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Policies
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Policies
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Conflict of Interest in Research & Sponsored Programs
The following outlines Kennesaw State University’s (KSU's) policy and procedures regarding conflicts of interest in relation to research, educational, or service projects funded by federal agencies, either directly or through another institution or organization.
Policy
It is the policy of KSU to comply with federal regulations ensuring that sponsored activities will not be compromised by investigators’ financial interests that reasonably could be expected to bias the design, conduct, or reporting of the research. In accordance with these regulations, the University has the responsibility to disclose, manage, reduce, or eliminate any actual or potential conflicts of interest that may be presented by a financial interest of an investigator.
Definitions
Conflict of Interest - A conflict of interest exists when the university reviewer(s) reasonably determines that a significant financial interest could directly and significantly bias the design, conduct, or reporting of the federally-funded research, educational, or service activities.
Investigator - Investigator means the principal investigator/project director, co-principal investigators, co-project directors, and any other person(s) responsible for the design, conduct, or reporting of research, educational, or service activities funded, or proposed for funding. Interests of the investigator that would constitute a conflict of interest include interests of the investigator’s spouse and dependent children.
Significant Financial Interest - Significant financial interest means anything of monetary value, including but not limited to:
• salary or other payments for services (e.g., consulting fees or honoraria), or income generated by the manufacture or sale of products;
• equity interests (e.g., stocks, stock options or other ownership interests);
• intellectual property rights (e.g., patents, copyrights and royalties from such rights).
The term does not include:
• salary, royalties, or other remuneration from the applicant institution;
• any ownership interests in the institution, if the institution is an applicant under the Small Business Innovation in Research program;
• income from seminars, lectures, or teaching engagements sponsored by public or nonprofit entities;
• income from service on advisory committees or review panels for public or nonprofit entities;
• an equity interest that when aggregated for the investigator and the investigator’s spouse and dependent children, (1) does not exceed $10,000 in value as determined through reference to public prices or other reasonable measures of fair market value, and (2) does not represent more than a five percent ownership interest in any single entity. (Both conditions must be met);
• salary, royalties or other payments that, when aggregated for the investor and the investigator’s spouse and dependent children over the next twelve months, are not expected to exceed $10,000.
Procedures
Compliance with the federal regulations requires that investigators disclose a listing of significant financial interests (and those of their spouse and dependent children):
(1) that would reasonably appear to affect the research or educational activity funded, or proposed for funding; or
(2) in entities whose financial interests would reasonably appear to affect such activities.
Such disclosure must be made to the designated university official(s) prior to the submission of a proposal for funding. This official(s) will review the disclosures and determine which, if any, financial interests could directly and significantly affect the design, conduct, or reporting of the research. The institution must, prior to any expenditure of awarded funds, comply with the conflict of interests reporting requirements of the funding agency.
Financial disclosures must be updated annually during the award period and as new reportable significant financial interests are obtained.
The procedural steps for this policy are as follows:
(1) Each investigator shall complete the Disclosure Questionnaire (Form A). If the investigator does have activities to report that may constitute a conflict of interest the Statement of Significant Financial Interest (Form B) must also be submitted in a sealed envelope marked CONFIDENTIAL. One or both forms (if applicable) should be forwarded to the Office of Sponsored Programs at the same time the proposal is submitted for the administrative review process.
(2) The Associate Dean for Sponsored Programs will review the proposal and disclosure questionnaire only and forward the Disclosure Questionnaire (Form A) and the sealed envelope containing the Statement of Financial Interest (Form B) to the Dean of the Graduate College, the designated university official. When no conflict of interest exists, disclosure questionnaires will be retained in the Office of Sponsored Programs.
(3) After a grant application has been submitted and prior to the acceptance of an award, the Dean of the Graduate College will review all financial disclosures, determine whether a conflict of interest exists, and if so, determine what conditions or restrictions, if any, should be imposed by the institution to manage, reduce, or eliminate such conflict of interest.
Concurrent with the foregoing process, the investigator, in cooperation with the investigator’s department chair and dean, shall develop and present to the Dean of the Graduate College a resolution plan that details proposed steps that could be taken to manage, reduce, or eliminate any actual potential conflict of interest or presented by a significant financial interest. This plan will be seriously considered in the determination of appropriate action.
Examples of conditions or restrictions that might be imposed include, but are not limited to:
• public disclosure of significant financial interests;
• monitoring of the research or project by independent reviewers;
• modification of the research or educational plan;
• disqualification from participation in all or a portion of the research or educational activity;
• divestiture of significant financial interests;
• severance of relationships that create actual or potential conflicts.(4) Should the investigator disagree with the proposed conditions or restrictions, he/she may appeal the decision. The Dean of the Graduate College will convene a randomly selected review committee comprised of three to four senior faculty (not above department chair level) representing a cross section of disciplines and a research administrator to hear the appeal. The committee will review the disclosed potential conflicts and either concur with the previous resolution plan or suggest amendments based upon supporting documentation and agency regulations. Final resolution of conflict of interest questions will rest with the President of KSU.
