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PROCEDURES FOR MONITORING THE USE OF GRANT FUNDS OUTSIDE THE UNITED STATES: PROCEDURES FOR MONITORING THE USE OF GRANT FUNDS OUTSIDE OF THE UNITED STATES (US) ARE PRINCIPALLY GOVERNED BY THE PURPOSE FOR WHICH THE FUNDS WERE GRANTED. SUBAWARD GRANTS AND GRANTS PAID OUTSIDE OF THE US, OR FOR USE OUTSIDE THE US, FOR PROGRAMS WHICH HAVE A READILY IDENTIFIABLE FOREIGN COMPONENT AND ARE TRACKED SEPARATELY ARE REPORTED ON SCHEDULE F. (GRANTMAKING IS FURTHER DISCUSSED BELOW) FINANCIAL AID: FINANCIAL AID AMOUNTS SUCH AS GRANTS, STIPENDS, FELLOWSHIPS AND SCHOLARSHIPS ARE PAID TO ENROLLED STUDENTS AND MAY BE USED FOR ACADEMIC ACTIVITIES ABROAD. STANFORD REQUIRES THAT STUDENTS WHO ARE RECEIVING FINANCIAL AID MAINTAIN THEIR REGISTRATION STATUS, AND BE ENROLLED FOR ACADEMIC CREDIT IN UNIVERSITY-APPROVED AND MONITORED PROGRAMS AND/OR RELATED ACADEMIC ACTIVITIES. ACCORDINGLY, THE UNIVERSITY DOES NOT CONSIDER FINANCIAL AID DISBURSEMENTS IN THE US TO ENROLLED STUDENTS AS "GRANTS TO FOREIGN INDIVIDUALS". SUBAWARDS: PROCEDURES FOR MONITORING SUB-AWARDS (DISCUSSED FURTHER BELOW UNDER 3. GRANTMAKING) INCLUDE AN INITIAL RISK ASSESSMENT OF THE RECIPIENT TOGETHER WITH A REVIEW OF AUDIT/FINANCIALS. THIS ASSESSMENT DETERMINES THE SCOPE OF AGREEMENT TERMS TO ENSURE SAFE-HANDLING OF THE AWARD. IN ACCORDANCE WITH OFFICE OF MANAGEMENT AND BUDGET (OMB) UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS (UNIFORM GUIDANCE), SUB-RECIPIENTS WHO ARE NOT UNDER SINGLE AUDIT ARE REQUIRED TO ANNUALLY COMPLETE A QUESTIONNAIRE DESIGNED TO ASSESS CERTAIN ASPECTS OF THE SUB-RECIPIENT'S INTERNAL CONTROLS AND FINANCIAL STATUS. THIS INFORMATION IS COLLECTED AND REVIEWED BY UNIVERSITY SPONSORED RESEARCH SPECIALISTS. INVOICES SUBMITTED BY THE SUB-RECIPIENT TO THE UNIVERSITY ARE REVIEWED TO ENSURE THAT CHARGED EXPENSES MEET BOTH INTERNAL ACCOUNTING POLICIES, AS WELL AS FEDERAL STANDARDS. AWARDS ARE MONITORED ON AN ONGOING BASIS. |
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DETAILS FOR EACH TYPE OF ACTIVITY (1. PROGRAM SERVICES, 2. INVESTMENTS, 3. GRANTMAKING, 4. FUNDRAISING) CONDUCTED IN EACH REGION AND THE METHOD USED TO ACCOUNT FOR EXPENDITURES ON PART I, COLUMN (F): AS A LEADING RESEARCH INSTITUTION, STANFORD UNIVERSITY CONDUCTS ACTIVITIES WORLDWIDE IN PURSUIT OF ITS ACADEMIC MISSION OF EDUCATION, RESEARCH AND PATIENT CARE. ITS STUDENTS, FACULTY AND ALUMNI COMMUNITIES ARE SIMILARLY INTERNATIONAL IN CHARACTER, AND SEEK TO COLLABORATE IN AN INTERDEPENDENT WORLD TO UNDERSTAND AND SOLVE GLOBAL CHALLENGES. THE UNIVERSITY HAS REPORTED ON SCHEDULE F EXPENDITURES RELATING TO FOREIGN ACTIVITIES THAT ARE TRACKED IN THE ACCOUNTING SYSTEM, IN ACCORDANCE WITH US GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. 