TABLE OF CONTENTS I INTRODUCTION by mmcsx

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									                                              TABLE OF CONTENTS

I.    INTRODUCTION..............................................................................................................1

      A.        Purpose of the Manual...........................................................................................1
      B.        History of the CSU Fullerton Auxiliary Services Corporation .........................1
      C.        Structure of the CSU Fullerton Auxiliary Services Corporation ......................2

II.   GRANT ADMINISTRATION..........................................................................................3

      A.        Pre-Award ..............................................................................................................3
      B.        Approvals, Authorities and Responsibilities .......................................................4
      C.        Pre-Award Financial Commitment of Expenditures..........................................6
      D.        New Account Set-Up ..............................................................................................6
      E.        Orientation Meeting...............................................................................................6
      F.        Conflict of Interest .................................................................................................7
      G.        Cash Flow ...............................................................................................................8
      H.        Budget .....................................................................................................................9
                1.         Grants/Contracts ..........................................................................................9
                2.         Discretionary Funds ...................................................................................10
      I.        Allowable Costs ....................................................................................................10
                1.         General Concept.........................................................................................11
                2.         Specific Allowable Costs ...........................................................................12
                3.         Non-allowable Costs ..................................................................................13
      J.        Encumbrances ......................................................................................................14
                1.         Definition ...................................................................................................14
                 2.         Use .............................................................................................................14
                 3.         Limit ...........................................................................................................14
                 4.         Phone Purchase Orders (POs) ....................................................................14
                 5.         Clearing ......................................................................................................14
       K.        Cost Overrun ........................................................................................................15
       L.        Approval for Grant Changes ..............................................................................15
                 1.         No-Cost Extension .....................................................................................15
                 2.         Changes Requiring Sponsor Approval.......................................................16
                 3.         Budget Adjustments ...................................................................................16
                 4.         Budget Change Requests ...........................................................................16
       M.        Cost Transfer........................................................................................................17
                 1.         Corrections .................................................................................................17
                 2.         How to Request ..........................................................................................17
                 3.         Notification ................................................................................................17
                 4.         Related Projects .........................................................................................17
                 5.         Documentation ...........................................................................................18
       N.        Cost Sharing .........................................................................................................18
                 1.         Types of Cost Sharing................................................................................18
                 2.         Cost Sharing as a Proportion of the Total Budget .....................................18
                 3.         Procedures for Collecting Cost Sharing Information.................................19
                 4.         How to Document Cost Sharing ................................................................19
       O.        Project Renewals ..................................................................................................19
       P.        Program Income...................................................................................................19
       Q.        Technical Progress/Performance Reports .........................................................19
       R.        Financial Report...................................................................................................20
       S.        Grant/Contract Closeout .....................................................................................20
                 1.         Items Required for Closeout ......................................................................21
       T.        Audit Requirements & Record Retention .........................................................21

III.   PERSONNEL ...................................................................................................................22




                                                   Table of Contents • Page ii
A.   Employee Definitions and Classifications ..........................................................22
     1.        Definitions..................................................................................................22
     2.        Classifications ............................................................................................22
     3.        Types of Employment ................................................................................23
     4.        University Employees ................................................................................23
     5.        Overload …………………………………………………………………23
B.   Non-Student Recruitment Procedures ...............................................................24
     1.        Recruitment ................................................................................................24
     2.        Qualification Assessment/Screening .........................................................25
     3.        Interviews ...................................................................................................25
     4.        Selection.....................................................................................................26
     5.        Notification ................................................................................................27
     6.        Retention of Records..................................................................................27
C.   Student Recruitment Procedures .......................................................................27
D.   Payroll Procedures ...............................................................................................29
     1.        New Hires ..................................................................................................27
     2.        Change Notice ............................................................................................28
     3.        Terminations ..............................................................................................29
     4.        Timesheet deadlines ...................................................................................29
     5.        Wages.........................................................................................................30
     6.        Payroll Taxes .............................................................................................31
     7.        Check Disbursement ..................................................................................31
     8.        Payroll Deductions .....................................................................................31
     9.        Benefits ......................................................................................................32
     10.       Wage Garnishment.......................................................................................2
E.   Payments to Faculty .................................................................................................2
     1.        Release Time ................................................................................................2
     2.        Summer and Intersession Salary and Overload ...........................................2
F.   Personnel Policies ..................................................................................................29
     1.        At-Will Employment .................................................................................29


                                     Table of Contents • Page iii
               2.        Equal Employment Opportunity ................................................................29
               3.        Sexual Harassment .....................................................................................30
               4.        Conflict of Interest .....................................................................................31
               5.        Drug-Free Workplace ................................................................................32
               6.        Health and Safety .......................................................................................32
      G.       Performance Appraisal...........................................................................................33
      H.       Independent Contractors ........................................................................................35
               1.        Description .................................................................................................35
               2.        Types of Independent Contractors .............................................................41
               3.        Methods of Payment ..................................................................................42
      I.       Information Returns ...............................................................................................45

IV.   PURCHASING POLICY ................................................................................................46

      A.       Small, Minority- and Women-owned Businesses ..................................................47
      B.       Contract Selection ..................................................................................................47
      C.       Contracts over $10,000 ..........................................................................................47
      D.       Construction Contracts...........................................................................................47
      E.       Conflict of Interest .................................................................................................47
      F.       Vendor Selection....................................................................................................48

V.    PURCHASING PROCEDURES ....................................................................................48

      A.       Purchase Orders (POs) ...........................................................................................48
               1.        Assignment ................................................................................................48
               2.        Form ...........................................................................................................49
               3.        Verification ................................................................................................50
               4.        Phone Purchase Orders ..............................................................................50
               5.        Procedures for Receiving Products ............................................................50
               6.        Payments ....................................................................................................50
      B.       Check Requests ......................................................................................................51
               1.        Procedures ..................................................................................................51
               2.        Signers........................................................................................................51



                                               Table of Contents • Page iv
                     3.         Valid Documentation .................................................................................51
                     4.         Check Issuances .........................................................................................51
                     5.         Payments to Stipends, Awards, Royalties, Honorarium, Fellowships and
                                Independent Contractors ............................................................................52
          C.         Advance Payments .................................................................................................52
          D.         Sales Tax Liability .................................................................................................52

VI.       TRAVEL ...........................................................................................................................53

          A.         General Description ...............................................................................................53
          B.         Travel Authorization and Advance Form ..............................................................53
          C.         Foreign Travel ........................................................................................................53
          D.         Travel Advances ....................................................................................................53
          E.         Travel Expense Reimbursement ............................................................................54
          F.         Mileage and Per Diem Rates..................................................................................54
          G.         Mileage Documentation .........................................................................................54
          H.         Complete Travel Documentation ...........................................................................54
          I.         Exceptions to Policy Standards ..............................................................................54

VII.      EQUIPMENT ...................................................................................................................55

          A.         Definition ...............................................................................................................55
          B.         Acquisition Procedures ..........................................................................................55
          C.         Equipment Inventory .............................................................................................56
          D.         Title of Equipment .................................................................................................57
          E.         Government-Furnished Equipment ........................................................................57
          F.         Equipment Disposition...........................................................................................57
          G.         Equipment Maintenance and Repair ......................................................................57
          H.         Facility Modification .............................................................................................58

VIII. FORMS .............................................................................................................................59




                                                      Table of Contents • Page v
I.   INTRODUCTION

     A.   Purpose of the Manual

          This manual is a guide for Principal Investigators and Program Directors who
          manage research grants or other contracts and agreements administered by the
          CSU Fullerton Auxiliary Services Corporation (ASC). By reading this manual,
          you will become familiar with the ASC’s implementation of federal, state, local,
          private and non-profit laws, policies, rules and regulations. You will also
          understand how you, as a Principal Investigator or Program Director, play an
          integral part in insuring that grant or contract monies are managed consistent with
          the intent of the donor and in accordance with the law.

          Every effort has been made to keep these policies and procedures consistent with
          the overall policies of the ASC, CSUF and the CSU. Where there are conflicting
          rules, you should seek the opinion of the ASC’s Sponsored Programs Office. It is
          a great responsibility to follow the policies and procedures of the ASC and the
          grant sponsor. The consistent and successful administration of grant money
          allows the University to pursue additional funds for important projects of interest
          to you, your department, the University and the community at large. Future
          funding is largely determined by our success in managing today’s sponsored
          programs.

     B.   History of the CSU Fullerton ASC

          CSUF ASC, like all other CSU auxiliaries established under Title 5 of California
          Code of Regulations, was founded:

                To conduct activities “essential to the educational program of a campus”;

                To provide a “reasonable and effective administrative system for certain
                 non-state funded activities essential to the educational mission of the
                 campus”; and

                To “receive gifts, property, and funds to be used for the benefit of such
                 campus….”
     The Foundation was incorporated in 1959 as a non-profit, public benefit
     corporation to promote and assist the educational mission of California State
     University, Fullerton. In 2006 the name changed to the CSU Fullerton Auxiliary
     Services Corporation (ASC).

     The ASC has responsibility for the following:

            Administration of federal, state, local and private research grants and
             contracts;

            Custodial responsibility for non-state funds generated by University-
             affiliated activities;

            Management and oversight of Titan Shops;

            Administration of all food and vending service on campus;

            Business administration of Tucker Wildlife Sanctuary; and

            Other projects and entrepreneurial efforts that support the mission of the
             University – but which cannot be funded through state funds. Such
             projects include the Artists Village in Santa Ana, University Gables
             faculty/staff housing in Buena Park, the CSU Fullerton Housing Authority
             and the acquisition and management of the College Park building across
             the street from the main campus in Fullerton.




            www.universitygables.com                      www.santaanaartistsvillage.com

C.   Structure of the CSU Fullerton ASC

     The ASC’s Executive Director reports to both a Board of Directors and the Vice
     President for Administration of Cal State Fullerton. The 20-member Board of
     Directors is composed of CSUF students, faculty, administrators and community
     leaders. The Board meets quarterly to conduct ASC business while its Executive
     Committee meets monthly. The Vice President for Administration is an ex-officio




                  Principal Investigator Reference Manual • Page 2
             voting member of the Board of Directors and is engaged in providing continuous
             oversight of the ASC’s activities.


                                                         CSUF President
                Board of Directors                                                            Board of Directors
                      UAF                                                                        CSUF ASC

                                      Vice President      Vice President     Vice President
                                     Univ Advancement    Academic Affairs    Administration




                  Exec Director        Various UA            Director        Various Admin      Exc Director
                      UAF                Offices        Grants & Contracts       Offices        CSUF ASC



             The Director of Sponsored Programs reports to the ASC’s Director of Finance and
             Administration. The Director of Grants and Contracts (an ex-officio, non-voting
             member of the Board) reports to the Vice-President for Academic Affairs, another
             ex-officio voting member of the Board.




II.   GRANT ADMINISTRATION

      In January 2004 Chancellor Charles B. Reed issued Executive Order 890 (EO890)
      charging each CSU Campus President to establish a policy on his/her campus relating to
      all Sponsored Programs applied for, awarded to and/or administered by their campus or
      any of their campus Auxiliaries.

      Effective July 1, 2004, CSU Fullerton submitted the campus policy titled: Administration
      of Grants and Contracts in Support of Sponsored Programs (Attachment A) to the
      Chancellors’ Office as the guidelines for applying for and administering all Sponsored
      Programs for our campus.


      A.     Pre-Award Review and Approval of Proposal Submission

             Proposals for Sponsored Programs shall not be submitted to the Sponsor without
             prior written approval of: (1) the President of the University or the President’s
             University designee, (2) the Director of the Office of Grants and Contracts and (3)
             the Chief Financial Officer of the University or the Chief Financial Officer’s
             University designee.




                              Principal Investigator Reference Manual • Page 3
          Who is authorized to apply for grants and enter into contracts in the
     University’s name?

     All grants/contracts go through the pre-award process; this is the only approved
     method to submit a grant/contract application to any prospective granting agency
     in the name of CSUF or ASC. The ASC will review and approve extramural
     grant/contract proposals prior to submission to assure reasonable scope of work to
     the budget, budget accuracy, appropriate indirect cost calculations, contractual
     obligations and liabilities. When awarded, grants/contracts are issued in the name
     of the ASC.

     .


             Who is authorized to review, approve and sign-off on proposals?

     Pre-identified staffs from various departments and colleges review the application
     during the pre-award/sign-off process. The Office of Grants and Contracts
     coordinates the signoff process.


             Who is authorized to be a Principal Investigator?

     Only persons approved by their college dean or higher may approve an individual
     to act as a Principal Investigator. This authorization is obtained during the sign
     off process.

     The Principal Investigator is not legally permitted to be the recipient of a grant
     and may not enter into a contract with a sponsor. Only the ASC may enter into a
     contract or be awarded a grant on behalf of the University.

     Although the ASC is legally and financially responsible to the sponsor, the
     Principal Investigator is responsible for project administration, submission of the
     technical reports, and proper fiscal management. The ASC’s Sponsored Programs
     Office provides administrative and financial services and has also established
     policies and procedures to meet various fiduciary and administrative
     requirements.

B.   Approvals, Authorities and Responsibilities

     A Principal Investigator/Account Holder is responsible for a variety of matters.
     Among them, the Principal Investigator will:

            Develop and maintain technical and program progress and other
             deliverables to ensure project is completed in accordance to the guidelines;




                   Principal Investigator Reference Manual • Page 4
      Ensure that project records are kept in ASC or campus offices. Records
       may not be removed from or maintained at any off campus location
       without University or ASC approval;

      Authorize expenditures and maintain tight control on approval authority;

      Keep accurate and current accounting records;

      Submit expense and employee records in a timely manner;

      Monitor monthly financial reports for accuracy and contact the account
       administrator whenever discrepancies occur;

      Contact the account administrator when major program objectives or
       budget expense revisions are necessary (budget flexibility depends on the
       granting agency);

      Complete all personnel paperwork in a timely manner and ensure
       adherence to HR policies (including recruitment, supervision,
       compensation, termination, etc.); and

      Ascertain that the appropriate project staff has a good working knowledge
       of this guide.


