Useful Terms

Action Memo - Action Memos are produced by the Office for Sponsored Programs and distributed (by GMAS) to the PI and Departmental Administrators who will have post-award responsibility for managing an award. Action Memos are issued whenever an “official” change is made to the award (i.e., more or less money; more or less time; internal approval of pre-award or advance account status; or an administrative change such as the addition of a new Subactivity or correction, etc.). The Action Memo provides a summary of the account string information, as well as funds awarded to date and funds anticipated.

Advance account - also “At-risk account” - an account established for charges on a sponsored project before the award has been formally established. Click here for more information.

Allocability - One of several basic considerations, per Uniform Guidance, that must be met in deciding whether a particular expenditure is appropriate to a particular federal account. “Is the charge allocable to the project?” means “did the purchase of this good or service relate specifically to the project being charged?”

Allowability - One of several basic considerations, per Uniform Guidance, that must be met in deciding whether a particular expenditure is appropriate to a particular federal account. “Is the charge allowable?” means “do federal regulations allow the use of federal funds for the purchase of such an item?” 

Authorized Institutional Signatory - An employee of the University authorized to sign legal documents on behalf of its legal entity, President and Fellows of Harvard College. Authorized signatures on FAS proposals and sponsored research agreements are provided only by the Office for Sponsored Programs and by the Office of Technology Development; PIs and department or other FAS administrators may not sign on behalf of the President and Fellows.

 

Carry-forward - Also referred to as “carryover,” the transfer of an unobligated balance on a sponsored award to a subsequent funding period. Sponsors may or may not allow carry-forward; sponsor policies are reflected in the terms and conditions of each award.

CFR (Code of Federal Regulations) -Organized collection of general, permanent rules made by U.S. federal executive agencies, updated annually and organized into 50 titles. 

Chart of Accounts - An accounting term that refers to an entity’s numerical coding system for recording financial transactions. Harvard's Chart of Accounts provides the organizing framework for budgeting, recording, and reporting on all University financial transactions. The chart consists of 33 digits organized into 7 segments. The digits in each segment stand for a specified property described in a table organized by a standard naming convention.

CITI (Collaborative IRB Training Initiative) - Online platform that provides required ethics training for research personnel, particularly in human subjects research and Good Clinical Practice . All individuals with direct interaction with research participants or their data must complete these courses to ensure compliance with federal regulations and institutional policies.  

Closeout - After all scientific and technical work on an award has been completed, formal closeout of awards usually requires, at a minimum, that final technical and final financial reports be submitted to the sponsor. Depending upon the sponsor, other documents (such as a final invention/patent report and/or equipment reports) may be required.

Cognizant Agency - Recipients of more than $25 million in federal assistance are assigned to a “cognizant agency” for audit supervision. Typically, this function falls within the purview of the cognizant agency's Office of Inspector General for Audits. The cognizant agency represents the federal government in negotiations with educational institutions in areas such as setting indirect cost rates and resolving audit findings. The cognizant agency for non-profit organizations is usually determined by calculating which federal agency provides the most grant funding. Harvard’s primary source of federal support comes from the NIH, so our cognizant agency is the Department of Health and Human Services (DHHS).

COI (Conflict of Interest) - A University-wide and school-specific set of guidelines and rules designed to ensure that individuals with financial or other secondary interests do not inappropriately influence their primary professional or academic responsibilities to the University. The policy requires the disclosure of outside activities and interests by faculty and staff to identify potential conflicts and manage them, maintaining public confidence and the integrity of the University's work. 

Companion Account - Non-sponsored funding account created to track and record expenses for activities that are also part of a sponsored project, such as a grant from an external organization. It's used to capture cost sharing commitments and to record salary costs that are "over-the-cap" for effort reporting purposes. 

Consistency - One of several basic considerations, per Uniform Guidance, that must be met in deciding whether a particular expenditure is appropriate to a particular federal account. “Is the charge consistent?” means “are costs incurred for the same purpose or in similar circumstances treated in the same manner?” For example, local telephone calls are considered indirect costs, unless there is a special purpose and circumstance (for instance, a telephone survey).

Contract - An agreement for procurement of a service or product, in which an institution is paid to help the sponsor reach a particular goal. Contracts have a set of “terms and conditions” to which both parties (sponsor and institution) must agree before work can begin.

