spon-guide _08-34_ by MarijanStefanovic

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									                SPONSORED PROGRAMS
            PROJECT ADMINISTRATION GUIDE



                       TABLE OF CONTENTS

REFERENCE
     Preface
     Table of Contents
     Glossary
SECTION 1 INTRODUCTION
     Mission Statement
     Organizational Structure
     Overview of Services
SECTION 2 SPONSORED PROGRAMS DEVELOPMENT (PRE-AWARD ACTIVITIES)
     Sponsored Programs Pre-Award Activities
     The Research and Sponsored Programs Office
     Preparation of Grants and Contracts Proposals
     Submission and Approval of Grants & Contracts
     Appendix A: Faculty Administration Manual 950
     Appendix B: Project Information Form
SECTION 3 SPONSORED PROGRAMS ADMINISTRATION (POST-AWARD ACTIVITIES)
     Introduction
     Foundation Responsibilities
     Project Director’s Responsibilities
     Administration of Sponsored Projects
     Account Setup
     Receiving Payment
     Charging Expenses
     Cost Transfers
     Effort Reporting
     Personnel Effort Certification System (PECS)
     Misconduct in Research
     Appendix A: Personnel Effort Report (PER)
SECTION 4 HUMAN RESOURCES
     Introduction
     Definitions and Employment Classification
     Emergency Appointments
     Performance Appraisals
     Personnel Selection Policy
     Personnel Transaction Reports
     Student Employee Policy
     Summary of Items Unique to Grants
     Personnel Records
     Employee Safety
     Conditions of Employment
     Involvement of Minors
     Appendix A: Personnel Transaction Report
     Appendix B: Workers Compensation Procedures
     Appendix C: Parental Consent Form
SECTION 5 INDEPENDENT CONTRACTORS
     Background and Definitions
     Policy
     Determination of Status
     Payment
     Appendix A: Independent Contractor Determination Packet
     Appendix B: Request for Professional Services/ Independent Contractor Payment Form
     Appendix C: IRS Determination of Worker Status
SECTION 6 STANDARD ACCOUNT NUMBERS
     Introduction
     Grant Number
     Account Activity
     Accounts Receivable
     Revenue
     Expenditures
SECTION 7 ACCOUNTS RECEIVABLE
     When Funds Are Available
     Invoicing
     Cost Sharing
SECTION 8 CASH RECEIPTS
     Introduction
     Cash Receipts Policy
SECTION 9 SIGNATURE AUTHORIZATION POLICIES AND PROCEDURES
     Introduction
     Authorized Signers
     Approval of Transactions
SECTION 10 FINANCIAL TRANSACTIONS ALLOWABILITY
     Introduction
     Factors Affecting Allowability of Cost
SECTION 11 PURCHASING
     Introduction
     Vendor Selection
     Purchase Orders
     Encumbrances
     Conflict of Interest
     Appendix A: Purchase Order Request Form
SECTION 12 ACCOUNTS PAYABLE
     Introduction
     Chart of Accounts/General Ledger Line Item Numbers
     Sales Tax/Use Tax
     Distribution of Checks
     Void/Lost Checks
     Disbursement Check Request
     Disbursements Without Receipts
     Guest Lecturer/Performance Payments
     Stipend/Tuition Payments
     University Reimbursed Services
     Postal Services/Campus Mail System
     Telephones
     Plant Operations
     Appendix A: Disbursement Check Request
     Appendix B: Petty Cash Disbursement
     Appendix C: Lost Check Certification
     Appendix D: Guest Lecturer/Performance Payment Form
     Appendix E: Stipend Payment Request
     Appendix F: Dining Services Agreement
SECTION 13 TRAVEL
     Introduction
     Request for Travel Authorization and Advance
     Lodging
     Transportation
     Car Rental
     Subsistence (Per Diem)
     Foreign Travel
     Receipts
     Claims Submission
     Privately Owned Automobile Mileage Claim
     Appendix A: Travel Authorization Form
     Appendix B: Travel Expense Claim
     Appendix C: Mileage Claim
SECTION 14 PETTY CASH
     Introduction
     Small Amounts for Specific Event
     Program Specific Requirement
     Security of Petty Cash Funds
SECTION 15 PAYROLL
     Introduction
     Personnel Transaction Report
     Payroll Schedule
     Timely Compensation of Employees
     Volunteer Work
     Project Employees (Non-Exempt)
     Project Employees (Exempt)
     Student Employees
     Signatures
     Direct Deposit
     Overtime
     Additional Employment of CSUSB Faculty/Staff
     Faculty Payment Scenarios
     Appendix A: Project Employee – Non-Exempt Time Sheet
     Appendix B: Project Employee – Exempt Employee Absence Report
     Appendix C: Student Employee Time Sheet
     Appendix D: Student Unit Certification
     Appendix E: University Compensated Faculty Additional Employment (FAM 952)
SECTION 16 PROTECTION FROM RESEARCH RISKS
     Protection of Human Subjects
     Use of Animals in Research
     Lobbying Activities Disclosure Information
     Conflict of Interest
     Appendix A: CSUSB FAM 180, Animal Care & Use
     Appendix B: Institutional Review Board Policy
     Appendix C: Conflict of Interest Policies
SECTION 17 INSURANCE & LEASE MANAGEMENT
     Leases
     Leasing Off-Campus Facilities
     Insurance
SECTION 18 COST SHARING
     Introduction
     Definitions
     Types of Cost Sharing/Matching
     Ineligible Contributions
     Documentation
     Responsibilities
     Verification Procedures
     Sources of Additional Information
SECTION 19 NON-RESIDENT ALIENS
     Non-Resident Aliens
SECTION 20 INDIRECT COST (FACILITIES & ADMINISTRATION)
     Introduction
     Definitions
     Negotiating an Indirect Cost Rate
     Actual Award Rates
     Indirect Cost Recovery
     Appendix A: Indirect Cost Policy




Preface
This Project Administration Guide has been developed to inform Project Directors, Principal
Investigators, Account Administrators and their associates about the Foundation for California State
University San Bernardino and its operating procedures. An effort has been made to design the guide so
that it is equally useful in the conduct of sponsored research and educational projects as well as in the
administration of special programs.

The Guide covers those policies and procedures that most directly affect you and is meant to be used as a
general information source only. For details not provided, you are encouraged to contact the Grants and
Contracts Office.
The Foundation reserves the right to change any of the policies or procedures in the Guide at any time.
The Guide is not intended to create, nor is it to be construed to constitute, a contract between the
Foundation and any of its employees. When Foundation and the individual sponsoring agency policies
conflict, normally the Foundation’s policy will be followed. Each case will have to be evaluated and a
determination made at the time of conflict.

Project procedures will be systematically distributed to enable you to keep the guide current.

Comments and questions concerning the guide are welcome at any time.


Glossary
The following terms are frequently encountered in awarding and administering grants and contracts.
These terms are used throughout this document. Other policy-specific terms are defined in the
appropriate sections of this manual.

Academic Fraud - A deliberate effort to deceive, including plagiarism, fabrication of data,
misrepresentation of historical sources, tampering with evidence, selective suppression of unwanted or
unacceptable results, and theft of ideas.

Acquisition Cost - The net invoice price of property or supplies including the cost of modifications,
attachments, accessories, or auxiliary apparatus necessary to make the property usable for the purpose
for which it was acquired. Other charges such as the cost of installation, transportation, taxes, duty or
protective in-transit insurance, are included in the unit acquisition cost in accordance with the recipient's
regular accounting practices. It does not include costs for rental of property or alteration and rental of
real property.

Administrative Requirements - The general business management practices that are common to the
administration of all grants, such as financial accountability, reporting, property management, and
retention of records.

Advance - A payment made to a recipient upon request either before cash disbursement is made by the
recipient or through the use of predetermined payment schedules.

Allocable Cost - A cost is allocable to a particular cost objective (i.e., a specific function, grant project,
service, department, or other activity) in accordance with the relative benefits received. A cost is
allocable to an award where it is treated consistently with other costs incurred for the same purpose in
like circumstances and (1) is incurred specifically for the award; (2) benefits both the award and other
work and can be distributed in reasonable proportion to the benefits received; or (3) is necessary to the
overall operation of the organization.

Allocation - The process of assigning a cost, or a group of costs, to one or more cost objectives in
reasonable and realistic proportion to the benefit provided or other equitable relationship.

Allowable Cost - A cost incurred by a recipient that is: (1) reasonable for the performance of the award;
(2) allocable; (3) in conformance with any limitations or exclusions set forth in the Federal cost
principles applicable to the organization incurring the cost or in the Notice of Grant Award document as
to types or amount of cost items; (4) consistent with internal regulations, policies and procedures that
apply uniformly to both Federally-financed and other activities of the organization; (5) accorded
consistent treatment; (6) determined in accordance with Generally Accepted Accounting Principles; and
(7) not included as a cost in any other Federally-financed grant (unless specifically authorized).

Amendment - Any change to a contractual agreement needing official signing.

Applicable Credit - Those receipts that offset or reduce direct or indirect costs. Typical examples of
such transactions are: purchase discounts, rebates, or allowances; recoveries or indemnities on losses;
insurance refunds; and adjustments of overpayments or erroneous charges.

Assurance - A certification by an applicant normally included with the application, that it would abide
by a particular requirement if awarded a grant.

Authorized Signature - The signature of a University or Foundation official who is designated to give
assurances, make commitments, and execute such documents on behalf of the University or Foundation
as may be required by federal and state agencies and other organizations which provide financial
assistance. The signature of an authorized official certifies that commitments made on grant proposals or
contract agreements can be honored and ensures that all sponsored agreements conform to federal
regulations, agency guidelines, and University and Foundation policies.

Award - The provision of funds or direct assistance in lieu of funds based on an approved application
and budget to provide general financial assistance to an organization or an individual to carry out an
activity or program.

Block Grants - A type of mandatory grant where the recipients (normally States) have substantial
authority over the type of activities to support, with minimal Federal administrative restrictions. The
basic premise is that States should be free to target resources and design administrative mechanisms to
provide services to meet the needs of their citizens.

Budget - The amount of spending authority awarded by outside funding sources that the Foundation has
a legal claim to collect.

Budget Period - The intervals of time into which a multi-year period of assistance (project period) is
divided for budgetary and funding purposes. Budget periods are usually 12 months long but may be
shorter or longer if appropriate.

Capital Expenditure - The cost of an asset, including the cost to put it in place. Capital expenditure for
equipment, for example, means the net invoice price of the equipment, including the cost of any
modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the
purpose for which it was acquired. Ancillary charges, such as taxes, duty, protective in-transit insurance,
freight, and installation may be included in the capital expenditure cost in accordance with the recipient
organization's regular accounting practices.

Cash - Currency, coins, checks, credit cards, and sales drafts.

Catalogue of Federal Domestic Assistance (CFDA) - A catalogue published twice a year, which
describes domestic assistance programs administered by the Federal government. This government-wide
compendium of Federal programs lists projects, services, and activities which provide assistance or
benefits to the American public.
Change of Principal Investigator - A process whereby the approved principal investigator is replaced,
either temporarily or permanently. Requires funding agency approval.

Change of Scope - A process whereby the objectives or specific aims identified in the approved grant
application is significantly changed. Requires funding agency approval.

Closeout - The process by which the awarding office determines whether all applicable administrative
actions and all work required by the grant have been completed by the recipient and the awarding agency
for a project.

Consultant - A person who is engaged to give professional advice or services for a fee but is not acting
as an employee.

Continuing or Continuation Support - Ongoing support provided by an agency that has been awarded
for more than one funding period. A continuation proposal is normally submitted at the end of each
budget period in order to receive the next increment of funding. Continuation proposals may be
competing (i.e., they are placed in competition with other proposals for funding) or non-competing (they
may be referred to as renewal proposals).

Contract - An award instrument used for the acquisition of property or services. There are two basic
types of contracts:

   •   Fixed price contracts are a set fee provided for completion of a specific task.

   •   Cost reimbursement contracts require invoicing of funding agency for the actual cost (including
       indirect cost) to perform task as outlined in the agreement. Normally a maximum amount is
       established in the agreement.

Cooperative Agreement - An award instrument of financial assistance where "substantial involvement"
is anticipated between the awarding agency and the recipient during performance of the contemplated
project or activity. "Substantial involvement" means that the recipient can expect awarding agency
programmatic collaboration or participation in managing the award.

Cost Sharing or Matching - The value of allowable third party contributions to projects. The allowable
costs of a program that is not borne by the awarding agency.

Department of Health and Human Services (DHHS) - A federal funding agency.

Direct Costs - Those costs that can be specifically identified with a particular project, program, or
activity.

Employer Identification Number (EIN) - (1) for individuals, the social security number; or (2) for
organizations, the unique number assigned by the Internal Revenue Service.

Encumbrances - A specific amount of funds that have been set aside in an account for the receipt of an
order or the payment of an invoice. Encumbrances reduce the available balance of an account.
Equipment - The tangible non-expendable personal property (including exempt property) charged
directly to an award having a useful life of more than one year and an acquisition cost of $500 or more
per unit. Note: Federal agencies use $5,000 for their definition of equipment.

Expanded Authorities - A revision to the original prior approval procedure whereby grant recipients are
allowed greater internal authority to approve post award changes (Federal grants).

Expiration Date - The date as indicated on the Notice of Grant Award, after which the recipient does not
have authority to obligate grant funds (i.e., the end of a budget period).

Facilities and Administrative Costs Base - The accumulated direct costs (total direct costs exclusive of
any extraordinary or distorting expenditures) that are used to distribute facilities and administrative costs
to individual awards.

Facilities and Administrative Costs Pool - The accumulated costs that jointly benefit two or more
programs or other cost objectives.

Facilities and Administrative Costs Proposal - The documentation prepared by a recipient to
substantiate its claim for the reimbursement of facilities and administrative costs. This proposal provides
the basis for review, audit, and negotiation leading to the establishment of the organization’s facilities
and administrative costs rate(s).

Facilities and Administrative Costs Rate Agreement - The document that formalizes the establishment
of facilities and administrative cost rates and provides information on the proper application of the rates.

Facilities and Administrative Cost Rate - The ratio, expressed as a percentage, of an organization's total
facilities and administrative costs to its direct cost base. When a rate is established for a specific activity
or program, the rate represents the ratio of the total facilities and administrative costs allocated to the
activity or program to the direct base costs of the activity or program.

Facilities and Administrative Costs - Those costs that are incurred for common or joint objectives and
therefore cannot be identified readily and specifically with a particular sponsored project, program, or
activity but are nevertheless necessary to the operations of the organization. For example, the costs of
operating and maintaining facilities, depreciation, and administration costs are generally treated as
facilities and administrative costs.

Indirect Costs - see Facilities and Administrative Costs.

Federal Acquisition Regulation (FAR) - The codification of uniform policies and procedures for
acquisition by all executive agencies of the Federal government except those statutorily exempted.

Foundation Programs - Projects to support various activities.

GAAP - Generally Accepted Accounting Principles

General-Purpose Equipment - Any equipment not limited in use only to research, medical, scientific, or
other technical activities. Examples of such equipment are office equipment and furnishings, heating
and cooling units, reproduction and printing equipment, passenger and cargo vehicles, computing and
automatic data processing devices, cameras, refrigerators, and freezers. The governing criterion for
distinguishing general-purpose equipment from special-purpose equipment is the potential use of the
equipment, not its actual use. General-purpose equipment does not become special-purpose equipment
merely because it is used solely on research, medical, scientific, or other technical activities, or because
it is used in a scientific or technical location or environment.

Grant - A financial assistance mechanism whereby money and/or direct assistance are provided to carry
out approved activities.

Grantee - The organizational entity to which a grant is awarded and which is accountable for the use of
the funds provided and responsible for the performance of the grant-supported project or activities.
Human Subjects - Individuals whose physiologic or behavioral characteristics and responses are the
object of study in a research project. Under federal regulations, human subjects are defined as living
individuals about whom an investigator conducting research obtains data through intervention or
interaction with the individuals or identifiable private information.

Institutional Review Board (IRB) - A recipient administrative body established to protect the rights and
welfare of human research subjects recruited to participate in research activities conducted under the
auspices of the institution with which it is affiliated. The IRB has the authority to approve, require
modifications in, or disapprove all research activities that fall within its jurisdiction.

Invention - Any discovery which is or may be patentable or otherwise protectable. The term "subject
invention" means any invention of an awardee conceived or first actually reduced to practice in the
performance of work under a funding agreement, i.e., contract, grant, or cooperative agreement.

Invention Reporting - The requirement that recipients of contracts, grants or cooperative agreements
fully disclose any subject inventions made during the performance of work under a funding agreement in
order to protect the awarding agency's rights.

Local Government - A county, municipality, city, town, township, local public authority (including any
public and Indian housing agency), school district, special district, intra-State district, council of
governments (whether or not incorporated as a nonprofit corporation under State law), any other regional
or interstate government entity (such as regional planning agencies), or any agency or instrumentality of
a local government. The term does not include institutions of higher education and hospitals.

Misconduct in Science - Fabrication, falsification, plagiarism, or other practices in carrying out research
or in proposing, conducting, or reporting research that seriously deviates from those that are commonly
accepted within the scientific community. It does not include honest error or honest differences in
interpretations or judgments of data.

Narrative Report - A report submitted by an investigator on the progress and/or status of a project
supported by sponsored funds. Narrative reports are part of the conditions of many sponsored
agreements; may be submitted as an interim report, with continuation proposals, requests for
supplemental funding, or at the termination of a sponsored project.

National Institutes of Health (NIH) - A federal funding agency.

No-Cost Extension - An extension of time to a project period and/or budget period to complete the work
of the grant under that period, without additional granting agency funds or competition.
Non-Governmental Organization - A public or private institution of higher education; a public or
private hospital; an Indian tribe or Indian tribal organization which is not a Federally-recognized Indian
tribal government; or a quasi-public or private nonprofit government or commercial organization. The
term does not include a state or local agency, a foreign or international governmental organization (such
as an agency of the United Nations), or a government-owned contractor-operated facility or research
center.

Nonprofit Organization - A corporation or association whose profits may not lawfully accrue to the
benefit of any private shareholder or individual.

National Science Foundation (NSF) - A federal funding agency.

OMB - The United States Office of Management and Budget.

OMB Circular A-122 - The OMB Circular establishing the cost principles for allowability of costs
incurred by nonprofit organizations under Federally-sponsored agreements.

OMB Circular A-110 - The OMB Circular establishing the administrative standards for grants and
cooperative agreements to non-governmental organizations.

OMB Circular A-133 - The OMB Circular establishing audit requirements for institutions of higher
education and other nonprofit organizations.

Pre-Award Costs - Costs which are incurred before the beginning dates of an award or budget period but
can be associated with the research project.

Predetermined Facilities and Administrative Cost Rate - A facilities and administrative cost rate,
applicable to a specified current or future period, usually the recipient's fiscal year. This rate is based on
an estimate of the costs to be incurred during the period. Except under very unusual circumstances, a
predetermined rate is not subject to adjustment.

Prior Approval - The written permission provided by the authorized granting official from the federal
awarding office before the recipient may undertake certain activities (such as performance or
modification of an activity), expend funds, or exceed a certain dollar level.

Program Income - Regarding assistance relationships, the gross income received by the recipient and/or
sub-recipient that was directly generated by the supported activity, or earned as a result of the award.
Program income includes (but is not limited to) income from fees for services performed, the use or
rental of real or personal property acquired under the grant, the sale of commodities or items fabricated
under an award, license fees and royalties on patents and copyrights, and payments of interest on loans
made with grant funds. Except as otherwise provided in statute, regulation, or the terms and conditions
of the award, program income does not include interest earned on advances of grant or sub-grant funds,
or rebates, credits, discounts, refunds, etc., or interest earned on any of them.

Progress or Performance Report - A regular recipient report, which contains for each grant information
on the comparison of actual accomplishments to objectives established for the period. In addition, where
the output of the project can be quantified, a computation of the cost per unit of output may be required.
Project Costs - The total allowable costs, as set forth in the applicable Federal cost principles, incurred
by a recipient (and the value of the in-kind contributions made by third parties) in accomplishing the
objectives of the award during the project period.

Project Director/Program Director/Principal Investigator - An individual designated by the recipient to
direct the project or program being supported by the grant. He or she is responsible to recipient
organization officials for the proper conduct of the project or program. The entity (organization) is, in
turn, legally accountable to the awarding agency for the performance and financial aspects of the grant-
supported activity.

Project Information Form (PIF) - CSUSB coordination sheet used to review proposals being
submitted.

Project Period - The total time stated in the Notice of Grant Award (including any amendments) for
which support is recommended. The period will consist of one or more budget periods. It does not
constitute a commitment by the awarding agency to fund the entire period.

Property - The term, unless otherwise stated, includes real property, equipment, intangible property and
debt instruments.

Proposal - A set of documents containing a descriptive narrative of an idea and a budget to be submitted
to a funding agency for sponsored support. Some agencies require that proposals are submitted on
preprinted forms while others have no specific format.

Protocol - The methodology used in conducting a sponsored project.

Public Health Service (PHS) - That organization primarily responsible for supporting the health-related
activities of DHHS.

Rebudgeting - Changes made to the sponsored agreement’s awarded budget.

Recipient - The grantee or, where sub-grants are authorized by law, the sub-grantee that receives
financial assistance in the form of grants or cooperative agreements.

Special-Purpose Equipment - That equipment which is only usable for research, medical, scientific, or
other technical activities. This includes such items as microscopes, X-ray machines, and surgical
instruments. The governing criterion for distinguishing general-purpose equipment from special purpose
equipment is the potential use of the equipment, not its actual use. General-purpose equipment does not
become special-purpose equipment merely because it is used only on research, medical, scientific or
other technical activities, or because it is used in a scientific or technical location or environment.

Sponsored Project - An activity that is funded from outside the University from Federal or non-Federal
sources.

Stipend - A payment made to an individual under a fellowship or training grant in accordance with pre-
established levels during the period of training. Stipend recipients receive the stipend for participation in
the program. There may be a time obligation to work in a specific field for participation in the program.
An individual who must perform a task to receive the funds would be an employee.
Sub-grant/Sub-award - Financial assistance in the form of money, or property in lieu of money, made
by a recipient to an eligible sub-recipient using grants or contract funds received at one institution than
transferred to another. The term includes such financial assistance when provided by any legal
agreement (even if the agreement is called a contract) but does not include any form of assistance, which
is excluded from the definition of "grant."

Supplement - An increase in the amount of funding by the sponsor to an existing award. Supplemental
funding increases the award and/or extends the award period.

Supplies - All personal property excluding equipment, intangible property, debt instruments, and
inventions of a contractor used in the performance of work under a funding agreement. Normally items
under $500 in value and less than one year life expectancy. Items that will be consumed with usage.

Surplus Property - That property no longer needed by the Federal government, declared surplus by the
United States General Services Administration, and available for donation for authorized purposes.

Technical Report - See Narrative Report.

Third-Party In-Kind Contribution - The value of non-cash contributions directly benefiting a grant-
supported project or program that are provided by non-Federal third parties to the recipient, the sub-
recipient, or a cost-type contractor under the grant or sub-grant without charge. In-kind contributions
may be in the form of real property, equipment, supplies and other expendable property, and goods and
services directly benefiting and specifically identifiable to the project or program.

Unallowable Cost - A cost determined to be unallowable in accordance with the applicable Federal cost
principles or other terms and conditions contained in a grant award.

Unobligated Balance - The portion of the funds authorized by the funding agency that has not been
obligated by the recipient.

Unrecovered Facilities and Administrative Costs - The difference between the amount awarded and the
amount which could have been awarded under the recipient's approved, negotiated facilities and
administrative cost rate.

Vertebrate Animals - Any live animal having a backbone or spinal column used or intended for use in
research, research training, experimentation or biological testing or for related purposes.

Woman-Owned Business - A business which is at least 51 percent owned, controlled, and operated by a
woman or women.




                              SECTION 1. INTRODUCTION
MISSION STATEMENT
The Foundation for California State University San Bernardino is a nonprofit corporation established
under Title V of the Education Code of the State of California and exists solely to support and advance
the mission of California State University San Bernardino.

To fulfill this obligation, the Foundation will pursue a wide range of support activities, including
contracts and grants, campus programs, development and fund raising, public-private partnerships,
intellectual property and technology development, and other entrepreneurial activities serving to
complement and strengthen the University’s instructional, research, scholarly, creative, and community
service goals.

Such activities conducted by the Foundation will be consistent with the highest professional and ethical
standards, legal requirements, and fiduciary responsibilities and will promote financial stability and
service to its constituencies.

The business strategy of the Foundation will stress maximum return on investment commensurate with
risk.

Foundation Business Services Office
To provide quality support in the fiscal and human resources to all Foundation work centers and
customers. This service shall reflect superior standards of integrity, effectiveness, and efficiency.

