Primary Indicators Useful in Distinguishing Gifts/Sponsored Projects/External Sales

Nonexchange Transactions
Exchange Transactions
INDICATOR
GIFTS
SPONSORED PROJECTS
EXTERNAL SALES
Intent of resource provider or University

Resource provider (donor) and University benefits in exchange for resources transferred.

An unconditional transfer is a voluntary nonreciprocal transfer.

Donor affirms that it is making a donation to support the University's programs and intends to take a charitable deduction.

Reciprocal transfer in which each party receives and sacrifices something of approximate equal value.

Resource provider (sponsor) affirms that it is providing resources in exchange for specified benefits or services.

University or resource provider (customer) asserts that resource provider (customer) will receive specified goods or services in exchange for resources transferred.

Resource provider (customer) affirms that is is providing resources in exchange for specified goods or services

Tangible benefit is received by the resource provider (customer)

Scope of work

Funded activities relate to the University's general mission encompassing research, education, and public service. Amount of funding is not closely linked to a specific scope of work.

Results of work have no commercial value to the donor.

Scope of work is directed toward a specific line of scholarly or scientific inquiry, specific training or education program, or specific public service program. Amount of funding is based upon a scope of work and may obligate the University to certain milestones and deliverables.

All clinical trials will be managed as sponsored projects.

Activities generally include the sale of goods or the performance of services prescribed by the resource provider (customer) or pursuant to a pre-existing protocol, at a price determined by the University or by agreement of both parties.

All clinical trials will be managed as sponsored projects.

Primary and secondary benefits Public benefits derived from activity are primary; benefits to resource provider are secondary. Public benefits derived from activity are primary; benefits to resource provider are secondary. Results of University work have identifiable commercial value related to the resource provider's (customer's) business operation and primarily benefit resource provider (customer); public benefits are secondary.
Availability of results

Results of the funded activity are available or delivered to individuals or organizations other than the resource provider (donor)

University retains the right to publish results.

Results of the funded activity are available to individuals or organizations other than the resource provider (sponsor)

University retains the right to publish results.

The goods or services are delivered to the resource provider (customer) at a time and place agreed to by both parties.

University retains the right to publish results in the aggregate consistent with Regent's Policies on Research Secrecy and Publication of Investigation Results.

Terms and conditions of performance agreement

The agreement may require programmatic and financial reports. The agreement will not generally require a specific level of personnel effort or impose budget category restrictions; the agreement will not generally restrict supported activity to a specific period of time.

The time or place of activities undertaken are at the discretion of the University.

The University is not penalized for nonperformance.

The agreement may require programmatic and financial reports. It may require a specific commitment regarding the level of personnel effort, specific restrictions on certain types of expenditures, or prior approval for re-budgeting. The agreement may restrict supported activity to a specific period of time.

The time or place of delivery of resources provided to a third party recipient is at the discretion of the resource provider (sponsor).

Agreement is binding. The University may incur penalties for nonperformance or failure to meet the terms of the agreement.

Deliverables are the goods or services purchased.

Agreement is binding. Resource provider (customer) may have contractual remedies for the University's non-performance.

Secondary Indicators Useful in Distinguishing Gifts/Sponsored Projects/External Sales

Nonexchange Transactions
Exchange Transactions
INDICATOR
GIFTS
SPONSORED PROJECTS
EXTERNAL SALES
Control and ownership of intellectual property

University retains control over and determines ownership of intellectual property interests resulting from funded activities.

University generally retains control over and determines ownership of intellectual property interests resulting from funded activities.

Occasionally, resource provider (customer) retains control over intellectual property interests related to goods or services purchased from the University.

Expenditures

Recipient has an active role in how money is spent.

Detailed restrictions on expenditures.

Limited budget flexibility.

University determines all necessary expenditures.

Pricing The resource provider (donor) determines the amount of the payment. The resource provider's (sponsor's) payment equals the value of the specified benefits or services. The total payment is based on the cost of services to be provided. The resource provider's (customer's) payment equals the price negotiated and agreed to by both parties.
Unspent Funds

Any unspent unrestricted resources may be retained, or returned, if specified by the donor. Restricted resources are retained for use in future fiscal periods.

Unused funds may or may not be returned to the sponsor.

University retains funds. The University (department) bears the risk of profit or loss on the goods or services sold.

Form of Agreement

Letter or gift agreement.

Grant award notice, contract, or cooperative agreement supplied by sponsor. Document may include the following terminology: cost sharing, budget line item, intellectual property, overhead negotiations, period of performance, or publication rights.

Sales document, letter of agreement, standard University contract, or on occasion, a negotiated contract.