      Who is authorized to sign check requests, payroll records and other
project expenditures?

The Principal Investigator has signature authority and must sign all transaction
requests. In some cases, the Principal Investigator may delegate authority, in
writing, to another University or ASC employee. For the Principal Investigator to
receive a reimbursement, his or her supervisor must sign the request for payment.
In order for the Principal Investigator’s supervisor to receive salary or
reimbursements, both the Principal Investigator and the official who has
supervisory responsibility over the payee must approve the request.

Only original signatures are accepted. Email and fax signatures are acceptable as
temporary substitutes for original signatures.


       How does the Principal Investigator designate alternate signers?

If the Principal Investigator wishes to designate an alternate signer on his or her
project account, that request must be made in writing. The Account Update Form
must be signed by the Principal Investigator and show the name and sample
signature of the alternate signer.




             Principal Investigator Reference Manual • Page 5
C.   Pre-Award Financial Commitment of Expenditures

     On occasion, Principal Investigators may wish to access grant funds before they
     are made available from the sponsor. In such cases, the ASC may provide an
     advance to initiate the project. The advance should be requested using the OPAS
     form that must be signed by The Director of Sponsored Programs. The federal
     government will only reimburse the ASC for pre-approved “start up” expenses
     that are incurred prior to the start of the project-funding period; therefore, any
     advances by the ASC will be limited and closely scrutinized.




D.   New Account Set-Up

     The ASC establishes an account when a copy of the official award notification is
     received from the sponsor. Because the awarding agency may notify any number
     of people that funding has been awarded, if you receive an award notice, forward
     a copy to the Director of Sponsored Programs.

     Some awards, especially contracts, may be negotiated after the sponsor has
     decided to carry out a project with the ASC. The Office of Grants and Contracts
     coordinates that process. Once negotiated, the contract award is complete, and
     the contract is prepared and signed by the ASC’s Executive Director and by the
     sponsor’s designated authority.

     The ASC does not expect federal, state and local governments to provide funding
     in advance. In these cases, once official notice of award is received by the ASC,
     funds are available to the Principal Investigator.

      Private, for-profit sponsors must provide a portion of the project funds upon
     signing and must pay all invoices within 30 days of receipt.




E.   Orientation Meeting

     Once award notification is received, the Principal Investigator will be scheduled
     to attend an orientation meeting with the ASC. There are several purposes for this
     meeting:

           to review and distribute the Principal Investigators handbook;



                  Principal Investigator Reference Manual • Page 6
           to inform about University and ASC policies and procedures;

           to review the terms and conditions of the award;

           to review and adjust the project budget;

           to establish the Principal Investigators signature record; and

           to provide an account number to the Principal Investigator.

     The orientation should include the Principal Investigator and any other staff that
     will have significant involvement in the administration of the award. The Director
     of Sponsored Programs is the ASC’s official orientation leader and will typically
     conduct the orientation session. The orientation is mandatory and must take place
     prior to the expenditure of grant funds.

     The orientation will provide extensive information about the fiduciary
     responsibilities of a Principal Investigator. During the orientation, you will
     receive an overview of the consequences which may result if there is a violation
     of policies and procedures. Those consequences include:




           First Violation: a copy of the policies and procedures will be sent to the
            Principal Investigator clearly identifying the violation and remedial action
            to be taken;

           Second Violation: a face-to-face review of the policies and procedures will
            be conducted and the Principal Investigator’s Chair will be notified that a
            review of policies was necessary;

           Third Violation: this violation will be reported to the appropriate Dean;


           Further Violations: additional violations will be reported to the Vice
            President for Academic Affairs. This notification may include the
            recommendation that the Principal Investigator be removed from this or
            any other project and that consideration be given to denying the Principal
            Investigator involvement on future projects.

     Policy and procedure violations that have legal or financial consequences will
     result in immediate freezing of the account. The account will remain frozen until
     the matter is rectified.

F.   Conflict of Interest



                  Principal Investigator Reference Manual • Page 7
     The ASC considers it a conflict of interest when financial or personal
     considerations may appear to compromise a Principal Investigators judgment in
     conducting or reporting research, carrying out grant activity or conducting
     contracts. CSU policy states that it is unlawful for:

            any person to utilize any information, not a matter of public record,
            that is received by that person by reason of his or her employment
            by, or contractual relationship with, the trustees, the California
            State University, or an auxiliary organization of the California
            State University, for personal pecuniary gain, not contemplated by
            the terms of the employment or contract, regardless of whether the
            person is or is not so employed or under contract at the time the
            gain is realized.

     The ASC follows campus policy for reporting conflicts of interest. The Office of
     Grants and Contracts oversees the completion of the Conflict of Interest forms in
     the initial stages of proposal preparation; the Office of Sponsored Programs keeps
     current conflict of interest forms once the award arrives.

     It is the responsibility of the Principal Investigator to provide an updated Conflict
     of Interest Statement any time an event occurs that is – or may be construed as – a
     conflict of interest.

     The Conflict of Interest Policy does not prohibit the appointment of a closely
     related individual to a project so long as the Principal Investigator does not
     supervise or otherwise make personnel-related decisions regarding that relative.
     Transactions between the Principal Investigator and the related employees must
     be consistent with that of other employees.

     For purposes of this policy, closely related individuals are husbands, wives,
     mothers, fathers, sons, daughters, sisters, brothers or partners, who are related by
     blood or marriage.




G.   Cash Flow

     The government agency related projects: The ASC will advance funds for
     project-related expenses and then request reimbursement in arrears from the
     government agency. For new sponsors that are not government entities:
     Grants/contracts should be negotiated so that an advance payment of funds is
     awarded when the agreement is fully executed.

     The terms of a grant/contract should be negotiated to allow for reimbursement of
     expenses often enough to minimize the amount of ASC funds advanced to a
     project. Past due notices of increasing seriousness will be sent to sponsors when


                  Principal Investigator Reference Manual • Page 8
     payments are 30, 60 and 90 days past due. Projects with invoices that are more
     than 90 days past due will be suspended and no further charges against the project
     will be allowed until payments are made. Projects that continue to experience
     collection problems may be terminated and outstanding invoices may be turned
     over to collection agencies.

     Principal Investigators are responsible for ensuring that all funds received from
     any grant or contract are deposited into an ASC account. The ASC is responsible
     for:

             Disclosure of each project’s history, including: the documentation as to the
              source of fund awards, the accepted uses of those funds, history of
              authorizations, list of obligations, accounting of assets, detailed list of
              expenditures and incomes;

             Control and accountability for all funds, providing a comparison of budget
              to actual expenditures, and administering procedures that minimize
              elapsed time between expenditures and receipt of funds;

             Access to grant funds through letters of credit, invoicing, advances and
              other financial instruments;

             Audits of the ASC’s financial management systems through the services of
              an independent accounting firm to insure that internal controls are well
              documented and are being effectively operated.




H.   Budget

     1.       Grants/Contracts

              In most cases, a budget is provided to the Office of Sponsored Programs
              when the proposal is submitted to the sponsor. It is the Principal
              Investigator’s responsibility to ensure that the ASC has a copy of the final
              approved budget with line item detail before work begins.

              The ASC will then develop a Notice of Award & Control Record. This
              assigns an account number, budget categories and allocations; and
              identifies reporting requirements, agency terms and conditions, and
              agency contacts.




                   Principal Investigator Reference Manual • Page 9
            The official Notice of Award is the controlling budget document that will
            be distributed to Principal Investigators, department chairs, college deans
            and the Office of Grants and Contracts.

            Modifications among the budget categories may be made within the
            guidelines of the funding agency. Other modifications or revisions not
            covered by the funding agency guidelines will be honored only upon
            written authorization from the funding agency.

            Principal Investigators must control project expenditures as required by
            granting agency guidelines. On or about the fifth (5th) working day of
            each month, the ASC will prepare monthly Principal Investigator financial
            reports for the prior month’s activities. These reports detail monthly
            expenditures, encumbrance activities, variances, and balances for each
            budgeted category.       The monthly report will assist the Principal
            Investigator to insure that expenditure progress is in conformance with the
            approved budget. Principal Investigators should promptly review their
            monthly financial reports and contact the Sponsored Programs Office to
            resolve any discrepancies.

            If the project has personnel, payroll reports will also be provided with the
            monthly finance reports. Vacation accrual, CTO earned and staff pay are
            identified for each pay period. Employees should schedule to take
            vacation/time off during the grant funding period to avoid cash pay-out
            when the grant ends or the employee leaves.

     2.     Discretionary Funds

            Discretionary Funds are monies generated through conference registration,
            royalties, non-credit courses, sale of publications or other activity-
            generated income where no particular restrictions are defined.
            Discretionary funds may also be gifts or donations where no conditions
            are attached. Discretionary Funds may be used under the general policy of
            the University for cost sharing or university business related activities.




I.   Allowable Costs

     Regulations and policies governing costs may vary significantly among different
     sponsors. However, the guidelines of federal sponsors are typically the most
     prudent and will typically be used (along with GASB and FASB) to determine
     allowable costs. The Federal Acquisition Regulations (FAR), Office of
     Management and Budget (OMB) Circulars A-21, A-110, A-133, A122, and A-87




                 Principal Investigator Reference Manual • Page 10
are some of the most frequently used guidelines to determine whether an
expenditure is allowable.

In general terms, costs are allowable if they are:

        REASONABLE

        NECESSARY

        ALLOCABLE.


      When the decision is difficult or unclear, the legal approach is to ask the
“prudent person” question: “Would a prudent person make this expense?”
Another is the “front page” test: “If I were to read about this expense on the front
page of the paper, would I be embarrassed or proud?” Either implies that if there
is doubt, err on the side of caution.




1.       General Concept

         a.     Reasonable

                An expense is reasonable if the purchase is necessary, allocable,
                appropriate in quantity, and fairly priced. Occasionally, a
                purchase, which on its own may look unreasonable, may be
                reasonable when examined in context with its necessity. For
                example, a fishing trip to Hawaii in December may look
                unreasonable. However, in context (it is the only time the
                researcher can sample the migration of specific fish to their winter
                home), the expense becomes reasonable.

         b.     Necessary

                An expense is necessary if the purchase is needed to carry out the
                project. Will the project be harmed if this purchase is not made?
                The sponsor considers all expenses specifically identified in the
                approved budget necessary expenses.

         c.     Allocable

                A cost is allocable if the goods or services involved are chargeable
                in accordance with benefits received, or if it is incurred solely to
                advance the work under that project. Costs that benefit more than



              Principal Investigator Reference Manual • Page 11
            one project are not allocable when it cannot be determined how
            much each project benefits.

            Allocable costs may not be shifted to other sponsored projects to
            meet deficits caused by overruns. Nor may those cost be shifted
            to avoid restrictions imposed by law or the terms of the sponsored
            project. Allocable funds may not be shifted for reasons of simple
            convenience either.

2.   Specific Allowable Costs

     The following examples provide a brief overview of some expenses. See
     the award letter instructions for specific information about your award.

     a.     Communication

            Costs incurred for local and long distance telephone calls,
            telegrams, faxes, postage, etc., are allowable. (However, monthly
            telephone service charges are not allowable on most federal grants
            unless specified in the award.)

     b.     Salaries, Wages and Benefits

            Payments to individuals employed on the project during the award
            period are allowable when the total compensation to individual
            employees conforms to the established policies of the University
            and the ASC. Salaries and wages must be for work directly
            performed on sponsored projects and clearly documented.

     c.     Equipment

            Generally, equipment purchases are not allowable on federal grants
            and contracts. Permanent equipment is allowable only when such
            purchases are approved by the sponsoring agency or stated in the
            terms of the agreement. Equipment purchases must follow the
            ASC’s Purchase and Inventory Policies.

     d.     Publication

            Costs for publishing or printing technical, progress or final
            findings on a sponsored project is allowable.

     e.     Materials

            Costs for materials, supplies and fabricated parts directly related to
            the project are allowable.

     f.     Meetings and Conferences



          Principal Investigator Reference Manual • Page 12
            Costs for attending meetings whose primary purpose is the
            dissemination of technical information are allowable. Cost for
            attending meetings where the purpose is to further objectives
            clearly identified in the proposal are usually allowable. This
            includes cost of meals, transportation, rental facilities and other
            items incidental to such meetings or conferences.

     g.     Travel

            Travel expenses are allowable when specific work is directly
            attributable under an agreement. First-class air travel is not
            allowable. Travel on federal grants MUST comply with Federal
            Buy American Act (i.e., use of American air carriers only). All
            travel expenses must follow the CSU travel policy established
            by the Chancellor’s Office.




3.   Non-allowable Costs

     a.     Alcoholic Beverages

            Purchase of alcoholic beverages with federal funds is never
            allowable. Purchase of alcoholic beverages are not allowable on
            non-federal grants unless authorized in the approved budget and
            consistent with the purpose of the award.

     b.     Capital Expenditures

            Equipment, furnishings, buildings and substantial repairs (that
            materially increase the value or useful life of buildings or
            equipment) are not allowable except as provided in the sponsored
            agreement. Government funds shall not be used for the acquisition
            of land or any interest therein, except with the sponsoring agency’s
            specific prior approval

     c.     Entertainment

            Amusement, social activities, entertainment, gifts and any items
            relating thereto such as meals, lodging and gratuities are
            unallowable unless specifically approved in the agreement. These
            expenses are generally seen as benefiting an individual rather than
            promoting project objectives.



          Principal Investigator Reference Manual • Page 13
          d.      Memberships and Subscriptions

                  Costs for civic, business, technical or professional organizations
                  are normally not allowable (they are identified as benefiting an
                  individual).




J.   Encumbrances

     1.   Definition

          An encumbrance is how funds are committed, set aside or spoken for. The
          ASC reserves encumbered funds for payment at a later time.

