Typically research awards are made to an institution, not to the investigator who has prepared the proposal (exceptions to this are fellowship awards from some federal agencies which are made directly to individuals). Therefore, the institution formally accepts responsibility for the project. Consequently, institutional policies and procedures should clearly state the responsibilities of all parties. The principal investigator bears overall responsibility for a funded project, including the scientific and technical aspects. The financial and administrative aspects will be handled by the institution.
Babson College has the role of a legal agency for the research projects sponsored by the government, industry, or foundations in accordance with established Federal administrative standards. This includes fiduciary responsibility for all funds. The applicable requirements are contained in:
OMB Circular A-110: Uniform Administrative Requirements For Grants and Agreements With Institutions of Higher Education, Hospitals and Other Non-Profit Organizations.
OMB Circular A-21: Cost Principles for Educational Institutions.
OMB Circular A-133: Audits of States, Local Governments, and Non-Profit Organizations.
In addition to the documents listed above, each federal and non-federal awarding agency will have its own guidelines and grant conditions which the college must follow. Also, the college must follow the generally accepted accounting principles as outlined in Government Auditing Standards issued by the Comptroller General of the United States.