Sales and Service Accounts
- Distinguishing between Sales & Service and Sponsored Activities
- Use of equipment originally purchased with federal funds involved in generating Sales & Service revenue
In some cases, a department/center/institute may receive funding for providing goods/services or services for a fee to the external community. Always route agreements to ORSP for review prior to running an activity through a sales & service account to ensure compliance with UM guidance and Montana Board of Regents Policy 1909.⇑ Back to top
Sales and Service
|Note: If federal funds or federal pass through funds are involved, always route to ORSP for review.|
|AOR Signature||Never requires institutional signature; if required, route to ORSP to review||Usually requires Authorized Organizational Representative (AOR) signature on behalf of institution.|
|Award Mechanism||Never accomplished via cost-reimbursable award mechanism||Accomplished via specified award mechanism (e.g., fixed price or cost-reimbursable agreements)|
|CFDA, Cost Match, F&A, or FAR Clauses||Never cites a CFDA number, cost match, an MOU/MOA, F&A, or FAR clauses||May involve cost match, F&A recovery, cite FAR clauses, or an MOU/MOA|
|Commercially Available||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 purchaser||Specific deliverables are expected per sponsor terms and conditions; collaborator relationship exists (e.g., joint publication expectations)|
|Income||Activities generate net income, usually from an aggregate per service/unit sale||Activities typically do not generate net income|
|Indemnification / Hold Harmless||Indemnification/hold harmless language is never included; if included, route to ORSP to review||Indemnification/hold harmless language may be included in terms|
|Intellectual Property (IP)||Activity never includes intellectual property (IP) concerns||Activity may include IP concerns|
|Purchaser Provides Samples||Samples (or content/material) generally provided by Purchaser||Researcher may collect samples (or provide content/material)|
|Purchaser Requests Services||Activity typically originates when Purchaser requests services||Activity usually originates when a proposal is submitted to sponsor|
|Reporting Requirements||Reporting requirements (e.g., financial, time & effort, etc.) or federal assurances never required||Reporting required (e.g., financial, time & effort, etc.)|
|Research Compliance||Never involves UM employee securing regulatory research compliance approvals (IRB, IACUC, IBC, etc.)||Regulatory research compliance approvals may be required|
|Scholarly expertise / Oversight||Activities generally do not require any intellectual interpretation or scholarly expertise, nor principal investigator oversight and involvement; if included, route to ORSP to review||Activities require specific intellectual interpretation or scholarly expertise, and principal investigator oversight and involvement|
|Venue / Law / Insurance||Choice of venue/choice of law or insurance requirements are never included; if included, route to ORSP to review||Choice of venue/choice of law or insurance requirements may be included in terms and conditions|
This determination checklist is a helpful tool to help identify whether an activity is more appropriate to be administered via a Sponsored Program. It is not conclusive. Contact ORSP for input and review.
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 Uniform Guidance 2 CFR 200.313.
For further information, contact your accounting liaison in Business Services or ORSP.