The purpose of this document is to guide Purdue's classification, administration and reporting of non-governmental voluntary and contract support by doing the following:

• defining non-governmental "voluntary support" and ''contract support;"

• assigning responsibility for administering those non-governmental awards classified as "voluntary support" and "contract support;"

• explaining how such awards will be reported to external audiences.
  
  

1. Voluntary Support — Voluntary support includes awards from individuals, corporations, partnerships, foundations, associations, and other nongovernmental entities for which no expectation of economic benefit to the grantor exists or is implied.

   Awards from non-profit, tax exempt foundations cannot be made in "expectation of economic benefit" to the grantor. Therefore, such awards are presumptively voluntary support. Examples of such grantors would include the Markey Charitable Trust, Lilly Endowment, Hughes Medical Institute, The Cleveland Foundation and Amoco Foundation.

2. Contract Support — Awards which constitute contract support usually may be identified by certain language that is present in the award document. The presence of one or more of the following provisions is an indicator but should not be considered a conclusive determination that there exists an expectation of an exchange of economic consider provisions are:
   • provision for changing the agreement;

   • provision for terminating the agreement;

   • provision for reversion of funds to the support source;

   • provision identifying remedies available to the parties;

   • provision setting forth liability, indemnification or hold harmless requirements;

   • provision regarding warranties;

   • provision setting forth audit requirements;

   • provision governing the ownership of intellectual property developed under the agreement;

   • provision governing option to license or licensing of intellectual property developed under the agreement;

   • provision identifying deliverables and the use of deliverables;

   • provision identifying the governing law applicable to the agreement;

   • provision governing assignment of the agreement.

Such agreements may be unilateral or bilateral in nature.

Awards from non-profit, tax exempt foundations will often include one or more of these provisions even though there is no expectation for an exchange of economic consideration between the parties.

Non-governmental support will be classified as voluntary or contract support in accordance with the definitions found in Section II. A preliminary classification of the support will be made by the departmental/school/division recipient of the support. The responsibility for classification and external reporting of nongovernmental support has been assigned to the Executive Vice President and Treasurer or his designee. In the event the preliminary classification of nongovernmental support is changed, the head of the department/school division will be informed in writing of the change and the basis for the change.

When classification of an award (voluntary or contractual support) is disputed and cannot be resolved by reference to published policy or procedures, the award shall be jointly reviewed by the Comptroller, the Office of the Vice President for Research or his designee and the Assistant Vice President for Development. Responsibility for the resolution of any dispute relating to the classification of an award shall be with the Executive Vice President and Treasurer and the Executive Vice President for Academic Affairs based upon the recommendation of the Vice President for Business Services and Assistant Treasurer. The Vice President for Business Services and Assistant Treasurer will consult with the Vice President for Development and the Vice President for Research before making the recommendation. Final responsibility for the classification of an award is with the President.

Voluntary support will be administered as follows:

1. Voluntary support including endowment, student financial aid and construction programs will be administered by the departmental/school/division recipient of the support and Accounting Services unless the support is subject to the conditions set forth in B.

2. Awards otherwise classified as voluntary support but meeting one or more of the following criteria will be administered by the departmental/school/division recipient of the support, the Division of Sponsored Programs (DSP) and the Office of Contract and Grant Business Affairs (OCGBA):
   1. support designated for use by a specific faculty member(s) for research, instructional or other programs;

   2. support designated for use by a group of professors working within a designated field/discipline or a particular laboratory in advancing their respective program;

   3. support where the award requires any one of the following:
      1. performance within a specified time;

      2. technical report;

      3. financial report;

   4. support from foundations and other entities for which there is a written agreement even though there is no expectation of economic benefit.

Contract support will be administered by the departmental/school/division recipient of the contract, DSP and OCGBA.

External reporting of voluntary support and contract support affects both the financial position of the University and its prestige, as viewed through the eyes of external and internal audiences. Therefore, such reporting has the following objectives:

• consistent internal reporting standards;

• objective and accurate reporting for external audiences;

• compliance with generally accepted accounting principles.

Voluntary support including voluntary support administered by DSP and OCGBA will be reported by the University Development Office to the Council for Financial Aid to Education. Contract support from non-governmental resources will not be included in this report.

DSP and OCGBA will report sponsored program support to external audiences and will include awards - both contract support and voluntary support administered through DSP and OCGBA.

All support whether voluntary or contractual in nature will be reflected on University financial records in accordance with generally accepted accounting principles.

Research and instructional support received from non-governmental entities will be subject to the University's established policies for the charging of costs.