GAP No. 200.130
GAP No. 200.131
GAP No. 200.132
GAP No. 200.133
GAP No. 200.134
Independent Contractor Checklist (ICC) form
Outside Services Agreement (OSA) form
Accounts Payable Check Request form

About Hiring Consultants

Duke employees may not be consultants on sponsored projects. As opposed to recipients of subcontracts, consultants:

• may be individuals or firms
• may provide identical services to others as part of their primary business
• provide expertise vital to the project, but do not have authority over the direction of the project
• are provided with specifications defining their contribution to the project rather than a statement of work requiring discretion

Procedures for Hiring Consultants
Before a consultant can be hired, a contract for the consultant's services must be reviewed and approved by both Research Support and Sponsored Programs. Attach a Purchase Requisition to the completed and signed Outside Services Contract and Independent Contractor Checklist and send it to your contact at Research Support. When it has been approved, it will be sent directly to Procurement by Research Support. Please see the General Accounting Procedures above for a
more detailed description of the procedures for hiring and paying consultants.

Requesting Local Phone Service

Request for Local Phone Service Approval Form

Local telephone service is a departmental administrative cost, however, if a phone or line can be identified exclusively with a project and will only be used for research or project activities, permission may be secured to charge the line as a direct cost. Examples of services which would meet the criteria are:

• a modem used for twenty-four hour collection of seismic data from around the country
• a hot-line reserved for callers
• special phone service required by a sponsor such as the ship-to-shore lines on the NSF-owned research vessels operated by Duke's Marine Lab.

To request approval for direct charge of phone services to a grant, fill out the Request for Local Phone Service form (see link above).

Program Income

GAP 200.290

Program income is gross income earned by a recipient from activities all, or part, or which are supported by the direct costs of an award.
Program income includes, but is not limited to:

• Fees for services performed under the grant, such as those resulting from laboratory drug testing.
• Rental or usage fees, such as those earned from fees charged for the use of computer equipment or laboratory instrumentation purchased with grant funds.
• Conference or participant fees in excess of revenue.
• Funds generated by the sale of commodities such as tissue cultures, cell lines, or research animals.
• Third-party reimbursements for hospital or other medical services, such as insurance payments for patients where such reimbursement occurs because of the grant supported activity.

Except as otherwise provided in federal awarding agency regulations or the terms and conditions of the award, program income does not include:

• The receipt of principal on loans, rebates, credits, discounts, etc., or interest earned on any of them.
• Interest earned on advances of federal funds.
• Income earned from license and royalties for copyrighted material, patents, patent applications, trademarks and inventions produced under an award.
• Income earned after the end of the project period. (NEH reserves the right to make claim to or restrict the use of the federal share of income earned during the five years following the grant period.)

These standards do not cover proceeds from the sale of property.

Estimates of Anticipated Program Income: Many federal agencies have grant application forms which ask the proposer to enter the estimated income, if any, expected to be generated by the project. The anticipated nature and source of the income must be provided on the application forms themselves (Public Health Service) or included in the narrative statement (NEH, and any agency using the Standard Form 424A).

Disposition of Program Income: Program income earned by the recipients shall be retained by the recipients, and, in accordance with agency regulations or the terms of the award, be used in one of three ways:

• Option 1
  Added to funds committed to the project by the awarding agency and by the recipient and used to further eligible project directives.
• Option 2
  Used to finance the non-federal share of the project or program.
• Option 3
  Deducted from the total project or program allowable cost in determining the net allowable costs on which the federal share of costs is based.

If an agency authorizes a recipient to use Options 1 or 2 in the disposition of program income, but sets a dollar limit on funds to be used according to those option, any excess will be used in accordance with Option 3.
In the event that an awarding agency does not specify in its regulations or in the terms and conditions of an award, the recipient must select the appropriate option based on the following criteria:

• For awards that support research, Option 1 shall apply automatically. (The only exception to this rule would occur if a recipient has been subject to special award conditions as a result of agency concerns about the recipient's ability to perform the research or manage federal funds.)
• For all other program, Option 3 will automatically apply.

Reporting: The University is required to report any program income generated during the performance of the grant on the Financial Status Report (SF 269). In order to identify the revenue as program income, use the following G/L Accounts:

• 349400 Sundry Revenue:
  to be used when revenue is received from non-Duke sources.
• 752500 Program Income:
  to be used when revenue is received from Duke fund codes.
  Isolating program income in a distinct object code will allow the University to report accurately on the Financial Status Report. It is also possible to establish subaccounts to help identify and manage program income, such an account for conference expenses and revenues.

Departments are responsible for identifying program income and using the correct object codes to record the income. If program income is estimated during the application process and does not materialize under G/L Accounts 349400 or 752500, it will be the department's responsibility to identify the income to be reported, or provide an explanation about why the anticipated program income was not generated.

Foreign Travel

A few federal agencies, in addition to requiring the use of American carriers and economy class tickets, require , prior approval for each foreign trip - even if it was included in the approved budget. Always check the terms and conditions of a grant when it arrives to make sure you understand what is required by the sponsor in regard to travel.