Sales and Service Accounts

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.

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Distinguishing Sales & Service from Sponsored Activity

The following distinctions are illustrative only. but may be helpful in providing general guidance when an activity is a sponsored program:  


Sales and Service

Sponsored Program

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 
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)
Activity will never involve UM employee securing regulatory research compliance approvals (IRB, IACUC, IBC, etc.) Regulatory research compliance approvals may be required
Indemnification/hold harmless language is never included; if included, route to ORSP to review Indemnification/hold harmless language may be included in terms 
Activity never includes intellectual property (IP) concerns Activity may include IP concerns
Activity typically originates when Purchaser requests services Activity usually originates when a proposal is submitted to sponsor 
Samples (or content/material) generally provided by Purchaser Researcher may collect samples (or provide content/material)
Activities generate net income, usually from an aggregate per service/unit sale Activities typically do not generate net income 
Never accomplished via cost-reimbursable award mechanism Accomplished via specified award mechanism (e.g., fixed price or cost-reimbursable agreements) 
Reporting requirements (e.g., financial, time & effort, etc.) or federal assurances never required Reporting required (e.g., financial, time & effort, etc.)
Activity never cites a CFDA number, cost match, an MOU/MOA, F&A, or FAR clauses May involve cost match or F&A recovery
Never requires institutional signature; if required, route to ORSP to review May require Authorized Organizational Representative (AOR) signature on behalf of institution. 

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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.