ORSP Frequently Asked Questions

• A publicly available document by which a Federal agency makes known its intentions to award discretionary grants or cooperative agreements, usually as a result of competition for funds. Funding opportunity announcements may be known as program announcements, requests for applications, notices of funding availability, solicitations, or other names depending on the agency and type of program.    
• Requests for Proposals (RFP): Announcements that specify a topic of research, methods to be used, product to be delivered, and appropriate applicants sought. Proposals submitted in response to RFPs generally result in the award of a contract.
• Requests for Applications (RFA): Announcements that indicate the availability of funds for a topic of specific interest to a sponsor. Proposals submitted in response to RFAs generally result in the award of a grant.  
• Program Announcement (PA): Describes existence of a research opportunity. It may describe new or expanded interest in a particular extramural program or be a reminder of a continuing interest in an extramural program.
• Program Announcement Reviewed in an Institute (PAR): A PA with special receipt, referral and/or review considerations, as described in the PAR announcement.  
• Program Announcement with Set-aside funds (PAS): A PA that includes specific set-aside funds as described in the PAS announcement.
• Broad Agency Announcement (BAA): A method of soliciting proposals for Research and Development (R&D) using notices published on the Federal Business Opportunities (FedBizOpps) and Grants.gov websites.  
• Invitation to Bid (ITB)/Invitation for Bid (IFB): A solicitation issued to prospective bidders. An ITB/IFB describes what is required and how the bidders will be evaluated. Award is based on the lowest bid and negotiations are not conducted.

A grant is a donation of money or property from a sponsor in exchange for specific services such as, but not limited to, research, development, or service projects. Grants may come from a governmental, quasi-governmental entity, or the private-sector (including individuals). A grant may include funding for indirect costs or overhead including funds for facilities and administration. Although grants do not typically seek specific research outcomes, they do come with terms and conditions. The presence of any of the following conditions shall necessitate that the funds be treated as a grant.

• The sponsor requires a specific time period for conducting the project such as a specific "period of performance" or "start/stop" dates.
• The sponsor requires a specific budget for conducting the project.
• The sponsor places restrictions on the publication or dissemination of results of the project. This would include a requirement that the sponsor review/approve manuscripts, talks, etc., before submission for publication or presentation. 
• The sponsor requests proprietary rights in data or inventions resulting from activities conducted under the agreement. This would include any proprietary rights and/or references to licensing arrangements for patents or copyrights developed as a consequence of the activity. 
• Studies are to be conducted on substances/products/processes/etc. that are owned by the sponsor. The sponsor shall retain ownership after the research is completed. 
• The award comes from a corporation's Research and Development budget and is perceived as a "cost of doing business" rather than a charitable gift. 
• The sponsor hopes to gain economic benefit as a result of the activity being conducted. 
• The funds are awarded following a competitive application or bid process. 
• Funding is awarded based on specific budget categories, and permission must be sought from the sponsor to change the budget. The sponsor retains the right to revoke the award. 
• Unexpended funds must be returned to the sponsor at a specific point. 
• There are requirements for audits by or on behalf of the funding source. 
• The sponsor is entitled to receive some "deliverables," such as a product, service, detailed technical reports, test results, merchandise, financial reports and/or status reports.

A gift is a donation of money or property from a sponsor with the expectation of nothing significant of value in return. Gifts may come from non-governmental sources or the private-sector (such as individuals, groups, and businesses). Government funds are not treated as gifts. A gift is either restricted or unrestricted. An unrestricted gift may be spent at the discretion of the university and is not limited to specific purposes, objective, programs, or organizational units. A restricted gift is earmarked for a specific purpose, objective, program, or organizational unit, but the donor does not have specific control over expenditures or over the work preformed. A gift is considered unrestricted if the donor does not specify how the funds are to be used. Gift funds may be used to meet the cost sharing commitment on a sponsored project if the purpose of the gift so allows. As long as the general interest of the donor is met, the funds may be spent at the discretion of the university. Although gifts are not base d on performance, they do come with terms and conditions. The presence of any of the following conditions shall necessitate that the funds be treated as a gift.

• The funds are intended for capital improvement or for the use of the university's endowment.
• The conditions or stipulations placed on the use of the award serve to direct the funds to a general area of interest of the donor such as scholarships, infrastructure, or general research support.
• Funds are awarded irrevocably.
• The sponsor may require the funds to be used within a specific time period, but there is no specific "period of performance" or "start/stop" dates as associated with grants.
• The sponsor specifically intends for the award to be a charitable gift as reflected by the absence of any quid pro quo.
• The sponsor has no expectations of direct economic or other tangible compensation (such as goods or services) associated with the value of the gift. Indirect benefits such as tax advantages, business or personal goodwill derived from the close association with the university, and miscellaneous benefits derived from being a donor are not sufficient to negate gift intent.
• There is no formal fiscal accountability to the donor beyond periodic progress reports and summary reports of expenditures. These reports may be thought of as requirements of good stewardship, and, as such, may be required by the terms of the gift. They are not characterized as contractual obligations or "deliverables."

