1. GENERAL PRINCIPLES

The ANU aims to position itself as one of the world's top universities in its selected fields.  Its objectives are:

• to use its research capacity to lead our nation in tackling questions that require research strength and depth within and between disciplines, while producing leaders in international research, and
• to achieve national leadership through world-class performance in fundamental, strategic and applied research, education, scholarship and creative activity in all fields represented in the University.

1.1 Nature of Work Undertaken

Grants and consultancies undertaken by staff of the University:

• should be appropriate to a university,
• should be broadly acceptable to the University community,
• should be unlikely to infringe the general freedom of enquiry of the University and of the staff concerned,
• should be consistent with the recognised professional expertise of staff undertaking the work, and
• should not place the staff member's own interest above that of the University.

1.2 Definition of Grants and Consulting

This policy covers all externally-funded grants and consultancies including those for research, teaching and training purposes. This Policy recognises three different types of activity that can broadly be described as grants and consulting. 

1. Grants, including grants for research and education purposes, and contract research including collaboration with industry and government,
2. University consultancies where staff members consult in the name of the University and that usually lead to a financial surplus for the University, and
3. Individual Consultancies where individual staff members consult with external organisations in their own name or the name of their company. 

Individual Consultancies are dealt with in the Policy on Undertaking Individual Consultancies and Professional Practice (52-Day Rule).

Grants and research contracts generally:

• involve an outside organisation,
• are for the purpose of supporting academic activities, including research and teaching, from which there are often no specific deliverables to the organisation, other than the provision of progress and final reports,
• are for research of a more fundamental or strategic nature, but can be of an applied nature, particularly in the case of collaboration with industry,
• recognise that intellectual property is subject to the provisions of the University's policy,
• will have either the University or ANU Enterprise Pty Ltd as a party to the agreement and not an individual staff member,
• may not require indirect costs to be identified (when the granting body will not pay them) or may require full identification of costs, including indirect costs,
• require a financial acquittal and the return of any unspent funding to the funding organisation,
• for contract research may include a financial surplus, and
• pose no impediments to public domain dissemination of results. 

For University Consultancies:

• payment is made for the undertaking of research, teaching, training, policy advice or related activity of interest to the client, 
• the University will normally be required to deliver specified outcomes or products to the client,
• there are normally restrictions on publication and IP is usually claimed by the client,
• the University would usually make a profit on the consultancy and any funding remaining after work on the consultancy has finished does not have to be returned to the client, and
• the party to the contract with the client is the University and not an individual staff member. 

In the case of ANU Enterprise, the head contract will be between ANU Enterprise and the outside organisation and a sub-contract to provide the service will be established between the University and ANU Enterprise.

1.3 Maximising External Funding

To position itself as one of the world's top universities, the ANU needs to secure external research funding from all appropriate national and international sources.  Competing vigorously and successfully for external research grants and fellowships is the 'lifeblood' of a research university.  To this end, all academic staff are encouraged, and expected, to seek out external funding for their research.  

Deans, Directors and Heads of Departments must

• provide leadership to ensure that their school, faculty, centre or department has a culture supportive of obtaining external research funding, and to ensure their area takes advantage of all relevant funding opportunities. 
• have in place an agreed and professional process to ensure the quality of grant applications including a process to check that the application meets the requirement of the funding agency. 

Individual researchers (or teams of researchers) should ensure the quality of the content of applications by arranging adequate internal mentorship and rigorous peer review. 

1.4 Managing External Funding

Staff receiving external funding are responsible to their Heads of Departments and their Deans or Directors for the management of the project, including: 

• ensuring that they are fully informed of and comply with University policy and administrative requirements associated with the project
• intellectual property management
• obtaining any required ethical clearances and related approvals
• risk assessment and management, including environmental health and safety
• compliance with codes of good practice in research
• in conjunction with their business managers, the financial management of the project including fully costing the project and ensuring that expenditures are: in accordance with the conditions of award (a grant may prohibit or limit expenditure on, for example, travel, equipment or teaching relief); are necessary to the endeavour being undertaken; occur within the award period; do not exceed the funds available; and are approved in accordance with University policy; and
• responsibility for the successful outcomes of the project, including meeting any project milestones that might be set under the grant agreement or contract, and ensuring that progress or final reports are submitted on time and in the prescribed format.

1.5 Costing and Pricing

Grants and consultancies must be entered into with a proper understanding of the costs of the work to the University, provisions for the recovery of those costs, the ownership of intellectual property as provided for in the ANU policy, Intellectual Property: Ownership, Protection and Commercialisation (1298b/2002), issues of liability and confidentiality, and any other matters that protect the University's interests in the work.