Grants and Contracts Management Office
To provide quality administrative support for all sponsored projects bound by the Foundation. This
administrative support must provide the highest levels of confidence in the contract management process
in the most efficient manner possible.

Dining Servicess
To provide high quality food products and services to the university community at a fair and reasonable
price. Further, in providing these products and services, effective and efficient delivery shall ensure a
reasonable return of earnings to the University.

Coyote Bookstore
To ensure that the university’s students and faculty are supplied with all materials needed to successfully
complete their academic programs. These products and services shall reflect the highest quality
attainable, and will be delivered in an efficient manner sufficient to ensure a reasonable return of
earnings to the University.


ORGANIZATIONAL STRUCTURE
The Foundation, as a nonprofit corporation, is governed by a Board of Directors in accordance with its
Articles of Incorporation and Bylaws, appropriate State of California codes, and policy directives of the
CSU Board of Trustees and campus administration. The principal function of the Board is to establish
policies and guide the corporation in achieving its objectives. According to the bylaws, the Board
consists of faculty, administrators, students, and community members. Officers of the Board are:

   •   Chairman of the Board (CSUSB President)
   •   President of the Board (elected, normally a community member)
   •   Vice President of the Board (elected, normally a community member)
   •   Treasurer (CSUSB V.P. Administration and Finance)
   •   Secretary of the Board (elected)

A complete current list of the Board members can be found on the Foundation web site.


OVERVIEW OF SERVICES
The Foundation is headed by an Executive Director who has oversight responsibility for the Foundation
and reports to the Vice President for Administration and Finance. The organizational arrangement
within the Foundation is divided into four (4) departments:
1) Dining Services operations, 2) Bookstore operations, 3) Business Services, and 4) Grants & Contracts.
Dining Servicess and Bookstore operations are self-explanatory.

The Business Office, under the direction of the Business Services Director, oversees the daily operations
of the Foundation. Operations include:

   •   Operation of the payroll, accounts payable, accounts receivable (general funds), accounting,
       cashier, property management, records management, insurance administration, and legal and
       audit services sections
   •   Financial administration of gifts and donations
   •   Investment of endowments, trusts, real estate, and other funds
   •   Financial administration of funds used for student scholarships and loans
   •   Financial Administration of Campus Program Accounts (campus program accounts includes
       activities relating to the University faculty and staff and official on-campus organizations.
       Examples of these programs include centers and institutes, development accounts, capital
       improvement accounts, and program accounts)

The Grants & Contracts Office, under the direction of the Grants & Contracts Director, oversees the
operations of sponsored program accounts (projects funded by off-campus agencies for research or
training programs). Sponsors normally expect some type of deliverable result. The Grants and
Contracts Office will:

   •   Monitor sponsored program expenditures
   •   Prepare fiscal report for the Project Investigators
   •   Prepare fiscal reports for sponsor agencies
   •   Act as liaison for fiscal matters between the project and the sponsoring agency
   •   Ensure appropriate regulations are followed




       SECTION 2. SPONSORED PROGRAMS ADMINISTRATION
                    (PRE-AWARD ACTIVITIES)
SPONSORED PROGRAM (PRE-AWARD) ACTIVITIES
External Funding for research, scholarly activity, other university programs, and for faculty enhancement
is critical for maintenance of a healthy university. At California State University San Bernardino
(CSUSB) the Research and Sponsored Programs Office (RSPO) and the Foundation for CSUSB work
together to provide assistance to faculty and staff throughout the many stages of the funding process.

During the pre-award process CSUSB faculty and staff work with RSPO. When the grant has been
awarded or a contract is ready for signing, the Foundation becomes the primary office for faculty and
staff interaction. The Foundation for CSUSB is responsible for the post-award administration.

Procedures for administering sponsored programs activity is found in Faculty Administration Manual
(FAM) 950 (Appendix A).


THE RESEARCH AND SPONSORED PROGRAMS OFFICE
One purpose of RSPO is to increase the level of research and scholarly activities at the University by
assisting faculty and staff in obtaining external funding for research projects, curriculum development,
symposia, and workshops.

RSPO reports to the Vice President for Academic Affairs. The Director of RSPO is a member of the
Grants and Contracts Committee appointed by the Foundation Board of Directors.

RSPO has the responsibility for all pre-grant award activity on campus and provides and/or coordinates
the following services:

   •   Funding Source Searches for faculty and staff.
   •   Initial contact with all agencies seeking direct contracts.
   •   Assistance to faculty with grant proposal development.
   •   Review proposals to double-check for consistency with agency guidelines and to provide general
       editorial suggestions.
   •   Coordinate proposal submissions to sponsor agencies.
   •   Negotiation of contracts.
   •   CSUSB liaison with the Foundation on proposals for external support of research and scholarly
       activity.
   •   Conduct Grant Writing Workshops.
   •   Publish the TeleGrant, a biannual Grant & Research Report.
   •   Maintain a faculty database detailing proposals submitted and awards received for faculty.
   •   Coordinate compliance with federal and state regulations and University policies. Policy
       coordinating would include such items as the Institutional Review Board, Conflict of Interest,
       and Institutional Animal Care and Use Committee.


PREPARATION OF GRANT AND CONTRACT PROPOSALS
Prior to the preparation of a grant or contract proposal, prospective project directors/principal
investigators should consult with or advise their department chairs and/or immediate supervisor about
the proposal and any impact it may have on the department or area. If necessary, chairs or supervisors
should in turn consult with the college dean or equivalent administrator.
Prior to the preparation of a grant or contract proposal, prospective project directors/principal
investigators should discuss possible budget or cost-sharing considerations with department chairs or
equivalent unit and if necessary with the college dean or appropriate administrator.

Prior to the preparation of a grant or contract proposal, prospective project directors/principal
investigators should consult with RSPO. RSPO can provide guidelines on adhering to University
policies, various sponsoring agency requirements, assist in obtaining clearances, and make
recommendations that may help obtain funding for your project. RSPO is the clearinghouse for all
proposals leaving the University.


SUBMISSION AND APPROVAL OF GRANTS AND CONTRACTS
The written proposal must conform to the required format of the sponsoring agency. RSPO can provide
guidance on the various formats, especially for federal and state agencies. When prepared the proposal
must be coordinated on campus using a CSUSB Project Information Form (Appendix B).

Either the grant and contract proposals, or companion internal review (Project Information Form)
documentation should specify, where appropriate, the following:

       a. The amount of reimbursed time for faculty members at their current rank and step plus
          benefits. (See Section 15 - Payroll, Procedures for the Reimbursement of Faculty
          Release Time.)

       b. The amount of additional employment for faculty.
          (See Section 15 - Payroll, Guidelines for Faculty Additional Employment).

RSPO is located in the Administration Building, Room AD-128. Their telephone number is (909) 880-
5027.


APPENDIX A. FACULTY ADMINISTRATION MANUAL 950

ADMINISTRATION OF SPONSORED PROGRAMS ACTIVITIES
FAM 950

1. Sponsored program activity is defined as research, public service, and educationally related grant or
contract projects, whether solicited or unsolicited, which are either submitted to or received from federal,
state, municipal, or county agencies; public or private corporations; and private foundations or
individuals. When such proposals or awards provide funding administered by the university or its
auxiliaries, use of University name, facilities, or personnel, or endorsement by the University, approval
as herein described is required.

2. The governing state and federal laws, agency regulations and CSU executive orders require careful
review and approval of sponsored program activity. Thus, all project proposals and awards must be
reviewed and approved in the manner set forth below. Only after review and approval, will a proposal be
submitted, or an award accepted in the name of the University or its auxiliaries.
3. The Director of Research and Sponsored Programs shall administer the grant and contract approval
process.

4. Preparation of Grant and Contract Proposals

   a. Prior to the preparation of a grant or contract proposal, prospective project directors/principal
      investigators should consult with, or advise their department chairs or immediate supervisor
      about the proposal and any impact it may have on the department or area. If necessary, chairs or
      supervisors should in turn consult with the school deans or equivalent administrator.
   b. Prior to the preparation of a grant or contract proposal, prospective project directors/principal
      investigators should discuss possible budget or cost-sharing considerations with department
      chairs or equivalent unit and if necessary with the school dean or appropriate administrator.
   c. Either the grant and contract proposals, or companion internal review documentation should
      specify, where appropriate, the following:
          (1) The amount of reimbursed time for faculty members at their current rank and step plus
              benefits. (See: Policy and Procedures for the Reimbursement of Faculty Release Time).
          (2) The amount of additional employment for faculty. (See: Guidelines and Procedures on
              University-Compensated Faculty Additional Employment).

5. Submission and Approval of Grants and Contracts

   a.   Grant and contract proposals must be reviewed by the project director's/principal investigator's
        department chair or organizational unit director, as appropriate. Reviewers shall assess the
        following:
           (1) Compatibility with the department's staffing requirements.
           (2) Compatibility with departmental programs.
           (3) Acceptability of departmental support commitments.
   b.   Grant and contract proposals shall have appropriate school dean or comparable organizational
        unit review and recommendation based upon compatibility with existing and/or anticipated
        school interests and activities.
   c.   School deans or other divisional unit administrators shall forward all grant and contract
        proposals to the Sponsored Programs Office for review and recommendation to the Vice
        President for Academic Affairs or appropriate divisional vice presidents for final area approval.
   d.   Finally, all grant and contract proposals shall be approved by the Vice President for
        Administration and Finance or by the Executive Director of the Foundation, as appropriate.
   e.   It shall be the responsibility of the Sponsored Programs Office to ensure that appropriate
        project clearances are obtained from other organizational units which might be affected by
        either the submission of a proposal or the acceptance of an award. Such clearances shall be
        obtained prior to final submission of a proposal.

6. Administration of Grants and Contracts

   Upon the award and acceptance of a grant or contract, the Project Director/Principal Investigator in
   close coordination with the Foundation Office and the appropriate School Dean's office or
   comparable organizational unit, assumes the responsibility of administering the project. Specific
   responsibilities are:
(1) Project Director/Principal Investigator Responsibilities. The project director/principal
    investigator has the primary responsibility to ensure appropriate management of the project and
    accomplishment of programmatic objectives. Specific responsibilities include:
        (a) Overall responsibility to ensure that either the research or programmatic commitments are
            accomplished.
        (b) Authorizing all expenditures and maintaining appropriate expenditure controls.
        (c) Maintaining up-to-date records of financial obligations and expenditures.
        (d) Reporting financial activity to the Foundation on a timely basis.
        (e) Monitoring Foundation reports for accuracy and informing them when discrepancies
            occur.
        (f) Ensuring proper supervision of project employees.
(2) Foundation. The Foundation for CSUSB is legally and financially responsible for compliance
    with, and fulfillment of all contracts it enters into on behalf of CSUSB. It is obligated to operate
    within the rules and regulations of the CSU Board of Trustees and the CSU Chancellor's Office.
    It must also be in compliance with all governing federal and state laws. As the formal recipient of
    university grants and contracts, the Foundation has primary responsibility to provide overall
    fiscal management, and it is obligated to ensure that all institutional parties to the project are in
    full compliance with foundation, university, and governmental policies and regulations. Specific
    responsibilities include:
        (a) Acting as management liaison between the project director/principal investigator and the
            contracting agencies to ensure that the research or project is fully funded and can proceed.
        (b) Informing project directors/principal investigators of all pertinent ruling policies and
            regulations governing the foundation and the university, as well as the individual
            contracts, and ensuring compliance with them.
        (c) Assisting with budget implementation, contract interpretation, and providing follow-up in
            resolving discrepancies.
        (d) Providing human resources personnel and payroll functions and serving as employer of
            record for all grant and contract employees.
        (e) Providing purchasing support and advice on obtaining equipment, supplies and services.
        (f) Maintaining records of equipment purchased with grants or contract funds.
        (g) Monitoring account expenditures and providing assistance in maintaining budget controls.
        (h) Filing required fiscal reports on a timely basis with state, federal, and other agencies;
            monitoring the project director's filing of technical reports required by the granting
            agency.
(3) School Dean/Divisional Administrator. The appropriate school dean or equivalent divisional unit
    administrator is responsible for supporting and ensuring program and personnel commitments
    within a reviewed and approved sponsored program. Specific responsibilities include:
        (a) Ensuring that the project director/principal investigator has institutional support and
            resources appropriate to the commitments made by the university in accepting the grant or
            contract award.
        (b) Ensuring that the Project Director/Principal Investigator delivers the product or services
            specified in the grant or contract.
        (c) Exercising administrative oversight to ensure that university policies regarding grants and
            contracts are followed.
        (d) With the cooperation of the project director/principal investigator and the Foundation
            Office, maintaining oversight of workload and assigned time commitments of project
            faculty/principal investigator, ensuring the effective transfer of funds for release
            reimbursement, and ensuring compliance with university personnel policies.
            (e) Reviewing and authorizing all direct reimbursements and travel expenditures to the
                project directors/principal investigators to ensure compliance with appropriate
                regulations. (f) Monitoring foundation reports for accuracy and informing them when
                discrepancies occur.
Responsible Office: Academic Personnel/Sponsored Programs
Responsible Person: J. C. Robinson/Sid Kushner
Reviewed by Administrative Council on 1/5/98
Approved: President Albert K. Karnig



APPENDIX B. PROJECT INFORMATION FORM
    •   Project Information Form




        SECTION 3. SPONSORED PROGRAMS ADMINISTRATION
                 (POST-AWARD ADMINISTRATION)
INTRODUCTION
External funding for research, scholarly activity, other university programs, and for faculty enhancement
is critical for maintenance of a healthy university. At California State University San Bernardino
(CSUSB) the Research and Sponsored Programs Office (RSPO) at the University and the Sponsored
Programs Administration Office of the Foundation work together to provide assistance to faculty and
staff throughout the many stages of the funding process.

While an integral part of the University, the Foundation is a separate, nonprofit corporation that serves as
a contracting agent for the University. A major purpose of the Foundation is to provide assistance to
faculty and staff with the administration of grants and contracts.

During the pre-award process CSUSB faculty and staff work with RSPO. (Pre-award responsibilities are
discussed in Section 2.) When the grant has been awarded or the contract is ready for signing, the
Foundation becomes the primary office for faculty and staff interaction. The Foundation is responsible
for the post-award administration.


FOUNDATION RESPONSIBILITIES
The Foundation is legally and financially responsible for compliance with, and fulfillment of, any
contract it enters into on behalf of California State University, San Bernardino. Accordingly, the
Foundation must operate within the guidelines, rules, and regulations of the California State University
(CSU) Board of Trustees and the Office of the Chancellor and be in compliance with federal and state
laws. The Foundation is audited annually by independent auditors who report their findings to the
Foundation Board of Directors, the President of the University, the CSU Board of Trustees, and many
federal and non-federal funding agencies.

The Foundation is responsible for providing and/or coordinating the following services:
   •   Acting as liaison between Project Directors and the contracting agencies.
   •   Assisting with budget proposals, contract interpretations, and following up in resolving
       discrepancies.
   •   Providing fiscal/accounting services and monthly reports of revenue and expense.
   •   Making recommendations to assist the project director in making cost efficient decisions.
   •   Providing personnel and payroll functions and serving as employer-of-record for all employees.
   •   Providing purchasing support and advice on obtaining equipment, supplies, and services.
   •   Monitoring account expenditures and providing assistance in maintaining budget controls.
   •   Filing required fiscal reports on a timely basis with federal, state, and other agencies; monitoring
       the filing (by the Project Director) of technical reports required by the granting agency
   •   Training new staff on the use of the Foundation Project Administration Guide.


PROJECT DIRECTOR RESPONSIBILITIES
Although the Foundation signs the agreement and is legally and financially responsible to the funding
agency or sponsor, the Principal Investigator/Project Director is responsible for the administration of the
project, preparation of the required technical reports, and proper fiscal management and conduct of the
project. The Principal Investigator Project Director is responsible for compliance with all the terms and
conditions of a contract or grant, for efficiently managing project funds within approved budgets and for
completing the project in a diligent and professional manner. During the pre-award process a scope of
work that includes a detail of deliverables should have been developed. This scope of work needs to be
provided to the Foundation for compliance monitoring.

The policies and procedures set forth in this manual are designed to minimize administrative time, avoid
over-expending budget categories, and ensure proper allocation of funds.

The Project Director is responsible for compliance with the policies and procedures established by the
University, the awarding agency, and the Foundation. Specific responsibilities of the Principal
Investigator/Project Director include:

   •   Providing the Foundation with a budget as proposed and approved by the funding agency.
   •   Authorizing all expenditures and keeping a tight control on expenditure approval authority.
   •   Reporting financial activity to the Foundation on a timely basis.
   •   Monitoring computerized monthly operating reports for accuracy and contacting the Foundation
       whenever discrepancies occur. (Please note that Foundation records and reports only reflect data
       that has been processed.).
   •   Providing documentation for matching/cost-sharing funds.
   •   Contacting the Foundation as soon as possible when there is the need to change or revise a major
       program objective and/or revise any budget expense category. (Budget flexibility depends on the
       granting agency and may vary.).
   •   Submitting technical reports to their sponsor agency as required.
   •   Ensuring that appropriate project staffs have a good working knowledge of this manual.


ADMINISTRATION OF SPONSORED PROJECTS
Agreements to perform specific projects for agencies of the federal, state, county, and city governments,
private industry, and nonprofit Foundations fall under this policy and will be administered in the
Foundation. The California Contract Code, Section 10340, stipulates that state agencies may contract
with an auxiliary organization of the California State University without a competitive bid process.
Many state agencies are not familiar with this clause, which enables them to contract directly with the
Foundation, in lieu of utilizing Interagency Agreements with the University.

Most granting agencies provide for reimbursement of facilities and administrative costs (F&A formerly
referred to as indirect costs). Some agencies may not provide for F&A costs reimbursement or may
reimburse at less than the full federal negotiated rate. The Foundation will accept awards on behalf of
the University if the F&A costs reimbursed meet the criteria as set forth in the current Indirect Cost
Return Policy as adopted by the Foundation Board of Directors (see Section 6 - Indirect Cost Return
Policy).

If an award does not meet the approved criteria regarding reimbursement of direct and F&A costs, a
Project Director may request a waiver from the policy so that the award may be received. Waiver
requests are submitted to the Sponsored Programs Development Office.

Considerations for waiver of the Indirect Cost Policy will include but shall not be limited to the
following:

   •   The importance of the grant to the University and the relatedness of the grant to the University’s
       mission.
   •   The awarding agency must be able to provide a written policy, not an ad hoc letter, that the
       awarding agency does not reimburse grantees for F& A costs.
   •   The awarding agency may make a significant up-front payment of the total award amount and
       require minimal administrative reporting.

Other criteria which may be significant factors in the determination are overall effective rate of indirect
return, Foundation revenue from indirect costs, award amount, the degree of influence that waiving or
reducing the rate would have on a funding source to obtain additional burdened grants or contracts, etc.
Foundation administrative fees charged to the project would be equivalent to those charged by the
Business Office unless the indirect costs are negotiated at a different rate with the sponsor.


ACCOUNT SET-UP
When an award is received, an account set-up is prepared for each new project. This set-up contains
essential data about the project, including its six-digit grant number, approved budget, and project
starting and ending dates. In addition, signature authorization forms must be completed with the
signatures of those authorized to make financial commitments for the project. (See Section 9 -
Signature Authorization.)

After a grant number is assigned, the project budget and other statistical information are entered into the
accounting system as the first step in producing management reports for the Project Director’s use. A
new grant number is usually assigned for each new budget period.
RECEIVING PAYMENT
Federal agencies, foundations, and corporations differ in their method of paying for sponsored projects.
The major methods of payment are as follows:

Electronic Draw-Down

The Foundation draws funds from the government’s account based on expenditures to date.
Draw-Downs in excess of current needs may result in payment of interest to sponsors.

Cost Reimbursement Vouchers

The Foundation submits vouchers for payment of expenses already incurred, together with various
reports showing the types of expenditures and the total spent to date. The sponsor then reimburses the
Foundation for these costs.

Prepayment

At the beginning of the project, the sponsor sends the full amount of the award, which is credited to the
project’s account.

Advance Payments

Payment either follows the filing of an advance cash request (usually quarterly or monthly), or is sent
automatically in accordance with the original agreement.

Since payments are requested, received, and processed by the Foundation, Project Directors need not
have detailed knowledge of the various payment mechanisms.


CHARGING EXPENSES
Once the account number has been assigned, the Project Director has primary responsibility for using the
funds in a manner consistent with sponsor, Foundation, and University regulations. All charges to
federally sponsored projects must adhere to the principles of cost allowability, allocability, and
availability.

An allowable cost is one that complies with the principles regarding costs that may be applied to
federally sponsored projects as set forth in Office of Management and Budget (OMB) Circular A-21.
For example, the federal government will not reimburse the University for entertainment costs; thus,
such costs are unallowable.

An allocable cost indicates that its assignment to a particular sponsored project is justifiable on the
grounds that the project actually benefited from the goods or services associated with the cost. An
example of an unallocable expense would be training costs charged to a research grant.
Availability means that funds are available prior to incurring expenditure.

The principles of allowability, allocability, and availability motivate many of the rules and policies
outlined in this manual. When uncertainty exists regarding a specific expenditure, Project Directors and
departmental administrators are encouraged to judge the expenditure with these principles in mind and to
call the Foundation Internal Manager for help.

Expenditures under federal grants or contracts may be subject to prior approval or to special after-the-
fact documentation, or both. Outlined below are the major categories of expenses that may require such
approval or documentation:

a. Consultant Services

These services are provided to advance a specific portion of the research scope of work. The provider
may be either a member of a profession or a person possessing a special skill; he or she generally cannot
be on the regular Foundation or University payroll. Agencies vary in their requirements for approval of
consultants. When consultant services are not in the proposal budget, approval to charge them to a
project is required by some agencies but not by others. Most agencies approve the use of consultants if
the person(s) to be utilized, their area of expertise, and the anticipated costs of their services are included
in the proposal. However, even when this information is included in the proposal, the consultation must
be approved and documented in accordance with Section 5 - Engagement of Independent Contractors.

b. Equipment

If an equipment purchase is specified in the proposal budget, further approval is generally not required.
If the approved proposal does not detail the purchase, prior approval must be sought from the funding
agency prior to the purchase.

To meet the compliance requirements of OMB Circular A-110, the Foundation tags equipment and
conducts a bi-annual equipment inventory. The Foundation maintains detail of what equipment is
purchased by each sponsored program. The Project Director must ensure equipment is safeguarded and
maintained. In addition the Project Director is responsible for accountability of project equipment they
procure and issue to workers.

c. Postage/Photocopy Expenses

No prior approval is required for these charges, but they must be documented when paid. If the costs are
being allocated to several accounts, documentation of and justification for the method of allocation must
be attached to the approved invoice.

d. Subcontracts

Subcontractors must submit required financial reports, patent reports, equipment reports, and invoices to
the Foundation within 60 days of a project’s completion. Project Directors may assist in obtaining these
documents within the allotted time in order to ensure payment of the subcontractor. Reporting
requirements are specifically listed in the agreement between the subcontractor and the Foundation.

e. Salary Charges
No prior approval is required for regular salary charges on federal accounts. However, after-the-fact
documentation certifying the effort expended on federal projects is required (See Effort Certification
System, Section 3, page 8).

Overtime pay must be approved, by the federal agency, in writing prior to the work being performed
(OMB Circular A-122). Approval after-the-fact is only granted if the overtime was:

   1. to cope with an emergency, such as those resulting from accidents, natural disasters, breakdowns
      of equipment, or operational bottlenecks of a sporadic nature.
   2. when the employee is being paid out of indirect cost funds..
   3. in the performance of tests, laboratory procedures, or other similar operations which are
      continuous in nature and cannot reasonably be interrupted or otherwise completed.
   4. to result in a lower overall cost to the Federal government.

f. Telephone Expenses

In general, only the telecommunications costs associated with a specific project can be charged to the
relevant federal/grant account. Records documenting the appropriateness of transferring these charges
from the originally billed account to the federal accounts involved must be attached to the invoice coded
for payment. Only if a telephone has been installed for the sole use of a particular grant or contract
activity (i.e., to tie into a computer) and will be removed when the project terminates, can monthly
service, message units, and non-toll charges be paid by the federal sponsor. Cost transfer requests that
distribute telephone charges to appropriate accounts should specify that the charges relate only to
telecommunications costs. Individuals who use the project telephone for personal telephone calls are
required to reimburse the project for the calls.

Cellular telephone charges are only permitted when approved by the sponsoring agency (in writing) or
in the rare emergency situation.

g. Domestic Travel

Most domestic travel included in the proposal budget requires no further approval. Check with the
Grants and Contracts Office regarding requirements of specific awards when no travel has been
approved in the proposal or if the travel budget category is exceeded.

