviewed to ensure that the proposed work falls within the scope of the approved I/E activity.  Consultation with Sponsored Project Administration (SPA) and Office of Financial Analysis and Budgeting (FAB) is necessary when an agreement or request for a proposal is not directly within the scope of approved I/E activities.

Common Characteristics of an Income/Expense (I/E) Activity

• The scope of work describes routine or repetitive services
• Provides the goods or services as part of its normal business operations to many different customers
• May offer goods and/or services found elsewhere within the external market 
• No new intellectual property is expected to be developed in performing the work
• No expectation of publishing on the work or the data
• No programmatic decision making and is not responsible for overall research results
• Not responsible for designing, developing or reporting the research.

Examples of Service Agreements and Income/Expense Activities

• Lab testing services
• Clinical services, examples: Vermont Cancer Center, MRI facility, Luse Center, etc.
• Non-lab testing services
• Curation services
• Hosting conference site (e.g. providing facilities, catering, printing, and other support)
• Performing arts, art installation requiring entry fee, studio memberships and performances, or activities in which entrants pay a fee
• Professional and/or technical services (such as supplying software, providing technical assistance, setting up equipment, etc.)
• Field and equipment testing
• Equipment usage.