(5) The approved Resolution Plan shall be incorporated into a Memorandum of Understanding (MOU) between KSU and the investigator that details the conditions or restrictions imposed upon the investigator in the conduct of the project or in the relationship with the Business Enterprise or Entity. This MOU shall be signed by the investigator, the department chair/unit head, the dean, and the Dean of the Graduate College.
(6) If the Dean of the Graduate College determines that imposing the conditions or restrictions would be either ineffective or inequitable and that the potential negative impacts that might arise from a significant financial interest are outweighed by interests of scientific progress, technology transfer, or the public health and welfare, then he/she may recommend that, to the extent permitted by federal regulations, the research go forward without imposing such conditions or restrictions.
(7) Prior to expenditure of any funds under an award, the University will comply with reporting requirements of the sponsoring agency concerning the existence of a conflict of interest. The investigator will update any financial disclosures at least annually throughout the period of the award or as new reportable significant financial interest is obtained.(8) For any interest that the institution identifies as conflicting subsequent to the institution’s initial report under the award, the report will be made and the conflicting interest managed, reduced, or eliminated, at least on an interim basis, within 60 days of that identification.
(9) Records of investigator financial disclosures and of actions taken to manage actual or potential conflicts of interest shall be retained by the Dean of the Graduate College for at least three years beyond the completion of the grant or longer if required by the agency.
(10) The university agrees to make information available, upon request, to the sponsoring agency regarding all conflicts of interest for the specified PI identified by the institution and outlining how those interests have been managed, reduced, or eliminated to protect the project from bias.
(11) If an investigator violates this policy or the terms of the MOU, the Dean of the Graduate College will recommend appropriate sanctions to the President of the university. If failure to comply has biased the design, conduct, or reporting of the funded research or educational activity, the institution will promptly notify the awarding agency of the corrective action taken or to be taken. The awarding agency may take action or refer the matter to the institution for further action.
(12) Collaborators/sub-recipients/subcontractors from other academic/not-for-profit institutions must either comply with this policy or provide a certification from their institutions that they are in compliance with federal policies regarding investigator Significant Financial Interest disclosure and that their portion of the project is in compliance with their institutional policies.
Policy - KSU Faculty Handbook (Section 7, Part XXXII, Page 7.55)
Policy - KSU Faculty Handbook (Section 7, Part XL, Page 7.67)
Program - required for federal proposals
Facilities and Administrative Costs
Facilities and Administrative (F&A) Costs
Proposals shall include F&A costs (indirects). F&A costs are institutional costs which are not readily identifiable with a particular project or activity but which are, nevertheless, necessary to the general operation of the University and to the conduct of each of the activities performed. They include an allotted share of such items as operation and maintenance of the physical plant; departmental, college, and institutional administration; library operations; charges for use of equipment and facilities; and certain general expenses attributable to sponsored programs. Unless institutions are reimbursed for the facilities and administrative costs incurred on behalf of sponsored activities, resources provided for other educational objectives must be used for this purpose. The rate of F&A costs for KSU is negotiated with the US Department of Health and Human Services and is based upon the expenses cited above in accordance with cost principles promulgated by the federal government. Federal agencies recognize these rates and expect the University to recover these expenses with limited exceptions; e.g., training grants. KSU cannot make poorly-documented exceptions to the federally-negotiated rate for F&A costs without jeopardizing its F&A rate.
KSU expects to receive the full recovery of F&A costs in all proposals submitted to prospective sponsors. Exceptions and the process for waiver or partial waiver of F&A are as follows.
(1) Federal and state grants and contracts as well as some foundations and nonprofit agencies occasionally limit the rate of F&A costs and specify the limitation in the program guidelines, in written policy, or on their web sites. When such documentation is included with the proposal and routing form, no F&A waiver is required.
(2) Granting organizations that do not address F&A costs in their program guidelines or written policy are expected to provide full recovery of F&A costs. In order to receive a waiver for such organizations; e.g., a non-profit that can only pay limited, if any, F&A due to limited resources, many of which may not have a written policy, KSU project directors must complete the F&A waiver form (http://www.kennesaw.edu/osp/F_and_A_Waiver.doc).
(3) If a project director encounters an exception not covered in those above, the project director should contact OSP.
Grants and contracts from for-profit companies or organizations will seldom, if at all, receive waivers of F&A costs. Granting waivers to for-profit entities means that the taxpayers of Georgia are subsidizing for-profits; hence, a strong case must be made for a waiver to be granted.