Some awarding agencies may have rates different from the Foundation. In those cases the awarding
agencies rate would apply to all travel payments.

h. Foreign Travel

In general, funding for foreign travel must be requested in the proposal budget and then approved again
by the agency before the trip is taken. Some sponsors, however, have eased this requirement. Check
with the Grants and Contracts Office for specifics on your grant before taking a trip.

Expenditures for foreign travel must be documented as they are for any trip, as detailed in Section 13 -
Travel. Except in extraordinary circumstances, travelers on federally sponsored trips must travel coach
class on U.S. flag carriers. Call the Foundation Grants and Contracts Office prior to booking a flight on
non-U.S. flag carriers.
All purchases must adhere to the Foundation Purchasing and Accounts Payable Policies and Procedures
as described respectively in Sections 11 and 12 of this manual.


COST TRANSFERS
A cost transfer is any transfer of an expense from one grant/contract to another grant/contract.
Universities are subject to audit disallowance in the area of cost transfers. Late cost transfers made from
an over-expended account to an under-expended account suggest poor planning and management.
Auditors will assume such transfers have been made simply to cover the over-expenditure or to use up
funds after the fact. They will disallow the costs unless adequate documentation relating the transferred
charge to the receiving account is on file.

Grant regulations recognize three general circumstances under which transfers may be appropriate. In
all cases, transfers must be timely. The appropriate circumstances are:

   •   To correct clerical errors in the original charges;
   •   To reflect legitimate re-budgeting as a result of a change from the initial work plan;
   •   To reallocate resources between accounts supporting closely related work for reasons other than
       covering an over-expenditure. Relatedness must have been established in advance and many
       times it needs to have been established by the granting agencies.

Regulations also specify the type of written documentation required supporting transfers. Appropriate
transfers must be accompanied by an explanation of how the original charge occurred, certification of the
new charge, and a description of the financial impact on the account(s) involved.

Great care must be exercised in requesting cost transfers, especially when justifying transfers made more
than 90 days after the original transaction. Transfers which are inadequately documented and therefore
indefensible when disallowed are the responsibility of the Project Director and his/her department or
college and must be transferred to non-sponsored sources.

All expenditures transferred to federally sponsored projects are subject to federal rules governing
allowability, allocability, and availability.


EFFORT REPORTING
Payroll Distribution

Cost principles applicable to grants, contracts, and other sponsored agreements between federal agencies
and educational institutions are contained in Office of Management and Budget (OMB) Circular A-21.
The Circular is intended to establish a consistent framework of cost accounting principles through which
sponsored work by colleges and universities for the Federal Government can be fairly and effectively
performed.

Subsection J contains the requirement that the distribution of professorial (faculty) and professional work
between activities must be documented and supported by an effort reporting system. Generally, an effort
reporting system should meet five informational criteria:
   •   Reports will reflect the distribution of activity expended by each employee covered by the
       system.
   •   Reports will reflect an after-the-fact reporting of the percentage of activity of each covered
       employee.
   •   Each report will account for 100 percent of the activity for which the covered employee is
       compensated and which is required in the fulfillment of the employee’s obligations to the
       institution. The report will reasonably reflect the percentage of activity applicable to each
       covered cost category.
   •   Each report will be signed by the employee or by a responsible official having first-hand
       knowledge of the work performed.
   •   For covered professorial and professional staff, the reports will be prepared each quarter.

Personnel Effort Certification System (PECS)

The California State University, San Bernardino (University) and the California State University, San
Bernardino Foundation (Foundation) have developed a personnel effort reporting methodology that
complies with both the Federal regulations described in OMB Circular A-21 and University personnel
reporting requirements. This methodology is called the Personnel Effort Certification System (PECS).
The methodology incorporates reporting, certification, verification and records retention.

Effort Certification

Employee Effort Report (EER) Forms (Appendix A) will be sent by the Foundation to the employee at
the end of each quarter. The employee will have 60 days after receipt of the EER to complete, sign and
return the completed EER to the Foundation Grants and Contracts Office. As reports are returned, the
employees will be checked off the master list of EERs generated. Reports will be considered delinquent
61 calendar days after the reports are distributed. At this time the EER will be sent to the Project
Director who will then have 30 days to return the signed form to the Foundation office. If the director
fails to return the signed form within the appropriate time, it will then be sent to the chair of the
department. Reports not returned by the chair within 30 days will then be sent to the dean for signatures.


MISCONDUCT IN RESEARCH
Institutions applying for and awarded grants and contracts from the U.S. Department of Health and
Human Services (HHS), particularly its operational division, the U.S. Public Health Service (PHS), are
required to provide, annually, assurance that the institution has established and will follow an
administrative process for (a) reviewing, (b) investigating, and (c) reporting allegations of "misconduct
in science" in connection with PHS- sponsored biomedical and behavioral research conducted under the
auspices of the institution (Federal Register, Vol. 54. No. 151, pp. 32446-32451). The Assurance will be
submitted on forms provided by the PHS together with such aggregate of information on allegations,
inquiries, and investigations as the Secretary of HHS may require.

Since misconduct in the professional activities of faculty and staff are neither frequent nor, when
occurring, limited to persons in the sciences, it is appropriate that a policy governing the institutional
response to misconduct in research, whether under Federal initiative or not, treat all faculty members and
staff members equally and fairly. Accordingly, this policy concerns misconduct in research and creative
activity in all academic disciplines, misconduct in science being a subset within which activities
sponsored by the Federal government must be treated in ways defined by the sponsoring agency. All
references to "misconduct in research" in this document include "creative activity" and include the
Federal definitions, processes, and requirements concerning "misconduct in science."

Definition of Misconduct in Research

Misconduct in research is defined as fabrication, falsification, plagiarism, or other practices that
seriously deviate from those that are commonly accepted within the academic community for proposing,
conducting, or reporting research and creative activity. Misconduct does not include honest error or
honest differences in interpretations of data.

The policy is maintained in both RSPO and the Sponsored Programs Administration Offices.

APPENDIX A. EFFORT REPORT
   •   Project Information Form - Appendix A - Grants/Contracts Cost Share Verification Form




                          SECTION 4. HUMAN RESOURCES
INTRODUCTION
As a non-profit 501 (c) (3) corporation established in California the Foundation must obey all Federal
and State of California Employment Laws. The Foundation Personnel Manual, revised (April 1999)
contains specific information on Foundation Personnel Policies. This Project Administration Guide
only provides a summary of some of the policies. If your office does not have a copy of the
Foundation’s Personnel Manual, a copy should be obtained from the Foundation Human
Resources Office (Foundation Building, Room 104).


DEFINITIONS AND EMPLOYMENT CLASSIFICATION
(For a complete listing refer to FPM Policy 105.)

Appointing Authority: The power to appoint, reappoint, or order a change in employment status of
Foundation employees shall reside with the Foundation Executive Director and his/her designee.

Managerial Employees: Class shall include staff appointed to positions requiring the development and
execution of auxiliary organization policy. Persons appointed to class shall serve at the pleasure of the
Foundation Board or appointing authority.

Project Employees: Class shall include Project Directors, Managers and staff members appointed to
projects funded by contract, gift, or grant. Such appointments are for a fixed term of service as
determined by the grant, gift or contract.

Student Employees: Class shall include Student Assistants and Graduate Aides employed by the
Business Office, Bookstore, Dining Services and Projects as needed. All appointments to this class will
be in temporary, part-time (20) hourly positions. Continued service shall be in accordance with
provisions of the Foundation's Student Employee Policy.
Emergency Appointments: The purpose of an Emergency Appointment is:

   •   To gain support or assistance while a position is being recruited for;
   •   For the purpose of completing short term assignments to meet deadlines; or
   •   To supplement staffing during peak workloads.

           1. Classification Definition: An emergency employee appointed for a fixed term not to
              exceed 45 calendar days per appointment. Employees in this class are not eligible for
              Foundation benefits other than those mandated by law.

           2. Limitations of Emergency Appointments: A maximum of two (2) consecutive forty-five
              day appointments may be processed. An individual may work several appointments for
              the Foundation, but cannot exceed 1,000 hours in a fiscal year (July 1st through June
              30th). The cumulative 1,000 hours for the fiscal year includes all work performed under
              the Foundation. Any questions about this limitation may be referred to the Human
              Resources Department. The Foundation is an Equal Opportunity Employer; therefore,
              assignments to employment classifications must be made by taking part in competitive
              recruitment process.


PERFORMANCE APPRAISAL (FPM POLICY 205)
It is the policy of the Foundation that all employees shall receive regular and periodic written appraisals
of their job performance from their supervisor. The Performance Appraisal will follow a format
prescribed by the Foundation Board and will rate performance against written standards. This policy
applies to all Foundation employees including the Business Office, Bookstore, Dining Services, Children
Center and Project employees.

1. Purpose: Performance Appraisals will provide a process by which the job performance of each
employee is reviewed for the purposes of recognizing and improving performance. Performance
Appraisals may be considered in determining personnel actions affecting the employee. These actions
may include:

   A. Providing a record of the employee's performance progress and history; Identifying training
      needs and guiding employees towards greater self-development and improved performance.

   B. Providing a standard measurement for supervisors to make salary adjustments, including
      performance based salary increases (PSI), based upon the employee's performance in relation to
      the job description, performance and objective accomplishments.

   C. Evaluating an employee's appropriateness for retention, transfer, discipline or promotion.

2. Performance Appraisal Schedule: Each supervisor and or manager is responsible for conducting
timely performance appraisals for each subordinate employee as directed by the Foundation and contract
guidelines:

   A. Project employees shall receive a performance appraisal at least annually. The period of review
      will be the last month of the Grant/ Project contract.
   B. Performance Appraisals may be conducted on a more frequent basis as determined by the
      supervisor or appointing authority.

   C. The Human Resources Department will maintain a system to notify supervisors when
      performance appraisals are due. Completion of performance appraisals in a timely manner is the
      responsibility of supervisor/manager.

3. Copies of the employee Performance Appraisal forms are available from the Human Resources
Department or can be electronically received.

4. Supervisors will be responsible for meeting and discussing each performance appraisal with the
employee. The discussion should be held at a pre-arranged time in a private location free from
interruptions.

5. If an employee is on a non-work status such as a leave of absence, the review period will be adjusted
so that the review will only cover the period of time actually worked.

6. The employee will be asked to comment on the appraisal and acknowledge the discussion and receipt
of a copy by signing the form. In the event the employee declines to sign the form, the supervisor will
ask the employee to write, "decline to sign" at the signature line and sign and date the form him or
herself. If the employee disagrees with their evaluation, he or she has the right to discuss their
evaluation with their supervisor's superior and/or human resources.

7. The originating supervisor and the next level of management signatures are required before the
performance appraisal is submitted to the Human Resources department. Human Resources will review
each performance appraisal to ensure compliance. A copy of the completed performance appraisal
should be given to the employee, after all the signatures have been obtained, and the original is to be
placed in the employee's personnel file.


PERSONNEL SELECTION POLICY (FPM Policy 405)
The Foundation is committed to a policy which will insure the selection and retention of highly qualified
employees. It is likewise committed to a solid affirmative action / equal opportunity employment
program designed to enhance the employment opportunities for those individuals identified in state and
federal statute as members of protected classes.

All postings for a Foundation position must go through the Foundation Human Resources office.

The Foundation has designated California State University (CSU), San Bernardino's Human Resources
Office to be its sole agent in the selection process. Accordingly, all applicants for vacancies in the
Foundation shall be referred to that office and no appointments will be tendered without its coordination.

To assure an equitable selection process, the Foundation and its contractual designee shall adhere to the
following:

   •   With the exception of temporary and or emergency appointments, all Foundation positions will
       be posted in accordance in accordance with existing CSU policy. Position announcements shall
       include title, description of duties, desirable experience, minimum qualifications, and salary
       range.

   •   Screenings, interviews, and additional pre-employment activities shall be equivalent to those
       standards followed by the CSU.

   •   The Foundation's Executive Director, Business Services Director or designee shall make
       appointments. Such appointments may be temporary, probationary, regular, project or
       managerial. All appointments to vacant positions shall be made through written notification to
       include the classification title, initial salary, employment status, and effective date of
       appointment. If required, the notification shall include an expiration date or project completion
       date for non-permanent or temporary grant-related employees.

   •   Emergency appointments may be made by the Foundation appointing authority. A maximum of
       two (2) consecutive forty-five (45) day appointments may be processed. In general, temporary
       appointments will be considered as an emergency expedient only. As such, a competitive
       selection process may be waived in accordance with statutory requirements.


PERSONNEL TRANSACTION REPORT (PTR)
Upon selection of an employee, a Personnel Transaction Report (PTR) needs to be completed. This is
the document used to initiate an appointment letter and offer of a position to a potential employee or to
make any changes to the employee’s pay or status including resignation/termination. Appendix A is a
sample of a PTR.


STUDENT EMPLOYEE POLICY (FPM POLICY 505)
A. Employee Classifications:

Regularly enrolled CSUSB students and students enrolled in other post-secondary academic institutions
may be employed by the Foundation Business Office, Bookstore, Dining Services or Projects as
undergraduate Student Assistant or graduate Student Assistant as follows:

   •   Student Assistant A: This classification will include all eligible CSUSB undergraduate students.
       Wages shall be paid on an hourly basis for reported time worked with salary determined by the
       Foundation Board. Benefits shall include Workers' Compensation, Disability, and
       Unemployment Insurance. Wages may be exempt from FICA deductions in accordance with
       Federal regulations.

   •   Student Assistant. B: This classification will include all eligible students enrolled in post-
       secondary academic institutions other than CSUSB. This classification is different from Student
       Assistant A by the addition of FICA deductions. Students in this classification are not eligible
       for FICA exemption. Salary and remaining benefits are the equivalent to the Student Assistant
       A.
   •   Foundation Graduate Aide: This classification will include all eligible CSUSB students
       employed as Graduate Assistants in a Foundation administered academic program. Salary shall
       be determined by the Foundation Board.

   •   Benefits for Student Assistants will include Workers' Compensation, Disability, and
       Unemployment Insurance Exemption from FICA deductions will apply when eligibility is
       established in accordance with federal regulations.

B. Eligibility:

1. Student Assistants A and Graduate Aides applicants and incumbents must:

   •   Be regularly enrolled and currently attending classes at CSUSB.
   •   Maintain a minimum 2.0 grade point average.
   •   Maintain a course load of 6 units (undergraduate) or 4 units (graduate) or more for Student
       Assistant A or Graduate Aide to be in these classifications.

2. To be eligible as a Student Assistant B (non-CSUSE student), applicants and incumbents must:

   •   be regularly enrolled in good standing at an accredited post-secondary academic institution with
       6 units or more.
   •   Written proof of compliance shall be submitted to the Foundation Personnel Office for each term
       of employment.

3. In accordance with statutory requirements of the U.S. Immigration and Control Act of 1986, all
applicants for positions in these classifications, must establish identity and employment eligibility to
work in the United states.

C. Hours of Work:

All Student Assistants and Graduate Aides shall normally work a standard of twenty (20) hours per
week. In general, work is granted by the employee's supervisor and work weeks exceeding the standard
twenty (20) hours should be limited to summer, and periods in which classes or examinations are not
scheduled.

D. Appointment and Termination:

All employees in this class may be hired directly by the individual program manager. If recruitment and
referral services are desired, the manager may request assistance of the University Career Center through
the Foundation Human Resources Office. All applicants receiving appointments must be processed
through the Foundation prior to beginning work.

Continued services in any Student Assistant/ Graduate Aide position shall be at the pleasure of the
program manager or the Foundation appointing authority.


SUMMARY OF ITEMS UNIQUE TO GRANTS AND CONTRACTS
Because of the nature of Sponsored Programs, there are some differences or restrictions placed on
personnel hired as grants and contracts employees. These differences are written into the Foundation
Personnel Manual. Below is a summary list of some differences/restrictions.

   •   If a grant employee is specifically named in the award, competitive recruitment is waived.
   •   Normally eligible Sponsored Program employees can only receive Educational Assistance if the
       grant provides funding for the action. (Note: federal grants prohibit payment of employee
       educational assistance.
   •   Employees can only be appointed for the funded budget period of the award and may be
       terminated if funds are no longer available.
   •   Some projects prohibit vacation hours from being carried over from one budget year to another.
       In these cases, employees must use earned vacation each budget year.
   •   Labor Laws require payment of unused vacation upon termination of employee. Since grants
       normally do not fund for vacation payoff, employees must use accrued vacation time prior to
       contract or employee resignation/ termination.


PERSONNEL RECORDS (FPM Policy 110)
All original applications, paperwork, performance appraisals and any other documentation that denotes
changes in status, corrective action, compensation etc will become part of the official employee
personnel file. Access to this file is limited to Appointing Authority, Human Resources/ Payroll staff,
Supervisor / Project Director and the employee.


EMPLOYEE SAFETY (FPM Policy 1005)
In accordance with state and federal statutes, it is the policy of the Foundation to ensure a safe working
environment for all employees. Responsibility for compliance with laws and regulations shall reside with
Foundation Supervisors, Managers, Directors and Project Directors. Further all employees of the
Foundation must obey all safety procedures, rules and policies set down by the Foundation.. Such
compliance is deemed a condition of continued employment.

Workers Compensation: If a Foundation employee suffers a work related injury, the Foundation
Human Resources Office must be notified. The Foundation has a different Workers' Compensation
Insurance carrier then the University. Each year we notify all Foundation employees of the name,
address and phone number of our current Workers Compensation Insurance carrier. The procedures for
reporting a work-related injury is in Appendix B.


CONDITIONS OF EMPLOYMENT
It is important that all Foundation employees be made aware of the Foundation’s Conditions of
Employment (FPM Section 9). Some of the conditions covered are Hours of Work, (including our
obligations under the Wage and Hours state/federal labor laws), Overtime policy, Sexual Harassment,
Zero Tolerance on Workplace Violence.
It is important that a copy of the Foundation’s Personnel Manual be available for Project Directors
and staff to review. Some of the other areas of importance that are covered in the Personnel Manual
are Pay Procedures, Benefits, and Job Security/Classification.


INVOLVEMENT OF MINORS
Occasionally a project may involve activities of minor children. The following will summarize some of
the varied possible scenarios that may arise:

   •   Program is designed to provide educational stimuli and support to minor children. Project
       Director would obtain parental consent for the minor to participate in the program. Program
       requires that the Project Director maintain a file on the individual. This file usually will
       document the parental consent, participation level of the minor, eligibility of minor to participate
       in program, follow-up on the minor after completion of the program, and whatever else is
       mandated by the program. Only funds received by the minor is stipends as authorized by the
       funding agency. In this type of program the sponsoring agency usually provides detailed
       requirements to the Project Director. (i.e. Upward Bound, GEAR Up)

   •   Minor is hired to perform task for pay. Minor is employed and paid a wage for time worked.
       Not only do all wage and labor laws that apply to adult employees apply, but there are additional
       applicable laws. As a minimum, minors must have work permits and Parent/Guardian Consent
       Form on file with Human Resources. (i.e. summer employment programs) CONTACT
       FOUNDATION HUMAN RESOURCES FOR ADDITIONAL INFORMATION BEFORE
       RECRUITING MINORS FOR WORK.

   •   Minor participating as a volunteer. Some programs may wish to recruit minors to participate in a
       survey type program. The individual is not paid for the services but might receive a stipend for
       participation. Note: a stipend cannot be used in lieu of paying wages to person for work
       performance. Before using a minor for the program, the project director will ensure
       parent/guardian understands what the minors involvement in the program will be and obtains a
       consent form from the parent or guardian. These forms must be keep on file by the project
       director.

       Hours of volunteer time must be recorded and provided to Foundation Payroll. This information
       is required to provide workers compensation coverage for the volunteer in case of injury.

Since the laws involving minors participating in programs can be quite complex, it would be wise
to discuss all involvement of minors with the Foundation Human Resources and Payroll Office
prior to taking any action.

Sponsored Programs designed to use minors normally have a specific parental consent form. Appendix
C is a general form that can be used in cases where the sponsor does not provide a specific form.

Consent forms are subject to audit requirements. If the agency requires the minors involvement be kept
confidential, the document is to be annotated “CONFIDENTIAL”. However, Foundation, Sponsoring
Agency, CSUSB, and CSU auditors have the right to review the documents for compliance with various
regulations.
APPENDIX A. PERSONNEL TRANSACTION REPORT (PTR)
   •   PTR – Employment and Changes
   •   PTR - Separations


APPENDIX B. WORKERS' COMPENSATION PROCEDURES

WORKERS’ COMPENSATION PROCEDURES FOR SUPERVISORS AND MANAGERS

1. Any employee who is injured, even if the injury is minor, must complete an Employee’s Report of
Accident Form within 24 hours (if possible). The employee’s supervisor must then complete a
Supervisor’s Report of Accident Form immediately. Any witness should also write out a statement.
Reviewing the Basic Rules For Accident Investigation can assist you in completing the reports. These
forms must be submitted to the Human Resources department within 24 hours.

NOTE: WHENEVER POSSIBLE, THE INJURED EMPLOYEE SHOULD BE REFERRED TO
THE HUMAN RESOURCES DEPARTMENT. THIS WILL ENABLE US TO ALLEVIATE
THE SUPERVISOR / MANAGER FROM COMPLETING THE BELOW PAPERWORK.

2. If the injured employee needs to be seen by a medical provider, the employee should be referred to
U.S. Healthworks Medical Group (unless the employee has designated a Physician or Health Care
provider). U.S. Healthworks Medical Group is located at 599 Inland Center Drive, Suite 105, San
Bernardino. The injured employee needs to take a Treatment Authorization Form to the Healthworks
Medical Group. Either the employee’s supervisor or Human Resources can authorize treatment.

3. Foundation supervisors / managers must have the injured employee complete a State of California
Employee’s Claim for Workers’ Compensation Benefits Form (DWC-1) within 24 hours of receiving
notice or having knowledge of an injury. After the employee completes the top section, give the
employee the temporary receipt (blue copy). The form then must be forwarded to the Human Resources
Department immediately. Failure to do so can result in a fine to the Foundation.

4. At the same time the employee is given the Employee’s Claim for Workers’ Compensation, the
employee should be given a Claim Form Acknowledgment. Both the employee and the employee’s
supervisor should sign and date the Claim Form Acknowledgment.

5. The supervisor / manager must then provide the employee with a copy of “Facts for Injured
Workers” Booklet. If the employee is referred to Human Resources to complete their claim form etc.,
then the Human Resources Department will provide the booklet.

6. Human Resources will complete the bottom section of the Employee’s Claim for Workers’
Compensation and the Employer’s Record of Occupational Injury or Illness Form and send both forms to
the Foundation’s Insurance carrier. The employee will receive a copy (pink) of the completed
Employee’s Claim for Workers’ Compensation form.

7. If the employee needs additional treatment for their injury or illness, any health provider notes and or
diagnosis must be sent to Human Resources Department. Human Resources will then forward the
information to the Foundation’s Insurance Carrier.
8. If an employee is put off work by his/her health care provider, the supervisor should talk to the
employee at least once a week to follow up on how the employee is doing and to let the employee know
that we care.

9. Any correspondence, continued treatment and or release forms should be forwarded to Human
Resources.

FYI: Insurance Carrier: Crum & Foster
                        725 South Figueroa Street
                        Suite 2300
                        Los Angeles, CA 90017


APPENDIX C. PARENTAL CONSENT FORM
    •   Parent/Guardian Consent Form
The purpose of this form is to document parental consent for their child to participate in the research/training
project.

THIS CONSENT FORM DOES NOT REPLACE THE REQUIREMENT FOR A MINOR TO HAVE A
WORK PERMIT WHEN BEING EMPLOYED.

Individuals who must complete specific task at specific times and are paid a specific wage are employees and
must contact Foundation Human Resources/Payroll for additional information.

Parent Consent Form for Minor Child (or sponsor provided equivalent) is to be completed for each minor
child participating in a program being sponsored through the Foundation for California State University San
Bernardino.

Volunteer workers must complete non-pay time sheets with Foundation Payroll to ensure volunteer hours are
recorded and appropriate worker’s compensation insurance is provided. Possible claims could be denied if
not properly registered as a volunteer for a program.

Usage of this form would be for minors participate in research studies or training programs and who are
normally in a volunteer position.

Any payment to the individual would be a stipend for participation in the program only. This participation is
usually in completing a training session or survey.

Parent Consent forms are required to be on file with the Project Director prior to the child starting to
participate.