Cooperative Agreement - An arrangement under which there is a transfer of funds from the sponsor to the institution, to assist the institution in reaching a particular institutional goal. Cooperative agreements assume a significant level of sponsor participation.

Co-PI (Co-Principal Investigator) - Co-lead researcher on a grant or project.

Copyright - A legal protection for an original piece of work, such as art, film, software, or writing. At Harvard, the University holds any patents that come about as a result of sponsored research, but the individual faculty member often holds the copyrights. Sponsored research agreements may specify other, or additional, provisions. Questions about copyright may be addressed to either the Office of Technology Development (OTD) or the Office of the General Counsel (OGC).

Corporation - The thirteen-member board, to which the President reports, that is ultimately responsible for running Harvard University. The Corporation is similar to the Board of Trustees at other institutions, although the Corporation meets more frequently (approximately once a month throughout the academic year).

Cost Sharing - Costs of a project that are not paid for by the sponsor. As far as the federal government is concerned, “cost sharing” and “cost matching” are synonymous. At Harvard, distinction is made between “University Cost Sharing” (using Harvard funds) and “Sponsored Cost Sharing” (using funds from another sponsored award). Both types of cost sharing have programmatic and financial implications for the University and are discouraged unless required by the sponsor.

Cost Transfer - A procedure by which departments, by journal voucher, transfer costs from one account (of any type) to a federal sponsored account in order to allocate costs properly. With very few exceptions, these changes must be made within 90 calendar days of the 15th of the month following the month of the original transaction. Most cost transfers require a cost transfer form. See the University Cost Transfer Policy here.

CUHS (Committee on the Use of Human Subjects) - an Institutional Review Board (IRB) that protects the rights and welfare of human subjects in research at Harvard's Cambridge and Allston campuses. It reviews research proposals to ensure they are ethical and comply with federal regulations, minimizing risks to participants and ensuring they give informed consent. Researchers must obtain approval from CUHS before starting any project involving human subjects at Harvard.

CV (Curriculum vitae, the “course of life”) - Also referred to as a résumé or biographical sketch, a CV is typically accompanied by a list of publications. CVs of the PI and key personnel are usually included in a proposal. Many sponsors have specific formatting and page-length restrictions.

Unallowable Costs - Expenses determined to be unallowable in accordance with cost principles or terms and conditions of an award.

Detail Listing – A report that shows each individual transaction posted to an account during a specified time period. Detail listings are part of the HART suite of reports.

Direct Costs - Those expenses incurred during the course of a research project that can be attributed directly to that project. Examples include salaries of researchers, equipment, and scientific supplies.

DoED (Department of Education) - Also known as ED, the cabinet-level agency of the U.S. federal government responsible for administering and coordinating federal assistance for education, establishing policy, promoting educational equity, and fostering student achievement and competitiveness.  

DZX – Also known as Fieldglass, the vendor management system that Harvard University uses to find, hire, and manage its contingent (temporary or contract) workers.

ECRT (Effort Certification and Reporting Technology) – University system for certifying effort on federal grants.

EDGAR (Education Department General Administrative Regulations) – EDGAR provides general rules for administering Department of Education grant programs.

Equipment - Items or fabrications that have a useful life of more than one year and a value of more than $10,000. Equipment charges on federal sponsored awards do not bear overhead.

Expanded Authorities - The permission that many federal agencies have given research universities to approve certain types of changes to grants without obtaining the sponsor’s authorization. These changes include pre-award spending, no-cost extensions, and rebudgeting of restricted expense classes, such as equipment. Internal approval of actions under expanded authorities is handled through GMAS.

Export Controls - The federal government has a number of controls in place that limit the export of technical data, goods, and commodities to other countries. In some cases there are also limitations on sharing information with foreign nationals even within the United States. Certain types of goods and technologies are especially sensitive, particularly those with potential military applications (see ITAR), and certain countries are under economic embargoes that influence both direct exportation and “transshipment” through another country. Regulations in this area are complex and potential penalties are serious.

F&A (Facilities and Administrative Costs) - Indirect/overhead costs assessed on grants.

FAR/DAR/FPR  (Federal Acquisition Regulations / Defense Acquisition Regulations / Federal Procurement Regulations) - These extensive, detailed documents set forth all the rules that federal agencies must follow whenever they acquire anything. These rules cover the “procurement” of basic research via contracts. FAR covers all federal procurement.