1.PROGRAM SERVICES: PROGRAM SERVICES INCLUDE ACTIVITIES RELATING TO THE CORE INSTITUTIONAL MISSION OF TEACHING, RESEARCH AND PATIENT CARE. -TRAVEL STUDY: TRAVEL STUDY INCLUDES EXPENSES INCURRED IN REGION FOR STUDENTS TO EXAMINE GLOBAL ISSUES IN A FACULTY LED GROUP-LEARNING ENVIRONMENT. -STUDY TOURS: STUDY TOURS INCLUDE EXPENSES INCURRED IN THE REGION FOR ALUMNI ASSOCIATION SPONSORED STUDY TRIPS. -STUDY ABROAD: STUDY ABROAD INCLUDES OPERATING EXPENSES INCURRED IN THE REGION FOR PREDOMINATELY STANFORD-RUN UNDERGRADUATE FOREIGN STUDY PROGRAMS. CONSISTENT WITH FINANCIAL STATEMENT TREATMENT, WHERE SALARIES ARE INCURRED, A COST ALLOCATION FOR FRINGE BENEFITS IS ADDED TO SALARIES FOR REPORTING PURPOSES. -RESEARCH: RESEARCH INCLUDES CONTRACT PAYMENTS TO FOREIGN SUB-RECIPIENTS AND DIRECT COSTS INCURRED REGIONALLY FOR ACADEMIC RESEARCH PROJECTS, INCLUDING PAYMENTS FOR PROFESSIONAL SERVICES ENGAGED TO FURTHER THE RESEARCH PURPOSE. -FOREIGN TRAVEL: FOREIGN TRAVEL IS CATEGORIZED SEPARATELY IN THE ACCOUNTING SYSTEM TO MEET COST PRINCIPLES OF OMB REQUIREMENTS. -FOREIGN CENTER: REPRESENTS EXPENSES INCURRED FOR THE OPERATION, SUPPORT, MAINTENANCE, AND MANAGEMENT OF FACILITIES IN THE EAST ASIA/PACIFIC REGION TO HOUSE STANFORD FACULTY, STAFF, AND STUDENTS ENGAGED IN ACADEMIC ACTIVITIES. -EDUCATION: INCLUDES PROGRAM FUNDING FOR US FACULTY AND STUDENTS FOR ACADEMIC ACTIVITIES CONDUCTED INTERNATIONALLY. STANFORD ALSO OFFERS EDUCATIONAL PROGRAMS TO NON-MATRICULATED STUDENTS. -CONFERENCES AND SEMINARS: INCLUDE EXPENSES INCURRED FOR LODGING, TRANSPORTATION AND MEALS FOR FACULTY AND STUDENTS TO ATTEND AND PRESENT ACADEMIC AND RESEARCH FINDINGS. 2.INVESTMENTS: I) INVESTMENTS ARE REPORTED AS OF AUGUST 31, 2018 AT FAIR MARKET VALUE, DETERMINED IN ACCORDANCE WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE US. INVESTMENT MANAGEMENT FEES ARE DIRECT FEES EXPENSED DURING FISCAL YEAR 2018. THE REGION IN WHICH INVESTMENTS ARE REPORTED ON SCHEDULE F IS BASED ON THE INVESTMENT ENTITY'S LEGAL DOMICILE (I.E., COUNTRY WHOSE LAWS GOVERN THE ENTITY'S AFFAIRS) AND IS NOT INTENDED TO BE AN