The University of Iowa
Corporate and Industry Sponsored Projects
Policy Statement
Revised 4/1/2003 |
This statement establishes policies for the financial management of corporate and industry
sponsored projects for which data or other outcome products are expected. Corporate or
industry contracts generally involve a quid pro quo, i.e. something is given and something
is received. These agreements must be entered into in the name of The University of Iowa
and not in the name of the Department or Principal Investigator. Neither The University of
Iowa Foundation nor other external entity is permitted to accept payment for activities
related to corporate and industry sponsored research projects conducted within the
University.
|
| Establishing the Account |
The following documents are required for the assignment of a Master File Key (to establish
an account):
|
- University of Iowa Proposal Routing Form
- Detailed Project Budget and Payment Schedule (eg: standard federal grant and contract
format)
- Fully executed contract or award accepted by the University
|
Accounting Issues |
- Investigators must exercise diligence to only charge expenses against the project that
are reasonable, allowable, and allocable. All revenues and expenses will be accounted for
in the University accounting system.
- Corporate and industry sponsored clinical trials will be charged an F&A rate of 25%
on total direct costs.
- Corporate and industry sponsored projects, excluding clinical trials, will be assessed
facilities and administrative (F&A) costs based on the federally approved F&A
rate, currently 47% of modified total direct costs. (MTDC excludes patient care,
subcontract amounts in excess of $25,000, building repair, utilities, tuition, facility
lease and equipment purchases.)
|
Project Close-Out |
- Investigators engaged in corporate or industry sponsored projects are responsible for
notifying their departmental administrator upon the completion of the project. The
administrator will then notify Clinical Trials Office for clinical trials agreements or
Division of Sponsored Programs for all other awards. The Grant Accounting Office will
initiate closure of the project account upon notification of project completion by the
DSP/CTO, or, according to the project end date. The Principal Investigator and his/her
department will be allowed a 90-day period following the completion of the project to make
appropriate adjustments and corrections and to determine if a residual balance exists. The
Grant Accounting Office will review the account for appropriateness of costs prior to
closing the account.
- When work on an award ends in a surplus, full F&A will be assessed on the remaining
balance. If a reduced F&A was negotiated with the Office of Sponsored Programs, up to
the full F&A rate will also be charged on incurred expenses. For all clinical trials
contracts negotiated by the Clinical Trials Office, the full F&A rate is 25% of total
direct costs. For other awards the current federal rate, 47% of the modified total direct
cost for on-campus projects, will be used unless the sponsor has a written policy of a
different rate. In no case will the application of additional F&A costs drive the
account into a deficit balance.
- After full F&A costs are assessed, the remaining balance will be transferred to an
Organized Activity (fund 240) account. The account will be administered by the department
with expenditures directed by the principal investigator who originally obtained the
funds. The expenditure of funds will be to support research of the principal investigator
who originally obtained the funds as long as the investigator is a regular faculty or
staff member of the University.
- In cases where the Principal Investigator transfers to another institution or
organization prior to completing the study, contract document permitting, The University
of Iowa will appoint another Investigator to fulfill the responsibilities of the
project(s), or, if the University deems it appropriate, it may retain the former employee
as Principal Investigator. When so directed by the sponsor, or at the discretion of the
University, the University may transfer the final account balance to the new institution
or organization subject to the restrictions placed on the funds by the grantor. No money
will be paid to an individual investigator.
- In cases where the Principal Investigator leaves The University of Iowa after the
project has been closed out, funds remaining will be transferred to the DEO of the
Investigator's department for discretionary use in research at The University of Iowa.
|
| This policy is effective on all projects with an effective or start date on or after
April 1, 2003. |
|