FDP (Federal Demonstration Partnership) - A large consortium of universities, nonprofits, federal agencies, and affiliate organizations that works with the OMB (Office of Management and Budget) to streamline the administration of federal sponsored awards. Expanded Authority is an example of a simplification that all institutions have been allowed to use after a successful demonstration by an FDP pilot project. See http://thefdp.org for more details.

Fieldglass – Also known as DZX, the vendor management system that Harvard University uses to find, hire, and manage its contingent (temporary or contract) workers.

Finding - An action that appears not to comply with regulations and is deemed sufficiently significant to warrant mention in an auditor’s report.

Fiscal Year - A one-year period, frequently different from the calendar year, that is treated as a single entity for budgeting and accounting purposes. At Harvard, fiscal years run from July 1st through June 30th, with the convention that the year ending on June 30, 20XX is called “FYXX.” Thus the budget year for a sponsored award will coincide with the University fiscal year only if the award happens to start on July 1st.

Flowdown - When subcontracts and subawards are created, the terms of the prime award must be incorporated into these documents—that is, the terms “flow down” from the prime award to the subaward.

FOA (Funding Opportunity Announcement)  - Also called RFP (Request for Proposals), this is a funder’s invitation to submit proposals.

Fringe Benefits - Each non-student employee of the University receives certain benefits in addition to his or her salary. The exact benefits will depend in part on the individual’s category of employment and may include life insurance, medical coverage, tuition assistance, and pension benefits. The department in which the person works (or the sponsor, if the salary is paid by sponsored funds) pays the costs of these benefits; the amount is usually a percentage of the salary. You can find currently-approved fringe benefit rates here.

FTE (Full-Time Equivalent) - The portion of a person’s time paid for by an employer. A person working full-time is considered to be 1.0 FTE.

Fully Executed - A contract or grant document is fully executed when it has been signed by all the parties from which signature is required. Typically, OSP will not establish an account until all parties have reached formal agreement.

Federalwide Assurance (FWA) - The University’s agreement with the Department of Health and Human Services regarding our obligations to review and approve the use of human subjects in research. The University has three FWAs, one for the Medical and Dental Schools, one for the School of Public Health, and one for the other schools on the Cambridge and Allston campuses (the “University Area”).

Gift - Gifts are funds that are provided to support University programs that do not meet the criteria established for sponsored project accounts from non-federal sources (factors include proposal terms, scholarly terms, deliverables, reporting responsibilities, and property terms). For more information, see the Gift vs. Sponsored Research Policy.

GMAS (Grants Management Application Suite) - Harvard’s web-based grants management system that includes information about all sponsored awards and connects individuals involved in and responsible for sponsored research administration. 

Grant - Funds transferred from a sponsor to an institution, in order to assist the grantee in reaching a specified institutional goal. For more information, see the Gift vs. Sponsored Research Policy.

Grants.gov - This site allows organizations to find and apply for competitive grant opportunities from all grant making federal agencies. See http://www.grants.gov.

Harvard Key - Harvard’s SSO Authentication System and an individual’s central secure login.

HGSE-OSP (HGSE Office of Sponsored Projects) - This department actively supports the research and educational mission of the Harvard Graduate School of Education by: enhancing training; addressing emerging issues; anticipating and solving problems; improving systems in collaboration with researchers, scholars, and administrators across HGSE and throughout the University; facilitating compliance with applicable laws and regulations; and representing the interests of HGSE researchers and administrators in discussions with University decision makers.

HU (Havard University)  - The entire institution, the official name of which is President and Fellows of Harvard College.

HU-OSP (Harvard University Office for Sponsored Programs) - The University office responsible for pre-award sponsored research related issues for FAS and various other Harvard schools (through Awards Management), and post-award grants administration for the entire University (through Financial Services). For more information, click here.

 

ICAA (International Collaboration and Activities) - The key objectives of the International Collaborations and Activities Approval are to 1) provide a consolidated means of collecting and systematizing information regarding Harvard’s international sponsored activities, 2) establish better internal controls related to such activities; and 3) enable the University, when needed, to report on its international sponsored activities both internally and externally, including in accordance with applicable sponsor requirements.

