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Administration of External Funding at UM

External funding is received and administered by The University of Montana via numerous mechanisms and nomenclature. Per University Policy 703, the following definitions and administrative responsibility are provided to assist in appropriate processing of restricted funds: 

Grant:  A grant, contract, cooperative agreement, sub grant, subcontract, consortium agreement, purchase order, or memorandum of understanding (hereafter collectively referred to as "grant" regardless of the award mechanism) is an agreement formalizing the transfer of money or property from a sponsor in exchange for specified services (e.g., outreach, research, training, development, instruction), and may require specific deliverables such as documentation of itemized expenditures or technical reporting.

Administration:  When an activity (research, outreach, training, service) is 1) proposed and agreed upon via a memorandum of understanding or other institutional agreement specifiying terms and conditions, and 2) external funding is restricted by the sponsor or exceeds actual expenses paid or committed to The University of Montana for deliverables resulting from the activity, these contractual agreements are processed through ORSP.

Gift:  A gift or donation is a voluntary transfer of money, services, or property (including equipment, intellectual property) from a donor without any expectation of or receipt of direct economic benefit or provision of goods and services from the recipient. 

Administration: If the intent of the donor and purpose of the specific funding is charitable and philanthropic in nature,The University of Montana Foundation administers the funding. For more information, see Gift or Grant? 

Additionally, there are times when restricted gift/scholarship accounts for academic or student support will be set up in Business Services.  Refer to Business Service’s “Index Code Request” information.   An operating plan and budget are required.  

Sales & Service, and other:  Business Services sets up a variety of accounts including Sales & Service.  The following distinctions are illustrative only but may be helpful in determining appropriate administration:

Sales & Service

  1. Activities generally do not require any intellectual interpretation or scholarly expertise, nor principal investigator oversight and involvement
  2. Sale of products or services (e.g., printing/photocopy, laboratory analysis) that could be commercially purchased; price determined by established fixed-fee schedules; data belongs to client
  3. Indemnification/hold harmless language is never included
  4. Activity typically originates when Client requests services
  5. Client generally provides samples (or content/material)
  6. Activities generate net income, often from a per unit sale
  7. Never accomplished via cost-reimbursable award mechanism
  8. Reporting requirements (e.g., financial, time & effort, etc.) or federal assurances never required
  9. Activity never cites a CFDA number, cost match, F&A, or FAR clauses
  10. Never requires institutional authorized official signature

Sponsored Programs

  1. Activities require specific intellectual interpretation or scholarly expertise, and principal investigator oversight and involvement 
  2. Provide specific deliverables per sponsor terms and conditions 
  3. Indemnification/hold harmless language may be included
  4. Activity usually originates when a proposal is submitted to sponsor 
  5. Researcher may collect samples (or provide content/material)
  6. Activities typically do not generate net income 
  7. Accomplished via specified award mechanism (e.g., fixed price or cost-reimbursable agreements) 
  8. Reporting required (e.g., financial, time & effort, etc.)
  9. May involve cost match or F&A
  10. Collaborator relationship exists (e.g., publication)

If equipment originally purchased with federal grant funds are involved in generating any Sales & Service revenue, the Department (Center, Institute, etc.) is responsible to ensure that use of equipment is compliant with OMB A-110 Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations, with particular attention to Section C Equipment.