[Faculty] Changes to policies concerning sales & service/testing agreements

[Pawar, Sangita C - (sangita)]

Dear Faculty,

I am writing to bring you up to date on important changes to policies concerning sales & service/testing agreements.
Historically CALS faculty developed and conducted these projects entirely within their academic units with funds accruing to departmental designated accounts.

Due to changes in federal regulations and the university's interpretation about compliance with those rules, going forward fee-for-service activities must be associated with an approved rate study or processed as a sponsored research contract with full F&A/IDC included.

We recommend that sales & service/testing agreements be structured as Fixed Price agreements where the Sponsor is given a single final cost for the entire project and not a detailed budget that shows the direct and indirect costs.
At the conclusion of such a project, any residual funds in the Sponsored Account after all direct and indirect expenses have been charged to the account can be transferred to a designated account for discretionary use.

For additional information please contact your unit business office and pre-award staff.


Thank you
Sangita

Sangita Pawar, PhD, MBA
Assistant Vice President, Research
  Division of Agriculture, Life and Veterinary Sciences,
  and Cooperative Extension
Ph: 520-626-3408


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