IDC (Indirect Costs) – Also known as “Overhead” and “Facilities and Administrative” (F&A) costs, those costs that cannot be identified specifically with a particular project (e.g., heat, light, office supplies, local telephone, etc.) yet are clearly costs incurred in doing the research. Every few years, cost analysis staff at the University calculate, forecast, and negotiate the indirect cost rate with DHHS. Indirect costs are recovered by applying the rate to the overhead-bearing direct costs for a project.

Intangible Property - Trademarks, copyrights, patents, loan notes, and lease agreements.

IRB (Institutional Review Board) - Institutions receiving federal funds in support of research involving living human subjects or identifiable data about living individuals must have an IRB to review and approve such activities. At Harvard, the review requirement extends to all human subjects research, regardless of the source of funding, and even if the research has no external support. Harvard has three IRBs, one for the University area, one for the Medical School, and one for the School of Public Health. The University area IRB is known as the Committee on the Use of Human Subjects (CUHS).

ISRA (Industry Sponsored Research Agreement) - An agreement drawn up between the University and a corporate sponsor to support research. ISRAs are negotiated and approved by the Office of Technology Development.

ITAR (International Traffic in Arms Regulations) - The body of U.S. law governing export of munitions and defense technology. This law can complicate negotiation of federal awards. Cryptology and some types of computer programming are included under the definition of munitions.

Journal - short for “journal voucher” or “journal entry, ” a document generated to effect a change in an already existing entry in the accounting system. 

Letter of Credit - A payment mechanism that allows the institution to request a wire transfer of cash from the federal sponsor’s treasury account in order to cover immediate disbursement needs (i.e., the costs) of the research projects supported by that sponsor. Non-federal sponsors occasionally set up letters of credit, as well.

License - The legal mechanism by which one party can obtain the right to use someone else’s patent or copyright, usually by paying licensing fees. At Harvard, these fees are primarily returned to the inventor and the inventor’s department and school, with the University keeping a smaller portion, according to the University’s royalty sharing policy.

LOI (Letter of Intent) - Preliminary application showing intent to submit a full grant proposal.

Misconduct - The Department of Health and Human Services, the National Science Foundation, and most other federal agencies define research misconduct as “fabrication, falsification, or plagiarism in proposing, performing, or reviewing research, or in reporting research results.”

MOU (Memorandum of Understanding) – Agreement between Harvard and another institution

MTDC (Modified Total Direct Cost) - For the purposes of consistency across research institutions and federal sponsoring agencies, regulations have been issued regarding the calculation of indirect costs. These regulations call for the establishment of a “base” to which the overhead rate can then be applied. This base excludes certain direct costs (e.g., equipment, participant support, subcontracts); hence it is a “modified total direct cost” base. Most sponsored projects are charged overhead on the MTDC base rather than on the Total Direct Costs (TDC) base.

NEA (National Endowment for the Arts) - The mission of the NEA is to “enrich our Nation and its diverse cultural heritage by supporting works of artistic excellence, advancing learning in the arts, and strengthening the arts in communities throughout the country.” NEA grants often support only part of the total cost of a project; substantial cost sharing may therefore be required.

NEH (National Endowment for the Humanities) - Another federal agency whose awards are primarily grants. NEH has a broader mandate than NEA and its grants support research, education, preservation, and public programs in the humanities.

NIH/PHS/DHHS (National Institutes of Health/Public Health Service/Department of Health and Human Services) - The Department of Health and Human Services is a cabinet-level federal agency with many areas under its purview, including Medicare, Medicaid, Welfare, and the Public Health Service. Within the Public Health Service are a variety of agencies, of which the largest is the National Institutes of Health. NIH includes 27 institutes and centers, which as a group provide approximately two-thirds of Harvard’s federal funding. The DHHS is, therefore, Harvard’s “cognizant agency.”

NOA (Notice of Award) - Official award notification from funder.

Non-federal - Every entity that sponsors projects and is not part of the U.S. federal government is considered non-federal. This category includes foundations, corporations, other universities, foreign governments, state governments, and others. Subcontracts to Harvard by non-federal entities to perform federally-sponsored work are called “federal-once-removed.”

No-cost Extension - An extension of the period of performance of an award, with no additional sponsor funding.

NRSA (Ruth L. Kirschstein National Research Service Award) - A research training grant fellowship program sponsored by NIH that supports pre- and post-doctoral fellows while they pursue research work in a health-related field.