     2.   How Funds Are Encumbered

          Complete a purchase order form and forward it to the ASC’s Accounts
          Payable. The form must include vendor name and address, projected
          expense, account number and object codes, and the amount. Purchase
          orders must follow all the regular Expense Policies.

          Subcontracts and consultant services are typical expenses for which funds
          should be encumbered.

     3.   Limit

          Encumbrance expenditures must be incurred during the grant/contract
          period and must be used prior to the end of funding period. Invoices and
          billings for encumbrances may be received after the grant/contract end
          date. However, final invoices for encumbered funds must be received
          within 60 days of the project end date.

     4.   Phone Purchase Orders (POs)

          ASC purchase order numbers may be obtained from Accounts Payable, by
          phone, for up to $500.00 for emergency purchases only. After receiving
          the PO number via phone, complete the Purchase Order Form as usual (be
          sure to include the PO number just assigned), then send it to the ASC to
          encumber the fund.

     5.   Clearing

          When goods or services are received, verify and forward the receiving
          report (the pink copy of PO) to the ASC to pay the invoice. Invoices
          received by the project must be sent immediately to Accounts Payable.




               Principal Investigator Reference Manual • Page 14
              Accounts Payable will pay invoices for purchase orders if a Receiving
              Report is on file.

              Notify the ASC as soon as possible for cancellations or changes to the
              order. This will disencumber funds for other expenses.

              Outstanding POs must be cleared before the project can be closed. POs
              are closed either when the invoices are received and paid, or when
              Accounts Payable is notified that an order is cancelled.




K.   Cost Overrun

     A cost overrun is when total expenditures and obligations exceed funding.
     Principal Investigators must ensure that all expenditures and obligations are
     within the approved budget. Principal Investigators must rectify cost overruns
     should they occur. Some available options to remedy cost overruns are:

             Principal Investigator’s available agency funds;

             Department funds, which will require the Chair or Dean to approve;

             Indirect Cost reallocation funds, which will require Dean approval; or

             Transfer expenditures to another closely related project (e.g., a cost
              sharing account, a subsequent project or prior project if the funding
              agency allows the expense).

     Contact the Director of Sponsored Programs to determine which options are
     available and appropriate.




L.   Approval for Grant Changes

     Each sponsor has preferences about how changes to the grant should be handled.
     Check the Control Record page of Notice of Award for approved or allowed
     changes.

     1.       No-Cost Extension

              When Principal Investigators need more time to complete the work, most
              sponsoring agencies will agree to some extension of time with no changes



                   Principal Investigator Reference Manual • Page 15
     in budget (No-Cost Extension). To request an extension, contact the
     Director of Sponsored Programs 45 days before the scheduled
     grant/contract termination.

     Extensions that require additional costs require detailed justification and
     negotiation and will go through the standard grant review and approval
     process.

2.   Changes Requiring Sponsor Approval

     The following always require prior granting agency approval:

             Changing the scope or objective of the approved project;

             Sub-contracting or transferring substantive project activities to a
              third party;

             Changing the Principal Investigator;

             Absence of the Principal Investigator for more than three
              consecutive months;

             Substantially changing the level of effort of key personnel (i.e.,
              PI);

             Budget reallocations in excess of the sponsor designated percent of
              the approved budget;

             Reallocation of funds specified for participant support to non-
              participant categories; and

             Reallocation of funds from other program costs to salaries and
              wages.

3.   Budget Adjustments

     Budget adjustments within approved categories not exceeding up to 25%
     of the total project budget are typically allowable. Refer to the specific
     terms and conditions of your award to determine the limits.

4.   Budget Change Requests

     Change requests must be made in writing; email requests will be honored
     so long as the email is sent from authorized signer(s) on the account.
     Requests to reallocate funds within approved budget categories may not
     exceed the maximum allowable amounts set by the sponsoring agency.
     Requests must include the following information:




            Principal Investigator Reference Manual • Page 16
                    Reason for the request;

                    Account Number(s);

                    Object code and amount from which the funds are to be
                     transferred; and

                    Object code and amount to which the funds are to be transferred

           The request will be reviewed and, if allowable, your request will be
           processed. You will be notified of any problems with the request;
           otherwise, you will be emailed when the request is completed.



M.   Cost Transfer

     1.    Corrections

           Cost transfers to correct clerical or bookkeeping errors must be made upon
           discovery. Request for error correction must include an explanation of
           how the error occurred and approval by the Principal Investigator. An
           explanation “to correct an error” or “to transfer to the correct
           object/project” is not sufficient.

     2.    How to Request

           Requests may be emailed to the Sponsored Programs accountant and must
           include the following information:

                    Full explanation of the transfer;

                    Account numbers being corrected;

                    Object codes;

                    Transaction date of the charge in error from the Account Directors
                     Report; and/or

                    The amount and vendor name of the transaction being corrected.

     3.    Notification

           The request will be reviewed and if allowable, your request will be
           processed. You will be notified of any problems with the request;
           otherwise, you will be emailed when the request is completed.

     4.    Related Projects



                  Principal Investigator Reference Manual • Page 17
            When work on two or more closely related projects are supported by
            different funding sources, costs may be transferred from the originally
            charged project to the other project(s) when all of the following conditions
            are met:

                      The cost is a proper and allowable charge to each grant;

                      The transfer is supported by documentation from the Principal
                       Investigator containing a full explanation and justification;

                      The transfer is reviewed and approved by the ASC; and

                      The transfer is made within 120 days of the original charge. A
                       transfer request after 120 days requires an explanation.

     5.     Documentation

            Documentation of cost transfers are kept for a period of three years unless
            otherwise specified in the terms and conditions of the award.




N.   Cost Sharing

     Many sponsored agreements require the University to contribute a portion of the
     costs. Documentation and accounting for cost sharing is as important as
     documentation of costs charged to the sponsor.          Specific cost sharing
     commitments are usually identified in the proposed budget and, unless
     renegotiated with the sponsor, are a firm commitment of University resources to
     the project

     1.     Types of Cost Sharing

            Cost sharing may be either cash or in-kind.

            a.         Cash

                       Monetary contributions made by another entity, usually the
                       University, to the project.

            b.         In-Kind

                       Contributions of value such as goods, materials, services, faculty
                       release time or other donations that are necessary to the successful
                       completion of the project.

     2.     Cost Sharing as a Proportion of the Total Budget



                     Principal Investigator Reference Manual • Page 18
            Expenditures will be allowed only in proportion to the documented cost
            sharing.

     3.     Procedures for Collecting Cost Sharing Information

            Requests for cost sharing documentation will be made to the Principal
            Investigator each quarter. Sponsored Programs will provide forms and
            suggestions for adequate cost sharing documentation.

     4.     How to Document Cost Sharing

            Cost sharing documentation follows the same criteria as allowable
            expenses; however, original receipts are not required on cost sharing.



O.   Project Renewals

     Principal Investigators must ensure that continuation/renewal procedures are
     properly completed. In order to secure the second and successive years of a
     grant/contract, reports should be submitted within 45 days to 120 days prior to the
     expiration date of the current budget period. Refer to the specific terms and
     conditions of your award to determine the timeline and required reports.




P.   Program Income

     Any project-related income (such as workshop registration fees, rental fees, sales
     of publications, royalties, or sales of materials and service fees) must be deposited
     in an ASC account in accordance with the sponsor’s regulations and agreements
     and reported to the sponsor. Program income shall be retained and added to the
     project to be used to further program objectives; used to finance the cost sharing
     of the project; or deducted from the total project costs when determining the
     sponsor share of the project. The sponsor will direct how program income must
     be handled.




Q.   Technical Progress/Performance Reports

     Most granting agencies require progress reports at various intervals of a
     grant/contract. Progress reports will always be requested for grant continuation,
     renewal and close-out. Upon project completion or termination, a final technical
     report, prepared in accordance with the applicable program rules, is required.
     Principal Investigators must submit reports directly to the granting agency.



                 Principal Investigator Reference Manual • Page 19
     Principal Investigators who have contracts instead of grants may be required to
     deliver specified products or services. Principal Investigators must also submit
     copies of all reports and transmittal letters to the Office of Sponsored Programs.
     If the report is too long to submit a complete copy to the Office of Sponsored
     Programs, provide a copy of the table of contents and executive summary as well
     as the transmittal letter. Technical progress reports may present:

           A statement of actual accomplishments towards goals and/or the findings
            of the Principal Investigator;

           Reasons why goals were not met;

           Other pertinent data;

           Other requirements of the sponsor, and

           Problems or favorable developments during the reporting period.

     Technical reports, data, findings, published papers, deliverables, copyrights or
     final products are the property of the University/ASC unless the
     contract/agreement specifies joint ownership with the sponsor. All project records
     must be kept on campus and in the office of the Principal Investigator or the ASC.




R.   Financial Report

     In addition to Progress Reports, most sponsors also require financial reports. The
     ASC provides financial reports that include all expenditures, program income,
     cost sharing contributions and other financial information as required by the
     sponsor. Depending on the terms and conditions of the grant or contract,
     unobligated project funds will be returned to the sponsor or remain in the account
     until fully expended on project-related activities. Principal Investigators must
     have the Director of Sponsored Programs review and approve financial reports
     before they are submitted to the sponsor.




S.   Grant/Contract Closeout

     As with any major endeavor, a project account cannot be closed until all
     paperwork is complete. The ASC sends close-out notices 90, 60 and 30 days prior
     to the end date. These notices request the Principal Investigator to take certain
     actions to facilitate the close of the project.



                 Principal Investigator Reference Manual • Page 20
     1.     Items Required for Closeout

                    Submission of the final technical report by the Principal
                     Investigator;

                    Final invention statement;

                    Final fiscal report (from the ASC);

                    Cost sharing data, if required;

                    Account of all equipment (if any) purchased under the project, as
                     well as disposition status of the equipment;

                    All project allowable costs submitted to the ASC (including
                     assurances that all personnel payments, including release time have
                     been processed, paid and documented);

                    Clearing of travel, advances and encumbrances;

                    Final arrangements for all personnel assigned to and/or working on
                     a sponsored project;

                    If personnel on a grant are not going to be reassigned to another
                     sponsored project or department or University account, Principal
                     Investigators must complete employee termination forms following
                     ASC procedures;

                    Disposition of over expenditures; and

                    Other miscellaneous requirements of the sponsor. (Sponsors
                     sometimes have other requirements or expectations to be met
                     before a grant can be closed. These may include presentations,
                     publications, or other activities. All expectations specified in the
                     notice of award or contract must be met before a grant can be
                     closed.)



T.   Audit Requirements & Record Retention

     The ASC and all sponsored projects are subject to audits. An external,
     independent accounting firm conducts annual audits; this same firm performs the
     A-133 audit of federally funded programs, required each year of organizations
     that expend $500,000 or more in a year of federal awards.




                   Principal Investigator Reference Manual • Page 21
            Periodic audits are also performed by the Chancellor’s Office, federal funding
            agencies, private sponsors and other interested parties.

            It is imperative that policies and procedures are followed at all times and that
            current and accurate records are kept. Research materials and records must be
            retained on campus so that they are readily available for auditor reviews.




III.   HUMAN RESOURCES

       A.   Employee Definitions and Classifications

            1.     Definitions

                   Employer is the legal entity that directly or indirectly employs or
                   exercises control over the wages, hours or working conditions of another
                   person. The employer is legally responsible for the collection and
                   payment of payroll taxes including federal and state income taxes, Social
                   Security and unemployment taxes and workers’ compensation insurance.
                   The employer must also provide designated fringe benefits for eligible
                   employees.

                   Employee is one who performs services under the direction and control of
                   the employer. It does not matter that he/she is permitted considerable
                   discretion of freedom as long as the employer has the legal right to control
                   both the method and result of the services.

                   Non-Employees, typically called Independent Contractor or Consultant,
                   are generally self-employed individuals with direct control over their work
                   and whose services are undertaken on a fee arrangement. Independent
                   Contractors/Consultants are not on the payroll of University or ASC. The
                   IRS has specific rules to determine if someone is an Independent
                   Contractor/Consultants; therefore, it is important to obtain advance
                   approval from the ASC prior to engaging the services of an Independent
                   Contractor/Consultant. For details and more information regarding
                   Independent Contractors, see the Independent Contractors section.

            2.     Classifications

                   Full-time employees work a regular schedule of 40 hours or more a week.

                   Part-time benefited employees work a regular schedule of at least 30, but
                   less than 40, hours a week.

                   Part-time employees work a regular schedule of one 1 to 25, but less than
                   30, hours a week.


                        Principal Investigator Reference Manual • Page 22
     On-call employees work only when scheduled for a specific assignment or
     for a set number of hours as required. Normally, on-call employees do not
     work a regular daily schedule.

     Temporary employees are offered employment for a specified duration.
     Normally these appointments are made from one 1 to 90 consecutive
     workdays but generally do not exceed 18 months. Temporary employees
     do not typically receive benefits. The maximum appointment for a
     temporary, full-time employee without benefits is nine (9) months.
     Temporary, full-time appointments for a minimum of 12 months will be
     eligible to receive benefits.

     Acting appointments are positions that perform duties of a position for a
     specified length of time, generally not to exceed one year.

     Grant/contract employees are hired for a specified time and are paid
     from external funding sources other than the ASC. The terms and
     conditions of employment are set forth in the funding agency’s contractual
     agreement. However, all agreements regarding employment should be
     made in accordance with the ASC’s policies and procedures. Employment
     is normally for a one-year duration, but may be extended. Employment
     may be considered full-time, part-time, temporary or on-call.

     Student employees are enrolled at CSUF either part- or full-time, with a
     regular work schedule not to exceed 20 hours a week.

3.   Types of Employment

     ASC employees are either exempt or non-exempt.

     Exempt employees are paid for the duties and responsibilities of the
     position they perform, and not according to hours worked. These
     employees are exempt from overtime regulations. Minimum salary
     requirement for exempt employees is a weekly salary equivalent to two
     times the hourly minimum wage rate. Part-time and temporary employees
     are usually not considered exempt. The ASC will determine if
     employment is exempt from overtime or non-exempt.

