Agreement Acceptance Requests (AAR)

Changes that trigger an AAR

ORSP will route an AAR to the project team via eRPM if any of the following requirements are found in an award:

• 20% change in funding: When there is a total sponsor funding change of 20% or more, the change must be noted and approved by all impacted parties. This may trigger the need for a new statement of work and revised budget.
• Cost sharing change: When there are any changes that modify U-M’s cost sharing commitment, they must be noted and approved by all impacted parties. This may trigger the need for a revised budget.
• External audit: Sometimes a project-specific external audit beyond U-M’s standard annual audits is required. This requirement must be noted and approved by the administrative home department as it may incur additional costs that could be in the range of $10-15k.
• Facilities and administrative (F&A) rate change: When there are changes to F&A cost rate, sometimes referred to as indirect cost rates or IDCs, the rate change must be noted and approved by all impacted parties. This may trigger the need for a revised budget.
• Foreign currency (typical): When U-M will be paid in a foreign currency U-M can readily receive, ORSP will route an AAR to the PI and administrative home department and request that they acknowledge the risk associated with accepting payment in a foreign currency.
• Foreign currency: When U-M will be paid in a foreign currency other than those U-M can typically accept, U-M needs prior approval from the Treasury and from the PI and administrative home department.
• Governing law: Governing law of a state other than Michigan generally requires the approval of the administrative home department. 
• Insurance (risk management): If an agreement requires insurance in excess of U-M’s standard coverage, U-M needs prior approval from the U-M Insurance and Claims Administration.
• IT security: When IT security requirements exceed U-M’s normal security standards, U-M may need prior approval and coordination from representatives from IT Systems (ITS), export controls, units and/or others as applicable.
• Publication restriction: When there are restrictions that grant a sponsor prior approval rights before publishing, or when a publication restriction grants the sponsor prior review rights beyond 180 days, the restriction may compromise U-M’s openness in research policy, and prior approval is needed. To request approval, the project team/PI should complete a Request for Approval of Publication Restrictions – Project Team Impact and route to ORSP via the AAR process in eRPM.
• Alternative dispute resolution (arbitration):  If an agreement requires the parties to resolve disputes through binding arbitration, ORSP will route an AAR to the administrative home department.
• Reimbursement risk-final financial report: Departmental approval will be requested when a sponsor sets a financial report deadline that is shorter than U-M’s standard timeframe, as this may create a risk of unreimbursed costs.
• Other: Any other significant change that may require signoff.

Summary of AAR process steps

The basic steps for completing an AAR are:

1. An ORSP officer initiates the AAR in eRPM if they determine an AAR is needed after reviewing the agreement. The AAR then appears in the project team’s eRPM work queue. 
2. The project team/PI edit the AAR as needed.
3. The PI, the department chair and, if required, the dean approve or decline the AAR, in that order.
4. ORSP officers review the AAR once all approvals noted above are received and will approve or send back for changes as needed.
5. If for a publication restriction, the final approval of AARs rests with the Vice President for Research. For status of an already-submitted request, contact [email protected].