Project Directors MUST:

    •   Obtain written parental consent prior to utilizing minor for the project.
    •   Maintain file of written consent forms.
    •   Permit file access to the funding agency, The Foundation for CSUSB, CSUSB, and their auditors.
    •   Keep confidential at all times identity of individuals.
If applicable, ensure volunteers are properly documented for worker’s compensation coverage. (contact
Foundation Human Resources/Payroll for determination)



                 SECTION 5. INDEPENDENT CONTRACTORS
BACKGROUND AND DEFINITIONS
Occasionally there will be need for short-term professional services that cannot be performed by existing
employees. The use of an independent contractor may satisfy this need in some qualified situations.
Although the classification of independent contractor is not clearly defined by federal or state taxing
agencies (i.e. the Internal Revenue Service [IRS] and the Employment Development Department [EDD]
respectively), we have set forth the following guidelines to aid in the appropriate use of independent
contractors:

   •   Independent Contractor - An independent contractor is an individual or organization, not
       affiliated with the University or Foundation, providing primarily short-term professional or
       technical advice or services under a written agreement or engagement letter.

   •   Employee - An employment relationship exists when the employer (Foundation) has the right
       (whether or not it exercises that right) to supervise and control the manner of performance as well
       as the results of the service by the individual (employee). When such a relationship exists, the
       formal employment process must be followed.

Independent contractors are in business for themselves and receive a fixed amount for services rendered.
The Foundation is not normally required to withhold federal or state taxes, unemployment, social
security, worker's compensation, or disability insurance benefits from their payments. It is very
important that individuals who should be hired as employees not be set up as independent contractors
due to the potentially severe financial consequences facing the employer (Foundation). Both the IRS and
the EDD have the legal authority to audit an employer's records to check for such misclassifications.
When individuals are found to be misclassified as independent contractors, either agency will not only
collect the applicable taxes that should have been withheld, but may also impose penalties on the
employer (Foundation).


POLICY
The following statements outline the CSUSB Foundation policy for the use of independent contractors:

   •   The services of an independent contractor may only be secured when a determination has been
       made by the Foundation Accounts Payable Department that the services to be performed and the
       individual performing the services meet the guidelines set forth in this policy and when the
       appropriate Foundation Independent Contractor Determination Form (Appendix A) has been
       approved by the Foundation Accounts Payable Department;
   •   The use of independent contractor services is expected to be temporary and infrequent;
   •   The services of an independent contractor shall not be used to carry out a major portion of a
       program. Individuals responsible for directing a program or participating extensively in the
       administration of a program must follow the formal employment process;
   •   The services of an independent contractor shall not entitle the independent contractor to a
       standing other than "independent contractor" in any published report or document;
   •   Independent contractor services entered into pursuant to sponsored contracts or grants shall
       conform to all provisions of the applicable contract or grant, both with respect to the propriety of
       the independent contractor relationship and to the terms of the relationship;
   •   An independent contractor engaged by the Foundation shall not hire any employee of the
       University or Foundation to perform any services covered by the engagement.

In addition, the Foundation Accounts Payable Department will utilize the following twenty common law
factors in determining the appropriateness of an independent contractor classification:

Factor 1       No instructions - Independent Contractors are not required to follow, nor are they
furnished with, instructions to accomplish the job.

Factor 2      No training - Independent Contractors do not receive training by the Foundation. They
use their own methods to accomplish the work.

Factor 3       Services don't have to be rendered personally - Independent Contractors are hired to
provide a result and usually have the right to hire others to do the actual work.

Factor 4      Work not essential to department or program - The success of the department or
program should not depend on the services of independent contractors. An example in violation of this
factor would be hiring a Project Director as an independent contractor.

Factor 5       Own work hours - Independent contractors set their own work hours.

Factor 6       Not a continuing relationship - Independent contractors normally do not have a
continuing relationship with the Foundation.

Factor 7        Control their own assistants - Independent contractors should not hire, supervise, or pay
assistants at the direction of the department or program administrator. If assistants are hired, it should be
at the independent contractor's sole discretion.

Factor 8       Time to pursue other work - Independent contractors should have enough time available
to pursue other gainful work.

Factor 9      Job location - Independent contractors control where they work. If they work on the
CSUSB campus or in any Foundation facility, it should not be under the direction of a CSUSB or
Foundation representative.

Factor 10      Order of work set - Independent contractors determine the order and sequence in which
they will perform their work.

Factor 11      No interim reports - Independent contractors are hired for a final result and, therefore,
should not be asked for progress or interim reports.
Factor 12      Payment timing - Independent contractors are paid by the job, not by time. Payment by
the job can include periodic payments based on a percentage of job completed. Payment can be based on
the number of hours needed to do the job times a fixed hourly rate. However, this should be determined
before the job commences.

Factor 13     Working for multiple firms - Independent contractors often work for more than one firm
at a time.

Factor 14     Business expenses - Independent contractors are generally responsible for their incidental
expenses.

Factor 15     Own tools - Independent contractors normally furnish their own tools.

Factor 16       Significant investment - Independent contractors should be able to perform their services
without CSUSB or Foundation facilities (equipment, office furniture, machinery, etc). The independent
contractor's investment in his trade must be real, essential, and adequate.

Factor 17       Services available to the general public - Independent contractors make their services
available to the general public by one or more of the following:

   •   Having an office and assistants;
   •   Having business signs;
   •   Having a business license;
   •   Listing their services in a business directory and advertising their services.

Factor 18    Possible profit or loss - Independent contractors should be able to make a profit or loss.
Employees cannot suffer a loss. Five circumstances show that a profit or loss is possible:

   •   If the independent contractor hires, directs, and pays assistants;
   •   If the independent contractor has his/her own office, equipment, materials, or facilities;
   •   If the independent contractor has continuing and recurring liabilities;
   •   If the independent contractor has agreed to perform specific jobs for prices agreed upon in
       advance;
   •   If the independent contractor's services affect his/her own business reputation.

Factor 19      Limited right to discharge - Independent contractors can't be fired as long as they
produce a result which meets the contract specifications.

Factor 20      No compensation for non-completion - Independent contractors are responsible for the
satisfactory completion of a job. If the job is not completed, they may be legally obligated to
compensate the Foundation for failure to complete.


DETERMINATION OF STATUS
A completed Independent Contractor Determination Package (Appendix A) for the use of Independent
Contractor services should be forwarded to the Foundation Accounts Payable Department at least two
weeks prior to the commencement of said services. It is essential that the potential Independent
Contractor filled out the packet in its entirety. No commitment for the engagement or payment of
services will be binding upon the Foundation without approval by the Foundation Accounts Payable
Department. Once the service request receives approval by the Foundation Accounts Payable
Department, the independent contractor may begin to perform services.


DISAGREEMENT WITH DETERMINATION
If an individual disagrees with the Foundation’s decision, they may complete and file a SS-8,
Determination of Workers Status for Purposes of Federal Employment Taxes and Income Tax
Withholding (Appendix C).


PAYMENTS
Payments may be made to the independent contractor on a monthly basis or in one lump-sum payment.
The department or project must submit a request for Professional Services/Independent Contractor
Payment Form (Appendix B) to initiate a payment. Payments may not be made in advance.

In some cases a contract may be signed between the Foundation and Independent Contractor. In these
cases, the Independent Contractor may submit company invoices to generate the payment. Invoice is
sent to the Project Director to certify the work was completed satisfactorily.
Work performed by individuals not qualified as Independent Contractors must be forwarded the
Foundation Payroll Department for processing. The individual must be able to meet requirements for
employment as a Foundation Employee.


APPENDIX A. INDEPENDENT CONTRACTOR DETERMINATION PACKET
   •   Professional Services/Independent Contractor Payment
   •   I-9 (uscis.gov)
   •   W-4 (irs.gov)


APPENDIX B. REQUEST FOR PROFESSIONAL SERVICES / INDEPENDENT
CONTRACTOR PAYMENT FORM
   •   Professional Services/Independent Contractor Payment


APPENDIX C. IRS DETERMINATION OF WORKER STATUS
   •   SS-8 (irs.gov)
   •   W-4 (irs.gov)




               SECTION 6. STANDARD ACCOUNT NUMBERS
INTRODUCTION
The Foundation for California State University San Bernardino uses standard twelve-digit account numbers
for all activities. The following are the standard numbers. Some projects may require additional numbers to
meet needs of the specific grant program.


GRANT NUMBER (LAST SIX DIGITS)
All grants are assigned a specific grant number that identifies that program. It is the last six digits of the
account number. The first three (3) digits will always start out as 810. If the last six digits start out with
something other than 810, it is not a sponsored program account.


ACCOUNT ACTIVITY (FIRST SIX DIGITS)
The first six digits identify the specific activity that transaction will affect. These accounts could be in
three different areas: Accounts Receivable, Revenue, and Expenditures.


ACCOUNTS RECEIVABLES
Accounts Receivables is funds that are owed to the Foundation from the various funding agencies.
These accounts are monitored by the Foundation. The first digit of an accounts receivable account will
always start with a one (1). These accounts do print out on the general ledgers provided to the project
directors. A debit (positive) balance means the agency owes that amount to the Foundation.


REVENUE ACCOUNTS
Revenue accounts will start with a four (4) as the first digit. These accounts represent either funds
actually received or the amount awarded for a program. Revenue accounts are established based on the
grant/contract specific budgets.

These accounts should have a credit (negative) balance on the general ledger.


EXPENDITURES
Payments made in operating the project are expenditures. These accounts start with a six (6) as the first
digit. The remaining five (5) digits reflect the actual type of expense incurred. These are normally the only
accounts used by the Project Director.

The following is a standard chart of accounts for expenditures. No grant uses all of the account numbers.
When a grant is established, the project director is sent a listing of accounts established for his/her
specific grant number.
ACCOUNT NUMBER             DESCRIPTION

    610000       SALARIES (FOUNDATION PAYROLL)

    611000       SALARIES (RELEASE TIME)

    612000       SALARY REIMBURSEMENT

    619000       EMPLOYER PAID BENEFITS & TAXES

    619100       BENEFITS & TAXES (RELEASE TIME)

    620000       OFFICE/GENERAL SUPPLIES

    621000       INSTRUCTIONAL SUPPLIES

    621100       STUDENT ACTIVITIES

    622000       PRINTING/DUPLICATING

    623000       TELEPHONE

    624000       STUDENT SERVICES

    625000       UCDD DEPRECIATION EXPENSE

    626000       ADVERTISING

    629000       BOOKS

    630000       TUITION

    632000       ROOM & BOARD

    632100       HOUSING ALLOWANCE

    633000       STIPENDS (Students)

    633100       STIPENDS (K–12 Teachers)

    633200       STIPENDS (Others)

    638000       ACADEMIC YEAR ACTIVITIES

    639000       ALL EXPENSES

    641000       LEASE OF SPACE

    645000       POSTAGE
       655000                        EQUIPMENT MAINTENANCE

       657000                        CONFERENCES

       661000                        TRAVEL

       662000                        TRAVEL-STATE & LOCAL

       663000                        WORKSHOP

       663100                        ACADEMIC YEAR ACTIVITIES

       664000                        PARTICIPANT TRAVEL

       682000                        UTILITIES

       683000                        CONSULTANT/PERFORMANCE FEES

       683100                        ANALYTICAL SERVICES

       686000                        EQUIPMENT

       687000                        TRANSFER $'S TO OTHER FUNDS

       68710                         TRANSFER WITHIN RESTRICTED

       690000                        MISCELLANEOUS

       691000                        RENTAL

       692000                        STAFF DEVELOPMENT

       699000                        INDIRECT COST




                      SECTION 7. ACCOUNTS RECEIVABLE

WHEN FUNDS ARE AVAILABLE (CREDITED) TO THE ACCOUNT
Sponsored Programs Administration (Grants and Contracts) receives revenue that is credited via the
Foundation into individual projects. The Foundation recognizes revenue (1) when cash is received and (2)
by the accrual method. The accrual method is used when an actual contract/grant is received.

Cash Accounting Method
Under the cash accounting method the funds are not credited into the account until they are actually
received. This normally occurs when the Foundation receives a payment with the award notice for a
project. The other times revenue is not credited to the account is when the Foundation does not have a
clear contract guaranteeing payment.

However, Generally Accepted Accounting Principles require accounting records to be on one system of
recording cash. Therefore on June 30, any outstanding cash method invoices are converted to an accrual
method.

Accrual Method

When the Foundation receives a grant or contract, the revenue is credited into a revenue account as if the
funds were actually received. An Accounts Receivable account is established to track the actual receipt of
cash. Cash is obtained by either drawing down funds electronically or by invoicing the funding agency.


INVOICING
Electronic Draw-Down (Letters of Credit)

Most Federally funded projects received by the Foundation are paid through a Letter of Credit mechanism.
When a grantee is a recipient of funds at a predetermined level, Letters of Credit may be established. This
mechanism greatly expedites payment. The Foundation has Letter of Credit arrangements with the
National Institutes of Health, National Science Foundation, and the U.S. Department of Education.
Basically, the Foundation estimates its immediate cash needs for Letter of Credit Grants. Each of the
Letter of Credit agencies is "called up" on modem. Cash is requested and electronically transferred directly
into the Foundation's bank account. The funds are then recorded to each grant through the Foundation's
accounting system.

Manual Invoices

The Foundation may also receive revenue through the Foundation's invoicing system. The Foundation
invoices the sponsor, usually on a monthly or quarterly basis, as expenses are incurred, or after specific
performance requirements are accomplished. This process is known as Cost Reimbursement. The award
document for a grant or contract will specify the procedure to be used. The Grants and Contracts
Administrators work with the sponsor, Project Director, and Foundation Accounts Receivable Technician
to implement and maintain these procedures.

The Project Director is responsible for complying with the requirements specified in the award document
to ensure prompt reimbursement. The requirements include adhering to prescribed standards of
performance and submitting progress reports, original receipts for allowable expenses, etc. in a timely
manner. The Grants and Contracts Administrator of the project should always receive a copy of any
reports, written documentation, or correspondence sent directly to the sponsor by the Project Director. If
the Grants and Contracts Administrator has to contact the sponsor for collection purposes, complete
documentation of the project activity will be needed.

Un-Collectable Invoices
Un-collectable invoices will result in the funds being reversed from the revenue account of the
grant/contract that originally received credit for the funds. If this action causes the grant/contract to be
overdrawn, the Project Director will need to identify other funds to cover the over-expenditure. If no other
funds can be identified, that expenditure must be directed to the Foundation Board of Directors for
determination of whether or not disallowance funds can be used.

If the reason for non-payment is deemed to be the sponsor's fault, the invoice may be referred to a
collection agency or legal counsel.


COST SHARING
Some sponsors award contracts on a cost-sharing basis. The sponsor will pay a share of the cost of the
contract (Sponsor's Share) and the Project, University, or Foundation will pay the balance (Recipient's
Share). In most cases, documentation of the Recipient's Share is needed to bill for the Sponsor's Share.
The Project Director is responsible for ensuring that such funds are available and for providing the Grants
and Contracts Administrators with the relevant documentation to facilitate billing. (Also see Section 18 –
Cost Sharing & Matching.)




                               SECTION 8. CASH RECEIPTS
INTRODUCTION
All funds received in the Foundation on behalf of a project are immediately deposited in the
Foundation's bank in compliance with the Foundation's cash receipts procedure.

Sponsored programs, grants, and contracts

Sponsored Programs, Grants, and Contracts will occasionally receive a percentage of the award at the time
the award is granted or before expenses are incurred. This is classified as deferred revenue and is earned as
expenditures are incurred. Revenue and payments should not be received at the project site; however,
occasionally funds may be collected and processed using the Cash Receipts Policy.


CASH RECEIPTS POLICY
Immediately upon receipt of funds at the project site, project staff should forward the deposit to the
Foundation Cashier. All funds are to be given to the Foundation Cashier the same day as received.

Check Deposits

A memo detailing the program name, purpose for receipt of the funds and account number(s) to which the
funds are to be deposited must accompany the deposit. Also the memo must list the total amount of
check(s) being deposited. Check deposits can be sent to the Foundation Cashier via intercampus mail.
However, the preferred method is to hand-carry the deposits to the Foundation cashier or drop off the
deposit at the Foundation Building Room 109.
Cash Deposits

Deposits containing any cash must be hand carried to the Foundation Cashier or Designated Foundation
Employee. DO NOT SEND DEPOSITS WITH CASH THROUGH INTERCAMPUS MAIL. The deposit
must be accompanied by a memo detailing the program name, purpose of the receipt, and account
number(s) to which the funds are to be deposited. List total amount of checks, total amount of cash and a
grand total for both on the memo. Cash is to be in a sealed envelope with the checks. When opened the
amount will be verified by two individuals.

Foundation Cashier

The Foundation Cashier window is open from 9:00 a.m. to 4 p.m. daily Monday through Friday to receive
deposits and distribute check and petty cash payments. Receipts are provided to depositors who make
deposits during this time. Deposits dropped off at the Foundation during other times will be verified at a
later time. You may request a receipt forwarded back to you via intercampus mail.




         SECTION 9. SIGNATURE AUTHORIZATION POLICIES
                        AND PROCEDURES
INTRODUCTION
The Foundation for California State University San Bernardino (CSUSB) is required by its operating
agreement with The California State University Trustees and under Federal grant management rules to
maintain a system of controls which minimize the possibility of misuse of funds. This policy establishes
clear and appropriate approval authority to use for Sponsored Programs (Grants and Contracts) housed in
the Foundation.


AUTHORIZED SIGNERS
The Project Director has the option to authorize designated employees to sign for expenditures on his/her
behalf. The Project Director will be responsible for signatures made by designated signatories.


APPROVAL OF TRANSACTIONS

Accounts Payable

All Project Directors, regardless of their position, are responsible for ensuring that only appropriate and
allowable expenditures are charged to their projects, grants or contracts. All such transactions shall be in
compliance with Foundation Fiscal Policies, the mission of the University, and restrictions (terms and
conditions) imposed by the funding source.

The Project Director or her/his authorized subordinate initiates all transactions. Transactions for direct
reimbursement made payable to a subordinate of the Project Director are approved by the Project
Director. Transactions for direct reimbursement made payable to the Project Director are approved by
the Project Director's Department Chairperson, Dean, Director or Division Vice President.

No individual can sign for a disbursement made payable to themselves or for someone above them in the
reporting chain.

Payroll

Payroll transactions (appointment documents, timesheets, etc.) must be signed by the employee and the
Project Director/Coordinator. Documents for the Project Director/Coordinator must be signed by their
supervisors. Supervisor is normally the chair, dean, or division vice president.




    SECTION 10. FINANCIAL TRANSACTIONS ALLOWABILITY:
                   ALLOWABILITY OF COST
INTRODUCTION
Allowable direct cost may vary with each sponsored program. Each sponsored program may have
different requirements levied upon it. The Federal Office of Management and Budget published OMB
Circulars (OMB A-21 and OMB A-122) to define allowable cost. However, individual Federal agencies
may place more restrictive requirements on the program funds. Also the OMB requires that funds must
conform to the grantee regulations. Therefore, when determining if any expense is allowable, a variety
of rules and regulations most be reviewed to determine allowability of cost. Most allowable documents
will specify which rules apply. The following is a basic guideline in determining if a cost is allowable.


FACTORS AFFECTING ALLOWABILITY OF COST
All sponsored program costs should be able to conform to the following cost principles:

Cost Must Be Reasonable
Cost reflects action that a prudent person would have taken under the circumstances
Cost is of a type generally necessary for the operation of the sponsored project
Cost is consistent with policies of the campus

Allocable Cost
Cost is incurred with objective of the project
Cost benefits the project
Cost is necessary for the operation of the project

Consistent Treatment
Comply with Generally Accepted Accounting Principles

Conform With Limitation
Must comply with any limitation set forth in the award document
                               SECTION 11. PURCHASING
INTRODUCTION
All project purchases must be in compliance with the Foundation's purchasing procedures. The
Foundation has implemented purchasing procedures which meet project purchasing needs and which
satisfy the requirements of federal, state, and independent auditors. Purchases not made in conformance
with Foundation regulations may result in personal liability of financial obligation for the Project
Director.

Capital equipment is defined as a tangible piece of property with an acquisition cost of $2,500 or more
and a useful life of one year or greater.

Remember -- if a purchase order is not utilized, obligations will not be encumbered on a project. It is the
responsibility of the project director to maintain financial control of his/her project.

Purchases made from Sponsored Programs, funds may be made only during the term of the grant or
contract or during an approved extension or renewal. The Project Director should anticipate purchase
requirements far enough in advance so that the purchasing process can be completed, the service
rendered, and the invoice received prior to expiration of the award. Purchase Orders are generally
issued within three to five working days.


VENDOR SELECTION
In selecting a vendor, project personnel should consider the price, terms, and conditions that the vendor
offers. Generally, price is the most important consideration in vendor selection. In some cases,
however, factors such as payment terms, product quality, existing equipment compatibility, and delivery
schedules are more important. As a recipient of Federal funds, the Foundation is encouraged to use its
best efforts to make purchases from "disadvantaged" businesses, including minority-owned, disabled
veteran-owned, women-owned, and/or small businesses.

Sole Source Justification

Written justification is required if the vendor giving the lowest price quotation is not recommended to
receive the order and for all "single source" and "no substitution" purchases. The justification should
indicate what other products or vendors were examined and why they were rejected, the unique
performance characteristics of the specified product, and why that particular product is essential to
conduct the project.


PURCHASE ORDERS

Purchase Order Request
The Project Director must complete a Purchase Order Request form (see Appendix A), supplying the
following information:

   •   Full name and address of the suggested vendor;
   •   Project number and line item account number to be charged;
   •   Complete description of the item or service requested, including any vendor product codes or
       numbers;
   •   Unit price and total price, including California sales tax and shipping;
   •   Note: California Sales tax must be paid to Sacramento on out-of-state purchases if the vendor
       does not collect the tax for the State of California.
   •   Date and place of the desired delivery of order;
   •   Signature of Project Director or authorized signatory on account.

The completed signed form is sent to the Foundation to be reviewed for purchase allowability of funds.
If the request is complete and the expense appropriate, the Foundation will issue a Purchase Order to the
selected vendor within approximately five working days of receipt of the form. The funds are then
encumbered in the appropriate account. If there are problems with the request, required information will
be secured through direct telephone or email contact with the requestor. If contact is not made in a
reasonable amount of time, the Foundation may return the request via campus mail to the originator with
a request for clarification.

In order to ensure that Purchase Orders are expedited on a timely basis, the Purchase Order Request form
should be clearly marked with the notation "EXPIRING ACCOUNT" if the project is in its final month.
All request forms for expiring accounts must be submitted two weeks prior to the grant end date.

The Project Director receives a copy of the Purchase Order, which should be reviewed and any errors
reported immediately to the Foundation. Foundation Accounts Payable must be contacted immediately
by telephone if any changes need to be made to the Purchase Order. (See Appendix B for a sample
Foundation Purchase Order.)


TYPES OF PURCHASE ORDERS

Confirming Purchase Emergency

A Project Director may elect to expedite the purchasing process by placing a telephone order for goods
totaling less than $5,000. The Project Director will first call the Foundation with the selected vendor
information, description of the goods, account number, and total funds to be encumbered. Purchasing
will start processing a confirming purchase order. A purchase order request must be received by
Purchasing, either by fax or hand carried, prior to the release of the purchase order number. If sufficient
funds are available and the expense is an allowable charge, the Foundation will release a Purchase Order
Number. The Project Director may then use this number to place the order directly with the vendor over
the telephone. The notation "CONFIRMING ORDER" must be clearly written on the Purchase Order
Request form. Funds are encumbered in the grant or project once the written Purchase Order Request
form is received in the Foundation office. The Foundation will prepare the actual Purchase Order
document and forward it to the vendor to support the transaction.

Hand-Carried Orders
The Purchase Order Request form must be completed and delivered to the Foundation by hand or via
fax. The purchase order request is processed in the normal manner. When the Purchase Order is
complete, project personnel may pick up the purchase order to be hand carried to the vendor. Hand-
carried purchase orders are generally ready for pickup in three to five working days. If circumstances
require expedience, accommodations can be made.

Prepaid Orders

A Purchase Order Request form is used for prepaid orders when a completed order form from the vendor
is not used. If a purchase is to be prepaid and has a completed order form, a Disbursement Check
Request form should be completed (not a Purchase Order Request form) and submitted to the Foundation
for payment. (See Section 12.)

Change Orders

If a Purchase Order has been issued to a vendor and circumstances require a change in the amount of the
order, an extension of the expiration date, or a change in the period of performance, the Project Director
needs to approve the changes. The Foundation will re-check allowability. The increased price (after
approval and allowability) will be added to the encumbrance.


QUOTATIONS (BIDS)

Under $5,000

Purchase requisitions for commodities and services under $5,000 (exclusive of tax) will be processed
with no quotes submitted by the requesting project. It will be assumed that the requesting project has
already canvassed vendors and has determined the best price. If, in the Foundation’s judgment, the
prices listed do not seem reasonable, the Foundation may request that price quotes be obtained.

$5,000 to $24,999

Purchase requisitions for commodities and services from $5,000 to $24,999 (exclusive of tax) must be
submitted with a minimum of three (3) written price quotes. Price quotes are required to be in writing on
vendor letterhead or via electronic modes. A purchase order will be issued to the lowest bidder after the
requisition and price quotes have been evaluated.