The Cost Accounting Standards Board (CASB) set forth broad policies governing sponsored project financial administration. Four Cost Accounting Standards were added to the Office of Management and Budget (OMB) Circular A-21 on November 8, 1994, and became effective January 9, 1995. These rules were incorporated into A-21 and all awards made on or after July 1, 1996, must follow these requirements. As a recipient of federal awards, the University of North Florida is obligated to comply with numerous rules and regulations promulgated by federal agencies including OMB A-21.

• Cost Accounting Standard 501 requires consistency in estimating, accumulating and reporting costs.
• Cost Accounting Standard 502 requires consistency in allocating costs incurred for the same purpose.
• Cost Accounting Standard 505 requires proper treatment of unallowable costs.
• Cost Accounting Standard 506 requires consistency in the accounting periods used for cost accounting.
• Cost Accounting Standard (CAS) 502 states "All costs incurred for the same purpose, in like circumstances, are either direct costs only (can be charged to a grant) or indirect costs only (must be paid with unrestricted funds) with respect to final cost objectives." A-21 then goes on to list specific costs that the federal government considers to be normally charged indirectly, "Items such as salaries of administrative and clerical staff, office supplies, postage, local telephone costs and memberships."

Facilities and administrative costs (also called indirect costs) are the costs associated with providing facilities and administrative support for the conduct of research and other sponsored activities are necessary if faculty and staff are to be successful in their efforts. These real costs of a university are not readily identifiable with a particular project or activity but, nonetheless, are necessary to the general operation of a university and the conduct of its activities. They include the costs of operating and maintaining buildings and grounds, equipment, the libraries, and of providing administration at the university, college and department levels. The rates used by UNF are:

• On-campus rate for organized research: 45.5%
• On-campus rate for other sponsored activities: 37% 
• Off-campus rate for organized research and other sponsored activities: 26% 
• Local Government and Social Service Agencies: 20% 
• State of Florida Rate: 5% TDC (Florida Department of Transportation rate: 25%) 
• Non-standard sponsor's rates are honored if they are specifically limited in the FOA, in authorizing legislation, or in the sponsor's published policy

MTDC = Modified Total Direct Costs TDC = Total Direct Costs

For more information, see the Indirect Costs FAQs 

Organized research - all research and development activities of an institution that are separately budgeted and accounted for. It includes:

• Sponsored research - all research and development activities that are sponsored by federal and non-federal agencies and organizations. This term includes activities involving the training of individuals in research techniques (commonly called research training) where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function.
• University research - all research and development activities that are separately budgeted and accounted for by the institutions under an internal application of institutional funds. University research, for purposes of this document, shall be combined with sponsored research under the function of organized research.

Effective July 1, 2012:

• Faculty – 9- and 12-month (academic year): 28.8%
• Faculty – 3-month (summer): 17.8%
• Faculty – supplemental compensation: 7.65%
• Administrative Staff: 32.7%
• Support Staff : 44.2%
• Other Staff (including students): 7.65%

Cost sharing is the portion of project or program cost not borne by the sponsor. It is the University's share of the cost of research. Cost sharing occurs when either a sponsor requires or the University commits funds beyond those awarded by the sponsoring agency to support a particular grant or contract. Cost sharing is primarily required by federal sponsors, and the obligation must be met using non-federal funds. Only charges that would be allowable as direct costs to the recipient grant are allowable as cost sharing. Federal flow through funds may not be used as a cost sharing source unless prior written approval has been received from both the federal sponsor and the flow through sponsor. UNF's policy, generally, is to not commit cost sharing unless it is required by the sponsor. Whenever cost sharing is explicitly set forth and committed in a proposal and an award is made based on that proposal or cost sharing is required as a condition of an award, the cost sharing must be documented in the University's records and included in the grant file.

It is the PI's responsibility to secure cost sharing from University chairs, deans, department heads, vice presidents and/or from external sources. Common forms of cost sharing include salary related to faculty and staff effort, matching funds for equipment, or cash or in-kind contributions from external sources. When cost sharing is required, and if allowable by the funding agency, the University may contribute the difference between the F&A rate allowed by the agency and its federally negotiated F&A rate, if the agency rate is less, as in-kind cost sharing to the project. When cost sharing is required, and if allowed by the funding agency, the University may calculate the F&A costs on its cash cost-sharing portion of the project and contribute them as in-kind cost sharing. All cost sharing resources must meet the following criteria as outlined in OMB Circular A-110:

• They must be verifiable from the contributor's accounting records.
• They may not be included as contributions for any other federally-assisted project or program in either the current or any prior period.
• They must be necessary and reasonable for proper and efficient accomplishment of project or program objectives.
• They must be allowable under the applicable cost principles (OMB Circular A-21). This is true even if the asset is derived from a third party contribution. Therefore, a matching contribution must be for something for which the organization or institution could have spent federal funds.
• They may not consist of federal funds. Funds from one federal program may not be used to match or cost share with another.
• They must be provided for in the approved project budget.