Applicants should be aware of the academic and financial implications of research project submissions.

Applications take time and attention, so it is important that advice be sought early from the MRO.

Errors, ambiguities and/or insufficient attention to the terms and conditions can cause delay, jeopardise the success of an application and sometimes involve the University in protracted negotiations with sponsors.

Care must be taken to assess conditions attached by sponsors and to seek advice from the MRO on the acceptability of those conditions to the University.

The applicant's head of budget unit should be consulted before making a grant application or when seeking research funding. The head is responsible for ensuring the project is academically and financially acceptable to the budget unit.

Some grant applications require the applicant to make an offer regarding the sharing of any intellectual property arising from the research. Where this is the case, the application should be discussed with MRO to determine an appropriate division of the intellectual property in accordance with University policy.

Refer to the Costing Policy for information regarding competitive neutral costing for research programs and reporting in-kind contributions for research programs.

Where the University brings substantial background intellectual property and know-how to the collaboration, the preferred option is for the University to retain ownership of new intellectual property.

The University would then grant an exclusive licence, if requested, to the commercial partner in return for appropriate licence fee royalties and other conditions including a performance clause.

This position applies to most commercially sponsored research programs undertaken by the University and is usually sufficient to protect the commercial interests of the commercial sponsor.

This takes into account that further research may be obstructed if the University does not retain ownership of intellectual property.

The University may not receive fair returns for its endeavours if intellectual property ownership has been granted to the company and the company does not commercially exploit the intellectual property.

An alternative arrangement is one of joint ownership of intellectual property. Joint ownership means:

• the company has the right to use the knowledge for its own commercial purposes

• the University is free to develop other relationships to market new intellectual property outside the direct commercial environment or field of interest of the company.

Appropriate royalty and licencing agreements are negotiated.

Full ownership gives the commercial partner full ownership of the new intellectual property.

It is the University's least preferred option and is rarely approved.

In agreeing to such a position, the University requires at least full cost recovery for the project and an agreed financial arrangement regarding the use of the background intellectual property contributed by the University.

A date will be set by which drafts are due with the MRO. Researchers will be notified of what material is required to accompany the draft application (this may include Head of Budget Unit preliminary sign-off, costing and budget forms or the draft budget).

It is important that drafts are submitted on time for:

• return to applicant for revision

• amendment where necessary

• multiple copying

• re-submission by the final internal closing date.

Applicants should check the requirements of the granting agency in relation to ethics and biosafety clearances, and ensure that applications for clearances are submitted in sufficient time for consideration.

All cases for ethical clearances must be submitted before a grant may be accepted, even in cases where an agency requires clearances to be submitted at the same time as the grant application.

Relevant approvals must be obtained if the project falls within the terms of reference of the following committees:

• Gene Technology Regulation and Biosafety Committee

• Animal Experimentation Committee

• Human Research Ethics Committee

All applications for advertised research grants must be lodged through the Grants Office.

The Executive Director (Research) is the only University officer authorised to sign grant applications on behalf of the University.

Grant applications must not be signed on behalf of the University by a Chief Investigator or Head of Budget Unit.

Web Contact details: Grants Office

The following copies of the grant application must be submitted to the Grants Office by the internal closing date:

• the required number of copies to be forwarded to the granting body

• one copy of University records.

This allows for final processing, collation with other applications and dispatch by the external closing.

Web Contact details Grants Office

Questions can arise about how the financial credit for a research grant is recorded and reported in cases where the grant is held by either:

• two or more investigators from different institutions

• two or more investigators from different budget units/schools within the University of Melbourne

The following scenarios explain how shared credit may be established for the direct grant as well as for performance based funding through the Institutional Grant Scheme (IGS). Research Training Scheme (RTS) or the Research Infrastructure Block Grants (RIBG) Scheme.

Background

Dr. X from University of Melbourne and Dr. Y from Monash University apply for a grant. Dr. X is the first named investigator and the grant is administered by the University of Melbourne. Drs X and Y have discussed and agreed how the grant would be spent. In this case, it is 70% at Melbourne and 30% at Monash. The grant application is successful and $100,00 is paid to the University of Melbourne.

Action required to receive funding and credit for the Grant

Monash must invoice the University of Melbourne for their share of the grant. If Monash administers the grant, the Melbourne researcher must request Research Reporting to raise an invoice to effect the transfer of funds. A separate project must be created to record all transactions relating to the research. This project must have attributes to identify the original grantor.

Shared grants should be split between recipient institutions for the purposes of the Higher Education Financial and Publications Research Data Collection. The administering institution must report the net amount retained, and the other institution must report the received share. In this case it is $70,000 and $30,000 respectively.