     Non-exempt (including hourly) employees are paid for hours worked
     and are paid overtime for hours worked over eight (8) hours a day or 40
     hours a week. These employees are covered by wage and overtime
     regulations.

4.   University Employees in general, persons who are performing services
     under the will and control of the University and are compensated by the
     University payroll system.




          Principal Investigator Reference Manual • Page 23
     5.    Overload is additional employment over the equivalent of a full-time
           assignment within the California State University and its auxiliaries.
           Within the CSU system including all auxiliaries, employees may not be
           employed more than a total of 125% time.




B.   Non-Student Recruitment Procedures

     1.    Recruitment

           a.     Recruitment must be conducted for all vacant full-time and
                  benefited part-time ASC positions.

           b.     The ASC shall post a position announcement for a minimum of
                  seven (7) days or until a qualified applicant is selected for the
                  position.

           c.     Internal recruitment announcements will be posted at the ASC
                  administration office, website, Bookstore, Food Court, Carl's Jr.,
                  Associated Students, Career Development Center, University HR
                  office, and other appropriate locations.

           d.     Consideration will be given to all employees who apply for a
                  position with qualifications essential to perform the required job
                  duties.

           e.     Vacant positions may be filled by internal applicants or
                  recruitment may be extended to other CSU campuses. General
                  advertising may also be conducted using various publications,
                  newspapers and electronic media.

           f.     Recruitment will not be required for grant/contract positions where
                  an individual was named specifically in the agreement, or a grant
                  was created for that individual.

           g.     When a position vacancy occurs, the appropriate hiring
                  manager/supervisor should complete an Employment Requisition
                  form.

           h.     The Employment Requisition form will require the following
                  information:

                          Position title




                Principal Investigator Reference Manual • Page 24
                     If the position is new to the ASC, a formal job description
                      (for evaluation and grade assignment)

                     Type of position, length of assignment and number of hours
                      to be worked

                     Recruitment instructions

                     Specific announcement information and any changes to be
                      made to the formal job description

                     The Employment Requisition form must be signed by the
                      initiating supervisor, the department manager, the project
                      director and the department chair.

     i.     All applicants/resumes received will be dated and logged
            according to the date received.

     j.     All applications/resumes received will be given to the initiating
            supervisor, manager, department or committee for qualification
            assessment and interview selection.

2.   Qualification Assessment/Screening

     a.     Applications and/or resumes will be accepted from applicants for
            available positions.

     b.     The assessing (screening) of applicant qualifications may be
            performed by the department requesting the position, HR,
            assessment committee members or any combination thereof.

     c.     If a committee is used, it should be composed of at least three (3)
            individuals, with one designated to coordinate procedures with HR.

     d.     Applications/resumes will be evaluated based on each applicant’s
            qualifications with regard to the minimum requirements,
            experience and education stated on the job announcement.

     e.     An explanation shall be provided for all applications/resumes
            deemed as unqualified.




3.   Interviews




          Principal Investigator Reference Manual • Page 25
     a.     A search/assessment committee is recommended for the interview
            and selection of professional, administrative and management
            staff.

     b.     Interviews for clerical support may be conducted by an assessment
            committee, the initiating supervisor, staff within the department,
            director of the department and/or human resources.

     c.     Whenever possible, a minimum of three (3) applicants should be
            interviewed for each position. The department or the assessment
            committee will determine the maximum number of applicants to be
            interviewed.

     d.     Before the interview process begins, the committee shall review
            the job description, the minimum requirements for the position,
            responsibilities of the position, clarify questions that may be asked,
            and review the criteria that will be used to select the individual for
            the position.

     e.     The interview process will be person-to-person interaction with the
            applicant. The interview should be used to obtain information
            about the applicant and to assess their knowledge, skills,
            experience and qualifications.



4.   Selection

     a.     Recommendation of an applicant to fill a vacancy shall be based
            on the decision of management, assessment committee, Human
            Resources, and/or other individuals conducting the interview. The
            chair/dean/unit director and/or the Executive Director will have the
            final decision regarding selection of an individual to fill a position.

     b.     Consideration shall be given to the qualifications, knowledge,
            experience, skills and ability of the applicant to meet the needs of
            the department. Verification of references, education (degrees,
            certificates, credentials) and other relevant information should be
            conducted during the consideration process.

     c.     The rating of each applicant will be completed on an Applicant
            Evaluation form. Each member on the interviewing committee
            should evaluate each applicant individually and the coordinator
            shall be responsible for completing an overall evaluation; making a
            recommendation for selection; and providing a justification or
            explanation as to why other applicants were not recommended.




          Principal Investigator Reference Manual • Page 26
            d.     The Human Resources Manager and/or the Executive Director or
                   his/her designee shall review the recruitment documentation used
                   in making the selection to ensure that the selection was based on
                   the qualification of the applicants.

            e.     Typically, a verbal offer will be extended to the applicant by the
                   department supervisor/manager or Human Resources. Human
                   Resources will provide written notification (an appointment letter)
                   restating the verbal offer, providing an explanation of benefits, as
                   well as spelling out any conditions of the appointment.

     5.     Notification

            Notification letters will be sent to applicants not selected by the Human
            Resources department within 14 days after the selection is made.

     6.     Retention of Records

            All resumes/applications are to be returned to the ASC Human Resources
            department after completion of recruitment process. Applicant and
            interviewee records and paperwork will be retained by the Human
            Resources department for one (1) year.




C.   Student Recruitment Procedures

     A student employee is one who works for the ASC and takes course(s) at CSUF.
     Student employees qualify for Social Security and Medicare tax exemptions as
     long as student status is maintained with CSUF Admissions and Records. ASC
     Payroll requires a copy of the fee receipt to exempt Social Security and Medicare
     taxes. Students are normally recruited directly by Principal Investigators or the
     department. The newly hired student must be scheduled for orientation before the
     student starts employment. During the orientation, new hire documents will be
     completed, which will formally place the student on payroll. The I-9 form should
     be completed during the orientation, but must be completed no later than the third
     day of employment.

     1.     New Hires

            The ASC’s Human Resources department recommends that all newly
            hired employees be scheduled for orientation and/or be sent to HR for
            completion of new hire documents. Human Resources is located at
            College Park, Suite 275. Documentation for newly hired or re-hired



                 Principal Investigator Reference Manual • Page 27
     employees should be completed on or before the first day of employment.
     If the ASC is informed of new hires, Human resources will schedule and
     complete the new hire documents with the employees.

     To be placed on the ASC’s Payroll, the documents required are as follows:

             Personnel Transaction Report (PTR). The PTR must include
              the name of the department, job title and salary or hourly wage
              (compensation for part-time employees is submitted as hourly
              wage). All appropriate sections of the PTR must be completed.

             Application. The original application must be submitted with the
              PTR. All requested information must be completed including a
              complete work history. The application must be signed by the
              applicant.

             I-9 Form. The I-9 must be completed within three (3) business
              days of the start of employment. Original documents that establish
              identity and employment eligibility must also be submitted.
              Copies of the documents used to verify employment eligibility
              should be submitted with the completed I-9 form. (If using more
              than one document, documents must be in the same name).
              Employees unable to provide acceptable documentation after three
              (3) business days will not be scheduled for work. The individual
              verifying the documents must sign and date the I-9 Form. I-9
              documentation must be copied separately.

             For the requirement of an employee completing an I-9, the ASC
              and the University are considered separate entities. Therefore,
              employees of the University who accept positions with the ASC
              must also complete new hire documents including the I-9.

             Affirmative Action Data Sheet. Complete all appropriate lines.

             W-4 Form. If a W-4 is not submitted with the new hire
              paperwork, the maximum income tax deduction (Single, 0) will be
              taken.

             Work Permit. Work permits are required for individuals under 18
              who have not completed high school. The Work Permit must be
              completed before the minor starts employment.

             Drug-Free Workplace Form. These forms are required for
              federal and state grants/contracts.

2.   Change Notice




            Principal Investigator Reference Manual • Page 28
           All Payroll-related changes must be made on a PTR with the appropriate
           authorized signatures. Check the Change Notice Box on the PTR and
           specify the appropriate changes to be made. Include present status and the
           new, proposed, status on the appropriate line. Employee status changes,
           such as department account number, Salary/wage, should be made at the
           beginning of a pay period. If the reason for the change is not provided
           on the PTR form, use the remarks/reason section to identify the change to
           be made.

           Employees transferring from one department to another should be
           processed as a change notice from the current department to the new. If
           this method is used, it will not be necessary to terminate an employee from
           the current department or account and hire the individual in the new
           department or account

           To correct information in personnel files and payroll, submit a PTR.

     3.    Terminations

           For terminations, check appropriate box on the PTR and complete the
           Termination Data section. In the Remarks section, or as an attachment,
           provide an explanation for the termination.

           By law, if the employee gives the supervisor 72 hours notice of
           termination, that employee must be given a final check their last day of
           work. Supervisors must notify the ASC immediately of all termination
           notices.




D.   Payroll Procedures

           All ASC employees are paid through the ASC’s payroll which requires
           federal and state tax withholding. At the end of each calendar year,
           employees will receive a Wage Statement Form W-2. Independent
           Contractors are paid through the use of Personal Income Check Request
           (PICR) or Purchase Order (PO) forms through Accounts Payable.




           Timesheet deadlines




                Principal Investigator Reference Manual • Page 29
     All employees, including salaried and hourly, must submit electronically
     or a hard copy timesheet to receive pay. Both the employee and
     supervisor must sign the hard copy timesheet to document hours worked
     and/or leave taken for each pay period. Only the supervisor will be
     required to sign time submitted through Time Trak, the automatic system.
     University non-exempt employees working for the ASC must submit a
     copy of the University completed time sheet when submitting time sheets
     to the ASC for payment. Paychecks for timesheets submitted late may be
     issued the next pay period. Payroll schedules listing pay period begin and
     end dates, timesheet due dates, and pay dates, are available at HR.




     Work Week/Rest Period

     The workweek begins 12:01 a.m. Sunday and ends 12:00 a.m. (midnight)
     Saturdays. Supervisors set the time of work for their employees including
     scheduling a minimum of a 30-minute meal period. All non-exempt
     employees must take a minimum of one (1) 10-minute break for each four
     (4) hours worked. Rest periods should be taken in the middle of the four-
     hour work period. Rest periods may not be taken at the beginning or end
     of the work period and rest periods are not cumulative.




1.   Wages

     Minimum wage is currently (as of 01/01/2008) $8.00 per hour. The ASC
     is required to pay the higher of either the federal or state minimum wage.
     Principal Investigators may pay above the minimum wage in accordance
     with project budgets and position.

     Overtime wages are paid to non-exempt employees for work over eight
     (8) hours in a workday, 40 hours in a workweek. By law, the ASC is
     required to pay overtime and must count time worked on campus towards
     total hours worked.

     Double-time wages will be paid to non-exempt employees who work over
     12 hours in a workday or on hours worked, consecutive day, during the
     workweek. By law, the ASC is required to pay double-time and must
     count time worked on campus toward total hours worked.




          Principal Investigator Reference Manual • Page 30
     Make-up time is used by employees, at straight time pay, to compensate
     for work time missed. Make-up time may be used if the following
     conditions are met:

             Time is made up in the same workweek that the time was missed;

             Employee submits a written request each time the make-up time is
              requested;

             Time missed was because of the employee’s personal obligation;

             Time made up does not cause the employee to work more than 11
              hours in a workday or more than 40 hours in a workweek;

             The supervisor approves the employee’s written request; and

             The ASC/supervisor does not solicit or encourage the employee to
              make up the time.

2.   Payroll Taxes

     As an employer, the ASC is required by law to contribute to Social
     Security taxes (FICA), State Unemployment Insurance (SUI) and Workers
     Compensation for each employee.

3.   Check Disbursement

     Payroll checks are disbursed every two weeks on Friday from Payroll or
     the work area department. All employees must sign for their checks/check
     stubs whether their checks are direct-deposited, mailed, released to
     another individual or received in person.

     Direct deposits are available to all ASC employees. Complete an
     Authorization Agreement for Automatic Deposit form from Payroll.
     Submit the completed form along with a voided check to Payroll.

     Checks to be mailed require the employee’s initials on the timesheet or
     an employee- completed authorization form for the appropriate pay period.
     Checks will be mailed to the address on record.

     Check releases authorize another individual to pick up an employee’s
     check from the department or Payroll. The payee must complete an
     Authorization to Release Paycheck form or provide written authorization
     indicating the pay period of the check and the name of the individual to
     whom the check is to be released

4.   Payroll Deductions




            Principal Investigator Reference Manual • Page 31
     Automatic payroll deductions are made for federal and state income taxes,
     mandatory Social Security and Medicare (FICA) taxes and mandatory
     State Disability Insurance (SDI) taxes. If an employee is eligible and
     participating in the retirement plan, TIAA-CREF contributions are also
     deducted.

     Employees may authorize additional voluntary deductions for various
     insurance plans, tax annuity programs and parking decals.




5.   Benefits

     Employees who have completed two years of employment and are
     scheduled to work 1,000 hours yearly are eligible for retirement benefits.
     As an employer, the ASC/Project funds will also contribute to retirement,
     health, dental, life, long term disability insurance and vision care benefits.
     The project funding is responsible for paying the employer’s contribution
     for all employee benefits.

     Regular and 12-month temporary/acting employees may be eligible for
     the following benefits:

             Medical                                          Health Flex Plan

             Dental                                           Vacation

             Vision                                           Sick Leave

             Retirement                                       Holiday Pay

             Life Insurance                                   Jury Duty

             Long Term Disability                             Supplemental Retirement
                                                                Annuities
             Tuition Reimbursement

     Part-time employees who work a regular schedule of a minimum of 30,
     but less than 40, hours weekly may be eligible for the following benefits:

             Medical                                          Dental



            Principal Investigator Reference Manual • Page 32
                 Retirement                                 Sick Leave

                 Life Insurance                             Holiday Pay

                 Vacation                                   Supplemental Retirement
                                                              Annuities
           Hourly employees who work less than a regular schedule of 30 hours
           weekly are not eligible for benefits.

