The Office of Contracts and Grants, under the direction of the Assistant Vice Chancellor for Business and Finance/Comptroller is responsible for the administration of financial accounting for all sponsored agreements awarded to North Carolina A&T State University fiscal management is assuring compliance to terms and conditions, the development of financial procedures; the preparation and/or review of all financial reports concerning contracts and grants. This responsibility includes but is not limited to the following:

1. Reviewing of proposals prior to submission and negotiation of the award terms and conditions,
2. Providing support for the administration and financial management of contracts and grants,
3. Administering cash flow related to contracts and grants,
4. Submitting all required financial reports,
5. Maintaining an auditable effort reporting system.

Guidance for the administration of contracts and grants is provided from several sources. The primary authorities are:

a) Federal Circular, OMB A-21,

b) Federal Circular, OMB A-110,

c) Individual regulations from the various awarding agencies

d) Periodic policy guidance from the State of North Carolina

e) Budget manual, Office of State Budget and Management; and

f) North Carolina A&T State University Policies and Procedures

CLARIFICATION OF TERMINOLOGY

Contracts and Grants. The distinction depends only on whether the sponsor or grantor designates the governing document as a "grant" or as a "contract." General definitions are as follows:

1. Grants: Funds received from outside sources for the purpose of supporting the public service, research or instruction functions in a specific area of mutual interest to the institution and the grantor. The governing documents furnished by the grantor at the time of such grant awards usually designate the funds as "grants" and specify the degree of accounting and reporting obligations on such funds.

2. Contract: Funds received by the institution for specific services rendered to agencies, corporations, or others under negotiated contracts. These contracts are formal written documents which specify the rights and obligations of the parties involved.

3. Cooperative Agreements: A "cooperative agreement" is the appropriate relationship between the federal government and a recipient when both of the following conditions are satisfied:

A. The principle purpose of the relationship is to transfer money, property, services, or anything of value to the state or local government or other recipient in order to accomplish a public purpose. Such purpose may be categorized by support or stimulation authorized by federal statue, rather than acquisition, by purchase, lease, or barter, of property or services for the direct benefit or use of the federal government.

B. Substantial involvement is anticipated between the executive agency, acting for the federal government, and the state or local government or other recipient during performance of the contemplated activity.