INDICATION OF WHERE THE INVESTMENT MANAGER DEPLOYS ASSETS. ACCORDINGLY, SUCH INFORMATION ON SCHEDULE F MAY NOT REFLECT THE REGIONS OF THE WORLD WHERE THE UNIVERSITY'S ASSETS ARE ACTUALLY INVESTED. STANFORD MANAGEMENT COMPANY ("SMC"), A DIVISION OF THE UNIVERSITY, ACTIVELY MANAGES THE UNIVERSITY'S INVESTMENTS, INCLUDING ITS ENDOWMENT. THE PORTFOLIO IS CONSTRUCTED TO GENERATE ATTRACTIVE LONG-TERM RETURNS, ADJUSTED FOR RISK, SO THAT THE ENDOWMENT CAN PROVIDE MEANINGFUL ANNUAL SUPPORT TO THE OPERATING BUDGET OF THE UNIVERSITY WHILE PRESERVING PURCHASING POWER ACROSS GENERATIONS. STANFORD'S INVESTMENT PROGRAM IS CONSISTENT WITH ITS FIDUCIARY RESPONSIBILITIES UNDER THE CALIFORNIA UNIFORM PRUDENT INVESTOR ACT. TO EXECUTE ITS INVESTMENT STRATEGY, STANFORD INVESTS THROUGH ONSHORE AND OFFSHORE INVESTMENT VEHICLES. OFTEN, WHEN ACCESSING INTERNATIONAL OPPORTUNITIES, THERE IS NO ONSHORE OPTION. STANFORD REPORTS ITS HOLDINGS TO THE IRS AND OTHER TAX AUTHORITIES AND MAKES EVERY EFFORT TO BE FULLY COMPLIANT WITH ALL APPLICABLE DOMESTIC AND FOREIGN LAWS. OFFSHORE VEHICLES ARE STILL TAXED IN THE US, SPECIFICALLY ON INCOME THAT IS EFFECTIVELY CONNECTED TO THEIR OPERATIONS IN THE US, AS WELL AS ON DIVIDENDS RECEIVED FROM OPERATIONS DOMICILED IN THE US. IN SUMMARY, THE UNIVERSITY'S LONG-TERM INVESTMENT STRATEGY RELIES ON A PORTFOLIO DIVERSIFIED BY ASSET CLASS AND GEOGRAPHY, CONTINUALLY REFINED TO ACHIEVE DESIRED OVERALL RISK AND RETURN CHARACTERISTICS. COMBINED WITH A DISCIPLINED PAYOUT POLICY, STANFORD'S TRUSTEES AIM TO PROVIDE ROBUST ANNUAL SUPPORT FOR THE CURRENT OPERATING ACTIVITIES AND TO PRESERVE THE PURCHASING POWER OF THE ENDOWMENT FOR FUTURE GENERATIONS OF STUDENTS AND SCHOLARS. II) ALSO REPORTED AS INVESTMENTS ARE STANFORD'S INVESTMENTS IN RELATED OPERATING SUBSIDIARIES THROUGH WHICH THE UNIVERSITY CONDUCTS ONGOING PROGRAM ACTIVITIES IN CERTAIN FOREIGN COUNTRIES. 3.GRANTMAKING: STANFORD UNIVERSITY IS NOT A "GRANT MAKER" PER SE IN THAT ITS FUNDAMENTAL MISSION, AND PURPOSE FOR TAX-EXEMPTION, RELATES TO TEACHING, RESEARCH AND PATIENT CARE ACTIVITIES. HOWEVER, IN THE COURSE OF THESE MISSION-BASED ACTIVITIES, THE UNIVERSITY DOES MAKE PAYMENTS THAT MEET THE CRITERIA FOR 'GRANTMAKING' AS DEFINED BY THE INSTRUCTIONS TO IRS 990 SCHEDULE F. ACCORDINGLY, THESE GRANTS ARE REPORTED ON SCHEDULE F, PART I, AND ALSO REPORTED ON PARTS II AND III AS REQUIRED BY THE INSTRUCTIONS. FOR MOST UNITED STATES INSTITUTIONS OF