     6.    Wage Garnishment

           The ASC is required by law to accept and process Abstracts of Judgment,
           Federal Notices of Levy, Court Orders of Assignment, and State Franchise
           Tax Board Levy Notices against employee wages. Employees will be
           notified when such orders are received.

E.   Payments to Faculty

     1.    Release Time

           Faculty Release Time is used to “buy out” a faculty member’s time.
           Weighted teaching units (WTUs) are released when a Dean authorizes a
           faculty member to spend time working on a project instead of teaching a
           class. The grant reimburses the University for this time. Based on WTUs,
           the faculty member is released to work on the project at their regular
           salary rate. Occasionally, the Dean may contribute ‘in-kind’ cost sharing
           to a project by matching the faculty release time or accepting a lower
           reimbursement rate, based on the difference in the tenured faculty pay rate
           and the adjunct faculty pay.

           A faculty member working on a project during the academic year must
           complete a Release Time form that identifies the number of units being
           released for each project. The form also identifies which of those WTUs
           the project reimburses or is cost-sharing. The form must be approved by
           the Dean and returned to the Office of Sponsored Programs. Sponsored
           Programs will work with the campus payroll office to determine the dollar
           value of the release time. Principal Investigators are required to complete
           and sign a purchase order to encumber the funds for the University
           Cashier’s Office in care of the designated department account (vendor).
           Department chairs or college deans are required to sign the purchase order,
           at which time, Accounts Payable will then send the PO to the University
           Cashier’s Office. Upon receipt of a University invoice, Sponsored
           Programs will reimburse the funds from the project. Reimbursements are
           made once each semester.

     2.    Summer and Intersession and Overload Salary




                                   PI Reference Manual • Page ii
            Employees performing duties that are outside of their normal work
            assignment are eligible for overload employment. This employment is for
            work performed outside the normal work hours of the employee’s regular
            assignment. For faculty this is typically during the Summer and
            Intersession periods.




F.   Personnel Policies

     1.     At-Will Employment

            All ASC employees are employed at-will. This means that either the ASC
            or the Employee may terminate the employment relationship at any time,
            with or without notice, or with or without cause. The ASC retains the
            right to establish compensation, benefits and working conditions for all of
            its employees. This means that the ASC retains the sole discretion to
            change employee’s work hours, modify work schedules, compensation
            and benefits, position, duties and other terms and conditions of
            employment, including the right to impose discipline of whatever type and
            for whatever reasons the ASC, at its sole discretion, determines to be
            appropriate. Accordingly, the ASC does not enter into written or oral
            contracts or agreements guaranteeing employment or compensation for
            any particular period of time with any employee.




     2.     Equal Employment Opportunity

            The CSU Fullerton Auxiliary Services Corporation (CSU Fullerton ASC)
            is an equal opportunity employer and is committed to an active
            nondiscrimination program. It is the stated policy of the CSU Fullerton
            ASC that all employees and applicants shall receive equal consideration
            and treatment.      All recruitment, hiring, placements, transfers and
            promotions will be made on the basis of qualifications of the individual for
            the positions being filled regardless of race, color, religion, ancestry,
            national origin, age sex marital status, medical condition and physical or
            mental disability. All other personnel actions such as compensation,
            benefits, layoffs, returns from layoffs, training, social and recreational
            programs, discipline and terminations are also administered regardless of



                          PI Reference Manual • Page 29
     race, color, religion, ancestry, national origin, age, sex, marital status or
     physical or mental disability.

     The ASC’s nondiscriminatory program actively recruits and includes for
     employment consideration all employees including members of minority
     groups, females and physically/mentally challenged individuals. All
     decisions of employment and promotions will be made solely on the
     individual’s qualifications for the job in question and the feasibility of any
     necessary job accommodations.

     It is the responsibility of each employee to help maintain a work
     environment that promotes this policy. Any employees with questions or
     concerns about any type of action that is or perceived to be discriminatory
     in the workplace should bring these issues to the attention of the
     department, Human Resources Manager or the Executive Director.
     Employees may raise concerns and make complaints without fear of
     reprisal. Anyone found to be engaging in any type of discrimination will
     be subject to disciplinary action up to and including termination of
     employment.

3.   Sexual Harassment

     Sexual harassment violates state and federal laws. Sexual harassment of
     ASC employees, by any individual or employee, in or around the
     workplace in any form is prohibited.

     Sexual harassment includes, but is not limited to, the following:

           Sexual innuendo, suggestive remarks, vulgar or explicit language
            or unwelcome propositions;

           Sexually oriented kidding, teasing, practical jokes or telling of
            sexual stories;

           Unwelcome physical contact such as brushing against another's
            body, pinching or patting; and

           An offensive overall environment, including the presence of
            sexually explicit photographs and other materials.

     Sexual harassment includes, but is not limited to unwelcome sexual
     advances, requests for sexual favors, or other verbal, visual or physical
     conduct of a sexual nature when:

           Submission to such conduct is made either expressly or implicitly,
            by a term or condition of an individual's employment;




                  PI Reference Manual • Page 30
           Submission to or rejection of such conduct by an individual is used
            as the basis for employment decisions affecting the individual;

           Such conduct has the purpose or effect of unreasonably interfering
            with an individual's work performance; creating an intimidating,
            hostile or offensive working environment; or adversely affecting
            the employee's performance, evaluation advancement, assigned
            duties or any other condition of employment or career
            development; or

           Any act of retaliation against an employee for reports of violations
            of this policy or for participation in the investigation of a sexual
            harassment complaint.

     Each project Director, Principal Investigator, Department Manager and
     Supervisor has the responsibility of maintaining a work environment free
     of sexual harassment. This responsibility includes discussing the Sexual
     Harassment Policy with his/her employees and informing them of the
     procedures to be taken if they are subjected to unacceptable behavior or
     working conditions.

     All employees are responsible for ensuring that the ASC remains free of
     workplace harassment. Employees experiencing or witnessing workplace
     harassment should immediately inform their supervisor or the Human
     Resources Manager.

     Each complaint will be investigated as quickly and confidentially as
     practicable to determine the merits of the complaint. An individual who
     knowingly makes false accusations regarding sexual harassment that are
     unsubstantiated by an investigation, will be subject to appropriate
     disciplinary action up to and including termination. The determination of
     an employee’s involvement in any type of sexual harassment will result in
     disciplinary action up to and including termination.

4.   Conflict of Interest

     Section 89006 of the California Education Code reads as follows:

      a. It is unlawful for any person to utilize any information, not a matter
         of public record, that is received by that person by reason of his or
         her employment by, or contractual relationship with, the trustees, the
         California State University, or an auxiliary organization of the
         California State University, for personal pecuniary gain, not
         contemplated by the terms of the employment or contract, regardless
         of whether the person is or is not so employed or under contract at
         the time the gain is realized.




                  PI Reference Manual • Page 31
5.   Drug-Free Workplace

     It is the policy of the ASC to prohibit the use, sale, dispensing, procession
     or manufacture of illegal drugs (controlled substances) in the workplace.
     This prohibition also covers all legal or prescription drugs that may impair
     an employee’s ability to perform his or her job safely or properly.

     The ASC maintains routine communication of this policy to grant/contract
     employees; additionally, all employees are informed of the dangers of
     drug abuse in the workplace. Employees in need of counseling or other
     related assistance will be provided with referrals to available assistance
     programs.

     Any supervisor who becomes aware of an employee who is demonstrating
     behavior patterns that appear to be related to illegal drug activity should
     report the observed behavior to the director or the Human Resources
     manager or designee.

     Violations of this policy may lead to disciplinary action, up to and
     including termination of employment.




6.   Health and Safety

     The health and safety of employees on the ASC’s properties are critical
     concerns to the ASC. The ASC strives to attain the highest possible level
     of safety for all activities and operations. The ASC also intends to comply
     with all health and safety laws applicable to our business.

     To attain this objective, the ASC must rely on each employee to ensure
     that work areas are kept safe and free of hazardous conditions. Employees
     should be conscientious about workplace safety and follow proper
     operating methods as well as report any known dangerous conditions or
     hazards to the supervisor immediately.

     Employees should be informed that it is their responsibility to report a
     workplace injury, accident or illness to the supervisor/manager
     immediately (at the time of occurrence) regardless of how minor the injury
     or accident may appear. If the supervisor/manager is not available, the
     report of injury should be made to the department director or Human
     Resources. Failure to report accidents may result in a violation of legal
     requirements and may lead to difficulties in processing the claim.




                  PI Reference Manual • Page 32
           The notification is required to enable the ASC to provide immediate
           treatment for any work-related injury and to correct unsafe conditions.
           Employees informing the supervisor or any other ASC staff of a work
           related injury or an unsafe working condition will not be retaliated against
           in any manner.

           Worker’s Compensation insurance is available through State
           Compensation Insurance Fund.          Concentra Medical Center (a.k.a.
           Fullerton Placentia Medical Center) is designated for treatment of work-
           related injuries for ASC employees. The Concentra Medical Center is
           located at 640 S Placentia Ave, in the city of Placentia and in various
           cities in Southern California. Their phone number is 714-579-7772.




G.   Performance Appraisal

     1.    Newly hired employees shall be evaluated following approximately six (6)
           months of employment. This evaluation will typically not include any
           commensurate increase in salary. At this appraisal, goals and objectives
           should be made for exempt employees.

     2.    All employees shall be evaluated annually by their supervisor. Salaried
           exempt and non-exempt employees should be evaluated during June or
           July of each year. Adjustments for salaried full-time employees will be
           effective at the beginning of the pay period for the first payday in August.

     3.    All part-time employees may be evaluated annually or semi-annually as
           determined by the department. Part-time employees may be appraised
           February through March and/or August through September. Adjustments
           for part-time employees will be effective at the beginning of the pay
           period for the first payday in March/April or September/October.

     4.    Performance appraisals should also be conducted at any time a noticeable
           change in an employee’s performance is observed.

           a.     Good performance should be documented and new goals and
                  objectives established that reflect the capabilities and strengths of
                  the employee.

           b.     Performance that requires improvement should be documented to
                  identify specific areas requiring improvement. Specific goals and
                  objectives should be established that outline any behavioral
                  changes required including an appropriate time period in which
                  progress or completion of the desired goals should be attained.



                        PI Reference Manual • Page 33
5.        Process for submission of Employee Appraisals:

          a.     Appraisal forms are available in hard copy, on disk or
                 electronically.

          b.     Human Resources will issue performance appraisals and salary
                 review forms for each salaried employee eligible for an appraisal
                 during the month of June.

          c.     Human Resources will issue performance appraisals and salary
                 review forms to supervisors/managers for part-time employees
                 during the month of August.

          d.     Managers and supervisors who wish to appraise their employees
                 outside the regular review cycle period or every six (6) months
                 should request forms from Human Resources at least one (1)
                 month prior to the effective date of the appraisal.

6.        Appraising the Employee

     a.        All appraisals should be completed in ink, typed or on the computer.

     b.        The performance appraisal is to be completed by the
               supervisor/manager, discussed with the next level of supervision,
               discussed with the employee and, if appropriate, recommend a salary
               increase.

     c.        The appraisal should be based on the position description and the
               accomplishment of specific goals and objectives established for the
               appraisal period.

     d.        The evaluation should consider the total performance of the
               employee throughout the entire appraisal period and should avoid the
               tendency to only include information that occurred during the final
               months.

     e.        The performance of the employee should be evaluated, not the
               employee.

     f.        Supervisors/managers should consider input provided by the
               employee in completing the appraisal that will be submitted for the
               personnel file.

     g.        For management and exempt staff, goals and objectives should be
               established during the appraisal period.

     h.        Salaried employees should not be informed of merit adjustment
               recommendations until the adjustments are approved. Part-time



                      PI Reference Manual • Page 34
                employees should not be informed of merit increase
                recommendations until approved by the director or Program
                Manager.

     7.    Employee Signature

           Employees should be encouraged to provide comments on the appraisal
           and acknowledge the discussion of the appraisal by signing the form. In
           the event an employee declines to sign the form, the supervisor/manager
           should sign and date the document nonetheless.




H.   Independent Contractors

           Employees of the CSU or its auxiliaries cannot be Independent
           Contractors for the ASC. By definition, independent contractors are self-
           employed individuals whose services are engaged by contract to perform
           specialized work. These services often require a high level of skill,
           discretion and independent judgment. The recipient of services by the
           Independent Contractor may not control or direct either the work or
           worker. Such control indicates the arrangement of employment, not of
           Independent Contractor services. Independent Contractors may be
           retained directly by the company or may be provided by a staffing. At the
           end of the calendar year, Independent Contractors will receive a
           Miscellaneous Income Statement Form 1099 if they earned $600.00 or
           more. If independent Contractor is from outside of state or country a 542-
           B will be received for taxes deducted during the year and at a 7% (state)
           and 30% (federal).

     Here are more guidelines to determine if someone can be classified as an
     Independent Contractor:

     1.    Description


           a.            INSTRUCTIONS. Is the person providing services required
                  to comply with instructions about when, where and how the work
                  is to be done?

                  A worker who is required to comply with other’s instructions about
                  when, where and how he or she is to work is ordinarily an
                  employee. This control factor is present if the person(s) for whom
                  the services are performed has the right to require compliance with



                         PI Reference Manual • Page 35
     instructions. Independent Contractors are not controlled by
     detailed instructions, but rather by specific deliverables that they
     are contracted to provide.


b.         TRAINING. Is the person providing services given training
     to enable him to perform a job in a particular method or manner?

     Training a worker indicates that the person(s) for whom the
     services are performed wants the services completed in a particular
     method or manner. Extensive training is usually reserved for
     employees, not Independent Contractors. This rule does not
     preclude the Independent Contractor from receiving adequate
     knowledge and instruction to perform their services.


c.         INTEGRATION. Are the services provided integrated into
     the business’ operations?

