Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 1159]

EXTRACTED TEXT FROM PAGE:

1256

BOARD OF TRUSTEES

[October 23

There are many types of contracts in which a standard form is used, in which is inserted (a) a description of the project, (b) the amount involved, and (c) the term. Examples of such contracts are (a) research contracts with both public agencies and private parties, (b) training contracts for government trainees, veterans, and others. In many instances, also, there are renewals or extensions of these contracts which provide only for an added period of time and an added payment of money, the other conditions remaining the same. Under the present rules the Legal Counsel is charged with the necessity of examining and endorsing each of these individual contracts, as well as each extension or renewal thereof, even though the form used is a standard one previously approved by him and the contract contains no other different provisions. To reduce the detail involved in, and obviate the delay necessarily caused by, this operation, the Legal Counsel recommends that Article 52, Paragraph (b) be revised to read as follows (new language is shown in italics) : "All contracts prior to the execution thereof shall be approved as to legal form and validity by the Legal Counsel, such approval to be endorsed in writing on the contract, provided that such approval and endorsement will not be required with respect to individual contracts or extensions or renewals thereof the form of which has been previously approved by the Legal Counsel and which contain no substantive changes or additions, other than those pertaining solely to the description of the project, the amount involved, and the term of the contract or extension." The University Statutes refer to this office as "University Counsel," but the Board in appointing^ the present Counsel designated his title as Legal Counsel. This minor correction also is needed and is incorporated in the foregoing revision. The Comptroller concurs in this recommendation. I concur and request approval. O n motion of M r . Johnston, these amendments w e r e adopted b y the following vote: Aye, M r . Fornof, M r . Grange, M r . Herrick, Mrs. Holt, M r . Johnston, M r . Livingston, M r . Megran, M r s . W a t k i n s ; no, none; absent, M r . Hickman, M r . Nickell, M r . Stevenson.

REVISION OF RULES RELATING TO INDIRECT COSTS ON RESEARCH CONTRACTS

(9) On September 26, 1047, the Board adopted a policy relating to research contracts, with particular reference to indirect costs and patents (Minutes, pages 512 and 833). The increase in number and scope of such projects requires revision of this policy. The Provost and the Comptroller recommend the following statement to replace the present policy. I recommend approval. Budget Procedure Relating to Sponsored Research (Being a revision of Part VI of Policy Relating to Research Contracts, Edition of August 5, 1947) _ When any research proposal to be sponsored by an agency outside of the University has reached the stage of formal negotiation, the University staff member involved shall prepare a budget for all estimated costs of such investigation including the following: (a) Direct costs, which normally include compensation for personal services, materials, supplies, equipment, communication, travel, and other expenses directly made as a result of the operation of the contract. These should include employer contributions to the University Retirement System of Illinois for retirement, disability, and death benefits, for all salaries of participants in the System paid from contract funds. To provide for losses under the Workmen's Compensation Act, ij4 per cent of all payments for personal services from contract funds should be entered as direct costs. This percentage may be increased upon agreement with the sponsor, if unusual hazards are involved, or it may be waived if the sponsor agrees to indemnify the University for any such losses incurred