FMPM 620 Revenue  - Commercial and Non-Commercial Activities

Intent

This Policy establishes James Cook University’s (JCU; the University) framework for review and approval of applications, tenders, proposals and contracts/agreements, as well as procedures relating to:

• pricing external grant applications;
• negotiating or tendering to supply goods or services to external parties;
• setting and waiving indirect costs (overheads); and
• the inclusion of project surpluses.

Scope

This Policy applies to all University staff, Higher Degree by Research (HDR) candidates and individuals acting on behalf of the University who are involved in revenue management for both Commercial and Non-commercial activities. This Policy does not apply to the staff or activities of the Brisbane or Singapore campuses.

This Policy applies to all commercial and non-commercial activities conducted on behalf of the University, including but not limited to revenue-generating activities involving grants, contracts, consultancies, and commercial services. It does not apply to untied cash donations covered by FMPM 940 Donated Property, Plant, Equipment and Cash.

Definitions

Except as otherwise specified in this Policy, the meaning of the terms used are as per the FMPM Glossary.

Direct costs - All costs directly attributable to undertaking the project including salaries and salary on-costs of staff employed on the project, consumables, specialised laboratory, field station and facility user charges, travel, equipment purchase or rental and maintenance costs.

In-kind support - Non-cash costs (direct and indirect) contributed by the University and not included in the customer price (e.g. the Chief Investigator salary costs and related indirect costs).

Indirect costs - Costs incurred by the University in support of research but not attributed to the individual project including, but not limited to, existing facilities and equipment (e.g. laboratory and office space), University-funded research assistance and technical support, administrative support, libraries, computer services, telecommunications, power, lighting, building maintenance and cleaning.

Overheads - A term equivalent to indirect costs, as defined above.

Full cost - All costs incurred in undertaking a project including direct costs, indirect costs, and in-kind support, but not including project surplus.

Project Surplus - Fee on top of full cost recovery for a commercial project (profit margin). Fee charged to third party minus taxes, direct and indirect costs.

Price - Full costs for a project plus project surplus that is conveyed to the third party.

Policy

1. A staff member (project leader) may identify opportunities to apply for grants, participate in a collaborative ventures, engage in non-commercial activities, or provide research or non-research services on commercial terms to a third party or funding body.

2. All non-commercial and commercial activities, including all contracts and agreements regarding non-commercial and commercial activities, including any variations, must be formally negotiated and executed by the University, not by the individual staff member undertaking the work. Exceptions require written approval – refer to the Staff External Professional Activities and Outside Employment Procedure.

3. Research grant applications, tenders, and proposals for research activities (both commercial and non-commercial) must be reviewed by Research and Innovation Services prior to submission to the third party.

4. Responsibilities relating to commercial and non-commercial activities, including roles with delegated authority, are detailed in FMPM 621 Revenue – Commercial and Non-commercial Activities Procedure.

5. The University does not participate in uncompetitive behaviour when pricing applications, proposals or tenders. The principle of competitive neutrality must be upheld, ensuring that government business activities do not gain net competitive advantages over private sector competitors solely due to their public sector ownership.

6. Full indirect costs should be charged to the maximum allowable extent. Organisations funding non-commercial activities are expected to cover indirect costs (overheads). If these costs are not on charged, the University is effectively subsidising the work from its own resources.

7. Project surpluses must not to be paid to employees under any circumstances.

Related Documents, Legislation or JCU Statutes

JCU Delegations Policy

Financial Sub-delegations Register

FMPM 621 Pricing – Commercial and Non-commercial Activities Procedure

Staff External Professional Activities and Outside Employment Procedure

FMPM 940 Donated Property, Plant, Equipment and Cash

Administration

NOTE: Printed copies of this policy are uncontrolled, and currency can only be assured at the time of printing.

Approval Details

Revision History