Financing Physical Assets at Universities Through UTC Program (and other) Federal Grants

1. FINANCING PHYSICAL ASSETS
AT UNIVERSITIES THROUGH
UTC PROGRAM (and other)
FEDERAL GRANTS
Amy Stearns, USDOT/OST-R
University Transportation Centers Program Grants Manager
June 4, 2014

2. SCOPE
• This presentation reflects what Federal grant
regulations say in general about grants.
• Specific references to UTC Program grants are
noted where applicable.
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WHICH TYPE OF FEDERAL GRANT
DO YOU HAVE?
Construction Grant
– construction grants = complex
• expanded compliance aspects
• increased oversight because of high $ amount
– research grants are rarely for construction
• UTC Program grants are not
• NSF/NOAA/DOD award a few
Operational Grant
– research grants are customarily operational
• UTC Program grants are this type

4. CONSTRUCTION GRANT
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5. CONSTRUCTION GRANT
Although UTC Program grants are not for
construction, points UTCs should note about
construction grants:
– major facility improvements are generally
considered to be construction (discussion follows
about minor facility alterations)
– university F&A rates applied to UTC Program
grants may include some construction-related
costs beneficial to overall institution
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6. OPERATIONAL GRANT
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7. OPERATIONAL GRANT
• Physical assets include items that are necessary
for the grantee to accomplish the purpose of the
grant.
• May generally include:
– permanent research equipment
– laboratory or other specialized research facilities
such as a test track
– workspace alterations to house research
equipment/facilities
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8. OPERATIONAL GRANT, cont’d
• Under UTC Program grants that have a
statutory education/technology transfer
mission, necessary physical assets may also
include:
– permanent education, workforce development,
or technology transfer equipment
– specialized teaching facilities such as a computer-
equipped classroom or video-conference room
– workspace alterations to house education or
technology transfer equipment/facilities
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9. TREATING PHYSICAL ASSETS UNDER
AN OPERATIONAL GRANT
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10. TREATING PHYSICAL ASSETS UNDER
AN OPERATIONAL GRANT
Permanent Equipment
• defined as having useful life of more than one
year and costing $5,000 or more
– purchase requires prior approval by grantor agency
• above these thresholds, Federal grant
regulations don’t distinguish between a $5,000
item and a $500,000 one
– common sense: higher cost = better documentation
• if equipment is used by more than one grant,
split costs appropriately
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11. TREATING PHYSICAL ASSETS UNDER
AN OPERATIONAL GRANT, cont’d
Specialized Facilities
• generally are a combination of technological
tools and physical space, customized to perform
a particular task or function
– such facilities are likely a key component of grant so
would have been described in proposal – check with
grantor agency to see if proposal language is
sufficient for approval
• if facilities are used by more than one grant,
split costs appropriately
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12. TREATING PHYSICAL ASSETS UNDER
AN OPERATIONAL GRANT, cont’d
Workspace Alterations
• generally are services obtained in order to
adapt existing space to a new purpose
– alterations often are not identified at time of
proposal, so check with grantor agency for
approval
• if workspace being altered is used by more
than one grant, split costs appropriately
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13. TREATING PHYSICAL ASSETS UNDER
AN OPERATIONAL GRANT, cont’d
ADDITIONAL IMPORTANT NOTES:
• Non-Federal Funds: Federal grant requirements
for the purchase and use of physical assets are
the same whether the assets are paid with
Federal or non-Federal matching funds.
• University Oversight: purchase and use of
physical assets is an area that attracts auditors’
attention, so we recommend early involvement
of Sponsored Research office
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14. Questions?
Amy Stearns
USDOT/OST-R/UTC Program
amy.stearns@dot.gov
phone 202/366-4957
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