Costing of consultancies must also be carried out cognisant of the University's responsibility under the Federal Government's policy on competitive neutrality http://www.ncc.gov.au/sector.asp?sectorID=16

Basic infrastructure and administrative support is essential for the smooth functioning of the day-to-day operations of the University.  The provision of services from the Division of Information, Facilities and Services Division, Human Resources Division, Finance and Business Services Division, Research Office and other University-wide services all contribute to the overall running of the University and provide basic infrastructure for its operations.  In addition schools and faculties provide and pay for services such as internet access, office space, office consumables such as paper, telephones service, email, laboratory space and laboratory supplies etc. The cost of these services is part of the overall cost of running the University and should be included in the full cost of performing a task.  The cost of supplying such services (called indirect costs or overheads) is difficult to trace directly to individual projects and is therefore assigned to each project using a cost allocation method.

For grant applications, funding agency guidelines usually prescribe what can be included in the budget, such as the budget items that can be requested and the salary levels to be used.  These applications should match the requirements of the funding agency.  In many cases funding agencies will not pay overheads or indirect costs.  Where a funding agency will fund all costs, then these must be included in the application. Any funding provided for overheads may be retained for use by local areas.   Research contracts should be priced at commercial rates. Overheads must be calculated using the costing template and be included in the contract price. Central overheads will be deducted from accounts by F&BS.

For consultancies competitive neutrality with external organizations must be observed i.e. consultancies must be priced at full commercial rates and the client must pay for all costs of successful consultancies, including indirect or overhead costs. Overheads must be calculated using the costing template and be included in the contract price. Central overheads will be deducted from accounts by F&BS and applied to provision of support services to the University as a whole and the School or Faculty will apply its proportion of overheads to the supply of services that it supplies. 

1.6 Time Restrictions

There are no time restrictions on academic staff involved in grants, research contracts and University consultancies, other than those imposed by funding organisations, provided the Dean/Director is satisfied that any other responsibilities of the staff member, including teaching, are either not affected or dealt with through other mechanisms (e.g. the provision of teaching relief by the funding agency).  The Policy on Undertaking Individual Consultancies and Professional Practice (52-Day Rule) does not apply to work undertaken under this policy.

General staff may work on University consultancies subject to approval by their supervisor and the Dean/Director.

1.7 Insurance Cover

The University maintains professional indemnity and other insurances.  Business Managers are responsible for ensuring that activities undertaken under this policy are covered by the University's insurance, or where this is not the case, for arranging, in conjunction with the Insurance Office, for the necessary cover to be obtained or for obtaining approval from the Vice-Chancellor for self-insurance.

1.8 Staff Entitlement to Remuneration

A staff member is entitled to remuneration for activities undertaken from grants and research contracts only if such a payment meets the conditions of the grant agreement or research contract. For consultancies, academic and general staff members may be entitled to remuneration, with the approval of the Dean/Director. Any remuneration and all associated on-costs must be paid through the payroll system.

1.9 IP Ownership

Intellectual property ownership will be as agreed with the funding organisation and will accord with the ANU policy, Intellectual Property: Ownership, Protection and Commercialisation (1298b/2002).

1.10 Reporting and Accountability

Reporting and accountability will be as required by the funding agency.

1.11 Account Type

For grants and consultancies, when acquittal is a contractual requirement the account type is in ledger segment "S" (Special Purpose Funds).  In other cases it is potentially a "Q" account.  Guidelines are available from Finance and Business Services Division. Grant funds usually have to be expended on the approved project and unspent funds usually need to be returned to the funding organisation.

For consultancies, unspent funds after the consultancy has been completed shall be spent at the discretion of the Dean or Director of the Research School, Faculty or University Centre.

1.12 Benefit to the University in Terms of Eligibility for Inclusion in DEST Research Funding Calculations for the Research Training Scheme (RTS), Institutional Grants Scheme and the Research Infrastructure Block Grant (RIBG) 

Research income contributes to funding the University receives through the Research Training Scheme (RTS), the Institutional Grants Scheme (IGS) and the Research Infrastructure Block Grant (RIBG).  The University seeks to maximise research grant funds and research contracts passing through the University or ANU Enterprise to increase our RTS, IGS and RIBG income.  All reported research income that meets the DEST guidelines earns IGS and RTS funding while income from schemes on the Australian Competitive Grants Index also earns RIBG funding.  

Consultancy income will earn IGS and RTS block grant funding for the University if the project meets DEST's definition of research (e.g. funding provided for the provision of routine services or testing will not earn block grant funding; however, applied research funded by consultancies will qualify).  Consultancy agreements for work likely to meet the DEST definition should include a clear statement of the research to be undertaken as part of the consultancy. Consultancy income does not earn RIBG funding.

1.13 Promotions Criteria

The University recognises performance in consultancies and the ability to attract external grants in promotions criteria.

1.14 Appeals

The resolution of appeals regarding the administration of this Policy is the responsibility of the Deputy Vice-Chancellor (Research), under the dispute resolution procedure in the ANU policy, Intellectual Property: Ownership, Protection and Commercialisation (1298a/2002).

1.15 Review

The Director Research Office will review the policy every second year.