NSF (National Science Foundation) - A federal agency that sponsors research primarily through grants “to promote the progress of science.” 

OAIR (Outside Activities and Interest Reporting) - A university-wide platform for faculty and researchers to report outside professional activities and financial interests.

OHS (Office of Human Subjects) -  IRB Office

OMB (Office of Management and Budget) - A federal agency that oversees the budget and the Executive Branch agencies, ensuring that federal funds are managed and spent appropriately.

OSP (Office for Sponsored Programs, also referred to as HU-OSP) - The University office responsible for pre-award sponsored-research-related issues for FAS and various other Harvard schools (through Awards Management), as well as post-award grants administration for the entire University (through Financial Services).  

OTD (Office of Technology Development) - The University office responsible for negotiating with all external parties for rights to inventions or copyrights to which the University holds title. OTD also negotiates Industry Sponsored Research Agreements (ISRAs).

Overhead - see Indirect Costs.

OVPR (Office of the Vice Provost for Research) - The OVPR reviews, develops, and implements Harvard’s research-related policies, as well as the organization and execution of academic research, especially in the sciences. 

Part-Of Account - Type of sponsored account in Harvard Chart of Accounts. If more than one account is needed to manage an award the additional accounts are called part-of accounts. Part-of accounts are established to manage discrete tasks due to award restrictions and to discretely capture financial data for reporting purposes.

Participation Agreement - A legal document, to be signed by each person conducting research at or supported by the University, which spells out the University’s position on ownership of inventions, publications, and other potentially licensable results of research. A signed participation agreement must be on file in GMAS for each PI before his/her account can be set up, and PIs are also responsible for ensuring that members of their research teams have filed them. Visitors to Harvard who are involved in research sign a Visitor Participation Agreement.

Patent - Legal recognition issued by the US government, allowing an inventor to prevent others from making or using the invention without permission. US utility patents last 20 years from the date the patent application is filed; US design patents last 14 years from the date of issue. Others who wish to use the patent holder’s invention must obtain a “license” (see above) to do so. If the item to be protected is a written or artistic work (or sometimes computer software), a “copyright” (see above) is the appropriate legal protection.

PD (Project Director) - Lead researcher on a grant or project.

Peer Review - The process by which competing proposals are reviewed and compared on the basis of scientific or intellectual merit by other investigators or “peers” rather than by agency administrators. Different federal agencies use peer review at different points in the proposal process, and with differing levels of involvement by experts both within and outside the agency.

PHS (Public Health Service) - A division of the Department of Health and Human Services. PHS encompasses several agencies, which include the CDC (Centers for Disease Control and Prevention), the FDA (Food and Drug Administration), Administration for Children and Families (ACF) and the NIH (National Institutes of Health).

PI (Principal Investigator) - The individual officially responsible for the conduct of a sponsored project. On research projects, the PI is almost always a faculty member.

Pre-Award Costs - Costs incurred prior to the official start date of a sponsored award.

Prime - The original funding entity of a project for which Harvard has received a portion of funding via a subagreement. The prime sponsor is our sponsor's sponsor.

Prior Approvals - See Expanded Authorities.

Program Officer - The PI’s primary contact at a sponsoring agency.

Project Director - A term used interchangeably with “Principal Investigator.”

Project Period - The period between the start and end dates of an award.

Program Income - Income generated or earned as a result of an award. This income must be tracked and reported to the sponsor, who may determine the disposition.

Proposal - A formal request to a sponsor asking for funding or other assets (e.g., equipment) in support of a research project or training program. A proposal usually consists of two main parts (a technical narrative and a budget) and several ancillary sections. Most proposals are submitted to sponsors by PIs who seek support for projects they have designed. Others are solicited by sponsors (see RFP).

Reasonableness - One of the basic conditions, per Uniform Guidance, that must be met in deciding whether a particular expenditure is appropriate to a particular federal account. “Is the charge reasonable?” means “do the nature of the goods or services acquired, and the amount paid for those goods or services, reflect the actions of a prudent person at the time the cost was incurred?” See also Allowability, Allocability, and Consistency.

Records Retention - The process of storing records for a period of time. Most sponsors require that records be retained for auditing purposes, usually for three years from the end date of the award. The University recommends retaining them for seven years, to comply with both federal and state regulations. See the Retention of Research Data and Materials Policy for more information.