NOTE: The dollar amounts listed above include shipping charges but EXCLUDE sales tax. For
example, if the purchase requisition total before tax is $4,999.99 no price quotes are required. However,
if there are any shipping charges in addition to the $4,999.99, you will be required to submit three (3)
written price quotes since the shipping charges increase the requisition total to an amount in excess of
$5,000.

$25,000 and Over

The Foundation for CSUSB is required to obtain formal (written and sealed) bids on orders for
commodities and services in this price range. Specifications must be complete for the items requested.
Failure to identify specific requirements for any desired items may result in items being requested which
do not meet the needs of the requesting project. Project Directors may request bid packages be
forwarded to specific vendors. The Foundation will also send bid packages to vendors who have done
business with us before. Vendors are allowed a minimum of 30 calendar days to respond after
solicitations to bid have been issued. Bids are to be received in the Foundation in a sealed envelope
identifying the bid number on the outside. At least two people at one time to determine the award will
open bids. Bids received are evaluated, ordering projects are consulted about any bids listing items other
than those specified, and orders are issued to the lowest responsible bidder.


APPENDIX A.
   •   Purchase Order Request




                          SECTION 12. ACCOUNTS PAYABLE
INTRODUCTION
Successful and efficient disbursement of project funds requires basic knowledge and understanding of the
Accounts Payable disbursement procedures and the forms used to process payments. This involves
procedures for:

       1.   Disbursement Authorization Request - (Appendix A)
       2.   Petty Cash Disbursement – (Appendix B)
       3.   Lost Check Certification - (Appendix C)
       4.   Guest Lecturer Payment and Vendor Data Record - (Appendix D)
       5.   Stipend Payment Request - (Appendix E)
       6.   Dining Services Agreement – (Appendix F)
       7.   Accountability of Cash - (Appendix G)
       8.   Grant/Contract Fund Transfer Approval Form - (Appendix H)

Copies of all the forms and requests mentioned above are in the Appendix. To obtain these forms for use,
please contact the Foundation.

Allowability

The Foundation Accounts Payable and Sponsored Programs staff will analyze project disbursements
carefully. No disbursements will be settled until: 1) proper signature for approval of disbursement is
checked; 2) availability of funds is determined; 3) allowability of transaction is reviewed; and 4) original
supporting documents are provided. Unusual expenditures shall be brought to the attention of the
Director, Grants and Contracts, who shall review and approve or deny the transactions. As needed,
the Director, Grants & Contracts shall bring such transactions to the attention of the Foundation Executive
Director, CSUSB Provost or the Vice President, Administration & Finance.


CHART OF ACCOUNTS / GENERAL LEDGER LINE ITEM NUMBERS
All accounting transactions (Accounts Payable, Accounts Receivable, Cash Receipts, Journal Entries,
Purchasing, etc.) are posted to projects using the project account number. Each transaction must have a 12-
digit general ledger line item number. These numbers are listed on the chart of accounts (Section 6). The
chart of accounts lists the general ledger line item number and the description of the transaction. All general
ledger accounts are 12 digit numbers. The first six numbers identify the type of expense (i.e. 620000 =
supplies, 661000 = travel). The last six numbers identify the actual grant number.


SALES TAX/USE TAX
California Tax Law requires that Sales Tax (for purchases made in California) or Use Tax (for purchases
made outside California) be paid at the appropriate rate for the county in which the goods will be shipped.
In the event that the vendor does not charge tax, or charges a rate other than the appropriate county rate, the
Foundation will (after determining the correct amount of tax) adjust the invoice (for in-state vendors) or self
assess the tax for payment to the State Board of Equalization (for out-of-state vendors).

The Foundation Accounts Payable staff reviews all invoices for Sales/Use Tax and only pays those amounts
required by state law. Foundation account holders with questions regarding Use Tax are encouraged to
contact the Foundation Accounts Payable Department.


DISTRIBUTION OF CHECKS
All checks may be mailed, picked up at the Foundation Cashier window or delivered via the Foundation
courier to the appropriate college office.

The method used is determined by what is indicated in the check distribution block on each form. If no
distribution method is selected the payment will be mailed.

All checks will be distributed via the U.S. mail unless indicated otherwise on the disbursement form.
Incorrect address information can delay payment. Be sure to verify all demographic information/address
before submitting payment information to Accounts Payable. Please notify Accounts Payable any time your
address changes. (Note: changes made in Foundation Payroll or any CSUSB office does not update the
addresses in Accounts Payable.)

When the disbursement form indicates the check(s) will be picked up, Accounts Payable personnel will call
the phone number indicated on the disbursement form when the check is ready. When the person calls, they
will advise you when the check may be picked up from the Foundation Cashier.

When the disbursement form indicates the checks are to be delivered via the Foundation courier, Accounts
Payable will arrange to have the check delivered to the appropriate college office. Call Accounts Payable
(537-5073) to verify the courier service schedule.

* These procedures are for Accounts Payable only. These procedures are not used for Payroll distribution.
See Section 15 Payroll for distribution of Payroll.

Manual Checks

Foundation check processing time is normally within one week of receipt of completed documentation.
Therefore, there should be no need for “rush” manual processing of checks. Offices that request a manual
check are charged a processing fee. Please check with Accounts Payable for current information if you
believe you need a check immediately.


VOID/LOST CHECKS

Void Checks

Occasionally when a check is incorrectly written or is no longer needed, the Project Director should return
the check to Foundation Accounts Payable. Please include a short note as to why the check should be
voided. When voided, the funds are credited back into the same account that the funds were disbursed from.

Lost/Stolen Checks

The Foundation should be notified immediately when a check is lost or stolen. The payee of the check
must contact the Foundation Accounts Payable Office to initiate a Lost Check Certification form. Accounts
Payable will mail/fax a Lost Check Certification form (Appendix C) for the payee to complete and return.
The payee will complete the form and return it to Accounts Payable. Accounts Payable will determine what
actions are required and take the appropriate steps to rectify the situation. This may require constant
communications with the payee.


DISBURSEMENT CHECK REQUEST
The Disbursement Authorization Request (Appendix A) is used for miscellaneous reimbursements and other
check payments. All requests for disbursement must include all necessary original supporting
documentation.

Project personnel may be reimbursed for project related purchases. A Disbursement Authorization Request
must be completed (see completion procedures in Appendix A) and submitted to the Foundation Accounts
Payable Office. Original receipts must be attached as proof of purchase. The receipt must identify where
the item was purchased, when it was purchased, and what was purchased. Credit card receipts showing total
purchase amount only are not acceptable.

Occasionally the original receipt may be lost, in that case the person being reimbursed must first try to
obtain a duplicate receipt from the vendor. If a duplicate cannot be obtained, the payee must submit a memo
explaining how the receipt was lost and what actions were taken to obtain a duplicate. This memo, plus
alternate proofs of payment (i.e. a canceled personal check, credit card receipt/bill, etc.), must be attached to
the disbursement request. The Disbursement Authorization Request must be signed by the Project Director
or an authorized signer who ensures that the purchase is an appropriate and allowable expense, is in
compliance with the educational mission of the University and the policies and procedures of the CSUSB
Foundation, and is within the restrictions imposed by the sponsoring agency. Direct reimbursements made
payable to a subordinate of the Project Director are approved by the Project Director. Direct
reimbursements made payable to the Project Director are approved by the Project Director's Department
Chairperson, Dean, or Division Vice President.

Normally Disbursement Authorization Requests take approximately five business days to process provided
complete documentation is submitted to the Foundation Accounts Payable Office. Missing
documentation/signatures may delay the payment processing.
DISBURSEMENT AUTHORIZATIONS WITHOUT RECEIPTS
There are two scenarios where you may need to obtain a disbursement without first having a receipt. The
most common case would be when purchasing an item and the company will not accept a purchase order.
For small items the Foundation recommends you purchase the item with a credit card and then submit for
reimbursement. For larger items, you may obtain a price quote form the organization and request a check
using a Disbursement Authorization Form. Annotate on the form that a check is needed to pick up the item.
When you obtain the item, the store will provide you with the actual receipt. This original receipt must be
provided to the Accounts Payable office within five (5) workdays.

Ordinarily the Foundation does not issue disbursements for the purpose of obtaining and distributing cash.
However, once in a while the grant may require cash for specific operations. In those cases, a disbursement
authorization will be made payable to the individual responsible for monitoring use of the funds. The
responsible person will negotiate the check. Whenever cash is disbursed to another individual, a receipt
must be obtained. The receipt must contain the name and signature of the recipient, amount, name of the
individual disbursing the funds, and purpose of the funds. If the purpose of the payment is to act as a
stipend, each recipient must sign for the funds. In the situation where the funds are used to obtain goods or
services for the project, attempt to obtain a receipt. If not possible, a detailed log needs to be maintained and
returned to Accounts Payable. Before starting a program involving possible cash disbursements, contact
Accounts Payable for guidance. (Appendix G provides sample forms that may be used for these situations.)


GUEST LECTURER / PERFORMER PAYMENTS
This procedure outlines when payment of a guest lecturer is appropriate and defines eligibility for payment.

IRS Definitions

Guest Lecturer: Guest Lecturers are lecturers who are associated with the University or Foundation
only as occasional speakers, who prepare their own addresses, and over whom the University or
Foundation exercises no control over their schedules or movements.

Performer: Performer payments are made to variety entertainers who perform specialty routines for short-
term engagements. The University or Foundation does not control their work except what is necessary to
ensure continuity of the entertainment programs. (Examples of these entertainers at CSUSB could be
clowns, musicians, magicians, disc jockeys, etc.)

Appropriate Use of Guest Lecturer/Performer Payments

Types of activities for which guest lecturer payment may be paid include:

        1.   A special lecture or short series of such lectures;
        2.   Conducting a seminar or workshop;
        3.   A guest speaker at commencement exercise or other similar function;
        4.   Variety entertainers

Inappropriate Use of Guest Lecturer/Performer Payments
       1. Independent Contractors/Consultants, faculty consultants, performance fees and
          payments for professional services

       2. CSUSB faculty/staff and Foundation employees can be paid for guest lecture
          services with exceptions. (See Method of Payment for details.)

      3.   Big name entertainers who require a formal contract to ensure performance
           commitments. These are normally performers engaged by the Arena.

Method of Payment

       1.       Guest lecturer payments to Foundation employees are initiated on an Employee Time
Card with prior approval of the Human Resources Department. Payments to individuals may be
considered overtime depending on the circumstances. All appropriate tax laws requirements will be
applied to the payment.

       2.       Guest lecturer payments to CSUSB faculty/staff may be submitted on a Foundation Guest
Lecturer Payment Form. However, since IRS considers the Foundation and CSUSB as one tax location,
payment is processed through the Foundation Payroll Office. Payments to individuals may be
considered overtime depending on the circumstances. All appropriate tax laws requirements will be
applied to the payment. The preferred method for submission is on a Foundation time sheet. (See
Section 15 – Payroll.)

       3.     Guest Lecturer payments to all other individuals will be paid on a Foundation Guest
Lecturer Payment Form (Appendix D). Payment of personnel who meet the requirements of a Guest
Lecturer/Performer are made through the Foundation Accounts Payable Office. California requires a
Vender Data Record form be completed for each guest lecturer.

Tax Considerations

IRS Publication 520 (April 1998) specifies the Foundation must report on IRS Form 1099 payments totaling
over $600 per calendar year to individuals.

Non-Resident Aliens may be subject to additional withholdings. (See Section 19 - Payments to Non-
Resident Aliens for additional information.) Payments made to non-residents: Per the California
Franchise Tax Board, a payment made to a non-resident totaling $1,500 or more in a calendar year (for
lectures/performances that take place in California), is subject to 7% withholding. Additionally, per the
Internal Revenue Service, a payment made to “a non-resident alien” (for lectures/performances that take
place in the United States) is subject to 30% withholding. Additional paperwork may be required.
Please contact the Foundation Accounts Payable office for further information prior to
lecture/performance.


STUDENT STIPENDS AND TUITION
Stipend Definition: The Foundation usage of “stipend” is for regular, fixed payments to participants for
enrollment in and/or attending classes/workshops/sessions. The payment is not for services rendered. Any
liability for taxes is the recipient’s responsibility. However, IRS Publication 520 (April 1998) specifies the
Foundation must report on IRS form 1099 payments totaling over $600 per calendar year to individuals who
are not participating in the classes/workshops/sessions as a requirement in seeking a degree at an
educational institution.

Stipend funds must be specifically provided for in the award. In most awards, especially Federal awards,
dollars budgeted for stipends may not be used for other budget categories in your approved budget. Any
exceptions normally require prior written approval from the awarding agency.

The IRS and the California State Franchise Tax Board consider CSUSB and the Foundation to be one tax
location. Therefore, CSUSB and the Foundation faculty or staff may not be considered a stipend recipient.
Payments to CSUSB and the Foundation faculty or staff must be processed as payroll. (Section 15)

Tuition Definition: The Foundation usage of “tuition” is for CSU San Bernardino state university fee
and associated fees for course attendance. Grant and contract conditions will determine the amount
payable. Ordinarily grants and contracts will not cover the cost of a late registration fee, duplicate ID
fee, and/or parking.


PAYMENTS

Stipend Payments (Students)

Stipends payments are made on the Stipend Request Form as shown in Appendix D. Instructions for
completion of the form are on the back of the form. A Stipend Request Form must be submitted for each
stipend recipient. The form may be for a one-time stipend payment or a recurring payment. When using the
recurring stipend form, only the initial payment will be processed using the form. Subsequent payments can
only be processed upon the project director or their designee re-certifying the eligibility of the recipient at
the time payment is due. Certification must be in writing, either a memo or e-mail is acceptable.

The Project Director must complete the form and have the stipend recipient sign the form. After completing
the form, the Project Director is required to notify financial aid via email with a list of the students, their ID#
The amount they receive, and the quarter it is for. They must cc the Sponsered Program office for the
stipend to be paid.

Accounts Payable will enter the appropriate data into the accounting system. The second page will be
forwarded to the Financial Aid Office.

Tuition Payments

Some projects may authorize payment/reimbursement of tuition for students. The preferred method of
payment is to pay the University directly. To accomplish this, the project director will provide an
authorized list of students (name and social security number) to the Grants and Contracts Office, Financial
Aid, and the CSUSB Billings/Receivables Office prior to open registration. Billings/Receivables Office
will invoice the Foundation based on the authorization and actual cost of tuition and fees.

If the student pays their tuition and fees prior to authorized list being provided, the student may request
reimbursement of the tuition and fees. The project director must submit a Disbursement Authorization
Form requesting payment. The request must be supported by proof of payment; actual receipt or a printout
of the student account showing payment is acceptable

Notification of Tuition/Stipend Payments to Financial Aid

CSUSB Financial Aid Office is to be notified when a student is awarded tuition and/or stipend payments.
The amount of fees reimbursed or paid to the University for the student may affect the student's eligibility
for or the amount of financial aid authorized.

The Project Director is responsible for providing Financial Aid and the Foundation a listing of students who
are authorized to receive stipend/tuition payments.


UNIVERSITY REIMBURSEMENT ACTIVITY / CHARGEBACK ACCOUNTS
Reimbursed activity account (Chargebacks) is the CSUSB accounting system used to invoice the
Foundation for authorized University services received by projects. These services include duplicating,
postage, telephone, campus stores, work orders, etc. The Project Director must first contact the Foundation
Grants and Contracts Office to request establishment of an account. The Grants and Contracts Office will
contact the CSUSB Budget Office to establish a Financial Accounting System (FAS) account. The Budget
Office will assign FAS accounts for the Project. A 117-XXX-XXXX reimbursed activity account (FAS) is
established to record reimbursements to the campus for funds spent from a corresponding 119-XXX-XXXX
account. The assigned 117-XXX-XXXX account is used for telephone, physical plant work orders, and
audio/visual services. For duplicating, postage, and campus stores activities, the Grants and Contracts
Office will provide the Reprographics Department with the projects assigned CSUSB 117-XXX-XXXX
FAS number. Reprographics will assign a three-digit chargeback number to be used for these services.
The University DOES NOT recognize the Foundation account number as a valid account number to charge
these services.

The Foundation will notify the Project Director of the numbers assigned to their project. CSUSB
Billing/Receivables will invoice the Foundation for University services received. Reimbursed activity
charge backs, such as duplicating, postage, Campus Stores supplies, telephone and plant operations
costs, are billed monthly based upon actual expenditures. Accounts Payable will process the charge to
the appropriate project account. Charges for non-recurring expenses such as work orders will need to be
verified with the Project Director. To avoid delay in payment to CSUSB, please forward all
documentation you received for University services (i.e. work order, receipt, etc.) to the Foundation
Accounts Payable Office. This eliminates the need for Accounts Payable to contact the Project Director
for payment authorization.

It is not uncommon for the University to take two to four months before billing the Foundation for
University services. If you are using University services near the end of your project, you must provide the
Foundation with estimated charges so the funds can be encumbered. Failure to do this could mean funds are
not available to pay for University services when the invoice is received.

Disputed Invoices

If a charge or charges are disputed on an invoice:
Accounts Payable will request backup documentation from the CSUSB Billings/Receivables Office. Funds
are encumbered for the expense pending resolution for the dispute.

If backup documentation received from CSUSB supports the charge as appropriate, Accounts Payable will
process the payment.

If backup documentation does not support the payment, Accounts Payable will take actions needed to rectify
the situation. This may include contacting the Project Director.


POSTAL SERVICES/CAMPUS MAIL SYSTEM
The campus mail system must be used for all on-campus mail. All projects have access to pickup and
delivery by the campus mail service. All off-campus mail including parcels may be sent through the
campus mail services. Mail for off-campus destinations must be marked with the appropriate three-digit
chargeback number for the project. Mailroom staff determines the cost of the postage charges to be
invoiced monthly by the University Business Office.


TELEPHONES
On-campus Foundation projects use the University's telephone system. The University bills for telephone
installations or changes, fixed monthly charges, long distance calls and per-call unit charges accumulated in
a FAS account. The University Telecommunications Office sends a detailed listing of the previous month's
telecommunications charges to the Foundation Accounts Payable Office. Accounts Payable will forward a
copy to the Project Director who should review it for accuracy.

To request telephone installation, Project Directors must contact the University Telecommunications Office
to complete a Telephone Work Order.

To terminate the telephone service, the Project Director must also complete a work order notifying
Telecommunications Office to deactivate the telephone line. Simply disconnecting the telephone does not
turn off the telephone line connection. You will still be billed for the active line that does not have a
telephone connected to it.


PHYSICAL PLANT OPERATIONS
Materials or maintenance services can be provided to projects through Physical Plant Operations. These
services include the assistance of carpenters, plumbers, painters, electricians, and maintenance personnel.
Project Directors must submit a Physical Plant Work Order Request to University Physical Plant
Operations. A copy of the work order should be sent to the Foundation Accounts Payable Office. Annotate
on the work order the grant/contract account number to be charged.


FACULTY RELEASE/ASSIGNED TIME
It is not uncommon for faculty to utilize grant/contract funds to buy-out their course teaching time so they
may work on their research project. This buy-out this time is referred to as release or assigned time. The
faculty member continues to draw their normal wages from the university. The Foundation, using grants
funds, reimburses the university for the agreed portion of the faculty time. Campus policy is that the
faculty attempt to obtain reimburse at the full rate that the university faculty member being released is paid.
Any reduced recovery agreed upon by the College, Department, and faculty member is considered as
university cost-sharing in the project. A copy of the form and general guidelines on processing the form is
found in appendix H.


APPENDIX A – G.
  • Appendix A: Disbursement Check Distribution
  • Appendix B: Petty Cash Disbursement
  • Appendix C: Lost Check Certification
  • Appendix D: Guest Lecturer/Performance Payment Form
  • Appendix E: Stipend Payment Request
  • Appendix F: Dining Services Agreement



                                      SECTION 13. TRAVEL
INTRODUCTION
The following travel regulations apply except where grant or contract requirements are more restrictive.
Contact the Foundation Accounts Payable section for information on Foundation travel policies. Contact
the Foundation Grants & Contracts Office for allowability of costs specific grants/contracts.


TRAVEL POLICY
(The current policy may also be viewed on the Foundation website).

Any individual traveling on Foundation business is expected to exercise the same care in incurring
expenses that a reasonable or prudent person would exercise if traveling on personal business and
expending personal funds. Excess costs, circuitous routes, delays or luxury accommodations and
services unnecessary or unjustified in the performance of business are not acceptable under this standard.
Individuals will be responsible for excess costs and any additional expenses incurred for personal
preference or convenience.

There is considerable variation among the rules of reimbursement of travel expenses such as
transportation and per diem contained in various sponsored programs. When there is a variance between
agency and Foundation guidelines, the basic rule is:

The agency or Foundation regulation, whichever is more restrictive, shall govern the travel.

A.      Pre-travel Arrangements
1.     Airfare/Automobile Rental: Each traveler is responsible for making his/her own airline
reservations. Payment arrangements must be agreed upon by the vendor.

In some instances, the traveler may wish to charge these expensed to his/her own personal credit card in
order to take advantage of special travel insurance and/or reduced rates that may be available. This is
acceptable; however the traveler must be aware that (a) the cost of personal travel insurance is NOT an
allowable business expense, (b) interest charges which may accrue as a result of the use of a personal
credit card are NOT an allowable business expense, and (c) you will NOT be reimbursed for the full
travel arrangements until the trip/event has occurred. (See Travel Advance.)

If a purchase order will be accepted by a vendor, submit a completed purchase order requisition to the
Accounts Payable Office. If a check is required, a completed Disbursement Authorization form must be
submitted with an invoice from the chosen vendor.

2.      Student Air Travel: The California State University Of the Chancellor has issued Executive
Order 486 entitled “Student Air Travel." This Executive Order outlines specific requirements that must
be met by an air carrier in order to provide student air travel sponsored by any campus or auxiliary
within the California State University system. The list of all carriers meeting the requirements of the
Chancellor’s Office is available from the Accounts Payable Office. These are the only carriers that may
be used for student travel. Please refer to this list when making arrangements for student travel.

3.      Pre-Paid Expenses: In some instances, advance payment may be required to guarantee hotel
stays or registration fees. You are encouraged to use a Travel Advance form to provide for the advance
payments. If you should choose to use your own personal funds and/or credit cards, you will not be
reimbursed for these advance expenses until the trip/event has occurred.

4.      Lodging: Each traveler is responsible for making his/her own lodging reservations as well as
arranging for payment. If reservations are made at a hotel where the traveler is attending a conference,
the conference’s special lodging rate must be requested. The Foundation will pay a single occupancy
rate for one traveler and not double occupancy or suite rates. An original detailed hotel receipt must be
provided when requesting reimbursement for lodging expenses. A credit card charge slip and/or credit
card monthly statement is not sufficient documentation.

Telephone charges are allowable on hotel bills. They must be documented as business related on the
Travel Expense Claim form in the following manner:

Name and number of party called (include area code);
City and state to which the call was placed;
Time and date of call;
Reason for call.

5.      Travel Advance: An advance of $50 minimum may be submitted for up to 80 percent of the
estimated out-of-pocket expenses for travel in excess of 24 hours, and may be requested no earlier than
45 days prior to the trip (this does not apply to local travel). The traveler completes a Travel Advance
form and forwards to the Accounts Payable Office for processing. A new Travel Advance form may not
be issued if prior outstanding advances have not been cleared. The advance must be refunded
immediately when a trip is canceled or postponed. The traveler is personally responsible for clearing the
advance. In order to avoid personal tax liability, the advance must be substantiated within 60 days after
the trip by submitting a Travel Expense Claim form with appropriate receipts and/or unused cash to the
Foundation.


B.     Transportation

1.    Airlines: All travel must be economy or coach class, and special low-cost rates should be used
when possible. If other than “economy or coach” is requested, the Foundation will reimburse for the
economy or coach rate only.

2.      Shuttle Bus Service: A travel agent or hotel can provide information about shuttle bus or similar
service which should be used instead of taxi service or rental cars for travel to and from airports.

3.     Commercial Automobile: Each traveler is responsible for making their own rental reservations
and arranging for payment. Only compact or intermediate automobiles may be rented. Collision
insurance must be purchased and is a reimbursable cost.

Medical, personal accident, or other insurance is not an allowable business expense, and if purchased,
shall be the sole responsibility of the traveler.

4.     Private Automobile: Claimant shall be reimbursed for business use of a privately owned
automobile at the appropriate rate; contact the Accounts Payable Office for the current rate per mile.
Persons authorized to use their private vehicle for Foundation managed business are required to submit
mileage and parking reimbursement claims on the Foundation’s existing Mileage Reimbursement form.
The requestor is authorized to use this form whenever the expense is for mileage and parking expenses
only. Whenever mileage plus a meal and incidental expense allowance is requested, the Foundation’s
Travel Expense Claim form must be used.

