TO: All Members of the University Community 2000:17
DATE: October 2000

1. SCOPE

   These procedures apply to grant or contractual training and service activities at Ferris State University. The following distinction is made between a contract and grant. Contracts involve private and public sources of funding by business or industry seeking services and do not typically require an application process. The customer and provider, without outside regulations, define the activities controlled by contracts. The timeframe on contracts is often very short in order to meet the needs of business and industry.

   Grants are best defined by their detailed and structured application process, and in most cases are competitive awards. Grants have detailed regulations and are supported by state, federal or foundation funds with the possibility of a match required. Grants are typically regulated by a specific timeframe for submission, approval and completion. Grants have a stated award period that outlines when work is to be completed. A complete description of the grants process and necessary forms may be found at: http://www.ferris.edu/htmls/administration/academicaffairs/vpoffice/grants/.

   Any activity that involves writing grant proposals or entering into contractual agreements to provide service, instruction or research to another person or entity using University resources (human, physical, intellectual) is covered under this policy letter. The Board of Trustees Policy on Contracts further describes the process to enter into contracts and should be consulted for additional information.

2. PROCEDURES IN APPLYING FOR A GRANT (PRE-AWARD)

   1. As employees of the University review opportunities for grants and related activities from Federal or State agencies, foundations or corporations, the individual or group considering the grant opportunity will decide in cooperation with their respective Dean or Unit Manager*(see description below) whether to pursue the grant. The Dean or Unit Manager*, in consultation with the respective V.P. will have final authority to determine whether to pursue the grant.
   2. Once a decision is made to pursue the grant, a Notice of Intent to Apply form will be completed and sent to V.P. for Administration and Finance, V.P. for Academic Affairs (or V.P. of respective area if non-academic, or Chancellor of FSU Grand Rapids), General Counsel, V.P. for University Advancement & Marketing and Grants Office.
   3. A pre-application meeting may be requested by the Director of Grants, the Grant Officer, or representative of General Counsel to assist or receive additional clarification on the intent of the grant or specific requirements of the grant.
   4. Once the grant application is prepared the Dean or Unit Manager* will complete the Dean's Approval Checklist (located on the Grant Office website) to determine that the grant application is complete and necessary information has been reviewed with the grant writer.
   5. The Dean or Unit Manager* will approve the grant using the Grant Approval Form (located on the Grant Office website). This form will be sent along with the grant proposal and other required signatory documents to the V.P. of Academic Affairs(or respective V.P/Chancellor of FSU Grand Rapids) for approval.
   6. The V.P. of Administration & Finance must also approve the grant application regardless of the nature or size of the grant. Once the grant is approved by the V.P., it will be available to the grant writer to be sent to the agency or corporation. Because of Federal Auditing requirements, all grant applications will be approved by the V.P. for Administration & Finance.

3. GRANT ACCEPTANCE PROCEDURES (POST AWARD)

   1. Once a grant has been awarded to the University, a formal approval process is required in order to accept the grant. The Dean or Unit Manager* will have the overall responsibility of ensuring that the activities anticipated by the grant are completed properly based on the terms and conditions of the grant proposal and award letter.
   2. The Dean or respective Unit Manager must approve the acceptance of the grant for their respective college or department. A Grant Acceptance Approval Form (located on the Grant Office website) will be used to initiate the approval process.
   3. The approval form once signed must be sent, with a copy of the award notice in the following manner:
      • If the Grant Award is over $100,000 the grant proposal, award, approval form, and all other contractual documentation, must be forwarded to General Counsels Office for review and approval.
      • All grants must be approved by V.P. for Academic Affairs (or respective V.P./Chancellor of FSU-GR) and the V.P. for Administration & Finance, by submitting the approval form and award notice.
      • Grant Awards over $150,000 require Board of Trustee approval prior to official acceptance by the University. Grants requiring formal approval will be sent to the respective V.P.'s Office for approval by the Board.
   4. All grant contractual agreements will be completed by the V.P.for Administration & Finance.

4. PROCEDURES IN OBTAINING CONTRACT APPROVAL

   1. The faculty/Department Head/Director develops the contractual budget and related service or training proposal.
   2. The respective Dean/Unit Manager* approves the proposal and budget related to the contract.
   3. If the contract requires faculty involvement, proposal must be approved by respective Dean (if different then item B. above)
   4. The contract must be approved by the V.P. for Academic Affairs (or respective V.P/Chancellor-FSU GR).
   5. If the contract is greater than $100,000 the contract must be reviewed and approved by the General Counsels Office.
   6. If the contract is greater than $150,000 the contract must be approved by the Board of Trustees.
   7. The President or the V.P. for Administration & Finance, must sign the contract as official contracting officers of the University.

5. V. ALLOCATION OF INDIRECT COST (GRANTS ONLY)

   1. Each grant eligible for the recovery of indirect costs will have a portion allocated to the grant writer (Principal Investigator) and respective department and dean's office. A separate designated account will be established to track indirect cost for each division, college or unit. A written plan for the use of indirect costs will be submitted with the grant proposal. This plan should include such items as how the College or unit will perform the work of the grant and whether the indirect will be used in support of the work of the grant.
   2. The following guidelines will apply in the allocation of indirect costs:

      Principal Investigator - through Department Account	30%
      Department	15%
      College (Respective V.P/Chancellor -GR)	10%
      Academic Affairs (Grant Support)	30%
      Grant Accounting - (Post Award)	15%
      Totals	100%

      This distribution may vary for the Technology Transfer Center and units that are not within Academic Affairs. A rate distribution different than the established guidelines for the percentages applicable to Principal Investigator, Department, College and Academic Affairs, may be negotiated with the respective V.P./Chancellor - GR.
   3. The use of indirect must comply to Federal and State regulations. The portion of indirect paid to the principal investigator, department or college is not paid to an individual, but used to provide income for program development, educational opportunities for professional development, departmental equipment or in the performance of the grant activities.
   4. To the extent that grants call for administrative charges in lieu of indirect costs, charges for grant support and post award work should be included in the budget proposal of the grant unless it is deemed to be detrimental to the awarding or competitiveness of the grant application.