Requisition - A form used in procurement systems to enumerate the items to be included in a purchase request. See also PO (Purchase Order).

RFP (Request for Proposals) – Also known as FOA (Funding Opportunity Announcement), this is a funder’s invitation to submit proposals. An RFP describes the scope of work, timing of proposal submission, etc. Ordinarily, RFPs that stipulate terms and conditions result in contracts, rather than grants (see Contract).

ROI (Report of Invention) - A form used by inventors to describe an invention. OTD reviews the ROI before deciding whether to file a patent application.

SBIR/STTR (Small Business Innovation Research/Small Business Technology Transfer) - SBIR and STTR are government programs that encourage innovation by mandating that the large sponsoring agencies fund cooperative R&D projects involving small businesses and research institutions.

SOW (Statement of Work) - Project description including all activities a party will undertake.

Subaward/Subcontract - Award made by recipient to eligible subrecipient. Subawards may be made to Harvard by other institutions or by Harvard to other institutions who will participate in a research project. In either case, the terms of the prime award will be passed on (“flow down”) to the recipient of the subaward through a formal document that governs the academic and administrative aspects of research thereafter, unless amended by mutual agreement of the parties.

Subrecipient - Legal entity to which a subaward is made. The subrecipient is accountable to the recipient, the entity to which the prime award is made.

Supplemental/Summer Salary - Salary paid to faculty to compensate for effort performed on sponsored projects outside of their academic appointments. HGSE faculty with 9-month appointments who undertake externally sponsored research projects at the University may supplement their academic salaries by up to 3/9ths from external sources, as compensation for the time spent on the associated sponsored research projects.

Suspension - Action that temporarily stops work and suspends funding pending a corrective action.

TDC (Total Direct Costs) - The sum of all charges that are clearly associated with a sponsored project (the salaries of people working on it, the cost of necessary supplies and equipment, etc). TDC is often used to identify the costs on which overhead will be charged, i.e., an overhead rate of 8% TDC on an account means that all of its direct charges will be assessed at 8% overhead. Compare with MTDC, above.

Technology Transfer - The various mechanisms by which the University “transfers” to industry products of research that have potential market applications. Usually, the researcher and the University receive some compensation (i.e., licensing fees).

Terms and Conditions - The various rules and regulations under which a research project must be conducted. They are normally included in both granting and contractual documents. The sponsor, the researcher, and the researcher’s institution must agree to terms and conditions before the work can proceed.

Tuition Remission - The portion of graduate student tuition that is charged to a sponsored award. Tuition remission percentages must match effort percentages calculated from salary distributions. 

Termination - Cancellation of sponsorship in whole or in part prior to the completion date of an award.

Third-Party In-Kind Contribution - A non-cash contribution to a project by a non-federal third party (e.g., the donated service of a skilled professional, or use of software or equipment at no charge to the sponsor). Such contributions may sometimes be treated as cost sharing.

Uniform Guidance (UG, also 2 CFR 200) - A "government-wide framework for grants management" that synthesizes and supersedes guidance from earlier OMB circulars. The reforms that comprise the Uniform Guidance aim to reduce the administrative burden on award recipients and, at the same time, guard against the risk of waste and misuse of Federal funds.

University Area - Harvard has three separate indirect cost rate negotiations with its cognizant agency, DHHS: one for the Medical Area (Medical and Dental Schools), one for the School of Public Health, and a third for the “University Area” (all other units including the FAS). The same distinctions also apply for the University’s Federal Wide Assurances regarding the use of human subjects in research.

Unobligated Balance - Funds not spent or committed at the end of an award period.

Unrecovered Indirect Cost - The difference between the amount awarded and the amount that would have been awarded if the full federally-negotiated indirect cost rate had been included. Unrecovered indirect costs may sometimes be credited toward cost sharing requirements.

Wire Transfer - A banking procedure for moving cash overnight from one bank to another, allowing the essentially immediate reimbursement of claims. Wire transfers are frequently used by foreign sponsors and by federal sponsors for letters of credit (see above) and monthly vouchers.

Withdrawal - A request to a sponsor that a proposal be removed from consideration. Typically, the sponsor will require a written request signed by both the PI and an OSP signatory.