In the event the traveler can use air travel and chooses instead to use a private vehicle, he/she will be
reimbursed at the current mileage rate or the equivalent of a round-trip airfare, whichever is less.
Justification for the use of a private vehicle must be included with the Travel Expense Claim form. The
traveler may not receive a meal and incidental expense allowance for the personal time spent traveling
via private vehicle as compared to the air travel time to the same destination.

The rates of reimbursement for mileage include the cost of maintaining liability insurance at the
minimum amount prescribed by law and collision insurance sufficient to cover the reasonable value of
the vehicle, less a standard deductible. A private vehicle must not be used on Foundation business
unless the basic insurance requirements as stated above are in effect. The vehicle owner must be aware
that his/her personal automobile insurance will be primary in the event of an accident. If you do not
want your personal auto insurance to be involved, do not use your auto on Foundation business. The
Foundation’s insurance coverage is only applicable if the auto owner’s liability exceeds his/her personal
liability insurance coverage. Insurance carriers normally allow the occasional use of privately owned
vehicles for business trips without an increase in premium rates. If a private vehicle is regularly used on
Foundation business, an employee should notify his/her insurance carrier.


C.     Travel Allowances

       1.      Subsistence - Meals and Incidental Expenses (M&IE)
a.      Travel for 24 hours or more: The daily per-diem allowance for meals and incidental expenses
constitutes a maximum daily reimbursement and may be claimed as follows (as of 1/1/2001):

                                $ 9.00           Breakfast
                                $ 12.00          Lunch
                                $ 20.00          Dinner
                                $ 5.00           Incidentals (i.e., laundry, tips, etc.)
                                Actual Costs     Lodging


Travelers should record actual meal expenses or the authorized per-diem rates on a Travel Expense
Claim form and submit completed form for processing. Requestors will be reimbursed for the actual
meal and incidental expenses or for the maximum per diem allowance, whichever is less.

To receive an allowance for all three meals and incidentals, an employee must be on travel status for a
full 24-hour period. Figure a 24-hour period from the time of departure on day #1 to the same time on
day #2, and to the same time on each succeeding day. (Note: The time of departure on travel claims
may start when you leave your residence for the airport.)

For the first day of travel which is more than 24 hours in duration, the maximum authorized allowance
for meal may be claimed; if travel begins at /or before 7 a.m., a breakfast may be claimed; if travel
begins at/or before 12 p.m.; a lunch may be claimed; if travel begins at/or before 6 p.m. a dinner may be
claimed.

For travel which is the last fractional part of the trip, and which was more than 24 hours in duration, the
maximum allowance for meals may be claimed: if the travel extends beyond 9 a.m., a breakfast may be
claimed; if the travel extends beyond 2 p.m., a lunch may be claimed; if travel extends beyond 6 p.m., a
dinner may be claimed.

b.      For travel less than 24 hours: For travel which is less than 24 hours in duration, the maximum
allowance for meals may be claimed; if travel begins at/or before 7 p.m., a breakfast may be claimed; if
the travel extends beyond 6 p.m. a dinner may be claimed.

Expenses must be incurred more than 25 miles from the normal work location and no lunch allowance
may be claimed. Expenses for each must be reported on the Travel Expense Claim form.

IRS has deemed that meal reimbursement for travel less than 24 hours and not requiring an overnight
stay is taxable income.

2.     Conference/Workshop Provided Meals: When meals are included in the registration fee, the
Travel Expense Claim form for M&IE allowance must be reduced by the applicable meal allowance for
the meals(s) provided. Attach a copy of the registration form/brochure to your travel claim when
requesting reimbursement.

3.      Long-Term Travel: Long-term subsistence allowances will be computed at 55% of the current
M&IE allowance and may be summarized on a work sheet. Lodging must be obtained from
establishments which cater to the long-term visitor and the traveler will be reimbursed for actual
expenses (original receipt required). Contact the Accounts Payable Office for the current rate. The long-
term rate is applicable when an individual’s original estimated travel is for more than 30 consecutive
days in one location. The rate begins with the first day of travel.

4.      Nonresident Alien: Travel reimbursement paid to a nonresident alien or to a third party on his or
her behalf is TAXABLE unless otherwise excluded. Contact the Accounts Payable Office for more
details and certification.

D.     Foreign Travel

1.      Short-Term Per Diem Allowance: For continuous foreign travel of 24 hours or more, per diem
allowance are authorized on the basis of the rates established by the Secretary of State and published in
“Maximum Travel Per Diem Allowances for Foreign Areas.” Under this system, the per diem allowance
for each travel day is established on the basis of a maximum amount for lodging expenses plus a fixed
allowance for meals and incidental expenses, the total not to exceed the applicable maximum per diem
rate for the location concerned. Please contact the Accounts Payable Office for the current rate. If the
specific city of travel is not listed, the “Other” per diem rate for that country will apply. Documentation
requirements are as follows:

a.     An original receipt is required to support all lodging expenses for which an allowance is claimed.
The traveler will be reimbursed only for his/her actual lodging costs up to the applicable maximum
amount.

b.     The fixed allowance for meals and incidental expenses is payable without itemization of
expenses or receipts. For conferences/workshop-provided meals and partial days of travel, the meals and
incidental rate shall be prorated accordingly.

c.     All other requirements for receipts and documentation shall apply as per non-foreign travel.


2.      Long-Term Per Diem Allowance: Long-term per diem allowances will be computed at 55% of
the current published rate. This rate is applicable when an individual’s original estimated travel is for
more than 30 consecutive days in one location. This rate begins with the first day of travel.

E.     Receipts

Receipts shall be submitted for every item of expense with the following exceptions:

Streetcar, bus, rapid transit and ferry fares; bridge and road tolls, if expenditure is less than $25.00.
Meals and incidental expenses, except when specified. Taxi or hotel bus fares under $25.00 when used
for official business. All legal and miscellaneous expenditures costing less than $1.00. Parking fees of
$10.00 or less for any continuous period of parking.

In cases where receipts cannot be obtained or have been lost, a statement to the effect must be made on
the Travel Expense Claim form, approved by an authorized signer on the account, and when applicable
also approved by the cognizant account administrator. In the absence of an approved explanation, the
amount involved shall not be allowed. A copy of a canceled check both front and back, may be accepted
as a receipt. All necessary receipts and tickets must be securely attached to the claim or on a separate
sheet of paper that is attached to the claim.
F.      Travel Expense Claim

Original receipts and other supporting documents must be submitted for all reimbursement requests filed
on the Travel Expense Claim form. Conference outlines or agendas must be attached to the Travel
Expense Claim form as part of the supporting documentation. The following are examples of expenses
that must be documented (original receipts required):

lodging,
conference/registration fees,
common-carrier
airline tickets,
automobile rental, and
parking fees in excess of $10.00.

First-class airfare, liquor/bar bills, valet services, traffic fines, personal insurance charges, and
motorcycle transportation costs are unallowable. Tips are covered under the Incidental Expense
Allowance.


CLAIM SUBMISSION
To be reimbursed for travel expenses, the traveler should prepare a Travel Expense Claim form by
itemizing all travel expenditures and attaching all required (original) receipts and documentation. In
cases where receipts cannot be obtained or have been lost, a statement giving the reason for the expense
shall be made on the expense claim form, approved by someone with the authorized signature authority.
In the absence of an approved explanation, the amount involved shall not be allowed. The expense
claim, signed by both the traveler and the approved official, should be then to the Accounts Payable
Office for processing.

Each travel claim is audited by the Accounts Payable Office personnel for compliance with Foundation
travel policies. All incorrect claims will be adjusted and a check for the allowable portion will be
processed. If the adjustment is a deduction of $10.00 or more, the claimant will be provided with a copy
of the claim and an explanation for the adjustment. If the claimant is able to provide additional receipts
and/or explanation for the disallowed expense, he/she should attach the additional documentation and a
copy of the adjusted travel claim to a newly completed Travel Expense Claim form and submit for
payment. The Accounts Payable Office personnel may call the claimant and/or approving official for
clarification when auditing a travel claim, and at times may return the claim for serious corrections prior
to processing it for payment.


PRIVATELY OWNED AUTOMOBILE MILEAGE CLAIM
(when not part of a Travel Claim)

Privately owned Automobile Mileage Claims should be submitted on the Mileage Claim form (see
Appendix C) to Foundation as soon as the trip has been completed. Normally, employees are allowed to
claim the current federal rate or what is written into the grant/contract. A Mileage Claim is not necessary if a
travel claim is being filed. If travel commences or terminates before or after an employee's regularly
scheduled work day or on a regularly scheduled day off, mileage may be computed from the employee's
residence.
The rates of reimbursement for mileage set out in this section include the cost of maintaining liability
insurance at the minimum amount prescribed by law and collision insurance sufficient to cover the
reasonable value of the vehicle, less a standard deductible.

APPENDIX A-C.
   •   Appendix A: Travel Advance
   •   Appendix B: Travel Expense Claim
   •   Appendix C: Mileage Reimbursement Form




                                 SECTION 14. PETTY CASH
INTRODUCTION
The Foundation does not permit Sponsored Programs to maintain petty cash funds. This is because all
expenses must be accounted for with receipts and must be allowable under government and funding agency
rules. There are two possible exceptions to this: 1) small stipends required for a specific event, or
2) requirements of the funding agency.


SMALL AMOUNTS NEEDED FOR SPECIFIC EVENT
Occasionally a program (like Upward Bound) will take students on a cultural outing. As part of the
program, the student is to receive a small amount of cash for meals. Rather than prepare a check for each
individual, the Project Director may have a check drawn to a specific individual. That individual is to
disburse the funds and obtain signatures of each individual receiving the funds. Funds will be reconciled
and any extra cash must be returned to the account that the funds were disbursed from. There is a Cash
Accountability – Stipend form found in Section 12 that may be used for this purpose. Project Directors may
use a self-generated computer spreadsheet instead of the provided form.


REQUIREMENTS OF THE FUNDING AGENCY
Currently there are no grants/contracts that require purchase of items with only cash. In the past there were
a couple of tobacco study programs that required minors and adults purchase small items in a convenience
store. If another program with requirements to purchase with cash is received, the Project Director and their
cash custodian must meet with Accounts Payable to go over procedures for handling cash. There is a Cash
Accountability – Expenditure form found in Section 12 that may be used for this purpose. Project Directors
may use a self-generated computer spreadsheet instead of the provided form.


SECURITY OF PETTY CASH FUNDS
The level of security necessary is dependent upon the amount held in cash and how the cash will be
disbursed. Generally, large amounts of cash are not required. In all cases, cash and records should be held
in a secured manner. Only the cash custodian may disburse cash funds. If funds are transferred to another
person to distribute the funds, a cash transfer must be documented.

Every payment from the Cash Fund must be supported by a receipt or other document and placed with the
fund. The support document should show date, payee/vendor, description, and signatures of an employee
and supervisor.

Cash cannot be borrowed from a Cash Fund for an employee's use.

   •   Petty Cash




                                  SECTION 15. PAYROLL
INTRODUCTION
The Foundation's Payroll Department processes time sheets, produces paychecks, transmits electronic
deposit information, withholds payroll taxes and deposits those taxes to the appropriate government
agencies, prepares quarterly tax returns, maintains Form W-4 files, and produces the annual Form W-2
wage statements.

Personnel transaction report

Upon selection of an employee, a Personnel Transaction Report (PTR) needs to be completed. This is
the document used to initiate the offer of a position to a potential employee. Section 4, Human
Resources, Appendix B is a sample of the PTR. The PTR is also the form needed to make any changes
to the employees pay or status or to terminate the employee. A PTR MUST BE SENT TO HUMAN
RESOURCES / PAYROLL OFFICE TO PLACE AN INDIVIDUAL INTO THE PAYROLL SYSTEM.
Employee Time Sheets are required to authorize payment of wages.

Signing Up With Payroll

Federal law requires all employees to process in with payroll no later than 3 days after starting employee.
It is actually better to process first thing. They can eliminate potential problem if the employee turns out
to be ineligible to work for the Foundation. Examples of individuals who are not authorized by federal
law to work for the Foundation might include foreign students attending another institution, previously
retired Public Employee Retirement System personnel, non-resident aliens without the proper visa, etc.

When processing into the payroll systems, individuals must have:

A completed Personnel Transaction Report
Original Social Security Card
Valid Drivers License or other authorized photo ID.


PAYROLL SCHEDULE
The Foundation follows a semi-monthly pay schedule for all employees. Time sheets are typically due
on the last day of the pay period. But paydays and time card due dates may be changed due to a
holiday. The payroll schedule is published annually in December. Please refer to a current payroll
schedule for exact timesheet due dates and paydays. Call the Foundation Payroll Office at 909-880-7225
to obtain a current copy of the payroll schedule. The schedule may also be accessed over the internet at
http://foundation.csusb.edu (under payroll schedule).


TIMELY COMPENSATION OF EMPLOYEES
No employee is allowed to perform services for any Foundation project without timely compensation for
their services. Project Directors shall never allow any employee to work unless sufficient funding is
available and allowable in the project from which the employee=s services are paid. Employees are not
allowed to waive their right to full compensation or agree to delayed compensation.


VOLUNTEER WORK
Periodically projects may receive services from volunteers. Volunteers are individuals who provide
services without promise or contemplation of any form of compensation or remuneration. Employees
may not serve as volunteers.

In order to adequately protect volunteers and the Foundation during the performance of duties for the
Foundation, projects shall maintain a log documenting Volunteered Time for each work period in which
a volunteer performs services. A special volunteer form will need to be filled out for each volunteer. See
Foundation Payroll for additional information.

Any illness or injury suffered by a volunteer during the performance of their services shall be reported
immediately to the Foundation Human Resources Department at 909-880-7225


PROJECT (NON-EXEMPT) EMPLOYEES
Time sheets shall be submitted for employees who are paid hourly and who are not exempt from
overtime laws as determined by the Foundation Human Resources Department. Time sheets are legal
documents that record the employee's hours and authorize the payroll expense to a particular project
account. Appendix A is a sample time sheet.


PROJECT (EXEMPT) EMPLOYEES
Employees who are exempt from overtime laws as determined by the Foundation Human Resources
Department submitted a different time sheet. Salaried exempt employees are only established based on
qualification requirements dictated by federal and state wage and labor laws. Normally only project
directors would be eligible for this category. Human Resources will advise you upon review of the
Personnel Transaction Report processing.

All salaried exempt employees shall submit Attendance and Absence Reports as their time sheet.
Appendix B is a sample. Instructions are found on the back of the form. The Attendance and Absence
Reports are submitted on the same due dates as time sheets for all other employees. After it is signed by
the supervisor, the original copy of the Absence Report shall not be given back to the employee but shall
be submitted directly to the Foundation Payroll Department.


STUDENT EMPLOYEES
Students Employees will submit a time sheet as found in Appendix C. The Student Employee time sheet
is similar to the Project Employee (non-exempt) time sheet except for two major changes. First since
students are paid strictly for hours worked only, all references to other than hours work are deleted (i.e.
vacation, holiday, etc). The second major change is a requirement to inform the payroll office of your
school location, enrollment status, and number of units currently being taken. This information is
required to determine if the student is exempt form Social Security Tax Withholdings.

Exempt Status

Students enrolled at CSUSB with at least a half-time class load who are also Foundation employees may
claim exemption from FICA (Social Security and Medicare) taxes for wages paid while classes are in
session. Each quarter the employee submits a Student Unit Certification form to determine their
exemption status (Appendix D).


SIGNATURES
All time sheets shall have the employee's original signature. The Project Director shall approve all time
sheets for subordinates. In the absence of the Project Director, a previously Authorized Administrator
(Chair, Dean, or Division Vice-President) shall sign the time sheet. Section 9, Signature Authorization
addresses the signature card requirements. All signatures shall be originals--no stamped signatures are
allowed. Employees who work on multiple projects must prepare a separate time sheet for each project.
Once the time sheet has been approved and signed, it shall be delivered directly to the Foundation
Payroll Department and must not be returned to the employee for delivery.


DAILY HOURS
The number of hours worked shall be indicated for each day worked. Also place next to the number of
hours the code that applies. For example -- V" for vacation or “H” for holiday. Supervisors should
develop a system to compare absence requests against actual absences taken to assure that time off is
recorded correctly. It is the supervisor’s responsibility to ensure that all absences are reported to the
Foundation Payroll Department.


DELIVERY TO FOUNDATION
Time sheets shall be delivered to the Foundation office by the end of the business day listed on the
Payroll Schedule (typically the pay period ending date) for the pay period when the work is performed.
DIRECT DEPOSIT
The Foundation has the capability of depositing employee paychecks through the banking industry's
electronic transfer system. Direct deposit may be initiated by submitting an authorization form and the
proper bank account information to the Payroll Department. Contact the Payroll Office for additional
Information.

There is a waiting period of one payroll cycle to allow for notification of the receiving financial
institution. The one payroll cycle waiting period also applies if an employee wishes to change the
receiving account number. During this waiting period the employee will receive a paycheck rather than
a direct deposit. Employees taking advantage of the direct deposit option receive a direct deposit notice
each payday confirming the receiving bank and account number.


OVERTIME
Employees in either full-time or part-time positions who are classified as NON-exempt from federal and
state wage and hour laws earn overtime when they have worked more than 40 hours in one workweek or
more than 8 hours in a day. Note: In summers when the campus goes to a mandatory 10-hour 4-day a
week schedule we are exempt for the 8-hour per day requirement. Only hours actually worked are
counted toward overtime. Vacation, holiday hours, paid jury duty hours, any other paid absences are
not used in calculating weekly overtime. All overtime hours shall be authorized by the Project Director
or other authorized party prior to the work being performed.

Federal, state, and some other funding agencies prohibit overtime without their prior written approval.
Therefore, you need to check before authorizing employees to work overtime.


ADDITIONAL EMPLOYMENT OF CSUSB FACULTY/STAFF

CSU Chancellor Policy

The CSU Office of the Chancellor policy FSA 82-20 allows CSU employees (Faculty and Staff) to be
employed up to 25% in excess of their normal workload. The limitation is in terms of time base without
reference to the base salary or to earnings associated with the overload employment. Included in this is
all employment within the California State University, through either employment or service contract,
and any of its auxiliary organizations. Though this refers to workload, it is assumed that the basic rate of
pay of an employee will be a factor when the additional employment is very similar to the normal work
assignment.

For academic year appointments, summer employment and intersession time between academic quarters
are not considered as part of the 25% overload effort.

CSU San Bernardino Policy (Faculty)

CSUSB policy FSD 97-17 provides guidelines to faculty on additional employment and reporting
requirements. This policy further explains additional employment as employment by CSUSB Grants and
Contracts; Extended Learning appointments; service to other CSU’s, the Chancellor’s Office, other state
agencies or other campus division; and any other assignments when funded as additional income as
opposed to assigned time.

This policy details that: 1) the authorization for overload is obtained through the Research and
Sponsored Programs Office institutional clearance process (Project Information Form); 2) all time
sheets for additional employment must be reviewed by the School Dean/Division Vice President before
being forwarded to the Foundation; 3) compensation should be based upon prevailing rates of the work
being performed, which may or may not be similar to the teaching salary; and 4) the 25% additional
employment is per quarter.



FACULTY PAYMENT SCENARIOS

Release/Assigned Time

   •   Definition: University Relieves Faculty from teaching duties and is reimbursed from the funding
       agency (via the Foundation) for agreed cost. Faculty member receives normal pay from the
       campus.
   • Procedures: College AOA initiates Release Time contract when release is performed
           1. Foundation finalizes contract with University Administrative Offices
           2. CSUSB establishes an accounts receivable and invoices Foundation
           3. Foundation pays the University when funds are available from the agency
    • See Section 12, Faculty Release/Assigned Time
          Foundation Payroll/Overload (re-occurring payments)

             •   Definition: Faculty member teaches his/her normal class load. They receive their normal pay
                 from the campus. Work performed on the project is above and beyond normal class load.
                 Faculty member received additional paycheck from the Foundation. Under this methodology
                 work is performed over an extended period, therefore, several payments are required as work is
                 performed.
             •   Procedures:
                     1. Faculty member must sign up with Foundation Payroll
                     2. The Project Director must submit a Personnel Transaction Report authorizing the faculty
                         member to work on the project.
                     3. A Time sheet must be submitted (signed by faculty, project director, dean ,and or provost)
                          to generate payment.
                     4. Foundation Payroll processes payment according to payroll schedule.
                    6. Foundation invoices funding agency for reimburse of payroll cost to include applicable
                       fringe benefits/taxes.




APPENDIX A-E.
    • Appendix A: Timesheet- Project Employee/non-student
    • Appendix B: Timesheet- Attendance and Absence Report
    • Appendix C: Timesheet- Student
    • Appendix D: Student unit certification
Appendix E: <Insert Form: CSUSB FAM 952 University-compensated faculty additional employment> -
not available yet




         SECTION 16. PROTECTION FROM RESEARCH RISKS
PROTECTION OF HUMAN SUBJECTS
The University has the responsibility for safeguarding the rights and welfare of human subjects involved
in activities arising from the conduct of sponsored and un-sponsored research. To comply with this
responsibility, the University established the Institutional Review Board for the Protection of Human
Subjects (IRB).

No study involving human subjects may begin until approval is obtained from the University’s IRB.
Protocols may be submitted to the Office of University Research for review by the IRB. On the basis of
this review, the IRB has the authority to approve, disapprove, or require modifications in research
activities involving human subjects.

The University’s Policies and Procedures on the protection of human subjects are available in the
Research and Sponsored Programs Office. This policy applies to all faculty, staff, and students
whenever they are supervising or conducting any research activity involving human subjects, regardless
of whether the participants are members of the University community. Policy is in Appendix B of this
guide book.


USE OF ANIMALS IN RESEARCH
The University is responsible for safeguarding the rights and welfare of animal subjects directly involved
in activities arising from the conduct of the academic program and from sponsored and un-sponsored
research. The University accepts as definitive applicable state and Federal laws governing the use of
animals in research and adopts the principles that safeguard animal subjects for all academic programs
and research.

In order to ensure that the principles and practices set forth in the public laws are followed, the CSUSB
Animal Welfare Board (AWB) was established.

No study involving animal subjects may begin until approval is obtained from the CSUSB AWB.
Protocols must be submitted to the Office of Sponsored Programs for review by the AWB. On the basis
of its review, the AWB has the authority to approve, disapprove, or require modifications in research
activities involving animal subjects.


LOBBYING ACTIVITIES DISCLOSURE INFORMATION

Introduction

The Lobbying Disclosure Act of 1995 expanded the definition of lobbying to incorporate not only direct
contact with legislators and their staff members, but also to incorporate in certain instances contacts with
particular federal agency officials. The federal lobbying regulations prohibit a recipient of federal
contracts or grants, from expending federally appropriated funds on lobbying activities. In other words,
no federal funds may be used to pay any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of
a Member of Congress in connection with the awarding of any federal contract, federal grant or the
renewal of such contracts and grants. Organizations are required to certify that they have not and will
not use federally appropriated funds to conduct such lobbying activities. The law also requires
organizations requesting or receiving certain types of awards of $100,000 or more to disclose the names
of registered lobbyists who, using non-appropriated funds, have made lobbying contacts regarding
federal awards.

Definitions

Direct Lobbying - "Direct lobbying" is when a manager, board member or anyone associated with an
entity makes a direct lobbying contact attempting to influence a specific piece of legislation or
procurement of a contract or grant.

Lobbying Contact - The term "lobbying contact" means any oral or written communication (including
an electronic communication) to a covered executive branch official or a covered legislative branch
official that is made for any of the following purposes:

      (i) the formulation, modification, or adoption of federal legislation (including legislative
      proposals);

      (ii) the formulation, modification, or adoption of a Federal rule, regulation, Executive Order, or
      any other program, policy, or position of the United States Government;

      (iii) the administration or execution of a federal program or policy (including the negotiation,
      award, or administration of a federal contract, grant, loan, permit, or license); or

      (iv) the nomination or confirmation of a person for a position subject to confirmation by the
      Senate.

Summary

Who Discloses: The Foundation/University must comport with reporting requirements under the
lobbying regulations whenever they are considered for or have been awarded federal contracts and grants
exceeding $100,000. The reporting must take place at the end of each calendar quarter in which there
occurs any event that requires disclosure or that materially affects the accuracy of the form previously
filed. For example, if there is a change in the registered lobbyist, if there is a change in the federal
official lobbied, or if subcontractors are awarded $100,000 or more of the federal contract or grant,
disclosure must be updated. In the case of subcontracts, the subcontractors must also comport with the
reporting requirements. Subcontractors report up through the entity from which they received funds
directly.