When preparing proposal budgets for grants or contracts from nonfederal agencies that pay either no F&A or a reduced rate, project directors are encouraged to budget directly for costs that are normally considered to be part of the federally negotiated F&A rate, such as clerical salaries and basic phone charges. See the list of typical direct and indirect costs below. If such costs are included in the direct costs, this information should be included in the Request for F&A Waiver.
Waivers of F&A costs must be submitted on the Request for F&A Waiver form located at http://www.kennesaw.edu/osp/F_and_A_Waiver.doc. These requests must be submitted to OSP at least three days prior to submission of a proposal or contract. Following review by OSP, the Request for F&A Waiver form and comments of OSP staff will be submitted to the Vice President for Operations or his designee for review.
TYPICAL DIRECT AND F&A COSTS
Direct Costs F&A Costs Salaries, Wages, and Fringe Benefits of Faculty, Technicians, Scientists, Research Assistants, Postdocs, or other Technical and Programmatic Personnel who are necessary to meet the goals of the project Salaries, Wages, and Fringe Benefits of Clerical and Administrative positions such as Fiscal Officers, Accountants, Secretaries, Directors, Vice Presidents, President, Office Personnel, and Executive Assistants Scientific and Technical Equipment Memberships Computer Costs (Software, Supplies, and Services) Subscriptions, Library Books, and Periodicals Long-distance Telephone Charges Office Supplies Maintenance Projects related to Scientific and Technical Equipment Equipment (Office and General) Materials including Non-capitalized Equipment Janitorial Services Participant Expenses Photocopy for Office and General Use Supplies (Items solely consumed by the Project) Postage Services including Outside Consultants Repairs and Maintenance Subgrants and Subcontracts Sanitation Services including Hazardous Waste Subject Costs Telephone (Basic Monthly Fee, Installation, and Maintenance) Travel Departmental Administration Tools and Uniforms Student Services Conference Fees General Administration Chemical and Glassware Photographic Supplies Publication and Page Charges Negotiated Indirect Cost Rates
KSU's indirect cost rate is 34% of direct costs excluding capital expenditures (buildings, individual items of equipment, alterations and renovations) and that portion of each subaward in excess of $25,000.
The F&A policy is available in the Office of Sponsored Operations Policies and Procedures Manual (http://www.kennesaw.edu/budgets/grants/PPM.HTM).
Policy
Any Contractual Agreement (whether a contract, subcontract, or consulting agreement) under which KSU faculty or staff will provide services or perform research for an external sponsor is subject to the same internal review process as standard grant and contract proposal submissions. These agreements must be processed through OSP, which is the only office authorized to negotiate contractual agreements for compliance with agency, Regents, and KSU policies. All agreements processed through OSP are signed by Dr. Randy C. Hinds, CIO and Interim Vice President of Business and Finance, or his designee. Faculty are not authorized to sign grants, contracts, or other agreements on behalf of KSU. NOTE: Information on the process for using active grant or contract funds to hire a consultant or subcontractor is located at the Office of Budget and Sponsored Operations (http://www.kennesaw.edu/budgets/grants.htm).
Procedures
Faculty are encouraged to seek collaborative projects with external sponsors such as industry. This typically involves technical discussions and providing informal quotes. Once the project has been developed between faculty and a sponsor, the faculty member must formalize the quote and a contractual agreement through OSP. The following information is provided to assist faculty in this process:
General Instructions for Agencies without Specific Guidelines or Budget Instructions
Any agreement for services with an external funder (other than direct payment for individual consulting) is subject to the same internal review process required for standard grant submissions.
(1) Obtain a proposal routing sheet from the OSP, x6046, Room 3426, Kennesaw Hall, or download from the OSP website.
(2) Obtain department chair, dean, and other signatures as appropriate.
(3) Prepare a statement of work.
(4) Complete a budget and provide supporting documentation. The OSP can provide guidance and assistance with development of the budget.
(5) Submit signed proposal routing sheet and budget to the OSP. (Allow five working days for the internal administrative review process.)
(6) When project is approved by the Administration, a contractual agreement will be finalized, signed, and sent to the funding agency for signature.
(7) Once the Agreement has been signed by both parties, the project director will meet with the Grants Officer in the Office of Sponsored Operations (x3377), to set up an account. Fiscal responsibilities of KSU and the project personnel will be outlined at that time.
(8) Please read carefully the KSU policy on overloads. Overloads MUST be approved PRIOR to application submission and are not approved retroactively. Note that federal grants do NOT allow overloads during the academic year.
Intellectual Property - KSU Faculty Handbook (Section 7, Part XXXI, Page 7.48)
Faculty Overload Policy - KSU Faculty Handbook (Section 7, Part XXI, Page 7.26)
Email: pstrange@kennesaw.edu
This page last modified May 6, 2008
Copyright © 2001 Kennesaw State University
