College of Arts and Sciences: Grant Routing Decision Guide

This policy explains when grants must be routed through the University of North Carolina at Chapel Hill's ("UNC‑Chapel Hill") Office of Sponsored Programs (OSP) versus when faculty may submit them independently. This policy also outlines the associated salary, benefits, and administrative implications.

Unit Policy

Title

College of Arts and Sciences: Grant Routing Decision Guide

Introduction

Purpose

This policy explains when grants must be routed through the University of North Carolina at Chapel Hill's ("UNC‑Chapel Hill") Office of Sponsored Programs (OSP) versus when faculty may submit them independently. This policy also outlines the associated salary, benefits, and administrative implications.

Scope

• Who does this Policy apply to? (Keep in mind that a Unit Policy can only apply to the same Unit)
• Are there particular groups within the Unit who must know and follow this Policy?
• Are there groups within the Unit that this Policy does NOT apply to?
  • If it’s a succinct statement, you can exclude groups here.
  • If the exclusions will take more space to explain, use the “Exclusions” section below.

Policy

When Must a Grant Go Through UNC-Chapel Hill OSP?

A grant must be routed through UNC-Chapel Hill OSP if:

• The funding is awarded to UNC-Chapel Hill (i.e., the institution is the legal recipient).
• The grant will be managed by UNC-Chapel Hill, including financial oversight, reporting, and compliance.
• The grant requires institutional compliance, such as effort reporting, IRB/IACUC approvals, or financial audits. 

When Can a Grant Be Submitted Independently (not through UNC-Chapel Hill)?

A grant does not need to go through OSP if:

• The award is made directly to the faculty member (not UNC-Chapel Hill).
• The funding is not managed by UNC-Chapel Hill.
• The faculty member is personally responsible for all reporting, compliance, and financial management.
• The grant does not require institutional oversight.

Faculty submitting independently must understand that UNC-Chapel Hill will not manage the funds, and benefits/salary implications may apply. 

Salary & Benefits Implications

If the Grant Is Administered Through UNC-Chapel Hill:

• Faculty receive full institutional base salary through UNC-Chapel Hill
• Retirement and health benefits are calculated on 100% of salary.
• No changes to paycheck, deductions, or elections.
• A grant CFS is created, and salary is distributed accordingly.
• Effort reporting is required (typically twice a year). 

If the Grant is Paid Directly to Faculty

• UNC-Chapel Hill salary is reduced by the amount received directly.
  • The top-up from UNC-Chapel Hill is the difference between the direct payment and full salary.
• Benefits (retirement, health, etc.) are reduced proportionally to the reduced UNC-Chapel Hill salary.
• Faculty must consult UNC Benefits Office for specific impacts. 

Summary Table

Next Steps: Running the award through UNC-Chapel Hill

️Before you hit the submit button, and whether you run the award or fellowship through UNC-Chapel Hill, there are some items that need attention first.

1. You must receive written approval from your Department Chair if you plan to take leave or a course buyout
2. You must let your Department Manager know as well so they can work with the Finance Team to obtain approval for your Salary Top-Up. 

Administering the award/fellowship through UNC-Chapel Hill

If you have decided to administer the award/fellowship through UNC, you must do the following:

• Let your assigned Contracts and Grants Coordinator (CGC) know (provide the link to the solicitation) within 2 weeks of submission at the latest (4 weeks is preferable)
• If you’ve already applied, that’s okay, we can work on an “after the fact” submission process
• The CGC will work on an Internal Processing Form (IPF) that goes to OSP, so they can approve the submission
• Usually the faculty/PI will be the one hitting the submit button through the sponsor portal, but OSP will ensure they have everything they need prior to that. 

Final Considerations

• Faculty are encouraged to communicate early with the research administration team to meet submission deadlines and to understand which path to take.
• For grants already submitted or in progress, exceptions or transitional support is available. 

Related Requirements

External Regulations (if applicable)

• Is this Policy connected to any Policies, Laws (federal, state, local, regulations), and/or Accreditation requirements?
• Are there any related UNC System-wide Policies?
• Is this Policy connected to any UNC-Chapel Hill Policies, Procedures, or Standards?
• Are there any other resources or materials readers of this Policy might likely refer to or need to follow or understand this Policy?

Unit Policies, Standards, and Procedures (if applicable)

• Is this Policy connected to any other Unit Policies, Procedures, or Standards?

Contact Information

Primary Contact

Office: Dean's Office

Telephone: 919-962-1165

Email: artsandsciences@unc.edu