Funds received from sources other than the state of Michigan (general operating funds) by the University in support of various academic and/or research and other sponsored programs must be placed in the proper category for administrative and accounting purposes. In order to accomplish this, the University has defined the two broad categories of grants/gifts and grants/contracts/agreements into which it will place these funds..
A grant/gift is defined as something which is voluntarily given to the University and the University is not obligated to provide any deliverables (e.g. technical reports, software, hardware) to the donor. A grant/gift includes awards having no expectation of economic benefit nor in which any tangible compensation to the grantor exists or is implied. Most monies received from private or corporate foundations are in this category. Monies in support of various academic or research and other sponsored programs are, according to University policy, assessed facilities & administrative (F&A) cost charges.
A grant/contract/agreement is defined as a formal agreement between the University and one or more parties for the performance of work at a generally fixed or reimbursable rate. This agreement is in writing and is enforceable by law. The University is required to provide deliverables (e.g. technical reports, software, or hardware) to the funding parties. Most state and all federal research and other sponsored projects are in this category. Generally funds in this area will be charged F&A costs at the current University rate.
Most funds received by the University can be easily defined and can be placed in the proper category. However, in those cases where definition is questionable, the University, through the appropriate administrative office, will contact the donor/sponsor for additional information to determine the proper categorization.
Revised:
1/22/2018 - Annual Review: Addition of "generally" to the sentence "...University
and one or more parties for the performance of work at a generally fixed or reimbursable
rate."
12/08/2016 - Annual Review: Addition of "/agreements" to first paragraph "...grants/contracts/agreements..."
02/13/2015 - Annual Review: To reflect current practice, the email address for questions
is now policy@mtu.edu. From the second paragraph, deleted the last sentence that read "However, in the
grant/gift category, the University will negotiate a waiver of these F&A costs." From
the fourth paragraph, the first sentence read "Most funds received by the University
will be easily defined ...." now reads "Most funds received by the University can
be easily defined ....".
02/13/2014 - Updated Michigan Tech and Handbook banners, no changes made to content.
06/13/2011 - Annual Review: "various academic and/or research programs must be placed
in the proper category" is now "various academic and/or research and other sponsored
programs must be placed in the proper category"; the sentences "Monies in support
of research are, according to University policy, assessed indirect cost charges. However,
in the grant/gift category, the University will negotiate a waiver of these indirect
costs" now read "Monies in support of various academic or research and other sponsored
programs are, according to University policy, assessed facilities & administrative
(F&A) cost charges. However, in the grant/gift category, the University will negotiate
a waiver of these F&A costs"; "A grant/contract is defined as a formal agreement between
the University and one or more parties for the performance of work at a fixed or reimbursable
rate, this agreement will be in writing and is enforceable by law" now reads "A grant/contract/agreement
is defined as a formal agreement between the University and one or more parties for
the performance of work at a fixed or reimbursable rate. This agreement is in writing
and is enforceable by law."; "(e.g. technical reports, software, hardware)" is now
"(e.g. technical reports, software, or hardware)"; "Most state and all federal research
projects are in this category. Normally funds in this area will be charged indirect
costs at the current University rate" now reads "Most state and all federal research
and other sponsored projects are in this category. Generally funds in this area will
be charged F&A costs at the current University rate." To reflect current University
titles and practice, MTU is now Michigan Tech and the email address for questions
is now hbwebmaster.