HIGHER EDUCATION, PROVISION OF FINANCIAL AID TO STUDENTS IS AN IMPORTANT ACTIVITY ENABLING QUALIFIED STUDENTS TO OBTAIN A COLLEGE EDUCATION AT THE UNDERGRADUATE, GRADUATE OR POSTDOCTORAL LEVEL. STANFORD IS COMMITTED TO A "NEED-BLIND" ADMISSION POLICY FOR US CITIZENS AND PERMANENT RESIDENTS; IT ADMITS QUALIFIED STUDENTS WITHOUT REGARD TO THEIR ABILITY TO PAY, AND PROVIDES A COMPREHENSIVE FINANCIAL AID PROGRAM FOR ALL ADMITTED US STUDENTS WHO HAVE UNIVERSITY-COMPUTED NEED, AND WHO MEET STATED FINANCIAL AID ELIGIBILITY REQUIREMENTS. FOR THE FISCAL YEAR ENDED AUGUST 31, 2018 (FY 2018), 47% OF UNDERGRADUATE AND ABOUT 79% OF GRADUATE STUDENTS RECEIVED SOME FORM OF FINANCIAL AID, WITH A TOTAL OF $471,975,286 OF FINANCIAL AID DISBURSED TO ALL STANFORD STUDENTS. APPROXIMATELY 64% OF THIS AID TOOK THE FORM OF TRANSFERS FROM INTERNAL UNIVERSITY FUNDS (OFTEN IN ACCORDANCE WITH DONOR TERMS) TO OFFSET TUITION AND OTHER UNIVERSITY CHARGES THAT WOULD OTHERWISE HAVE BEEN RECEIVED BY THE UNIVERSITY. THE BALANCE OF $168,530,041 REPRESENTS DISBURSEMENTS, PRIMARILY TO GRADUATE STUDENTS, FOR STIPENDS, FELLOWSHIPS AND OTHER STUDENT AID IN SUPPORT OF ACADEMIC EFFORT. GRANTS TO ORGANIZATIONS ARE PRIMARILY IN THE FORM OF RESEARCH SUB-AWARDS. SUB-AWARDS ARE PAYMENTS TO THIRD PARTY RECIPIENTS FOR PERFORMING A PORTION OF A STANFORD RESEARCH PROGRAM, MOST OFTEN A SPONSORED-RESEARCH PROJECT. MANY SUB-AWARDS ARE AGREEMENTS FOR CONTRACTUALLY DEFINED DELIVERABLES, USUALLY REQUIRING HIGHLY SPECIFIC EXPERTISE. AS SUCH THEY COULD BE DESCRIBED AS RESEARCH CONTRACTS. HOWEVER, CERTAIN SUB-AWARDS ARE CATEGORIZED AS GRANTS, DEPENDING ON THE NATURE OF THE ORIGINATING PRIME FUNDING SOURCE, SINCE THE TERMS AND CONDITIONS OF THE ORIGINATING FUNDING SOURCE GENERALLY FLOW THROUGH TO THE SUB-AWARD. ACCORDINGLY, GRANT-FUNDED SUB-AWARDS ARE REPORTED IN PART II. CONTRACT-FUNDED SUB-AWARDS TO FOREIGN RECIPIENTS ARE REPORTED IN PART I, LINE 3 AS PROGRAM SERVICES - RESEARCH. GRANTS REPORTED ON SCHEDULE F ARE DIRECTLY TRACKED AND SOURCED FROM THE ACCOUNTING SYSTEM. IT IS CURRENTLY NOT POSSIBLE TO REPORT EXHAUSTIVELY ALL GRANTS TO FOREIGN INDIVIDUALS OR ORGANIZATIONS OR TO DOMESTIC INDIVIDUALS OR ORGANIZATIONS WITH DESIGNATED FOREIGN BENEFICIARIES. SEE BELOW FOR FURTHER EXPLANATION OF THE METHOD USED TO ACCOUNT FOR GRANTS ON PART II AND III. 4.FUNDRAISING: FUNDRAISING INCLUDES EXPENSES DIRECTLY INCURRED IN THE REGION FOR FUNDRAISING ACTIVITIES. |