Functional Activities for Sponsored Projects

Scope

This policy applies to all Sponsored Program funding (grants, contracts, and cooperative agreements). 

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Policy Statement

It is the policy of Indiana University that each Sponsored Project will be reviewed by the Office for Research Administration to determine the appropriate functional activity classification consistent with the definitions provided in this policy. 

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Reason for Policy

As a division of the federal government, the Office of Management and Budget (OMB) requires the University to organize its sponsored expenditures into defined functional activities in accordance with 2 CFR 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The major functions include Organized Research, Instruction and Service/Other Sponsored Activity. 

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Procedures

The primary unit associated with a proposal development document submitted into routing in the Kuali Coeus System is responsible for indicating whether the proposed project is for the primary purpose of research, instruction, or other (i.e. service) based on the guidance outlined in this policy.  The Office for Research Administration will review and make a final determination of the major function designation.

The major function is designated based on the fundamental focus of the scope of work outlined in the proposal or award documentation, not by the funding mechanism. The following guidelines establish definitions of each major function to ensure compliance with federal regulations, accurate reporting and appropriate application of indirect cost rates.

If the scope of work describes activities that meet the criteria of multiple functions, the determination will be made based on the preponderance of the activity. If there is a discrepancy or matter of contention in this regard, final determination will be made by the Office for Research Administration.  

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Definitions

Organized Research: All research and development activities funded by federal, state, and non-federal sponsors and private organizations as well as university research activities that are supported by non-sponsored University funds will be considered Organized Research:

• Basic research – Experimental or theoretical work primarily to obtain new knowledge; intended to answer why, what or how questions and increase the understanding of fundamental principles.
• Applied research – Work conducted to acquire new knowledge primarily to meet a specific, recognized need or answer specific questions aimed at solving practical problems.
• Development Research – Systematic work that applies existing knowledge and practical experience to produce new products, technologies, or processes or improve existing products, technologies, or processes; may result in expanded knowledge.

Other considerations may include:

• The project team interacts with human subjects or material of human origin; includes epidemiological and behavioral studies, outcome-based research and health services.
• Project fosters research training and career development for pre- and post-doctoral individuals, support of theses or dissertation, or other undergraduate scholarly activities.
• The project team has an opportunity to provide significant intellectual contribution that may lead to an invention, discovery, or copyright material(s).
• Knowledge acquired may have specific commercial objectives in the form of products, procedures or services.
• Dissemination of findings or knowledge are anticipated, including, but not limited to, public access, peer-reviewed publications or presentation at scientific meetings.

Instruction: Non-research teaching activities established by a sponsored award. For example, non-research instruction where the primary purpose is training and development of students.

Service/Other Sponsored Activity: Service/Other Sponsored Activities include sponsored awards for activities not otherwise classified as Organized Research or Instruction. Examples may include: 

• Fee-for-service – Routine or commercial testing that typically involves repetitive, quantitative, non- experimental measurements (commonly known as fee-for-service).
• Projects to support conferences, seminars, camps, or public events that do not meet the guidelines for organized research or instruction.
• Inter-governmental Personnel Assignment (IPA) – temporary assignment of personnel between the IU and Federal government.

Sponsored Program: Any activity that receives funding from outside the University. Sponsored projects may also be known as sponsored programs or sponsored agreements.

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History

This policy was adopted on June 17, 2024. 

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