1. The University of Texas at Arlington
Office of Research
and
Office of Accounting
and Business Services
Brown Bag Training
Session Four:
Gifts versus Grants

2. Gifts vs. Sponsored Projects: Overview
Gifts vs. Sponsored Projects Definitions
Sponsored Project Indicators
Gift Indicators
Research Gifts
Account Management

3. Gifts vs. Sponsored Projects: Definitions
A sponsored project (grant, contract, cooperative agreement) is:
Externally funded activity with a statement of work or set of objectives that provides a basis for sponsor expectations
Enforceable by law
Subject to revocation for cause
A sponsor and recipient exchange of items that have economic value (including knowledge, IP)

4. Gifts vs. Sponsored Projects: Definitions
A gift or donation is:
A voluntary and irrevocable transfer of money, services or property (e.g., equipment, personnel time and skill, etc.)
Without any expectation of or receipt of goods or services from the recipient
Without performance requirements either written or oral

5. Gifts vs. Sponsored Projects:
Gifts are handled through the Office of Development (30-accounts)
Grants are handled through the Office of Research (26-accounts)
Any gift determined to be a sponsored project will need to follow the policies and procedures of the Office of Research and the UT System Regents Rules and Regulations

6. Sponsored Project Indicators: Sponsor
Determined a sponsored project if the sponsor:
Is a government entity (Federal, State, or Local) or includes governmental flow-thru funds
Awarded funds through a competitive bid process or in answer to an RFP (Request for Proposal)
Requires the signature of an authorized University Official and/or the PI
Issued a contract, cooperative agreement, consortium agreement, subgrant, subcontract, or purchase order
Identifies or assigns a technical monitor
Funds a project for a specific scope of work, product, service or other deliverable

7. Sponsored Project Indicators: Terms and Conditions
Determined a sponsored project if the Terms and Conditions:
Impose publication restrictions
Require conveyance of rights to tangible (equipment) or intangible property
Require an audit of facilities or other University resources
Stipulate compliance with federal or state regulations, unallowable costs, subcontracting, insurance, warranties, indemnification, proprietary or confidential information, modifications, terminations, penalties, or applicable law

8. Sponsored Project Indicators: Financial Restrictions
Determined a sponsored project if financial restrictions include:
How funds are to be used or include a line item budget
A start or end date on the use of funds
Facilities and Administration Costs (Indirect)
The return of unexpended funds for any reason
Invoicing or detailed financial reports
Funding based on cost reimbursement contingent upon programmatic and fiscal reporting

9. Sponsored Project Indicators: Special or Other Considerations
The following issues also require special consideration in determining external funding as either a gift or sponsored project:
Funds used as matching or cost sharing towards a sponsored project
Funds for activity involving humans subjects, animals, radiation hazards, biohazards or R-DNA
The PI has a potential financial conflict of interest with the sponsor
Funds are used to generate program income for a sponsored project

10. Gift Indicators:
Gifts may require minimal reporting to the sponsor in the form of a general statement of how funds are used
Gifts may be limited towards general use in a specific department, lab, or research area
Gifts may include: endowments, construction projects (renovation or equipment), or general student financial assistance (fellowships or scholarships)
External funds may be determined to be a gift if there are no sponsored project indicators

11. Research Gifts: Overview
During FY 02, the Texas Higher Education Coordinating Board (THECB) issued a memorandum on reporting research expenditures among Texas Public Universities
The memorandum defined “research” and established standards for reporting research expenditures
The total amount of research expenditures our University has in a fiscal year partially effects funding allocations our University Receives from the Texas Legislature in the following fiscal year
It is imperative our University properly classifies research expenditures

12. Research Gifts: Procedure
The Offices of Research (OR), Development (OD) and Accounting and Business Services (OABS) developed a procedure to properly classify research gifts in accordance with the accounting standards in the THECB memorandum
Research Gift Procedure:
Any gifts that may be for research, OD sends to OR for review and deposits the check into a holding account
If OR determines to be research, OR sends the PI a Research Gift Certification Statement
If OR does not determine to be research, OD follows normal procedure
If the PI signs the certification statement, OABS creates a research gift account and transfers the deposit into the research gift account

13. Research Gifts: Requirements
Cash Gifts designated for “research” or utilized for research purposes, may be classified/coded as Research Expenditures if they meet the following requirements:
Over 50% of expenditures will be for “research” as defined by the THECB memorandum
The PI, or authorizer of the account signs a Research Gift Account Certification Statement (attached)

14. Research Gifts: Other Key Points
Gifts determined to be Research:
Are still GIFTS, not Grants
Are NOT managed by the Office of Research
The office of Research only assists the PI in the research determination for completion of the Research Certification Statement
Are NOT subject to F&A (indirect) costs
Research Gift Accounts only exist in order to properly classify the University’s research expenditures in accordance with the THECB memorandum

15. Account Management: Overview
Grant Accounts (26-Accounts)
Research Gift Accounts (30-7XXX-XX)
Gift Accounts (30-account)

16. Account Management: Grant Account (26-accounts)
Supported by the Office of Research
Managed using award criteria and related regulations
Will have definite beginning and ending dates
Funds MAY NOT be comingled

17. Account Management: Research Gift Account (30-7XXX-XX)
Initiated through the Office of Research
Supported by the Office of Accounting and Business Services
Requires a Research Gift Account Certification Statement
Managed using University Policies and Procedures
Must comply with donor intent
May include many deposits from multiple donors as long as they are for research

18. Account Management: Gift Account (30-account)
Supported by the Office of Accounting and Business Services
Managed using University Policies and Procedures
Must comply with donor intent
Deposits made to general gift funds may be made to the same account, as long as there is a similar purpose

19. Brown Bag Training Session Five
Federal Demonstration Partnership (FDP)
Thursday February 27th, 2003