Follow the annual Center budget approved by the Industrial Advisory Board. The main purpose of collecting membership dues is to support the Center’s research projects (internal and external subcontracts) and also to provide funding for the Center’s administrative costs. Distribution for both is processed via the Internal award mechanism in RED by transferring money from the center membership pool [SPS: PAM-PXX-XXXXXX/Project ID: 5xxxxx) called “source project” into an appropriate target project, while funding for external subs is done via initiating ePAR to issue a subcontract.

COE Request for Internal Funds Distribution (RIFD): Related to COE Centers and Consortiums ONLY

The Proposal for each Internal or “Core” project of the Center performed at NC State must be entered in RED PD and identified as the Center Core project at the end of the project’s title. When the proposal is selected for funding, the Center Director will notify the COE-ORA and request that the request for Internal funds distribution proceed. The request must include a written IAB funding decision uploaded as a backup. The internal request comes to SPARCS, and we complete the award transaction.

In-kind membership should be approved by the Industrial Advisory Board in advance. A potential in-kind member must submit a formal letter describing the type of contribution it will provide that benefits the whole membership and indicating the dollar equivalent of the contribution. In-kind membership can be approved for one year at a time. The proposal for such membership should show just $1 and indicate in the title that it is a Full (or Associate) “in-kind” member.

Marketing allocations are subject to approval by the Industrial Advisory Board. Funds for marketing are transferred by the Office of Contracts and Grants (C&G) from the Center’s membership pool account into the ledger 7 (unrestricted) account provided by the Center Director. If you don’t have one already, you may need to apply for it via the COE-ORA to the budget office. Allocations for marketing are usually made once a year.

Administrative Account funding requires a RED PD proposal entitled as follows:

[acronym of center] Administrative Account

Include a budget and justification with the RED PD record. The F&A is 0% since it is for administration purposes. No Statement of Work (SOW) is required. The decision to allocate up to XX% of the total annual membership fees for the Center’s administrative purposes is usually made by the Industrial Advisory Board (IAB), and a copy of the IAB meeting minutes must be uploaded to RED PD along with the proposal. Once the RED PD record has been imported into the Research Enterprise Data (RED) system, the COE-ORA will initiate a request to distribute internal funds (Internal Award) from the membership pool to the Administrative Account. SPARCS will process the request and forward it to C&G, where they will establish a separate five-ledger account for the admin costs. Additional funding, usually done annually, will require a supplemental RED PD proposal.

If there are residual funds in the membership pool account, it is usually extended for one year to allow use of the remaining funds for ongoing Center research projects, to finalize center business/ensure outstanding billing, etc. It seems logical to support the Core research project with these funds for at least its first year. Funds remaining at the end of the extended year can be moved to a ledger 7 and used to fund the project beyond the extended year. A PMR will need to be initiated for this action.

Transfer of funds from membership dues into IPPF does not require a Proposal. This is not a sponsored research project. The Center just needs to email C&G Centers’ Fiscal Manager (FM CODE: S, V) to request this transfer annually. The Fiscal Manager will do the transaction, moving funds into an account designated by OTT.

The proposal type should be NEW for new members of a Center or RENEWAL for members who already have an agreement with NC State.

If the action requested is a renewal, and there are no significant changes in the membership agreement (rather than extending the period of membership and/or changing the amount of annual dues) since it was originally signed, the University will issue a short amendment to the agreement, which will be prepared by SPARCS. In this case, there is no need to upload the standard membership agreement in RED PD.

If, however, the agreement has been revised since its original signing, then the Department will need to upload the revised agreement to RED PD.

The title in RED PD should reference the name of the Center and the level of membership, i.e., “SiSoC Membership, Full Member” or “SiWEDS Membership, Associate Member,” if there are multiple levels of membership (full, associate, etc.) or just “ATEC Membership,” in cases where there is only one level of membership. There is no need to include the Sponsor’s name in the project title.

• Proposal for industrial membership should read “Membership in XYZ Center (Consortium), Full (or Associate, Affiliate, etc.) Member.” Do not include the name of the Sponsor in the title.
• The proposal for a Research Project funded from the membership pool should read “Doing XXX, Center (Consortium) Core Project”.
• The proposal for the Enhancement project, supported by additional funding from one of the industrial Center members, should read “Doing XXX, Center (Consortium) Enhancement project”.

• For the membership proposal, indicate in both fields the correctly spelled name of the company becoming a member, i.e., “XYZ, Inc.” or “ABC Corp.,” not just “XYZ” or “ABC” (check spelling with the Sponsor and on the company’s official website).
• For the XYZ Center Core project (funded from the Center membership pool or from an NSF grant), indicate “XYZ Center” in both fields.
• For the Center Enhancement Project, indicate the name of the sponsoring company in both fields.