2. TERMS AND CONDITIONS OF GRANTS, CONSULTANCIES AND RESEARCH CONTRACTS

2.1 Terms and Conditions of Contracts and Agreements

It is essential that agreements with outside organisations be entered into on terms and conditions that protect the interests of both the University and individual staff. Draft agreements and contracts often contain clauses that impose onerous conditions on the ANU, such as clauses the ANU is unable to comply with (for legal and other reasons), clauses that would cost the ANU more to comply with than the sponsor is providing by way of a grant or clauses that hinder the academic processes of the University (e.g. the examination of a PhD thesis).

In accepting agreements, while the University will seek to obtain the most favourable conditions possible, the ANU recognizes that agreements are subject to negotiation between itself and the organisation and at times some compromises will be required.

Business Managers are responsible for ensuring that agreements and contracts meet the University’s requirements and represent the best possible outcomes for the University.   Where appropriate, Business Managers seek advice from the Research Office, which will, where necessary, seek advice from the Legal Office.  Where ANU Enterprise is involved, they have a similar responsibility.

2.2 Agreements that will not be accepted by the ANU

2.2.1 Agreements which compromise Academic Freedom and the integrity or reputation of the ANU

The ANU recognises that bodies providing funding for research and/or education programs are entitled to specify the fields and scope of the programs, and to monitor their quality and timeliness. However, the ANU will not accept funding either:

• where the funder requires a dominant position in the appointment of relevant staff; or
• where the funder has any right to interfere in, or alter, or prevent publication of, the outcome generated by the ANU’s researchers and teachers in delivering the funded program. The ANU does recognise that commercial or other considerations might sometimes require delays in publication.

2.2.2 Acceptance of Funding from the Tobacco Industry

Direct funding from foundations primarily funded by the tobacco industry will not be accepted. Direct funding from business units of companies involved in the tobacco industry will not be accepted if, in the opinion of the Deputy Vice-Chancellor Research, the unit is engaged directly in the production, manufacture, distribution, promotion or marketing of tobacco or tobacco products as its primary business; or acceptance of the funding involves any promotion or advertising that can be construed to support the tobacco industry or the tobacco lobby and its activities. Acceptance of funding from business units of companies involved in the tobacco industry will be possible if, in the opinion of the Vice-Chancellor Research, the primary business of the donor unit is unrelated to the tobacco industry; and acceptance of the funding cannot be construed to support the tobacco industry or the tobacco lobby and its activities.

2.2.3 Students

The ANU will not enter into agreements and contracts which limit, in any way, the ability of a student to meet the examination requirements of the University, for example, by: restricting the inclusion of research results in their thesis, limiting seminars which are part of the course requirements (noting that some confidentiality conditions may be required to protect agreements between parties), allowing the funding agency to vet the thesis before its submission, limiting the ability of the University to have the thesis examined or by delaying the submission of the thesis.  If necessary, the University may agree to ensure that the thesis or an appendix to the thesis remains confidential to the University and the examiners for a specified period of time.  Provision for this is made in the Doctor of Philosophy Rules.

3. POLICIES RELATING TO PARTICULAR TYPES OF GRANTS, CONSULTANCIES AND RESEARCH CONTRACTS

This section outlines policies specific to certain types of grants, consultancies and research contracts.

3.1 Formation of NIH-funded Research Consortia

This section of the policy relates specifically to consortium agreements entered into for US National Institute of Health (NIH) grants. Consortium agreements entered into by the ANU must comply with the requirements specified in the NIH Policy statement: http://grants1.nih.gov/grants/policy/nihgps_2003/index.htm.  
“Consortium Agreements” are agreements under which the grant recipient (in this case the ANU) collaborates with one or more other organisations in carrying out the grant-supported research. Effectively these other organisations act as subcontractors to the ANU for parts of the project under the grant. 

3.2 Clinical Trials

A clinical trial is defined in the NHMRC National Statement on Ethical Conduct in Research Involving Humans as a study involving humans to find out whether an intervention, including treatments or diagnostic procedures, which it is believed may improve a person's health, actually does so. A clinical trial can involve testing a drug, a surgical or other therapeutic or preventive procedure, or a therapeutic, preventive or diagnostic device or service. Any intervention, including so-called "natural" therapies and other forms of complementary medicine, can be tested in this way. Other related disciplines also conduct research that involves similar ethical considerations to those raised in clinical trials.

Clinical Trials are regarded by the University as a high-risk activity.  In order to mitigate the risks involved, externally-funded Clinical Trials, other than those funded by the NHMRC or non-profit medical foundations, will not be accepted by the University unless (a) the funding agency indemnifies the ANU against all risks arising from the Clinical Trials or (b) the Clinical Trial is approved by the Deputy Vice-Chancellor (Research) on the advice of the Clinical Trials Committee.  Funding arrangements must also preserve the ANU’s reputation as a source of independent research advice with no perception that payment in money or kind could influence the findings of the research.

Modified: 2 February 2007