     Integration of the worker’s services into the business operations
     generally shows that the worker is subject to direction and control.
     When the success or continuation of a business depends to an
     appreciable degree upon the performance of certain service, the
     workers who perform those services must necessarily be subject to
     a certain amount of control by the owner of the business. Persons
     strongly integrated into regular business operations are typically
     employees, not Independent Contractors.


d.         SERVICES RENDERED PERSONALLY.                      Must the
     service be rendered personally?

     If the services must be rendered personally, presumably the person
     for whom the service are performed is interested in the methods
     used to accomplish the work as well as in the results. This
     indicates an employment situation, not that of an Independent
     Contractor relationship.


e.         HIRING, SUPERVISING, AND PAYING ASSISTANTS.
     Does the business hire, supervise, or pay assistants to help the
     person performing services under contract?

     If the person(s) for whom the services are performed hire,
     supervise and pay assistants, that factor generally shows control
     over the workers on the job. However, if one worker hires,



          PI Reference Manual • Page 36
     supervises and pays the other assistants pursuant to a contract
     under which the worker agrees to provide materials and labor and
     under which the worker is responsible only for the attainment of a
     result, this indicates an Independent Contractor status.


f.         CONTINUING RELATIONSHIP.              Is the relationship
     between the individual and the person who performs the service a
     continuing relationship?

     A continuing relationship between the worker and the person for
     whom the services are performed indicates that an
     employer/employee relationship exists. A continuing relationship
     may exist where work is performed at frequently recurring
     although irregular intervals. Independent Contractors may have a
     long term relationship, but there should be periods where no
     services are provided.


g.         SET HOURS OF WORK. Who sets the hours of work?

     The establishment of set hours of work by the person(s) for whom
     the services are performed is a factor indicating control. If the
     work hours are controlled, this indicates employment relationship,
     and not that of an Independent Contractor relationship.


h.          FULL TIME REQUIRED. Is the worker required to devote
     his full time to the person he performs services for?

     If the worker must devote substantially full time to the business of
     the person(s) for whom the services are performed, such person(s)
     have control over the amount of the time the worker spends
     working. This implies that the worker is restricted from doing
     other gainful work. An Independent Contractor, on the other hand,
     is free to work when and for whom he or she chooses.


i.        DOING WORK ON EMPLOYER’S PREMISES. Is the
     work performed at the place of the business of the potential
     employer?

     If the work is performed on the premises of the person(s) for whom
     the services are performed, that factor suggests control over the
     worker, especially if the work could be done elsewhere. Work
     done off the premises of the person(s) receiving the services, such



          PI Reference Manual • Page 37
     as at the office of the worker, indicates some freedom from
     control. However, this fact by itself does not mean that the worker
     is not an employee. The importance of this factor depends on the
     nature of the service involved and the extent to which an employer
     generally would require that employees perform such services on
     the employer’s premises. Control over the place of work is
     indicated when the person(s) for whom the services are performed
     have the right to compel the worker to travel a designated route, to
     canvass a territory within a certain time, or to work at specific
     places as required.


j.         ORDER OR SEQUENCE SET. Who directs the order or
     sequence in which the work must be done?

     If a worker must perform services in the order or sequence set by
     the person(s) for whom the services are performed, that factor
     shows that the worker is not free to follow the worker’s own
     pattern of work. Often, because of the nature of an occupation, the
     person(s) for whom the services are performed do not set the order
     of the services or set the order infrequently. It is sufficient to show
     control, however, if such person(s) retain the right to do so.
     Independent Contractors retain that right, employees do not.


k.          ORAL OR WRITTEN REPORTS.                 Are regular oral or
     written reports required?

     A requirement that the worker submit regular or written reports to
     the person(s) for whom the services are performed indicates a
     degree of control. Employees can be required to submit such
     reports, Independent Contractors can be compelled to do so if it is
     a condition of their agreement, but otherwise, may not be required
     to do so.


l.        PAYMENT BY HOUR, WEEK, MONTH. What is the
     method of payment – hour, week, commission, or by the job?

     Payment by the hour, week or month generally points to an
     employer/employee relationship, provided that this method of
     payment is not just a convenient way of paying a lump sum agreed
     upon as the cost of a job. Payment made by the job or on a straight
     commission generally indicates that the worker is an Independent
     Contractor.




          PI Reference Manual • Page 38
m.       PAYMENT OF BUSINESS AND/OR TRAVELING
     EXPENSES. Are business and/or traveling expenses reimbursed?

     If the person(s) for whom the services are performed ordinarily pay
     the worker’s business and/or traveling expenses, the worker is
     ordinarily an employee. An employer, to be able to control
     expenses, generally retains the right to regulate and direct the
     worker’s business activities. An Independent Contractor, if
     permitted in their agreement, may be able to seek reimbursement
     for expenses incurred on behalf of the client, but may not be
     reimbursed for general expenses that are part of conducting a
     business.


n.          FURNISHING OF TOOLS AND MATERIAS.                        Who
     furnishes tools and materials used in providing services?

     The fact that the person(s) for whom the services are performed
     furnish significant tools, materials and other equipment tends to
     show the existence of an employer/employee relationship.
     Independent Contractors typically provide for their own tool and
     materials.


o.         SIGNIFICANT INVESTMENT. Does the person providing
     services have a significant investment in facilities used to perform
     services?

     If the worker invests in facilities that are used by the worker in
     performing services and are not typically maintained by employees
     (such as the maintenance of an office rented at fair value from an
     unrelated party), that factor tends to indicate that the worker is an
     Independent Contractor. On the other hand, lack of investment in
     facilities indicates dependence on the person(s) for whom the
     services are performed for such facilities and, accordingly, the
     existence of an employer/employee relationship.


p.         REALIZATION OF PROFIT OR LOSS. Can the person
     providing services realize both a profit or a loss?

     A worker who can realize a profit or suffer a loss as a result of the
     worker’s services is generally an Independent Contractor, but the
     worker who cannot is an employee.




          PI Reference Manual • Page 39
q.         WORKING FOR MORE THAN ONE FIRM AT A TIME.
     Can the person providing service work for a number of firms at the
     same time?

     If a worker performs more than de minimis services for a multiple
     or unrelated persons or firms at the same time, that factor generally
     indicates that the worker is an Independent Contractor. Of course,
     there are workers who are employees of more than company, but
     of course, that does not inherently make them an Independent
     Contractor.


r.         MAKING SERVICE AVAILBALE TO GENERAL
     PUBLIC. Does the person make his services available to the
     general public?

     The fact that a worker makes his or her services available to the
     general public on a regular and consistent basis indicates an
     Independent Contractor relationship.


s.         RIGHT TO DISCHARGE. Is the person providing services
     subject to dismissal for reasons other that nonperformance of
     contract specifications?

     The right to discharge a worker is a factor indicating that worker is
     an employee and the person possessing the right is an employer.
     An employer exercises control through the threat of dismissal,
     which causes the worker to obey the employer’s instructions. An
     Independent Contractor, on the other hand, cannot be fired so long
     as the independent contractor produces a result that meets the
     contract specifications.


t.          RIGHT TO TERMINATE. Can the person providing
     services terminate his relationship without incurring a liability for
     failure to complete a job?

     If the worker has the right to end his or her relationship with the
     person for whom the services are performed at any time he or she
     wishes without incurring liability, that factor indicates an
     employer/employee relationship. If an Independent Contractor
     terminates a business relationship, there may be significant liability
     for non-performance of services.




          PI Reference Manual • Page 40
2.        Types of Independent Contractors

          Independent Contractors may be from a variety of different professional
          backgrounds. They may be providing a wide variety of services such as
          consulting or lecturing. They may be paid under a variety of descriptions
          such as honorarium, stipends or fellowships. They may also be from
          foreign countries. To qualify as an Independent Contractor, certain
          criteria must be met as a domestic/foreign individual.

     a.        Foreign independent contractors may be employed in professional
               and business occupations. Foreign individuals in the U.S. – to give
               or to perform other short-term services – may be paid as an
               independent contractor. Any individual who receives a service
               compensation must have a U.S. Social Security Number or an
               Individual Taxpayer Identification Number. Certain visa, treaty,
               and federal/state tax payment requirements must be considered
               before a contract for services is executed. Treaties with some
               countries may have limits in regards to maximum presence in the
               U.S., amount of compensation, type of work performed and other
               regulations. If an Independent Contractor is required to pay state
               and federal income taxes and would like to avoid the deduction,
               Form 8233 must be sent to the Internal Revenue Service in order for
               the IRS to determine if taxes need to be withheld. There is a ten (10)
               day waiting period from the time the form is mailed to the IRS. If
               payment is made during the waiting period, U.S. federal tax must be
               withheld at a rate of 30% unless there is a tax treaty. A tax return
               may be filed to recover the withholding from the IRS. Postdoctoral
               Fellowship recipients cannot receive a refund of federal tax. If
               payment is in excess of $1,500.00, and the service was performed in
               California, the payment will be subject to 7% California state tax (no
               waiting period applies).

           b. In regards to Grants/Contracts, effective with FY 2006 Appropriated
              funds, payments should be comparable to the normal or customary
              fees charged and received by the consultant for comparable services,
              especially on non-government contracts and grants. The Department
              of Justice requires fees of $450.00 or more to receive written
              approval. Funds awarded prior to the FY06 appropriation are subject
              to the consultant rate of pay limitation until those funds are
              expended. The daily rate as of 2005 was $537.00




                      PI Reference Manual • Page 41
                c. Criteria to meet “Independent Contractor Status” is outlined in the
                   “20 Factor Test” above (Section H-1) and IRS publication 533
                   “Behavioral control, financial control of relationship between both
                   employer and individual.

                d   Both lecturers and consultants must complete a Consulting
                    Agreement prior to beginning services. Similarly, Independent
                    Contractors must complete an Independent Contractors Agreement
                    prior to beginning services. The consultant and/or independent
                    contractor status will be reviewed and approved by the Executive
                    Director to insure compliance with federal and state guidelines.




     3.    Methods of Payment

           Once the appropriate agreement has been signed, a Purchase Order
           Request should be completed and submitted to the ASC. Invoices should
           be presented for payment as agreed upon services are concluded or
           milestone in work reached. The Principal Investigator should submit the
           approved invoices to the ASC for payment along with a completed PICR
           form.




I.   Personal Income Payments

           Personal income payments are scholarships, stipends, fellowships,
           honorariums, royalties, awards/gifts and independent contractor fees.

     1.    Payment Methods

           There are two possible methods by which to pay personal income
           payments:

           a.       PICR (Personal Income Check Request)

                    The PICR is a check request form for personal income payments
                    which also includes a W-9 form on the last page in order to
                    document the tax I.D. and tax status of independent contractors.
                    The PICR does not process all personal income payments as some
                    payment types must be processed as payroll.          There are
                    circumstances when personal income payments will need to be
                    split between the PICR and through payroll.



                         PI Reference Manual • Page 42
     b.        Payroll

               When it is necessary to make a personal income payment through
               payroll, you may need to contact the ASC Human Resources
               department at 278-4117. ASC Human Resources requires a
               current PTR (Personnel Transaction Report) and other information
               to be on file for a payee.

2.   Important Definitions

     A.        SERVICES

               Independent contractors and consultants provide services. The IRS
               actually defines many ‘academically oriented activities’ as services
               as well. The straightforward definition of services is “work done
               or duty performed for others”. In academia the IRS offers such
               examples as teaching, grading papers, conducting research,
               performing office work, tutoring, mentoring, or running errands.

     B.        NONRESIDENT ALIEN

               A nonresident alien is someone who is not or will not be
               considered a lawful permanent resident of the United States during
               the current calendar year according to the immigration laws.
               Green Card holders are considered lawful permanent residents.
               There is a box on the PICR to identify if the payee is a nonresident
               alien. This is important because the ASC is required to file with
               the IRS a report summarizing all payments made to nonresident
               aliens. In addition, the ASC may be required to withhold a portion
               of a personal income payment to a nonresident alien in accordance
               with certain tax laws.




3.            Types of Personal Income to Payment Type

              Scholarship: A scholarship is generally an amount of money paid
               to benefit a student at an educational institution. Scholarships
               never require any type of service to be performed, such as teaching
               or grading. They are strictly funds provided to support academic
               merit or potential. Scholarship payments are issued to the
               University Cashier office for its distribution and reported to the
               Financial Aid office.

              Fellowship Grant and Stipend: A fellowship grant is generally an
               amount of money paid to benefit students at an education



                    PI Reference Manual • Page 43
    institution. The student is usually a graduate degree candidate and
    the grant is often awarded in consideration of services such as
    teaching or research.

    A stipend is usually a regular, fixed payment. The stipend
    recipient is usually a degree candidate. However, there are
    circumstances in which the recipient is not a degree candidate, or
    may not be a student at all, such as compensation paid to high
    school teachers for attendance at a training seminar on campus.
    Stipends may be awarded for enrollment in and/or attending
    classes. Stipends may be in exchange for services provided to
    support a program, grant or project. Stipends may also be awarded
    to an individual to support his/her training and education.

    Fellowships or Stipends are sometimes awarded in consideration of
    services provided. In the case of a student who receives a
    fellowship or stipend due in at least part to providing some type of
    service, the portion of the aid that is in consideration of the service
    must be awarded through payroll. Only the portion of aid which is
    attributed to services provided should be payrolled. The remainder
    should be paid through PICR. If no services are involved, the
    entire payment should be made through the PICR.

    Stipends for non-CSUF students are paid in the same manner as
    student stipends. There is a difference in how the payment is
    reported to the individual at tax time, which is covered later in this
    memo.