• Proposal for Center Membership: Select “Membership” from the drop-down box.
• Proposal for Core project or for Enhancement project: Select “Research.”

The F&A in RED PD should indicate the reduced rate of 10.0% Modified Total Direct Costs (MTDC), and you should select “D-Center Memberships/Projects” and use the RED PD code XXCM-14-000-MTDC.

Proposal to NSF for creating a new 1/UCRC (Industry/University Cooperative Research Center) or ERC (Engineering Research Center), both for planning grants and full proposal (New and Renewal), should carry Full overhead and use MTDC as F&A basis.

• The proposal for Center industrial membership, for the Core project, and for the Enhancement project should include a reduced F&A rate and use Total Direct Costs (TDC) as the F&A basis.
• Justification for F&A Underrecovery field: Select “D-Center membership project” from the drop-down box.
• Justification Description field: Select “XXCM-14-000-MTDC” (PDF) (i.e., reference to Centers Management Guide).

• Proposal for membership: upload standard XYZ Center membership agreement and copy of Center Bylaws.
• Proposal for in-kind membership: upload standard XYZ Center membership agreement, Center Bylaws, letter from the Sponsor with detailed description of the monetary value of in-kind contribution, copy of
  Center Industrial Advisory Board (IAB) meeting minutes indicating approval vote for granting in-kind membership status.
• Proposal for Core projects: Upload Statement of Work (SOW), Budget, Budget justification, and a copy of the Center IAB meeting minutes indicating approval for funding from the membership pool.
• Proposal for Enhancement Projects: Upload SOW, Budget, Budget justification, and a copy of a standard Enhancement Project Agreement.

The budget and budget justification are not required documents for these types of proposals; therefore, they are not applicable.

The RED PD record should include an updated, valid sponsor’s contact information, including name, address, telephone number, and email. SPARCS needs this information, provided by the Department, to mail the partially executed membership agreement to the company. SPARCS prefers to send documentation electronically, as we are going paperless.  If this option, for some serious reason, is not acceptable to the sponsor, please indicate so under comments.

In very rare cases, when the Center Director considers it appropriate, the Department may send or hand-deliver the agreement to the company sponsor. If the Center Director elects to deliver the agreement to the sponsor and wishes to include a Cover Letter, the Cover Letter should also be uploaded to RED PD.  This exception method of sending an agreement should be noted in the RED PD comments section.

Period of Performance should normally be entered in RED PD based on the expectation that the sponsor’s intention is to remain a member for three (3) years, in accordance with the terms and conditions of the NC State standard Center membership agreement. Please note that this is not a firm commitment from the sponsor, and a member may not agree to pay for membership in advance for 3 years. A member may terminate early if they so desire.

The Basic Membership Year is based on a calendar year (January 01 through December 31) or a fiscal year (July 01 through June 30), depending on the particular Center. This is determined when the Center is established and is not subject to change unless there are special circumstances and prior approval. If a company joins after January 01 or Jul 01, depending on the membership year of the particular Center, the membership dues and agreement dates are prorated accordingly.

For example, Period of Performance (PoP) would be January 01, 2011, through December 2013 or July 01, 2010, through June 30, 2013.

If the Center’s basic year is calendar and the company is joining on May 1, 2010, the PoP will be 05/01/2010 through 12/31/2013, and the total membership amount in RED PD would be calculated as follows, considering that annual dues are $25K:

If the Center’s basic year is fiscal and the company is joining on May 01, 2010, the PoP would be 05/01/2010 through 06/30/2013, and the total amount in RED PD would be calculated in the following manner:

The start date should not be different from the 1st of the month.

This is presented as a brief summary of the Center’s mission and its relationship to cooperation with the industry partner.

This form must be completed and included in RED PD for core and enhancement center projects, as well as center subcontractors.

To help ensure that NC State faculty understand their responsibilities as recipients of industrial research funding, a new PI Acknowledgement Form (approved by OGC and SPARCS, and is now a required component of RED PD submissions) has been prepared by Office of Technology Commercialization and New Ventures (OTCNV) that is tailored to the specific needs of membership Centers and Institutes as well as industrial consortia.

• Please enter the name of your unit in all highlighted fields on the Form, and save it as a template for use with projects funded by your Center, Institute, or consortium.
• The Form should be included with your Center/Institute/consortium RFP for project calls for funding from industry membership dues (internal and external).
• The Acknowledgment Form must be signed by the PI of each Core project at NC State approved for funding by your membership IAB, and uploaded to RED PD with each proposal.
• Signed Form is required as a component of the RED PD record for each Enhancement project funded by an industry member of your Center, Institute, or consortium.
• The Form must be signed by the PI of each external project selected for funding and uploaded with each PMR request to provide an external sub-award.

This requirement applies to all new and supplemental proposals (as described above) with a start date on or after July 1, 2018.