| November-8-2004
meeting - items discussed:
SPS
ITEMS DISCUSSED:
1.
Congratulations to Peggy Bowe on her new appointment
as Grant & Contract
Administrator at WSU
Vancouver .
2.
Tax on Equipment (Guest Patti Gropp from Purchasing):
First a brief history of the Manufacturing Machinery
& Equipment (MM&E)Sales Tax Exemption: The consulting
firm of KPMG teamed with the University of Washington to challenge
how the Department of Revenue (DOR) assesses tax on equipment
dedicated to manufacturers’ research and development activities.
Outcome was successful. The DOR decided that the two universities
are entitled to take this sales tax exemption because they
each have a manufacturing operation that qualifies. In the
case of WSU, the manufacture and sale of cheese is the primary
qualifying activity. The DOR allows the sales and use tax
exemption for any and all research and development equipment,
not just equipment related to cheese production.
The
statute allowing the MM&E tax exemption is RCW 82.02.02565.
The purpose of the legislation is promotion of economic development
in the State of Washington .
All
research and development equipment used more than 50% of the
time (majority use) would be exempt from sales or use tax.
For purpose of this exemption, research is defined as:
•
Activities performed to discover technological information.
•
Technical & non-routine activities concerned with translating
technological information into new or improved products, processes,
techniques, formula, inventions or software.
•
Exploration of new use for existing drug, device or biological
product.
Equipment
purchased with MM&E tax exemption must qualify, and the
qualification must be documented and certified in purchasing
records which remain auditable seven years after purchase.
Procedures in BPPM 70.42 were developed to help departments
identify equipment that may qualify for this exemption, certify
the qualification, and minimize risk to the university. We
began testing in June 04, and the policy was published in
Oct 04.
Informational
References (Handouts provided at RAC Meeting):
•
BPPM 70.42 “Tax Exemption Certification”
(DELIVERY TRAINING CONTENT FROM THIS DOCUMENT
WITH REFERENCE TO THE OTHER THREE DOCUMENTS PROVIDED) http://www.wsu.edu/~forms/HTML/BPPM/70_Purchasing/70.42_Tax_Exemption_Certification.htm
•
Internal Certification Form
http://www.wsu.edu/~forms/PDF/BPPM/70-42-4.pdf
•
Dept. of Revenue Certification form http://dor.wa.gov/Docs/Forms/ExcsTx/ExmptFrm/ManufacturesSlsUseTxExmptCert_E.pdf
• Definition of Research, Excerpt from
RCW 82.63.010
(16)
"Research and development" means activities performed
to discover technological information, and technical and non-routine
activities concerned with translating technological information
into new or improved products, processes, techniques, formulas,
inventions, or software. The term includes exploration of
a new use for an existing drug, device, or biological product
if the new use requires separate licensing by the federal
food and drug administration under chapter 21, C.F.R., as
amended. The term does not include adaptation or duplication
of existing products where the products are not substantially
improved by application of the technology, nor does the term
include surveys and studies, social science and humanities
research, market research or testing, quality control, sale
promotion and service, computer software developed for internal
use, and research in areas such as improved style, taste,
and seasonal design.
The
full text of this document can be fount via search at: http://search.leg.wa.gov/pub/textsearch
Equipment purchases must cost at least $2,500.00 (per item/equipment;
not total purchase)
Note:
Dan Nordquist suggested that while the policy currently excludes
social science and humanities research, that WSU needs to
address this for possible inclusion the next time this item
is up for policy revision at the state level. We would like
to be able to equally treat and support all WSU Colleges ,
Departments and Units.
3.
QTRs, Fellowships & Scholarships Update (Kris
Boreen, Office of Research):
We
are going to offer our first Graduate Assistantship Training
Dec 1 st , 2004 9-11:30 AM in Lighty 405. Feel free to bring
things from your department that works best for you and we
may have time to share them with the group.
4.
SPS Updates (Lori Selby ):
Cost
Share Tip – During the next RAC meeting SPS will provide examples
of how to fill out the Effort Reporting Form to include where
the cost share is coming from. This information will be extremely
easy to fill in and will result in significantly greater efficiencies
in the development of the F&A Rate Proposal.
OGRD
ITEMS DISCUSSED:
1.
NSF Cost Sharing Policy (Jennifer Jansen):
Effective
October 14, 2004, NSF issued the following policy regarding
committing cost sharing on program specific proposals/projects:
https://www.fastlane.nsf.gov/fastlane.jsp;jsessionid=a8301248231099937461664?t=0&idx=0
The
new policy eliminates cost sharing on all future solicitations
as well as the general proposal guidelines. Other than the
standard 1% cost share for all projects, additional cost share
should be omitted from all future proposals; the only exception
is if you are preparing a proposal where the program announcement
specifically required cost share. Please contact OGRD at 335-9661
if you have any questions.
2.
Distribution Update (Andrea Comley):
Distribution
will, effective Wednesday, December 1, 2004, be done by automotive
notification via email. The distribution will be determined
by the Area, Department, and Unit as indicated on the REX
Form at the time of proposal submission or initial action.
Images will no longer be attached to distribution for security
purposes; this is to ensure that WSU is in compliance with
security regulations.
See
the attached message from Dan Nordquist dated November 9,
2004 for more detail: New
OGRD Distribution Policy .
If
you have questions or concerns regarding the new policy or
the database, please contact Monte Sutton (335-3666) or Brenda
Griffin (335-1672) or send email to ogrd@wsu.edu
. Please note, OGRD will no longer to be able to
customize distribution for each project.
3.
Prior
Approval for Foreign Travel on Federal Grants (Jen Raupp):
Per
OMB A-21 and OMB A-110, prior approval is only required for
foreign travel on a project if it is specifically addressed
in the agency specific terms and conditions OR it falls outside
of the scope of work.
4.
OGRD Tip of the Month: 45% vs. 46.8% on
Continuation Funding
(Jen Raupp):
Use
the F&A rate determined at the time of initial award for
all projects where the funding agency does not require submission
of a detailed budget prior to awarding continuation/incremental
funding (example: NIH). However, if the funding agency does
require submission of a detailed budget prior to awarding
continuation/incremental funding, then the current F&A
rate must be applied for this additional release of funds.
If you have questions in determining what rate to apply, please
contact your OGRD Grant & Contract Coordinator (example:
Department of Energy).
Please
reference attached Memo for detail on determination of F&A
rate for your project continuation/incremental funding: F&A
Cost Memo
5.
NIH
PHS 398 Revision to Forms & Instructions (Jennifer Jansen):
NIH
has revised PHS 398 Forms & Instructions. Please thoroughly
review the new announcement at: http://grants1.nih.gov/grants/guide/notice-files/NOT-OD-05-006.html
to familiarize yourself with these changes. These changes
may be used with new proposals beginning December 1, 2004
and become the new standard as of January 1, 2005. Some notable
changes are:
•
Font size to be Arial or Helvetica
11pt
•
New Forms
The
next RAC Meeting will be Monday, Decmeber 13, 2004 at 9:10
am.
Jen
Raupp
Grant
& Contract Coordinator
OGRD
|