Procedure: The reporting requirements are as follows: First, the Foundation must file with the agency
from which it requests or receives a federal contract or grant a certification stating that it will not use
appropriated moneys to fund lobbying activities. (The Foundation never compensates lobbyists with
federal funds. Additionally, all costs related to registered lobbyists are scrubbed out of any calculations
for indirect cost (facilities and administrative costs) rates for the Foundation. Second, the Foundation
must also file with that agency a disclosure form listing the names of individuals who are registered as
lobbyists and make lobbying contacts on behalf of the Foundation and/or University and are
compensated from non-appropriated funds. The registered lobbyists named in the disclosure form
should include not only individuals outside of the Foundation/University, but also its employees.

What Must Be Disclosed: The Foundation/University must disclose on Standard Form LLL (SF-LLL)
the names of registered lobbyists who have influenced or attempted to influence by making any
communication to or appearance before an officer or employee of any agency, a Member of Congress, an
officer or employee of Congress, or an employee of a Member of Congress in connection with any
covered federal action. (The wording of this requirement in the statute suggests that the burden of
"registering" as a lobbyist rests solely with the individual and that the Foundation must disclose based on
the individuals representation of him/herself to the Foundation.)

University or Foundation employees, however, need not be listed in the disclosure form if they receive
reasonable compensation (consistent with other employees) paid out of federally appropriated funds for
agency and legislative liaison activities such as providing professional and technical services related to
the application or awarding of federal contracts and grants. For example, employees who render advice
and analysis applying any professional or technical disciplines in the preparation, submission or
negotiation of any bid, proposal or application for federal contracts or grants need not be named in the
disclosure form. Permissible advice or analysis include an engineer's advice on the performance or
operational capability of a piece of equipment rendered directly in the negotiation of a contract.
Impermissible advice or analysis include an engineer's attempts to influence the awarding of such
contract.

In addition, communications with the intent to influence, i.e., generally advocate one proposal over
another, are not allowable. Similarly, communications with the intent to influence made by an engineer
providing an engineering analysis prior to the preparation or submission of a bid or proposal are not
allowable since the engineer is providing technical services, but not directly in the preparation,
submission or negotiation of a covered federal action.
When Are Disclosures Made: For covered federal actions, the Foundation/University must certify at
the time of proposal and again at award that they have not and will not make any prohibited payments
(i.e., using federal funds to pay for lobbying activities). The Foundation/University must disclose at the
time of proposal and award that they have made or agreed to make payments to registered lobbyists from
non-federal funds. This disclosure is made on SF-LLL.

At the end of each calendar quarter another SF-LLL must be filed if an event that materially affects the
accuracy of the information reported has occurred. Events materially affecting accuracy of information
reported include: a) a cumulative increase of $25,000 or more in the amount paid or expected to be paid
for influencing or attempting to influence a covered federal action; b) a change in the person(s) or
individual(s) influencing or attempting to influence a covered federal action; or c) a change in the
officer(s), employee(s), or Member(s) contacted to influence or attempt to influence a covered federal
action.

To Whom Is The Disclosure Made: If the Foundation/University will be or is currently the prime
recipient of an award, the certification and any required disclosure on SF-LLL is made to the federal
agency. The lowest organizational level of the agency should be identified; e.g., Department of Defense,
Office of Economic Adjustment.

If the Foundation/University, as a prime recipient, subcontracts to another entity, the subcontractor's
disclosure is forwarded to the Foundation for transmittal to the funding agency.

If the Foundation/University is a subcontractor on a covered activity, it will certify and disclose to the
contracting organization at the next higher tier, e.g., City of Long Beach for CCDOTT.

Nondisclosure may result in civil penalties of up to $100,000.

Tax Exempt Status Jeopardy

The Foundation will lose its tax-exempt status if it becomes an "action" organization. [IRC Regs '
1.501(c)(3)-1(d)(2).] There are three types of action organizations: (1) those that participate directly or
indirectly in political campaigns on behalf of candidates for office; (2) those that campaign for and have
as their primary objective the enactment or defeat of legislation; and (3) those that engage in substantial
attempts to influence legislation. [IRC Regs. ' 1.501(c)(3)-1(c)(3)(i)-(iv).]
Under the third category, an organization is deemed an action organization if a substantial part of its
activities consists of attempting to influence legislation. Attempts to influence legislation include (1)
directly contacting legislators or urging the public to contact legislators for the purpose of proposing,
supporting or opposing legislation, and (2) advocating the adoption or rejection of legislation. [IRC
Regs.' 1.501(c)(3)-1(c)(3)(ii).] Legislation includes action by Congress, state legislatures, local
governing bodies, and action by the public in procedures such as a referendum, initiative, or
constitutional amendment. (The Foundation is not considered an "action" organization.)

Furthermore, an organization will not lose its exemption merely because it advocates the adoption or
rejection of legislation as an "insubstantial" part of its activities. [IRC Regs. ' 1.501(c)(3)-1(c)(3)(ii)(b),
(iii).] In determining whether an organization's political activities are "substantial", the courts consider
all the surrounding facts and circumstances, including the percentage of the organization's total
expenditures and the proportion of its time and effort used in legislative activities.
There are two methodologies to determine "substantial" lobbying: 1) the 501(h) election, and 2) the
"substantial part" test. The 501(h) election involves reporting how much has been spent on lobbying and
sets a "safe harbor" amount an organization can spend on lobbying without endangering its tax status.
The alternative method is the IRS "substantial part" test. It is a time and activity test, as well as
expenditure test. For example, if an organization relies largely on volunteers, and they did a lot of
lobbying, the IRS would factor in their time spent lobbying when calculating lobbying amounts. With
the 501(h) election, volunteers could theoretically do considerable lobbying without being part of the
determination of the limit.

No case has held that an organization's political activities were "substantial" if the effort and expense
involved were minimal. Exemption under IRC ' 501(c)(3) may be allowed if the organization's political
activities are merely incidental to its other activities.

Thus, the Foundation will not lose its tax-exempt status if the effort and expense involved in political
activities are minimal and incidental to its other activities. The Foundation was not established
substantially for the purpose of influencing legislation. Its political activities are only a small,
insubstantial portion of its business and should not jeopardize its tax-exempt status.


CONFLICT OF INTEREST
Principal Investigators are required to file a financial disclosure statement when applying for a grant or
contract. Investigators must disclose significant financial interest at the time of proposal submission and
update this information annually or as new interests are obtained during the life of the award. Significant
financial interest is defined as any financial interest that would reasonable appear to be directly and
significantly affected by the sponsored activities. Financial interest includes salary or payment for
services outside the parameters of the award, interest in business enterprises more than $10,000 or 5%
ownership interest and intellectual property rights. (See appendix C for policies)


APPENDIX A. ANIMAL CARE AND USE
INSTITUTIONAL ANIMAL CARE AND USE COMMITTEE (FAM 180)

Function
The Institutional Animal Care and Use Committee (I.A.C.U.C.) is a body appointed by the Chief
Executive Officer of the Institution to oversee implementation and adherence to the Public Health
Service Policy on Humane Care and Use of Laboratory Animals and the Animal Welfare Act.

Membership
Members are appointed by the Chief Executive Officer of the Institution for two year terms and must
include: 1) one Doctor of Veterinary Medicine, with training or experience in laboratory animal science
and medicine, who has direct or delegated program responsibility for activities involving animals at the
institution, 2) one practicing scientist experienced in research involving animals, 3) one member whose
primary concerns are in a nonscientific area, 4) a member of the Environmental Health and Safety
Office; and 5) one individual who is not affiliated with the institution other than as a member of the
IACUC, and is not a member of the immediate family of a person who is affiliated with the institution.
In addition to the above (which are required to meet the minimum federal requirements), this institution
will include: the Dean of Graduate Studies and Research, a representative of the animal care technical
staff and at least one student representative. All members have voting rights. The Dean of Graduate
Studies shall serve as Chair.

Animal Use Proposal Review
Procedures involving any live, vertebrate animal for use in research, research training, experimentation,
or biological testing or for related purposes must be approved by the IACUC prior to performing the
proposed procedure(s). Protocols are submitted on a standard application form and reviewed for
compliance with OPRR, USDA and other applicable guidelines, codes and regulations. Approval
requires a majority vote of the IACUC. Meetings are held each quarter, or as needed; minutes of
committee deliberations recorded and written results of the protocol review are forwarded to the
applicant within one week of the meeting. Should a protocol not be approved, the IACUC will submit a
written list of concerns to the applicant within one week. A written response will be required of the
applicant before the protocol can be reconsidered. Additional information, procedure modification or
deletion may be required to comply with federal guidelines and thus gain approval. The applicant or a
qualified representative should attend all meetings during which a submitted protocol is under review.

Communication
Completed Animal Use Proposals must be submitted to the committee Chair at least two weeks before
the meeting in which the protocol is to be considered. Incomplete protocols will be returned to the
applicant without review. Agendas and protocols are mailed to all committee members one week prior to
scheduled meetings. Agendas are similarly mailed to applicants who have submitted protocols for
review. Copies of approved minutes to the meetings are mailed to all committee members and kept on
file in the office of the Dean of Graduate Studies.

Responsibility for Animals
CSUSB employs a state-licensed Registered Veterinary Technician on a full-time basis. It is the
responsibility of the RVT to inspect all animals, coordinate Vivarium student assistants, coordinate
ordering and receiving of all animals and supplies, and to serve as liaison with the consulting
veterinarian on all matters of animal health, care and housing. The daily feeding, cleaning and care of all
vertebrates used for research, teaching, and testing at CSUSB shall be the responsibility of Vivarium
staff. The RVT or the RVT's designee shall conduct federally-required daily inspections of the animals.

Assurance of Compliance
In order to ensure compliance with all aspects of the federal laws governing animals use following
offices should be made aware of the program: Sponsored Programs, Graduate Studies, Purchasing
Department, Receiving, Radiation Safety Committee and the Chemical Hygiene Committee.
Signed by Louis A. Fernandez, Vice President for Academic Affairs, 6/1/98


APPENDIX B: INSTITUTIONAL REVIEW BOARD POLICY

                     INSTITUTIONAL REVIEW BOARD

       CALIFORNIA STATE UNIVERSITY SAN BERNARDINO



                     Policies and Procedures for Review of Research
                              Involving Human Participants
Introduction

In compliance with federal regulations, California State University, San Bernardino has established an
Institutional Review Board (IRB) to oversee its obligations with respect to human participants'. When
people are involved as subjects in research or related activities conducted under university auspices, both
the institution and individual researchers are responsible for assuring that the rights and welfare of
participants are adequately protected. Such activities include any mode of research conducted either on
or off campus. These principles have been accepted and established by the University in accordance with
federal regulations (Code of Federal Regulations, Title 45, Part 46) and professional ethics (Ethical
Principles in the Conduct of Research with Human Participants, American Psychological Association,
1982).

All projects involving human participants must be reviewed by the IRB before initiation. This applies to
both faculty and student research. Activities that are routine university classroom exercises using
accepted practices within a discipline do not require IRB review. This exclusion does not apply to
experimental educational or training programs, or to independent study projects and thesis/project
research using human participants.

Basic Principles

Participation of human participants in any research project or other regulated activity (e.g, experimental
demonstration, training program, interview, or questionnaire) must be voluntary.

Any risks to subjects must be outweighed by the sum of the benefits to subjects plus the knowledge
gained by the study.

Informed consent to participate in a project must be obtained upon satisfactory presentation of
information to potential subjects about the purposes, procedures, risks, and benefits of participation.

The privacy of subjects must be safeguarded by protecting confidentiality of information from or about
subjects and/or by maintaining their anonymity.

Definitions

Research is a systematic investigation designed to develop or contribute to knowledge. This includes
any mode of research, demonstration, instruction, training or related activity, survey, interview or
questionnaire study. Normal university classroom activities are not subject to IR.B review unless they
constitute "research" as herein described.

Human subject is a living individual about whom an investigator obtains data through intervention or
interaction with the individual.

Risk means that the possibility of physical, psychological, or sociological harm may occur as a
consequence of participation in a research activity or if such participation would increase the risks,
beyond those encountered in ordinary, daily life.
Minimal risk means that the risks of harm anticipated in the proposed research are not greater,
considering probability and magnitude, than those ordinarily encountered in the daily life of the subject
or during performance of routine physical or psychological examinations or tests.

Responsibilities of Investigators

The investigator is responsible for:

   •   obtaining IRB review and approval of any research involving human participants covered under
       the regulations, or registering their research with the IRB if it falls into one of the exempt
       categories;

   •   obtaining the legally effective informed consent of all subjects to be included in the research
       study, unless any or all requirements for obtaining consent have been waived by the IRB during
       its review;

   •   performance of the protocol as approved by the IRB; and

   •   adherence to ethical principles in the conduct of the research.

Review Board Actions

The IRB reviews all projects involving human participants and determines whether the project should be
approved, disapproved, approved with modifications, or deferred for later actions pending receipt of
additional information or further clarification. Investigators are notified in writing of the IRB's decision.
Active research must be reviewed annually, and the researcher is required to resubmit a new application
form each year to fulfill this requirement.

Criteria for IRB Approval

In reviewing research activities involving human participants, the IRB seeks to determine that all of the
following requirements are met:

   •   Risks to subjects are minimized and reasonable. Research procedures should be consistent with
       sound research design, should not expose the subjects to unnecessary risk and, when possible,
       should be the same as those already being performed on the subjects for diagnostic purposes.

   •   Risks to subjects are reasonable in relation to anticipated benefits, if any, to the subjects. i
       The IRB also considers the importance of the knowledge to be gained from the research when
       evaluating risks vs. benefits.

   •   Selection of subjects is equitable. In making this assessment, the purposes of the research and the
       setting in which the research is conducted are considered. Indication of coercion or prejudice
       must be absent, and participation must be clearly voluntary.

   •   Informed consent is sought and documented from each prospective subject, or from the subject's
       legally authorized representative.
   •   Provision is made for collecting, utilizing, and storing data in a manner that protects the safety
       and privacy of the subjects and the confidentiality or anonymity of the data.

   •   Appropriate safeguards are included to protect the rights and welfare of the subjects.

Categories of Review

Exempt. Federal regulations provide that certain kinds of research (e.g., some surveys, field interviews,
observations, evaluations of standard educational practices or tests) involving no more than minimal risk
to subjects can be exempt from full IRB review and record-keeping. Page 7 lists the categories for
research considered exempt from review. Final determination of exempt status is the responsibility of the
Chair of the IRB.

Expedited Review. Federal regulations also provide that certain kinds of research may receive expedited
review. Page 8 lists the categories for research appropriate for expedited review. In such cases, only the
Chair and one other member of the IRB need evaluate the proposal.

Full Board Review. For those projects that do not fit into the above two categories, a full board review
by the IRB is required.

Review Procedure

For a research proposal to receive full board or expedited review by the IRB, the investigators should fill
out the form entitled "Application to Use Human Participants in Research. " Submit an original and the
indicated number of copies (depending on the review category) to the IRB

Secretary (contact information is listed on the application form). The application forms can be obtained
from the Sponsored Programs Office (AD 128). All applications along with any supporting materials
should be submitted to the IRB Secretary. The investigator should retain one copy of the submitted
materials.

Informed Consent

An investigator shall not involve a human subject in a research project without first having obtained the
legally effective informed consent of the subject or the subject's legally authorized representative. Unless
a waiver has been approved by the IRB, this informed consent must be obtained and documented in
writing. Both the participant and researcher should retain a copy of the signed consent form.

   •   Legally effective informed consent includes at least the following:

   •   identification of the researcher(s);

   •   an explanation of the nature and purpose of the research, the research method, the expected
       duration of the subject's participation, a description of the procedures to be followed, and
       identification of any procedures that are experimental;

   •   a description of any reasonably foreseeable risks or discomfort to the subject;
   •   a description of any benefits to the subject or to others which may reasonably be expected from
       the research;

   •   a statement describing the extent, if any, to which confidentiality of records identifying the
       subject will be maintained;

   •   for research involving more than minimal risk, an explanation as to whether any compensation
       and/or an explanation as to whether any medical treatments is/are available if injury occurs and,
       if so, what they consist of or where further information may be obtained;

   •   the name of the person to contact for answers to pertinent questions about the project and the
       subject's rights, and who to contact in the event of a research-related injury;

   •   a statement that participation is voluntary, that refusal to participate or discontinuation of
       participation will involve no penalty or loss of benefits to which the subject is otherwise entitled.

Special protections are afforded minors (persons under age 18), including the need to obtain parental
consent. In the case of children over seven years old, the child must also give consent. If the research is
not of a sensitive nature, and little or no risks are involved, waiver of parental consent may be requested
by the investigator. However, waiver of parental consent can only be granted by the IRB. These same
general protections also apply to the mentally incapacitated, or other subjects who have legal guardians.

A sample consent form is given on page 6. This form is intended only as a guide. Researchers should
present the required information for their particular study in the most appropriate format.

Waiver of written consent: The IRB may waive the requirement for the investigator to obtain a signed
consent form for some or all subjects if either:

the only record linking the subject and the research would be the consent document and the principal risk
would be potential harm resulting from a breach of confidentiality. (Each subject will be asked whether
he or she wants documentation linking the subject with the research and the subject's wishes will
govern.)
                                                    -or-

the research presents no more than minimal risk of harm to subjects and involves no procedures for
which written consent is normally required outside of the research context.

Waiver of informed consent: Some research may be so indirect, innocuous, and innocent of imposition
on the rights and welfare of human participants as to make informed consent a moot point. Therefore,
any or all of the requirements for obtaining informed consent may be waived by the IRB during its
review of the study. However, such action must be based upon clearly defensible grounds, and the
principle investigator must include these justifications in the proposal submitted to the IRB. Specifically,
waiver of informed consent may be granted if:

   a) the research involves no more than minimal risk to the subject;

the waiver or alteration will not adversely affect the rights and welfare of the subjects;

the research could not be practicably carried out without the waiver or alteration; and
whenever appropriate, the subjects will be provided with additional pertinent information after
participation.


SAMPLE INFORMED CONSENT
The study in which you are about to participate is designed to investigate the relationship between
hypnosis and memory. This study is being conducted by Mary Fogg under the supervision of Dr. James
Chavez, professor of Psychology. This study has been approved by the Institutional Review Board of
California State University San Bernardino.

In this study you will view a film of an automobile accident. Two hours after viewing the film, you will
be asked to recall as much as you can about the film. Some participants will be hypnotized prior to the
recall test by a licensed psychologist who has been trained in the use of hypnosis. Please be assured that
the hypnosis procedure is in no way harmful only questions pertaining to the film will be asked. The
psychologist will be with you during the entire hypnosis session to ensure your comfort. This study
requires 5 minutes for film viewing and about 15 minutes for the recall test.

Please be assured that any information you provide will be held in strict confidence by the researchers.
At no time will your name be reported along with your responses. All data will be reported in group form
only. At the conclusion of this study, you may receive a report of the results.

Please understand that your participation in this research is totally voluntary and you are free to
withdraw at any time during this study without penalty, and to remove any data at any time during this
study.

I acknowledge that I have been informed of, and understand, the nature and purpose of this study, and I
freely consent to participate. I acknowledge that I am at least 18 years of age.



Participant's Signature                                         Date



Researcher's Signature                                          Date


(Note: this sample informed consent is adopted from K. Bordens and B. Abbott's book "Research Design
and Methods: A Process Approach (2nd Ed.) page 121. " Only slight modification has been made.



CATEGORIES OF RESEARCH EXEMPT FROM IRB REVIEW
On January 26, 1981, regulations amending basic Health and Human Services policy for the protection
of human participants were published in the Federal Register (46 FR 8366). These regulations were
revised and became effective March 8, 1983, and contain exemptions for broad categories of research
which involve little or no risk to research subjects (see listing below). Responsibility for approving
exemptions rests with the IRB, and in order to establish eligibility for exemption, the investigator must
complete and submit the "Registration Form for Exempt Research. " Note: Research involving minors
(less than 18 years of age) is not exempt. Unless the research is covered by other subparts of the Federal
Register, exemption from general human participants requirements is possible for research activities in
which the only involvement of human participants is in one or more of the following categories:

   1. Research conducted in established or commonly accepted educational settings and involving
      normal educational practices, such as (i) research, on regular and special education instructional
      strategies, or (ii) research on the effectiveness of or the comparison among instructional
      techniques, curricula, or classroom management methods.

   2. Research involving the use of educational tests (cognitive, diagnostic, aptitude, achievement), if
      information taken from these sources is recorded in such a manner that subjects cannot be
      identified, directly or through identifiers linked to the subjects.

   3. Research involving survey or interview procedures, except where all of the following conditions
      exist: (i) responses are recorded in such a manner that the human participants can be identified
      directly or through identifiers linked to the subjects, (ii) the subject's responses, if they became
      known outside the research, could reasonably place the subject at risk of criminal or civil liability
      or be damaging to the subject's financial standing or employability, and (iii) the research deals
      with sensitive aspects of the subject's own behavior, such as illegal conduct, drug use, sexual
      behavior, or use of alcohol. (All research involving survey or interview procedures is exempt,
      without exception, when the respondents are elected or appointed public officials or candidates
      for public office.)

   4. Research involving the observation (including observation by participants) of public behavior,
      except where all of the following conditions exist: (i) observations are recorded in such a manner
      that the human participants can be identified, directly or through identifiers linked to the subjects,
      (ii) observations recorded about the individual, if they became known outside the research, could
      reasonably place the subject at risk of criminal or civil liability or be damaging to the subject's
      financial standing or employability, and (iii) the research deals with sensitive aspects of the
      subject's own behavior, such as illegal conduct, drug use, sexual behavior, or use of alcohol.

   5. Research involving the collection or study of existing data, documents, records, pathological
      specimens, or diagnostic specimens, if these sources are publicly available or if the information is
      recorded by the investigator in such a manner that subjects cannot be identified, directly or
      through identifiers linked to the subjects.


CATEGORIES OF EXPEDITED REVIEW
Certain research activities involving no more than minimal risk and in which human participants are
involved in special ways are approved by federal guidelines (46 FR 8392) for "expedited review." In
such cases, only the Chair and one other member of the IRB need evaluate the proposal which, if
approved, is then forwarded to the entire IRB for information and records keeping. In such instances, the
entire application form must be completed, and requirements for annual review and informed consent
apply. The categories acceptable for expedited review are listed below.
   1. Collection of hair and nail clippings in a nondisfiguring manner; deciduous teeth; or permanent
      teeth if patient care indicates a need for extraction.

   2. Collection of excretal or external secretions including sweat, uncannulated saliva, placenta
      removed at delivery, and amniotic fluid at the time of rupture of the membrane prior to or during
      labor.

   3. Recording of data from subjects 18 years of age or older using noninvasive procedures routinely
      employed in clinical practice. This includes the use of physical sensors that are applied either to
      the surface of the body or at a distance and do not involve input of matter or significant amounts
      of energy into the subject or an invasion of the subject's privacy. It also includes such procedures
      as weighing, testing sensory acuity, electrocardiography, electroencephalography, thermography,
      detection of naturally occurring radioactivity, diagnostic echography, and electroretinography. It
      does not include exposure to electromagnetic radiation outside the visible range (e.g., x-rays,
      microwaves).

   4. Collection of blood samples by venipuncture, in amounts not exceeding 450 milliliters in an
      eight-week period and no more often than two times per week, from subjects 18 years of age or
      older and who are in good health and not pregnant.

   5. Collection of both supra- and subgingival dental plaque and calculus, provided the procedure is
      not more invasive than routine prophylactic scaling of the teeth and the process is accomplished
      in accordance with accepted prophylactic techniques.

   6. Voice recordings made for research purposes such as investigations of speech defects.

   7. Moderate exercise by healthy volunteers.

   8. The study of existing data, documents, records, pathological specimens, or diagnostic specimens.

   9. Research on individual or group behavior or characteristics of individuals, such as studies of
      perception, cognition, game theory, or test development, where the investigator does not
      manipulate subjects’ behavior and the research will not involve stress to subjects.


APPENDIX C
CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO CONFLICT OF INTEREST POLICY

Background

CSUSB actively encourages increased involvement of academic researchers and educators with industry
and with private entrepreneurial ventures. However, such involvements create an increased risk of
conflict between the private interests of individuals, the companies with which they are involved, and the
public interest that local state and federal funding serves. CSUSB has adopted policies to regulate
potential conflicts of interest among its grantees and its investigators in order to protect the funded
research from bias.

The National Science Foundation and the Department of Health and Human Services (NIH-PHS-HHS)
are adopting parallel policies on Investigator Financial Disclosure that are relatively consistent. The CSU
has had a policy related to Conflict of Interest in effect since 1985. The CSUSB Conflict of Interest
Policy incorporates requirements from the federal funding agencies and the CSU into its policy.

Investigator Disclosure

Investigators must disclose significant financial interests at the time of proposal submission and update
this information annually or as new interests are obtained during the life of the award.

   •   Investigator

       Investigator is defined as Principal investigator, co-principal investigator, and any other person
       who is responsible for the design, conduct, or reporting of the sponsored project. In addition,
       disclosure must be made for each investigators spouse and dependent children.