At the University of Melbourne, Research Reporting in Finance & Planning is responsible for the accounting and reporting.

Outcome

Each institution receives the funding required and the credit for the purposes of calculating the Research Quantum (RE) or Research Infrastructure Block Grant (RIBG).

The University receives funding for research and research training infrastructure such as laboratory refurbishment and equipment and research services (eg, IT library and administration) from the following Commonwealth Schemes:

• Research Infrastructure Block Grant (RIBG)

• Institutional Grants Scheme (IGS)

• Research Training Scheme (RTS)

RIBG funding is provided by the Commonwealth through Department of Education, Science and Training (DEST) and is for the support of specific areas of research and infrastructure.

The funding is calculated by reference to the success of the University in obtaining research grants from organisations involved in the Australian Competitive Research Grants Scheme. This grant is a major source of funds for the provision of research infrastructure.

Planning and Budget Committee control the internal distribution of funds received.

Further information: Melbourne Research Office

IGS funding supports general university research and research related activities.

The funding comes from the Commonwealth through the Department of Education, Science and Training (DEST) and is distributed between universities based on relative performance on three parameters:

• research income

• research publications

• research higher degree completions.

Planning and Budget Committee controls the internal distribution of funds received.

RTS funding for research training is allocated from the Commonwealth through the Department of Education, Science and Training (DEST), taking into account 'separations' (withdrawals and completions) and based on:

• all research higher degree completions, DEST or other funded (weighting: Masters 1, PhD and Higher Doctorates 2)

• research income (all equally weighted)

• research publications (DEST categories only)

DEST adopts the following Organisation for Economic Co-operation and Development's definition of Research and Experimental Development:

Research and experimental development comprises creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man (sic), culture and society, and the use of this stock of knowledge to devise new applications.

Research and experimental development (R&D) is characterised by originality.

R&D should have:

• investigation as a primary objective

• the potential to produce results that are sufficiently general for humanity's stock of knowledge (theoretical and/or practical) to be recognisably increased.

Most higher education research work qualifies as research and experimental development. Research includes:

• pure basic research

• strategic basic research

• applied research

• experimental development

Research income is reported in four categories:

• Category 1: Australian Competitive Grants as defined by DEST (specific sponsors and schemes)

• Category 2: Other Public Sector Research Funding

• Category 3: Industry and Other Funding for Research

• Category 4: Income from Co-Operative Research Centres (CRCs)

Income received for purposes other than research, for example, profits from work shops or fee-paying courses, must not be counted in this collection even if the income is spent on research activities.

Further information: Melbourne Research Office

A grant providing:

• a stipend to a student, and/or

• the cost of a student's higher degree by research fee-paying place

may be included in the collection.

Activities excluded from the collection include income received for:

• scientific and technical information services

• general purpose or routine data collection

• standardisation and routine testing

• feasibility studies (except into research and experimental development projects)

• specialised routine medical care

• routine computer programming, systems work or software maintenance.

Research and experimental development into applications software, new programming languages and new operating systems is included.

In terms of consultancies, the DEST guidelines require that universities:

Exclude consultancy fees for projects which do not meet the definition of 'research'...

Funds are not included for consultancies as reviews of, or advice on:

• the operation of programs or agencies

• the presentation or repacking of existing knowledge to professionals, companies, agencies or others who do not have the same level of expertise as the consultant.

Consultancy fees for services and testing services would normally be excluded.

Contract research does count for the purposes of this collection.

Commonwealth Government has established approximately 60 Co-operative Research Centres (CRCs).

Once an application has been successful to establish a CRC, two agreements are signed by the parties.

The first agreement is between the Commonwealth and the CRC participants governing the terms and conditions for Commonwealth funding of the CRC.

The second agreement is between the participants in the CRC. This agreement:

• establishes the management and administration of the CRC

• ownership of any intellectual property

• the methods of commercialising any developments.

University participants must estimate the amount of:

• University funding required for participation in the CRC

• in-kind and other contributions the University would bring to the CRC project.

Funding is through renewable contracts between the Commonwealth Government and the core participating organisations.

Contracts normally run from five to seven years initially.

Funding is provided in a quarterly basis.

The Commonwealth contribution tends to be less than, or equal to, the total contributions provided by the participating institutions. Commonwealth contributions may be used for:

• capital items, such as equipment

• salaries for researchers and support staff, fellowships and student stipends, and salary on-costs

• the direct cost of research

• indirect support costs.

Contact details for the Melbourne Research Office

In-kind contributions relate to the real costs of a research project and could include:

• direct payroll costs for University academic and research staff: salaries and on-costs

• infrastructure costs: overhead costs associated with providing services to research personnel operating within the normal University environment such as library, computing, administration, buildings and grounds, office support, office space, access to facilities, and general equipment

• direct costs: costs associated with consumable materials and supplies or specific services or personnel

• fit-out costs: costs associated with major building works

• equipment costs: costs associated with major items or equipment including maintenance and depreciation costs

• higher degree students

• funds from external organisations: if used directly to support the research program in question.

