Recently it was asked of the Office of Sponsored Programs (OSP) if we had a definition of a sponsored program on our website. While there are ample references to sponsored programs and sponsored awards in various documents on the OSP website, there was no single definition of a sponsored program.

A sponsored program is a project or activity supported wholly or in part by external, restricted funds that are awarded to the University. These projects often originate with a faculty or staff member and may take the form of research, instruction, or public service.

Sponsored projects usually include a line item budget that reflects the monetary needs of the proposed project. This budget may or may not include indirect (aka, Facilities and Administrative) costs. The absence of indirect costs does not exclude the project from being designated as a sponsored project. Even the terms “grant” or “gift” do not determine how the funds should be administered. It’s not the name of the funds, the process by which funds are acquired, nor the source of the funds, that determines how funds are to be administered. It is the terms and conditions surrounding the funds that determine if the funds belong to the sponsored programs sub-fund (at CSU, often referred to as the 53 number).

Award terms and conditions that necessitate funds being designated as sponsored programs often include:

• Funding is awarded based on a specific scope of work proposed and permission must be granted to change the scope of work
• Specific project period during which proposed work must occur
• Funding is awarded based on specific budget categories and permission must be granted to change the budget
• Sponsor imposed restrictions on publication or dissemination of results
• Sponsor options on the results of the project (i.e., intellectual property rights)
• Federal, state, or other governmental fiscal compliance policy governs the project
• The award is revocable
• Unexpended funds must be returned to the sponsor (unless a fixed-price agreement)
• Audit requirements by or on behalf of the funding source

The Sponsored Programs sub-fund (53) revenue typically comes from federal, state, and private contracts, grants, and agreements as reimbursement for costs incurred. Sometimes these funds come directly to the institution through a fixed-price agreement for the purpose specified in the agreement. In all cases, 53 funds are expended for the purpose specified by the source/sponsor and must be allowable as defined by the sponsor.

Sponsored programs differ from gifts or donations in that gifts are bestowed without the expectation of tangible compensation, product, or outcome. Sponsored programs often require accountability in the form of technical and fiscal reporting whereas gifts do not. Gift sub-funds (referred to at CSU as 64 funds) are also restricted external funds. They differ in that they are limited to gift and investment income earned on accumulated gifts.

The Office of Sponsored Programs exists “to collaborate with CSU community members with professional, client-centered support, expertise, and technology in the pursuit and conduct of externally funded projects.” When questions or ambiguities arise regarding the classification of sponsored programs, the OSP works in conjunction with appropriate University offices to make a correct determination. Appropriate classification of funds ensures appropriate stewardship of funds, whether those funds are restricted (agency, sponsored programs, gifts, etc.) or not.

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For more definitions related to sponsored programs, visit the recently updated LIBRARY on the OSP website!