   Honorarium: An honorarium is usually in recognition of
    professional services or contribution, where custom, propriety, or
    agreement precludes the payment of a standard business rate of
    compensation. An honorarium for a non-CSUF employee always
    involves services and is always paid through the PICR. In
    addition, the PICR’s W-9 form should be completed so that the
    ASC may document the honorarium recipient’s taxpayer number.
    Honorarium for CSUF employees is limited to $75 per quarter, and
    is considered a payment of gratitude for assistance to a department,
    project, committee or other activity. However, honorariums to
    CSUF employees in excess of $75 per quarter may be determined
    to be employment income by the IRS. Therefore, if the sum of
    honorarium payments to a CSUF faculty or staff member will be
    $75 or less in any quarter, the payments should be made through
    the PICR, but if the honorarium exceeds that amount, the entire
    sum should be compensated through payroll.

   Award/Prize: Awards and prizes are similar. They are offered in
    recognition of excellent work or extraordinary effort. An award or



         PI Reference Manual • Page 44
                     prize may also be won by lottery, luck, or chance. Awards and
                     Prizes never involve services and are always paid in full through
                     the PICR. If a prize or award is granted to an individual, for
                     example, in recognition of an outstanding academic project, the
                     accomplishment of that project is NOT a service. Even though
                     effort and work are involved, the individual was not specifically
                     directed to accomplish the project for promised compensation.

                    Royalty Payments: Royalties include payments for the right to
                     exploit intangible property, such as copyrights, trade names,
                     trademarks, franchises, books and other literary compositions,
                     musical composition, artistic works, secret processes and formulas,
                     and patents. Royalty payments are always paid through the PICR.
                     Technically, services are not directly provided, however, the IRS
                     views the residual benefit to an individual from licensing their
                     work as a reportable income.




J.   Information Returns

     1.       Many payment types are reportable to the IRS, however, there are certain
              types of personal income payments that are not reportable. In some
              circumstances, including student financial aid for which no service was
              required to receive the funds, the IRS explicitly asks that no report be
              made. However, the student may still be responsible for some tax liability
              related to this income! If the student uses the funds for expenses that are
              not educationally related, he or she may have to pay some taxes. Items
              that qualify as educational expenses are tuition, books and supplies. Items
              that do not qualify as educational expense include room and board, travel,
              car payments, or leisure activity. Students with any doubts should consult
              with a tax specialist or the IRS. The summary of reporting documents
              follows:

             Recipients of any type of payment made through payroll will receive a W-
              2 in January for payments received the previous calendar year. However,
              they may receive reporting documents from the University’s Office of
              Financial Aid.

             Recipients of scholarships will not receive any reporting documents from
              the ASC. However, they may receive reporting documents from the
              University’s Office of Financial Aid.

             Student recipients of fellowship grants or stipends who were not required
              to perform services will not receive any reporting documents from the
              ASC.



                           PI Reference Manual • Page 45
                  Non-student recipients of fellowship grants or stipends who were not
                   required to perform services will receive form 1099 Misc. in January for
                   payments received the previous calendar year only if the sum of qualified
                   payments totaled $600 or more. The income will be reported in box 3,
                   Other Income.

                  Recipients of prizes and awards will receive a 1099 Misc. marked in box
                   3 if the sum of their payment(s) totaled $600 or more.

                  Non-faculty recipients of honorarium as well as independent contractors
                   will receive form 1099 in January for payment received the previous
                   calendar year only if the sum of qualified payments was $600 or more.
                   The income will be reported in box 7, non-employee compensation. Form
                   542-B is mailed for out of state taxes if qualified payments were $1,500 or
                   more for the calendar year.

                  Faculty and staff recipients of honorarium will not receive any reporting
                   documents from the ASC unless the honorarium was required to be paid
                   through payroll, in which case a year end W-2 will be issued.

                  Those who received royalty payments of $10 or more will receive a 1099
                   Misc. in January for payments received the previous calendar year. The
                   payment total will be recorded in box 2, royalties.

          2.       If only a portion of a stipend or fellowship grant represents payment for
                   services, the grantor must determine the amount of the stipend or
                   fellowship grant to be allocated to payment for services. Factors to be
                   taken into account in making this allocation include, but are not limited to,
                   compensation paid by

                  The grantor for similar services performed by students with qualifications
                   comparable to those of the recipient, but who do not receive stipends or
                   fellowship grants;

                  The grantor for similar services performed by full-time or part-time
                   employees of the grantor who are not students; and

                  Educational organizations other than the grantor of the stipend or
                   fellowship for similar services performed either by students or other
                   employees.




IV.   PURCHASING POLICY




                                PI Reference Manual • Page 46
In addition to the ASC’s current purchasing policy, all federal awards must be in
compliance with federal procurement regulations as follows:

A.    Small, Minority- and Women-owned Businesses

      Positive efforts must be made to utilize small and minority-, women-, veteran- or
      disabled person-owned business sources of supplies and services. Such efforts
      should allow these sources the maximum feasible opportunity to compete for
      contracts utilizing federal funds.

B.    Contract Selection

      Procurement records and files for purchases in excess of $10,000 should include
      basis for contractor selection, justification for lack of competition when
      competitive bids or efforts are not obtained, and basis for award cost or price.

C.    Contracts over $10,000

      All contracts in excess of $10,000 are required to have provisions for
      administrative, contractual or legal remedies for instances in which contractors
      violate or breach contract terms, and provisions for termination by the ASC
      including the manner in which the termination will be effected and the basis for
      settlement. The contract should also describe the conditions under which the
      contract may be terminated by default, as well as the conditions under which the
      contract may be terminated because of circumstances beyond the control of the
      contractor. The contract also must require compliance with Executive Order
      1246, “Equal Employment Opportunity,” as amended and supplemented. The
      ASC, the federal sponsoring agency, the Controller General of the United States,
      or any of their authorized representatives, shall have access to any books,
      documents, papers and records of the contractor which are directly pertinent to
      specific programs for the purpose of making audits, examinations, excerpts and
      transcriptions. The ASC requires that contractors comply with all applicable
      standards, orders or regulations issued pursuant to the Clean Air Act of 1970 and
      the Federal Water Pollution Control Act as amended.

D.    Construction Contracts

      All contacts for construction or facility improvement in excess of $100,000 shall
      provide appropriate bonding.

E.    Conflict of Interest

      In order to protect Principal Investigators and other project staff from possible
      charges of conflict of interest, purchases should not be made from companies in
      which the Principal Investigator or other project staff have an economic interest.
      Such purchases have the appearance of wrong-doing and should be avoided. The
      ASC Accounts Payable staff may make random checks of company ownership to
      ensure that integrity is maintained in all purchasing practices.



                             PI Reference Manual • Page 47
     F.     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 equally important. The ASC has established accounts with a variety
            of vendors in California and throughout the country. Information concerning
            these vendors may be obtained from the ASC’s Sponsored Program or Accounting
            offices.

V.        PURCHASING PROCEDURES

     A.     Purchase Orders (POs)

            1.          Assignment

                   A purchase order is a legal document that obligates funds to pay for
                   services rendered or merchandise delivered. Some vendors require a
                   formal purchase order, while others may accept a purchase order number.
                   A purchase order must be initiated by the department and approved by the
                   Principal Investigator and the ASC’s Sponsored Programs Director or
                   Accounting Manager before the expenditure may be incurred. In regards
                   to Grants/Contracts, most grantors require that all expenditures be
                   properly documented. In no case will the ASC approve purchase orders
                   for expenditures incurred following termination of a grant.

                   If you cancel your order after receiving a purchase order number, return
                   the confirming pink copy of the purchase order. Incomplete purchase
                   orders will be returned to the department for completion.

                   Once the purchase order is received by Accounts Payable, the information
                   is verified (project account numbers, signatures, purchase and overall
                   completion of purchase order) and submitted for approval by the
                   Sponsored Programs Director. Once the Purchase Order is approved, it is
                   entered in the system and posted. If it is a Grant/Contract account
                   number, all purchase orders are recorded in the monthly report “Account
                   Directors’ Report with Encumbrances”. All other ASC account purchase
                   orders are recorded in the monthly report “Deposits and Withdrawals”
                   under the Encumbrance column.

                   Once the purchase order is paid, if it is a Grant/Contract related PO, the
                   expense will be recorded under the “expense” column and removed from
                   the encumbrance column of the ‘Account Directors’ Report with
                   Encumbrances. If it is a non-Grant/Contract ASC account, the PO is



                                PI Reference Manual • Page 48
     recorded as a “withdrawal” the “Deposits and Withdrawals” monthly
     report and will be removed from the Encumbrance column.




2.   Form

     The four-part Purchase Order Form will be initiated and approved by the
     Principal Investigator or his/her designee. The purchase order must be
     completed with the following information:

           Name and address of vendor.

           “Ship To” address where the ordered merchandise should be
            delivered.

           The date the purchase order is typed or the date the order is placed.

           The name of the person who can be contacted in the department for
            questions about the purchase order.

           The campus extension or phone number of the person to be
            contacted in case any questions arise.

           The campus department name.

           The campus department room number.

           Department room number where the yellow and pink copies of the
            purchase order will be mailed. The yellow copy is the department
            file copy and the pink copy is to be sent to the ASC when the
            good/services are received.

           “Purchase Order Status” must be completed in order to proceed
            with the process of the purchase order. This section must be
            completed before payment is processed.

           The quantity received, the date received and by whom the
            product/services were received.

           Quantity ordered, description, account number (if Grants/Contracts
            enter number listed in the award notice), object code (if
            Grants/Contracts enter expenditures listed on the award notice),
            unit price (if available), taxes, shipping costs, and total amount.

           Under “Remarks” enter the purpose of the expenditure.



                 PI Reference Manual • Page 49
           P.O. is valid for six months unless specified otherwise in the P.O.
            request.

3.   Verification

     Upon receipt of the four-part purchase order, the ASC will verify the
     account number, determine availability of budgeted funds, determine
     whether the expenditure/expense is allowable, assign a PO number if not
     already assigned and distribute copies of the purchase order as follows:

           White copy – ASC,

           Green copy – Vendor (the ASC will mail to vendor by indicating
            “yes” under #9),

           Pink copy – after receiving and signing for receipt, the PO must be
            returned to the ASC to acknowledge date of receipt for the
            merchandise/service and authorize payment, and

           Yellow copy – department copy.




4.   Phone Purchase Orders

     Purchase order numbers for materials and supplies less than $500 may be
     obtained by calling the ASC. PO numbers obtained from the ASC via
     telephone, must be received by the ASC’s Sponsored Program/Accounting
     Offices within five (5) working days after issuing the number. PO
     numbers for Grants/Contracts will not be assigned by telephone during the
     last two (2) months of the grant.

5.   Procedures for Receiving Products

     When the merchandise/service is received by the department or project, it
     must be checked for accuracy. When approved, the Principal Investigator
     /Account Holder must acknowledge satisfaction by signing and dating the
     pink copy of the purchase order where indicated and returning it to the
     ASC.

6.   Payments

     All grants/contracts expenditures, other than payroll and reimbursements,
     will be processed by purchase orders. No payment will be made until the
     ASC receives the pink copy of the purchase order along with the vendor’s
     invoice. All purchase order payments must be signed by the Principal
     Investigator.



                    PI Reference Manual • Page 50
B.   Check Requests

     1.    Procedures

           Check requests may be used for reimbursement of individual out-of-
           pocket expenses or vendors who will not accept Purchase Orders.



     2.    Signers

           Reimbursements to the Principal Investigator, if approved by the PI’s
           supervisor (department chair or higher), must be submitted to the ASC
           within 30 days of the expense. For requests over $2,500, a second
           approval signature for non-grant accounts is required.

           Payments or reimbursements for hospitality are not permitted when these
           expenses are related to employee birthdays, weddings, baby/bridal
           showers, anniversaries and farewell gatherings that are not directly related
           to official University business. Hospitality expenses that are directly
           related to, or associated with, the active conduct of official University
           business may be paid if it is in compliance with CSUF’s Directive 11
           policy. The Directive 11 form must be approved by a Vice President or
           his designee and submitted with the check request.

           Individuals with delegated approval authority may not approve their own
           expenses. Furthermore, individuals may not approve expenses for their
           supervisors.

     3.    Valid Documentation

           All check requests for payments or reimbursements require original
           purchase receipts, clear description of the goods or services stated on the
           receipts, and a check request form.

     4.    Check Issuances

           Check requests submitted by Wednesday before noon, will be ready that
           Friday after 3:00 p.m. Check requests submitted by Friday before noon,
           will be ready the following Wednesday after 3pm.

           Urgent check requests submitted by 10:00 a.m. will be ready for pick up
           after 3:00 pm on the same day. However, a $25 processing fee will be
           assessed to cover the cost associated with handling these requests on an
           emergency basis for non-grant accounts.

           After the check request is processed, the yellow department copy will be
           attached to the check if the check is being picked up at the ASC. If the


                        PI Reference Manual • Page 51
            check is being mailed off-campus to the vendor, the yellow department
            copy will be returned to the originating department via intercampus mail.

            For accounts with insufficient funds, the request will not be processed
            until funds are available.

     5.     Payments for Stipends, Awards, Royalties, Honorarium, Fellowships and
            Independent Contractors

            The PICR (Personal Income Check Request) form must be completed for
            payments issued to individuals for scholarships, stipends (student and non-
            student), awards/prizes, royalties, honorarium (CSUF employees and non-
            CSUF employee), fellowship grants and independent contractor.

            The IRS requires foreign individuals receiving payments of this type to
            meet certain qualifications. The IRS also requires a W-9 form for
            payments for services provided. The W-9 allows the ASC to obtain the
            necessary information to issue a 1099 (federal) and 542-B (state) at year-
            end (by January 31). The completed and signed W-9 must be submitted
            before payment is processed.

C.   Advance Payments

     If the services or merchandise requires advance payment, documentation
     indicating how the price was determined must be attached. Appropriate
     documentation includes order forms, conference registration form (travel
     authorization required for travel advances), “Travel Advance/Authorization”
     form, or a copy of the page indicating that advance payment is required.