The Costing Policy describes how contributions are calculated for a submission.

Contact details for the Melbourne Research Grants Office

Further information Costing Policy

Each CRC establishes its Board of Management to:

• determine policy

• monitor research

• control finances.

Boards appoint their own directors, administration agents, business managers and auditors.

CRCs may employ full time administrative and finance staff or draw on existing resources.

There is no standard management structure for a CRC. Arrangements vary, but must meet the Commonwealth's CRC guidelines and ensure that there are clear lines of financial management and accountability.

Levels of authority for a University officer working in CRCs are described in other policy documents.

Different purchasing and Tender Board rules apply for CRCs than for the University in general. Authority limits are the responsibility of the Board of Management of each CRC.

Further information:

• Authority Levels

• Purchasing and Tender Board

Each CRC must provide an annual report describing its activities.

This report should contain details of the:

• research

• educational and business strategy

• details of the operation of the CRC over the preceding year

• plans for the next year.

The report must also contain an annual certified financial statement, incorporating details from the current and preceding financial years plus estimates of future expenditure.

Reporting of in-kind contributions is required as part of the Annual Report. Each University of Melbourne CRC should use the services of the Internal Audit Office to certify its annual accounts.

To help certify the University's in-kind contributions, academic and research personnel should maintain a record of time spent on CRC activities, and the use of resources provided by the University (not accounted for in other ways) in supporting CRC activities.

A signed statement setting out these contributions should be produced by all research personnel. This statement should be procedural at least quarterly, and preferably monthly with the report counter signed by the research programme leader and the Head of budget unit. 

The University's accounting system and procedures can accommodate the accounting and reporting needs of the University.

Contact details for Accounting Operations

The research infrastructure costs to be included in any CRC submission must be calculated in accordance with the principles of competitive neutrality.

Further information: Section 4 - Competitively Neutral Costing and the Pricing of Research

Contact details for the Melbourne Research Office

Each CRC Board of Management appoints its own auditor.

The Auditor is required to confirm some essential elements to provide an assurance that:

• the audit has been conducted according to established professional standards

• the participant contributions have been provided in accordance with the Commonwealth Agreement, and the grant is matched

• the grant has been used for the purposes for which it was provided.

Contact details for the Melbourne Research Office

The University and its academic staff are often called upon to provide the following to commercial, government and semi-government bodies:

• professional advice

• testing and evaluation services

Sometimes a consultancy arises from:

• a tender by a budget unit or the School of Enterprise (SoE) in response to an advertisement or other public offer

• a direct approach to the University or the School of Enterprise (SoE).

A consultancy may arise from a personal approach by a University researcher to a commercial company or public body or vice-versa.

An academic staff member has five options when undertaking a consultancy.

Further information (HR Policy Library) on: Paid Outside Work Undertaken by Full-time Professional Staff

The key difference between the above options is risk management.

If the academic handles the matter personally, then they must provide all services required, and accept all risk associated with the consultancy.

Exposure to these risks can continue long after the completion of the consultancy.

If the academic decides to handle the matter personally, they are not entitled to use the following to provide the services required:

• University facilities

• University intellectual property

• University staff

Further information:

Contact details for: Outside Work Consultancies

Contact details for: Melbourne Research Office

Many consultancies undertaken by the University are relatively minor investigations, testing or similar activities.

The University has developed a standard consultancies procedure and agreement to deal with these consultancies.

Heads of budget units may authorise contracts with outside parties, where the contracts relate to the academic and research activities of the budget unit.

This is provided the consultancy does not exceed $150,000 and the standard conditions are accepted by the other party.

Further information on the University's standard consultancy agreement.

14.4.1 Standard Consultancy Agreement

The standard consultancy agreement requires details of the project and the price quoted and sets out the terms and conditions of the University offer.

Through this Agreement, the University accepts responsibility for the specified consultancy task.

When completing this agreement, the task to be completed must accurately specify and describe what is to be delivered to the customer on completion of the task, such as a report, materials etc.

The date upon which the deliverables will be made available to the customer must also be specified.

When costing the task or the service to be provided, all expenses and costs must be incorporated, including allowances for labour on-costs.

The project should be costed and priced in accordance with the principles of Competitive Neutrality in Costing and Pricing.

A copy of the relevant costing and pricing calculations and a copy of the Standard Consultancy Agreement must be retained.

Further information: Section 4 - Competitively Neutral Costing and the Pricing of Research