Number: 
03-150-302
Type: 
Rule
Policy Steward: 
Director of Business Affairs
Format Updated: 
University Policy & Standards Converted: 
Priority Level: 
2-High Priority
Status: 
Review in Progress
Revision Date: 
Monday, March 14, 2016

* This information replaces FIS 509 Relationship Between OSU and the Agricultural Research Foundation & all related activities

 

Relationship Between OSU and the Agricultural Research Foundation

Effective: 08/31/2008
Revised: 05/06/2015

The Agricultural Research Foundation is a private, non-profit corporation affiliated with Oregon State University (OSU) under IRS tax code 501(c) 3. Since 1934, the Agricultural Research Foundation (ARF) has proved to be a successful partner with the College of Agricultural Sciences in securing funding to solve current agricultural problems. ARF is the custodian of privately and publicly donated funds used to support scientific experimentation, research, and educational training activities for the benefit of the agricultural industry.

Revenues to the Agricultural Research Foundation

Effective: 08/31/2008
Revised: 05/06/2015

ARF accepts gifts from corporations, foundations, or private individuals. ARF accepts funding for sponsored research projects from commodity commissions, grower group committees, councils, associations, and agriculture/natural resource related non-profit organizations.

Potential funding sources should be discussed with the ARF Executive Director as only ARF personnel should accept donations on behalf of ARF.

Gifts
Gifts, by definition, do not commit OSU to any obligations and are sent directly to ARF for processing.  An OSU employee must not agree to provide any goods, services or other remuneration in exchange for a gift.

Student Scholarships
The OSU Foundation is the recognized OSU-affiliated organization for most endowed student scholarships. Upon donor request, and with ARF approval, endowments for student scholarships may be established through ARF.

Facility/Capital Contributions
Funding from ARF projects may be needed to support facility/building remodel projects. These expenditures are pre-approved by ARF and processed through the appropriate FAxxxx indexes. Contributions for facility/building projects, including major capital campaigns, should be referred to the OSU Foundation.

Revenue not classified as contributions or donations
Revenue received from an OSU activity, or use of OSU facilities, shall not be deposited in an ARF account. These funds must be deposited into the appropriate OSU fund/index in which the costs were incurred.

When OSU employees provide services to a client, such as testing or assistance in product development, the client shall directly pay OSU for such services.  OSU employees shall not accept payment for such services directly or indirectly through ARF.

An OSU employee or department/unit may not deposit revenue into ARF when generated from OSU sponsored workshops, conferences, seminars or similar activities (examples: registrations or ticket sales). To account for these types of revenues and their associated expenses within OSU refer to FIS 515 Designated Operations.

An OSU employee or department/unit may not deposit into ARF revenue generated from OSU sponsored attendee-paid recognition events such as retirement dinners and award luncheons. Refer to FIS 102-09 Attendee-Paid Funds for Recognition Events.

Summary: Revenue to ARF shall be donations or contributions which support scientific experimentation, research, and educational training activities for the benefit of the agricultural and natural resource industries in collaboration with OSU. Checks payable to OSU shall not be deposited directly into ARF. If a check is made payable to OSU, but intended for ARF, the check must first be sent to ARF with supporting documentation (all requests must be accompanied by documents clearly demonstrating ARF is the intended recipient). ARF will deposit through the OSU Business Affairs Cashier’s Office and the Cashier’s Office will issue a check payable to the Agricultural Research Foundation.

Contact ARF for answers to questions concerning this process.

Payments from Agricultural Research Foundation to OSU

Effective: 08/31/2008
Revised: 03/14/2016

FAxxxx indexes are established by the Office of Sponsored Research and Award Administration (OSRAA) for the receipt of revenue from ARF projects for the support of specific research contracts and are administered in the same manner as all OSU grants/contracts. All research work plans are approved by OSRAA.

OSRAA establishes one FAxxxx gift fund per department. The FAxxxx gift fund is specific to a department/unit and is not to be shared by multiple units. Activity codes should be used to identify transactions for all gifts. These are interest-bearing funds and must maintain a positive or zero cash balance.

ARF payments to OSU should not be deposited in other OSU funds or indexes without express permission from both ARF and Business Affairs.

Reimbursable and Non-Reimbursable Expenses

Effective: 08/31/2008
Revised: 05/06/2015

Expenses incurred to fulfill the requirements of an ARF research project are either paid directly by ARF, paid through an OSU contract, or paid through gift FAxxxx indexes according to policy described in FIS 509-04 Payments to Employees, Vendors, or Contractors. ARF funds must not be used to fulfill State or other department/unit deficits. An OSU employee may not redirect funds from the fulfillment of a FAxxxx contract to a different research purpose without first obtaining permission from ARF. FAxxxx contracts follow OSU policy, including those for cost overrun and cost transfers. See OSU Grant, Contract, and Gift manual.

FAxxxx gift indexes may only be used to pay for expenses incurred to fulfill OSU’s research or educational training mission. Expenses outside the scope of these programs are not reimbursable. Although ARF, with limited exceptions, follows OSU guidelines and recommendations concerning legitimate research and university expenses, other requirements may be imposed by ARF regarding the payment of expenses. Contact ARF regarding allowable expenses.

Payments to Employees, Vendors or Contractors

Effective: 08/31/2008
Revised: 05/06/2015

Generally, costs that are consistent with OSU’s fiscal policy should be paid through the OSU accounting system on established FAxxxx, not directly by ARF.

The following OSU expenses can only be paid through FAxxxx indexes and cannot be paid directly by ARF:

  • Salary/benefits of OSU employees, including students.
  • Other personnel related costs which are tax-reportable, including but not limited to: moving expenses.
  • OSU internal fees (processed by journal voucher), including but not limited to: testing services, university supplies, printing services, communications services, university-sponsored conference registration
  • Employee travel reimbursements  [account codes 394xx – 397xx]

Capital equipment purchases equal-to or greater-than $5,000 per item, including vehicles.  [account codes 401xx – 40201]

Use the following for specific OSU index payments which best record the activity/function being supported:

  1. Contract indexes are for costs pre-approved by ARF and the prime sponsor toward support of a research project. Contract funds have a budget, end date, and use program codes 15003 Sponsored Research On-Campus and 15503 Sponsored Research Off-Campus.
  2. Administration indexes (generally ends in “D”) are reimbursed by ARF gift funds for costs connected with the administrative operations of a unit and use program codes 01800 Departmental Academic Support or 30600 Academic Administration.
  3. Instruction/department research indexes (generally ends in “C”, “E”, or “N”) are reimbursed by ARF gift funds for costs connected with programmatic activities of the department and use program codes 01100 Regular Instruction/Dept Research or 01200 Departmental Research.

Unless specifically listed as a cost item in a research project, the expenses below can only be processed on FAxxxx gift indexes.

  • Employee awards equal-to or greater-than $400. Gift certificates are considered the same as cash and are processed by using account codes 10108, 10417, 10507, 20168.Building and/or grounds maintenance expenses  [account codes 23502, 23503, 23511, 23512, 23522]
  • Building remodel or construction costs [account codes 404xx – 407xx.  Note: these costs can only be placed on an 8xxxxx plant fund.]
  • Communication, custodial, utilities, other operations or maintenance costs associated with OSU-owned or operated facilities [account codes 220xx, 230xx, 233xx, 2353x]

Scholarships or Fellowships to Students

Effective: 08/31/2008

To assure student’s eligibility for financial aid is not jeopardized, and financial aid is accurately reported, all scholarship and fellowship funding supported by ARF shall be sent to OSU and the individual student account is credited.