     Allow enough time for processing the payment. All advances must be cleared
     within 30 days-after the use of the advance-by sending appropriate receipts to the
     ASC. Travel advances must be cleared within one (1) week after return of trip.
     Advances are cleared by submitting original receipts to the ASC; the receipts must
     indicate the check request number and project number on which the advance was
     issued. The ASC will not grant additional advances until prior advances have
     been cleared. Individuals with delegated approval authority may not approve
     their own advances; furthermore, individuals may not approve advances for their
     supervisors.

D.   Sales Tax Liability

     The ASC’s tax-exempt status does not exempt purchases from the California sales
     tax. With the exception of items purchased for resale and certain library-related
     items, all purchases made with grant or discretionary funds are subject to
     California sales tax. Even if vendors fail to include sales taxes on the invoice, the
     ASC will calculate and pay the sales tax liability. If it is a California business,
     sales taxes will be included with the payment; if it is a business in another state,
     the sales tax will be submitted to State of California.


                           PI Reference Manual • Page 52
VI.        TRAVEL

      A.     General Description

             Employees undertaking business-related travel are required to submit a Travel
             Authorization and Advance Request form, if airfare is required, 30 days before
             travel. If airfare is not necessary, the travel advance form must be submitted a
             week prior to travel. All required approval signatures must be obtained to receive
             payment and/or travel advance. Individuals with delegated approval authority
             may not approve their own travel authorization/advance; furthermore, individuals
             may not approve travel authorization/advance of their supervisor. Reimbursable
             costs include transportation, lodging, subsistence, conference registration and
             other related expenses.

             With respect to Grants/Contracts, travel costs are allowable when they are directly
             attributable to specific work under a sponsored agreement and have been included
             in the budget.

      B.     Travel Authorization and Advance Form

             The ASC follows the State of California Travel Policy as specified in the CSUF
             Travel Handbook. A Travel Authorization and Advance Request Form (Form
             Index 17) must be completed and submitted to the ASC by individuals requesting
             travel authorization. For Grants/Contracts, the Travel Authorization and Advance
             Request form must be signed by both the traveler and the PI. A PI’s travel request
             must be signed by the department chair and/or college dean.



      C.     Foreign Travel

             For Grants & Contracts, requests for foreign travel should be submitted 90 days
             prior to the departure date. Upon return from a trip to a foreign country, a special
             travel report may be required by the projects’ sponsor. Foreign travel must be
             made on an American carrier unless a foreign carrier is approved by the sponsor.
             Questions concerning foreign travel should be directed to Sponsored Programs.

      D.     Travel Advances

             Travel advances are issued by the ASC for approved trips equal to a maximum of
             the total estimated cost of the trip. All travel advance requests must be
             accompanied by a Purchase Order or a Check Request. The travel advance must
             be cleared within a week after return from the trip by sending a copy of the
             advance Purchase Order/Check Request and actual receipts to the ASC. No travel



                                   PI Reference Manual • Page 53
     advance will be issued to anyone who has an outstanding travel advance from a
     previous trip.

E.   Travel Expense Reimbursement

     Travel reimbursement requests must be completed on the approved Travel
     Expense Claim Form. If the claim results in a reimbursement to the traveler, a
     Check Request Form approved by the PI, must accompany the Travel Expense
     Claim Form with original receipts. The PI’s claim form must also be approved by
     the department chair or the college dean. A complete address for mailing of the
     check must be indicated on the Check Request form. The form should be
     submitted promptly (within 30 days) upon completion of the trip. If a University
     employee is requesting partial travel reimbursement from an ASC discretionary
     account, an approved University Travel Authorization form must be attached to
     the “Request for Check”.

F.   Mileage and Per Diem Rates

     The mileage and per diem rates are the same as those approved by the Board of
     Control of the State of California as delineated in the California State University,
     Fullerton Travel Handbook. These rates are available in the ASC Office.

G.   Mileage Documentation

     Flat monthly travel or mileage allowances are not permissible. Mileage must be
     documented with destination, date, miles traveled and purpose of the trip. The
     current mileage rate is 0.485/mile.

H.   Complete Travel Documentation

     The information provided on all travel claims must be complete and accompanied
     by original receipts. Incomplete travel claims may result in delaying the
     reimbursement until all travel claims are verified.

I.   Exceptions to Policy Standards

     The ASC provides, within its general travel policy, for exceptions to its usual
     travel reimbursement standards. Accordingly, the Executive Director has the
     authority to make exceptions to the foregoing travel reimbursement standards in
     such cases where it is determined that circumstances warrant such on grounds of
     either cost effectiveness or equity. Such exceptions may occasionally involve
     special classifications of allowable cost, but they will more likely involve
     authorizing reimbursements at the rate of actual costs rather than using an
     arbitrary formula.




                          PI Reference Manual • Page 54
VII.        EQUIPMENT

       A.     Definition

              The ASC Fixed Asset Policy identifies, records, controls and manages all existing
              ASC assets and future assets to be acquired. This policy guides all ASC cost
              centers including Sponsored Programs. However, assets acquired by Sponsored
              Programs must ultimately be administered according to the appropriate funding
              agency’s guidelines. The fixed assets record for items purchased through the ASC
              will reside in the IFAS VI database and will be maintained by the Accounting
              department. The database is arranged to accurately extract asset information for
              any individual cost center or any specific grant. This policy outlines the periodic
              inspection and verification process, and elaborates on the procedure used to
              update the status of an asset as soon as it changes.

              Equipment purchased on a grant is defined by the ASC as “Any items which are
              usable for activities of the University as well as the ASC, such as research
              equipment, office equipment and furnishings, air conditioning, reproduction or
              printing equipment, motor vehicles, or any automatic data processing equipment
              which has an acquisition cost of $5,000 or more and has an expected life of one
              year or more.”

       B.     Acquisition Procedures

              Purchase of ASC fixed assets is budgeted the prior year unless an emergency
              situation occurs. The ASC may determine at the time of acquisition that an asset
              may have an estimated life longer/shorter than the stipulated policy; an
              assessment will be made of the useful life, which may deviate from the prescribed
              term. All assets that have a service life of one year or more remaining and an
              estimated current value of $5,000 or more shall be tagged.

              Equipment purchased on a grant after approval of award during the project period
              must follow these procedures:

                    Prior to the purchase of equipment, an analysis shall be made of the lease
                     and purchase alternatives to determine which would be more economical
                     and/or practical method of procurement;

                    After obtaining cost and delivery quotations from suppliers or vendors, PIs
                     shall submit an ASC PO for the purchase of equipment as approved in the
                     budget;

                              Some granting agencies allow the total equipment expenditure to
                               equal 125% of the amount allotted for equipment category by the



                                    PI Reference Manual • Page 55
                    sponsoring agency (through an approved budget or other
                    document), with an approval from the sponsoring agency.
                    Although the expenditure can exceed the budget by 25%, the total
                    budget does not increase and the overrun for that expenditure must
                    be funded by another budget category. Total expenditures can
                    never exceed the total award;

                   For items of equipment not approved in the original budget, a
                    written approval from the Grants Officer of the sponsoring agency
                    must be obtained before the purchasing process begins;

           For equipment purchases requiring University cost-share, PIs must first
            contact the CSUF’s Procurement Officer and the ASC’s Grant
            Administrator to insure proper funding and coordination of the equipment
            purchase; and

           All equipment procurement shall comply with ASC purchase policy and
            federal regulations for federal grants and contracts.

C.   Equipment Inventory

     The ASC, upon receipt of the invoice and receiving report of the equipment
     purchased, will issue an equipment tag number and will record the description,
     location, model/serial number, vendor’s name and cost of the equipment in the
     ASC’s property management system. Once the assets are purchased and recorded
     in ASC Accounting, Accounting will send a FAR (Fixed Asset Record) and a tag
     to the appropriate cost center manager. Each project manager’s administrative
     duties include acting as authorized custodian for the assets located in his/her
     department. The project manger oversees the tagging of the assets to verify that
     all items within the cost center that meet the threshold are tagged. Furthermore,
     the project manager insures that an accurate FAR is completed for each tagged
     asset. Computers (PC) are generally depreciated (expensed) over three (3) years
     and furniture and fixtures are generally depreciated (expensed) over five (5) years.
     Building improvements and leasehold improvements are amortized (expensed)
     over their estimated useful life or the term of the lease, whichever is less. All
     assets are depreciated using the straight-line method of depreciation.

     All Grants/Contracts require annual and final equipment inventories. The ASC
     will initiate the request of the PI for equipment inventories, as necessary. The
     ASC will provide, at least annually, a final equipment inventory list for all PIs,
     department chairs, college deans and the Office of Grants & Contracts. This data
     will assist the PI in determining if similar grant-funded property may already exist
     prior to purchasing new equipment. All equipment acquired through research
     grants and contracts remains the property of the ASC unless some other
     ownership is specified within the Grant/Contract. Equipment purchased under
     any grant should be ordered long before the grant is scheduled for completion.




                          PI Reference Manual • Page 56
D.   Title of Equipment

     Equipment purchased through grants is legally owned by the ASC. In some
     instances, at the conclusion of a grant, equipment may be transferred to the
     University, however, the funding agency and Executive Director, in consultation
     with the Vice President for Administration and the Vice President for Academic
     Affairs, must approve such transfers. Title of equipment purchased through the
     ASC agency accounts will be transferred to the University automatically.

E.   Government-Furnished Equipment

     Government-owed equipment furnished for use under terms of a grant/contract
     will be specifically identified within the contract document. The project account
     is not charged for this equipment, which remains under government ownership
     and is subject to government disposition instructions at the completion of the
     project. All such items must be reported to the ASC Office upon acquisition.

F.   Equipment Disposition

     At least once a year, each project director/manager will be sent a list of its assets.
     The project director/manager will visually identify every asset on the list, record
     any substantive changes in an asset or its location, note of disposed or missing
     assets, and make a list of any new qualifying assets which have not been tagged.

     Equipment acquired through a grant/contract may not be sold, traded-in, scrapped,
     transferred to another grant or contract, or otherwise disposed of without the
     written approval of the ASC. PIs desiring to do any of the above must provide the
     ASC with the project number, original cost and acquisition date of each piece of
     equipment. The ASC may be required to contact the funding agency to obtain
     specific instructions regarding its proper disposition.

     In the event a PI leaves the University, all equipment acquired under his/her
     grant/contract remains the property of the ASC. In some instances, the equipment
     may be transferred to another institution, but only with written approval of the
     funding agency, the department chair, the college dean, and the ASC’s Executive
     Director. Department chairs may recommend transfer only when the equipment is
     unique to the particular grant/contract being transferred and would not be used by
     the department, if returned. Upon termination of funding, it is the responsibility
     of PI to furnish the ASC with a list and location for all equipment obtained under
     the grant or contract. All equipment remains the property of the ASC and by
     working with the dean, the ASC will determine the proper disposition of the
     property/equipment.

G.   Equipment Maintenance and Repair




                          PI Reference Manual • Page 57
     Project Directors must request funds in the original budget to cover costs of repair
     and maintenance or identify the source where such funds will be obtained by
     working with the ASC, the department chair and/or the college dean.

H.   Facility Modification

     Principal Investigators must request funds in the original budget to cover all costs
     for facility modifications required to house project-related equipment, such as
     electrical or air conditioning for computers. PIs may request assistance in
     determining the cost of equipment installation by contacting the Office of Facility
     Planning.




                          PI Reference Manual • Page 58
VIII.   FORMS



OPAS FORM

CHECK LIST

AGREEMENT SIGN OFF FORM

CONFLICT OF INTEREST FORMS

PURCHASE ORDER FORM

CHECK REQUEST FORM

PERSONNEL TRANSACTION FORM

ACCOUNT AGREEMENT

ACCOUNT SIGNATURE CARD

CHECK REQUEST

DEPOSIT FORM

FUNDS TRANSFER REQUEST

IN-KIND CONTRIBUTION REPORT

PAYROLL DEDUCTION FORM

PERSONAL/PROFESSIONAL SERVICES AGREEMENT




                          PI Reference Manual • Page 59
                       WERE                                          WILL FOUNDATION                NOTES ON
           TYPE      SERVICES         PAYMENT METHOD                 REPROT INCOIME?               REPORTING
                    PROVIDED?                                          WHICH FORM?                  INCOME:
Scholarship         ALWAYS NO PICR Check Request                              NO             The Foundation issues
                                                                                             year-end W-2s to
                       YES      Payroll service portion, remainder   Yes, service portion on those who received
                                through PICR Check Request                    W-2            compensation through
Fellowship Grant                                                                             payroll.
                        NO      PICR Check Request                             NO
                                                                                             If a 1099 is issuable as
                                                                                               stated to the left, one
                       YES      Payroll service portion, remainder   Yes, service portion on will be issued only if
Stipend,                        through PICR Check Request                    W-2             an individual has been
Student                                                                                        paid $600 or more in
                        NO      PICR Check Request                             NO             stipends, honorarium,
                                                                                              awards/prizes or as an
                       YES      Payroll service portion, remainder   Yes, service portion on        independent
                                through PICR Check Request           W-2, remainder 1099        contractor; or to an
Stipend,
                                                                          Misc. Box 3        individual paid %10 or
Non-Student
                                                                                                 more in royalties.
                        NO      PICR Check Request                   Yes, 1099 Misc. Box3
                                                                                                 Corporations paid
Honorarium,                     PICR Check Request with attached                                     royalties or
                       YES                                           Yes, 1099 Misc. Box7
Non-CSUF Employee               W-9                                                          independent contractor
Honorarium,                     PICR Check Request, maximum                                   fees will not receive a
                       N/A                                                     NO            1099 Misc. if a W-9 is
CSUF Employee                   payment of $75/qtr.
                                                                                                received certifying
                                                                                                  corporate status.
Award/Prize         ALWAYS NO PICR Check Request                     Yes, 1099 Misc. Box3
                                                                                                Questions? Call
                                                                                                   Foundation
Royalty                N/A      PICR Check Request                   Yes, 1099 Misc. Box2
                                                                                               Accounting at x4140




                                     PI Reference Manual • Page 60

								
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