   •   Significant Financial Interest

       Significant Financial Interest is defined as any financial interest that would reasonably appear to
       be directly and significantly affected by the sponsored activities in entities whose financial
       interest would reasonably appear to be directly and significantly affected by the sponsored
       activities. Financial interest includes salary or payment for services outside the parameters of the
       award, interests in business enterprises more than $10,000 or 5% ownership interest, and
       intellectual property rights.

Institutional Certification

Certification will be performed by the Dean of Graduates Studies and Research and will be based on
information provided by the Investigator on the Conflict of Interest Disclosure Form (Attachment A).
The Dean of Graduates Studies and Research will review disclosures, assess their potential for conflicts
of interest, and develop resolution strategies with the investigator to manage, reduce or eliminate such
conflicts.

   •   Resolution Plan

       In the event that a conflict appears, a Resolution Plan must be implemented prior to award. The
       Resolution Plan must be in writing and approved by the Dean of Graduate Studies and Research,
       the appropriate School Dean and the Academic Vice President.

       Resolution options may include but are not limited to:

           1. public disclosure of significant financial interests
           2. monitoring of research by independent reviewers
           3. modification of the research plan
           4. disqualification from participation in the portion of the project that is affected by the
              significant financial interest
           5. divestiture of significant financial interests
           6. severance of relationships that create actual or potential conflicts.

        Enforcement Mechanisms and Sanctions
       Potential violations of the Conflict of Interest Resolution Plan shall be handled by the Faculty
       Affairs Committee which monitors the state of academic freedom and professional responsibility
       at CSUSB. The Faculty Affairs Committee, in conjunction with the Dean of Graduates Studies
       and Research will establish and enforce appropriate sanctions based on the specific conduct of an
       investigator failing to follow the agreed upon Resolution Plan. Should conflicts arise that cannot
       be resolved to the satisfaction of CSUSB, the Dean of Graduate Studies and Research will inform
       the appropriate granting agency.

Documentation and Record Maintenance

The Division of Graduate Studies and Research will maintain records for three years related to all
disclosures and ensure that follow-up reporting is conducted in a timely manner.

Approved by:




   •   Conflict of interest disclosure form



GENERAL FOUNDATION POLICY MANUAL                                      SEC:   DEFINITION OF
                                                                             CSUSB AUXILIARY
                                                                       UNIT: Conflict of Interest
                                                                       ACCT: 150.2
                                                                       DATE: N/A

TITLE: CONFLICT OF INTEREST - PRINCIPAL INVESTIGATOR

   1. Preamble: Principal investigators are required to file a financial disclosure statement when
      applying for a nongovernmental contract or grant determine whether they have:

       Investments in and income from any private, nongovernmental entity which has been or which in
       the future foreseeably may be asked to provide funds, or in the case of a project completion
       statement, has provided funds to support, in whole or in part, the research project for which the
       filer is the principal investigator.

   2. Filing of Financial Disclosure Statement:

       2.1. A financial disclosure statement (FPPC Form 730-U) must be filed as part of the normal
            campus review process for initial contract or grant applications when funding for such
            contracts or grants is renewed, and within 90 days after expiration of contract or grant.

       2.2. In the event the financial disclosure statement indicates that a conflict of interest exists, the
           disclosure statement along with the research project shall be reviewed by an independent
           review committee (for composition and function, see 3.0).
   2.3. Pending review by an independent committee the process of submitting a contract or grant
        application may proceed but no awards shall be accepted until all matters pertaining to the
        conflict of interest are resolved.

3. Independent Review Committee:

  3.1. Membership
       a. Faculty Member
       b.
       c.

  3.2. Functions:

       3.2.1. May consult with administrators, faulty and others involved in the research review
              process and the academic discipline in question.

       3.2.2. May consult with principal investigator and department chair to gain information and
              seek modification to research projects, if that is necessary.

       3.2.3. Shall maintain records of its deliberations which shall be available to the public upon
              request.

       3.2.4. Produce a report based on the following format.

             1.     Principal Investigator
             2.     Name of Project
             3.     Period of Performance
             4.     Reviewed at the IRC meeting of
             5.     Funds Awarded
             6.     Documents reviewed by IRC
             7.     Nature of Financial Interest
             8.     Recapitulations of IRC review
                    a. Is the research appropriate to the University?
                    b. Are the teaching and research environments open?
                    c. Is the freedom to publish and disseminate the results of this project?
                    d. Is the use of the University facilities appropriate?

  3.3 Criteria for Review:

  3.4 Recommendation:

          On the basis of the review, the Committee will made a recommendation to the President
          or designee whether funding for the research project should be accepted and, if so, under
          what conditions.
           SECTION 17. INSURANCE & LEASE MANAGEMENT
LEASES
The Foundation enters into leases on behalf of Projects. The appropriate Foundation officer authorized to
obligate the Foundation MUST sign the lease. Under normal circumstances, a lease will only be entered
into for a term not to exceed the length of the funding for the leased item.

Real Property Leases

The Foundation may lease facilities off campus for certain Projects. Property leases must be approved
and signed by an officer of the Foundation capable of signing for the Foundation and entering into the
lease. No one other than the appropriate Foundation Officer can obligate the Foundation or sign a lease
or rental agreement for real property.

The Foundation should be involved at an early stage in the search for the premises.

Equipment Leases

As in real property, equipment leases must be approved and signed by an officer of the Foundation
capable of signing for the Foundation and entering into the lease. All Foundation purchasing
requirements must be adhered to during the leasing process. A completed purchase order and signed
lease agreement must be obtained in advance of allowing the delivery of any equipment to be leased or
rented.


INSURANCE
The Foundation maintains several forms of insurance. These insurance forms are designed to protect the
Foundation against risk of loss; they are NOT designed to protect individuals from risk of personal loss.
The general forms of insurance are listed below. Questions regarding insurance coverage, loss reporting
and certificates should be addressed to the Foundation Business Office.

       Liability Insurance
       Officers and Directors Insurance
       Property Insurance
       Automobile Insurance
       Professional Liability Insurance

Contractual Requirement to Provide Insurance

Many government and private contracting agencies require that the Foundation provide a certificate of
insurance to prove certain insurance coverage’s. At times, the contracting agencies require that the
Foundation name the agency as a "Named Additional Insured" or some other specific language.

It is very important to communicate these requirements to the Foundation prior to signing the contract.
This will ensure that the proper form of insurance is available at time of contract commencement.
Certificates of Insurance

Certificates of insurance are issued by the Foundation's insurance broker. When a certificate of
insurance is needed, the Foundation will contact the appropriate broker to have the certificate issued.
Generally, there is no cost when certificates of insurance are issued.

Reporting Losses or Incidents / Making a Claim

All losses of Foundation property must be reported to the Foundation Business Office as soon as
practical after the loss is discovered or suspected. The reporting of a loss includes a written statement
describing the loss and a police report on the loss. The Foundation will appropriately package the loss
report and forward it the insurance company. To complete the claim for monetary reimbursement of the
loss, documents proving the purchase of the equipment by the Foundation are required. Equipment
transferred to the University by the Foundation is NOT covered by the Foundation's insurance.

Reporting New Activities for Insurance Coverage

Each year the activities of the Foundation are reported to the bidding insurance companies. The nature
of the Foundation’s activities is then used to determine the premium to be charged. Should the reported
activities substantially change without notification to the insurance carrier, the carrier could cancel the
insurance if a loss is sustained during an unusual activity.

If your program activity changes significantly, you should notify the Foundation immediately. If you are
unsure as to whether the change is significant, let the Foundation know and we will determine if the
insurance broker needs to be informed of the change.




               SECTION 18. COST SHARING AND MATCHING
INTRODUCTION
The purpose of these guidelines is to provide direction for committing and reporting cost sharing on all
grants and contracts submitted by the Foundation for CSUSB. By statute, regulation, or policy, many
sponsored grants and contracts require institutional cost sharing or matching of costs. It has been a long-
standing University practice to support compliance with published matching and cost sharing
requirements for targeted programs, and it has not been the practice of the University to encourage
voluntary cost sharing or matching. However, at appropriate times during the funding process, sponsors
and investigators have the option of requesting additional institutional contribution to ensure the success
of proposals judged to be of significant technical merit or relevance to the University.


DEFINITIONS

Cost Sharing
Cost sharing can be described as a prospective sponsor's requirement that an institutional applicant share
in the costs of proposed projects. Funding for such costs may come from a third party; the University’s
own funds, including reduced indirect costs; or a valuation of donated services or equipment. Specific
types include:

   •   Individual Cost Sharing: Cost sharing required on a specific grant or contract by an individual.
       There is usually no contractual obligation.
   •   Institutional Cost Sharing: Cost sharing arising from statutory regulations based on the grantor
       and grantee entering into an agreement specifying the percentage or amount of cost sharing that
       the grantee must contribute. This agreement may be written or made a part of the agency’s
       specific requirements.
   •   Mandatory Cost Sharing: Cost sharing that is required by a sponsor as a condition for making
       an award and usually refers to an overall percentage of total costs to be contributed. When
       mandatory cost sharing is included in the award, it will be listed in the Notice of Grant/Contract
       Award. Mandatory (federal) cost sharing requires the University share in the costs of the project
       from non-federal sources.
   •   Voluntary Cost Sharing: Cost sharing that is not required by the sponsor as a condition for
       making an award, but which may be necessary to accomplish the objectives of the grant. When
       voluntary cost sharing is included as part of the proposal budget/narrative it will be listed in the
       budget sheet prepared by the Project Director and the Research and Sponsored Programs Office
       (RSPO) and treated in the same manner as mandatory cost sharing. Voluntary cost sharing
       requires the University share in the costs of the project from non-federal sources. It is the policy
       of the University to not offer voluntary cost sharing unless there are extenuating circumstances.
   •   Budgeted versus Proposed Cost Sharing: There is no difference between cost sharing
       commitments made in a proposal budget document and those made in the text of the proposal.
       Both commit the foundation and the university equally and both must be fully approved.

Matching

Matching results from a requirement that the applicant provide funds from other sources in support of the
proposed project. Matching is typically done on a dollar-for-dollar basis or as a percentage of total
project costs. Federal matching funds typically cannot be released before third-party contributions are
obtained which meet government specified eligibility criteria. Examples of federal programs with
matching components include the National Science Foundation young investigator initiatives and the
National Endowment for the Humanities challenge grants. Frequently, matching contributions are
required on major equipment acquisition awards and construction or renovation initiatives.


TYPES OF COST SHARING OR MATCHING
There are two types of cost sharing or matching: in-kind and cash. When cost sharing or matching is
required, in-kind or non-cash contributions should always be considered first. Eligible in-kind
contributions include:

   •   Contributed Faculty Academic-Year Effort, Including Associated Fringe Benefits and Indirect
       Costs: When required, cost sharing may be budgeted in terms of contributed faculty effort with
       associated employee benefits and indirect costs. Such contributions are subject to approval by
       department chairs and deans/area heads and are accounted for through after-the-fact activity
       reporting certifications. This type of contribution is generally the most common form of cost
       sharing and is readily documented.
   •   Contributed Indirect Costs: Indirect costs which are not actually collected by the
       Foundation/University are a legitimate contribution on proposals to federal and many nonfederal
       agencies, unless prohibited by statute, regulation, policy, or the program's written guidelines. In
       cases where a funding agency allows application of the Foundation/University federally
       negotiated indirect costs, the Foundation/University may choose to reduce its recovery of those
       costs to meet a cost sharing requirement or total cost capped by the sponsor. Waivers of indirect
       costs for either purpose must be approved by the Director of Research and Sponsored Programs
       in accordance with university policies.
   •   Renovation Costs Funded by Non-federal Sources: Renovation costs can be used for cost share
       requirements only once. Renovation expenditures cannot be used as cost sharing on several
       different awards. Generally, the space must be renovated during the proposed project period for
       those costs to count as cost sharing.
   •   Use of Non-federal Grant Awards or Donations: If the funds are expended during the project
       period of a federal award, non-federal awards or donations for projects related to a federal agency
       proposal may be legitimate sources of cost sharing or matching for that proposal, including direct
       and indirect costs and the computed difference between the full indirect cost rate and the funded
       rate. Non-federal grant or donated funds used for matching must be in hand or a suitably
       enforceable legal instrument of conveyance on file, or alternate institutional funds must be made
       available in writing.


INELIGIBLE CONTRIBUTIONS
The following contributions typically do not qualify as cost sharing or matching funds for federal
research programs:

   •   Federally appropriated funds
   •   Gifts that are not given specifically in support of the project and that are not transferred to the
       applicant
   •   Money or property that is made available to the applicant through a contractual agreement in
       which the donor establishes rights over products resulting from funded activities
   •   Federal student aid in the form of scholarships and fellowships.


DOCUMENTATION GUIDELINES
The Foundation for California State University San Bernardino and the California State University San
Bernardino cost sharing commitments must be expressed in terms that can be readily translated into
absolute dollar amounts. Unless waived by the terms of the project/program, federal cost principles
require that cost sharing contributions meet all of the following criteria:

   •   Are verifiable from Foundation/department/university records.
   •   Are not included as contributions for any other federally-assisted project/program.
   •   Are necessary and reasonable for proper and efficient accomplishment of project/program
       objectives.
   •   Are allowable under applicable cost principles.
   •   Are not paid by the federal government under another federal award.
   •   Are provided for in the approved budget.
   •   The total compensated effort for an individual using effort to meet cost sharing requirements
       cannot exceed 100%.
   •   The costs are incurred only during the same time period as the award


AUTHORITY AND RESPONSIBILITIES
Principal Investigators/Project Directors. Principal Investigators are responsible for:

   •   Securing all necessary cost sharing and matching fund commitments from their departments,
       colleges, and the Provost or other university officials (as appropriate) in accordance with federal
       statutory requirements and specific agency program requirements;
   •   Completing Cost Sharing Contribution Reports, in coordination with the Foundation Grants &
       Contracts Office;
   •   Obtaining documents and providing records to explain and certify fulfillment of cost sharing
       commitments. By signing the CSUSB Project Information Form (PIF), principal investigators
       accept and acknowledge these responsibilities.

Department Chair (or equivalent). Department chairs are responsible for:

   •   Verifying and ensuring that the department can and will meet its share of all cost sharing
       commitments (cash and in-kind);
   •   Determining that the percentage of faculty or staff time committed as an in-kind cost sharing
       contribution is reasonable;
   •   Determining that the total effort expended on sponsored projects and University-related duties by
       faculty and/or staff does not exceed 125 percent, as outlined in the Personnel Effort Certification
       System (PECS).

College Dean (or equivalent). Deans are responsible for:

   •   Verifying and ensuring that academic/division unit cost sharing commitments (cash and in-kind)
       can and will be met without detriment to other approved instructional and research activities;
   •   Verifying and ensuring that all cost sharing commitments regarding space renovation within their
       areas are met.

Office of Research & Sponsored Programs. The Office of Research &Sponsored Programs is
responsible for:

   •   Reviewing program-specific guidelines and agency requirements to determine the necessity for
       cost sharing;
   •   Assisting PI/PD’s, Chairs, Deans, and other university officials in identifying cost sharing and
       matching funds resources and coordinating cost sharing commitments for institutional proposals;
   •   Coordinating requests for campus cost sharing commitments for the Provost or other university
       officials;
   •   Reviewing budgets/proposals with the staff of the Foundation to identify all commitments for
       cost sharing, and verifying that documentation of the commitments are present and adequate.
Foundation, Grants and Contracts Office. The Foundation Grants and Contracts Office is responsible
for:

   •   Reviewing program-specific guidelines and agency requirements and informing the PI/PD, the
       Dean/Area Head, and Research & Sponsored Programs Office, and other appropriate university
       officials of any discrepancies or conflicts.
   •   Reviewing budgets/proposals to identify all commitments for cost sharing and verifying that
       documentation of the commitments are present and adequate;
   •   Verification that all required approvals and clearances for all cost sharing commitments (cash and
       in-kind) are present and adequate;
   •   Maintenance of all necessary documentation and preparation/support for preparation of all
       reports following termination of the grant.


COST SHARING / MATCHING VERIFICATION PROCEDURES

   •   Upon receipt of a grant or contract, those with matching/cost sharing will have a separate file set
       up to house all correspondence, spreadsheets, and verifying documentation as well as a copy of
       the awarding document and any other documents referencing matching/cost sharing even if it is
       not in the budget.

   •   The award notice sent to the Project Director will include an attachment detailing how cost
       sharing is to be verified.

   •   At least annually (preferably every six months) the grant will be reviewed to determine what
       matching/cost sharing should have been contributed for that period.

   •   The Director of the grant will verify that the matching/cost sharing as it is contributed. If unsure
       of what forms are required, please contract the Foundation Grants and Contracts Office for
       guidance.

   •   All other cost sharing MUST be documented by the department with receipts and/or bills from
       vendors. CSUSB Purchase Orders will only be accepted as verification of Cost Sharing in
       conjunction with a printout of Screen 105 from CSUSB Accounts Payable or a copy of the paid
       invoice.

   •   Cost sharing of space allocated for use of a grant will be verified by a Cost Sharing Certification
       listing that space and signed by the appropriate Dean and Chair. The dollar value is assumed to
       be correct since the Budget Office is consulted when those values are set at the proposal stage.


FURTHER INFORMATION
Further information on cost sharing is outlined in the following references:
       OMB Circular A-110 (Attachment E)              Cost Sharing and Matching
       OMB Circular A-21 (Section J: 13.a)            Cost Principles, Universities
       OMB Circular A-122                             Cost Principles, Non-Profits
Related university policies are detailed in the CSUSB Faculty Administrative Manual (FAM):
       FAM 950         Administration of Sponsored Activities
       FAM 951         Policy and Procedures for the Reimbursement of Faculty Release Time.




                      SECTION 19. NON–RESIDENT ALIENS
NON-RESIDENT ALIENS
Payments to non-resident aliens are governed by numerous federal and state laws. The laws vary
according to the international treaty for which the individual maintains his/her residency.

   •   Accounts Payable may have to withhold taxes for payments over a certain amount.
   •   Some countries prohibit or limit amounts their residents may earn outside of their county.
   •   Payroll cannot pay individuals holding certain types of visas.

BEFORE ENGAGING A NON-RESIDENT ALIEN FOR ANY TYPE OF WORK, YOU MUST
VERIFY THE PAYMENT REQUIREMENTS WITH THE APPROPRIATE FOUNDATION OFFICE.




                         SECTION 20. INDIRECT COST
                    (FACILITIES & ADMINISTRATIVE COST)
INTRODUCTION

Indirect Cost, also known as Facilities and Administration (F&A) Cost, is an accounting term used to
describe a process of assigning (or charging) cost that are common to all projects. Generally, the cost of
building occupancy, procurement, personnel administration, accounting, utilities, etc. are charged to
grants and contracts as indirect cost. Grantees must be consistent in treating costs as direct or indirect
under grants. Once a grantee decides to treat a cost either as direct or indirect, it must be treated that
way for all projects and principal activities of the organization, regardless of the source of funding.

Indirect cost as a means of administering awards are necessary and legitimate. They represent myriad
administrative overhead costs that are typically difficult to determine in a precise manner. The
development of an indirect cost or overhead rate provides a means for determining an amount of
overhead reimbursement that is presumably acceptable to both grantor and grantee.

DEFINITIONS (OMB Circular A-21, Cost Principles for Educational Institutions)

Direct Cost: are those costs that can be identified specifically with a particular sponsored project
relative easily with a high degree of accuracy. Cost incurred for the same purpose in like circumstances
must be treated consistently. Typical direct cost include compensation and fringe benefits of employees
for performance of work under the sponsored agreement, cost of materials consumed or expended in the
performance of work, travel for the project, participant tuition and student stipends, etc.
Indirect Cost (F&A): are those costs that are incurred for common or joint objectives and therefore
cannot be identified readily and specifically with a particular sponsored project. Costs are divided into
two categories, Facilities and Administration. The following are typical indirect cost items:

Facilities: This category includes depreciation and use allowances on building, equipment and capital
improvement, interest on debt associated with certain buildings and equipment, and operations and
maintenance expenses. Operations and maintenance expenses include all of the following:
   • Janitorial and utility services
   • Repairs and ordinary or normal alterations of buildings, furniture and equipment
   • Care of Grounds
   • Maintenance and operation of buildings and other plant facilities
   • Security
   • Earthquake and disaster preparedness
   • Environmental safety
   • Hazardous waste disposal
   • Property, liability and other insurance relating to property
   • Space and capital leasing
   • Facility planning and management
   • Central receiving
   • Fringe benefits on indirect cost personnel in facilities category

Administration: This category includes the following:
  • General administration of general expenses, such as the director’s office, Dean's office,
     President’s office, and Vice President’s office
  • Accounting
  • Human Resources
  • Business services
  • General counsel
  • Management information systems
  • Safety and risk management
  • Library expenses
  • All other types of expenditures not included in facilities
  • Fringe benefits on indirect cost personnel in facilities category


NEGOTIATING AN INDIRECT COST RATE
Each University is assigned a cognizant federal agency to negotiate an “Official Indirect Cost Rate.”
CSUSB’s cognizant agency is the U.S. Department of Health and Human Resources (HHS).
Periodically (usually every 4 years) the campus must summarize all operating expenses for a specific
year. The format is designated by HHS. This data is used to negotiate the Official Indirect Cost Rate for
the campus. Campuses with less than $10 million a year of federal awards use a simplified calculation
method. This method assumes all costs are in proportion to the cost of salaries and wages. Currently,
this method is used at CSUSB. Our negotiated rate is 42% of Salary and Wages. In other words to
recover all CSUSB and Foundation indirect cost we need to recover an amount equal to 42% of all direct
cost salaries and wages expensed on sponsored programs.
Campuses with over $10 million a year of federal activity will calculate a rate using all expenditures. A
rate developed using the long-form method is expressed a XX% of Modified Total Direct Cost (MTDC).


ACTUAL AWARDED RATES
Despite negotiating an official rate for the campus, many agencies have “capped” the amount they will
pay. The U.S. Department of Education normally only pays 8% MTDC. These means that they pay zero
on participant student support funds and only 8% on all other cost. National Science Foundation pays
zero on most equipment purchasing grants. Some agencies pay zero indirect on everything. Also some
agencies require that the campus waive indirect cost as part of cost sharing on a project. As a result, we
recover far less than what is needed to recoup all indirect cost. Note: For fiscal year 1999 - 2000 actual
recovery equaled only 13.15% of Salaries & Wages. (See Appendix A, Foundation for CSUSB Indirect
Cost Policy.)


INDIRECT COST RECOVERY
Indirect cost is recovered from applicable grants/contacts according to the award document. The
Foundation/Campus can only recover indirect cost in proportion to the expenses of direct cost. No claim
for indirect cost may be charged if direct cost items are not expensed. Recovered indirect is collected
into a cost recovery pool and funds are disbursed according to both CSUSB and CSU Chancellor’s
Office Policies. First, to remain fiscally viable, the Foundation must recover the operational cost of
administrating the grants and contracts. These cost are not to exceed an amount equal to 6% of Total
Direct Cost of grants/contracts expenditures for the fiscal year. After recovering Foundation operational
costs, certain reserves are analyzed and, if necessary, funds are contributed into the account. The only
reserve normally a factor is the grants/contracts disallowance account. The remaining funds are made
available to CSUSB for their distribution.


APPENDIX A. CSUSB INDIRECT COST POLICY

POLICY ON INDIRECT COST RECOVERY

In order to provide California State University, San Bernardino with a consistent indirect cost policy on
external funding for research, instructional support, and community service/applied research, the
following policy has been established. Effective March 1, 1996, all grants, contracts and agreements
accepted from any sponsor must be charged the full indirect costs rate established by Federal negotiation
and Foundation Board policy except as indicated below.

This policy recognizes that some private foundations, corporations, and public agencies have established
policies that restrict the rate of indirect cost reimbursements or in some cases, bar any indirect cost
recovery at all. The University and Foundation can accept funding from these organizations as long as
their policy statements stipulating reduced or no overhead is provided to the Research and Sponsored
Programs Office in sufficient time to ensure the acceptance of cost sharing by the University.
Acceptance of reduced or no indirect costs constitutes cost sharing on the project usually mandatory on
the part of federal and state agencies and voluntary in the case of private organizations.
Any modification of the indirect cost rate on a proposal or application must be approved by the Director
of Research and Sponsored Programs before the proposal or application is submitted, and the request to
modify must be agreed to by the appropriate school dean.

There are two basic indirect cost rates established by this policy:

       1.) The current federally negotiated rate (42% of wages and salaries as of March 1, 1996).

       2.) The off-campus and consulting rate of 15% of total direct costs.

Note: Policy written by The Office of Research and Sponsored Programs and approved by the
Foundation Board on June 13, 1996

								
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