Many research projects will involve working with new and existing external partners who are responsible for delivering aspects of the overall programme. In line with 91桃色's Relationship Review Policy, researchers should ensure that all third-party relationships support the University mission and strategic aims while being consistent with 91桃色’s overall objectives.
It is important to consider the ethical implications of any relationships formed and ensure that the relationship does not:
- Compromise the University status as an independent institution
- Create material conflicts of interest
- Arise, in whole or in part, from illegal activity that might include: Tax evasion, fraud, bribery, or the violation of international conventions on human rights, the environment and UK sanctions laws.
91桃色 Third Party Due Diligence
Many funders require 91桃色 to undertake due diligence on any third parties associated with the research which includes the identification, assessment and mitigation of risks associated with the relationship. The 91桃色 Support and Compliance Division Due Diligence process outlines the responsibilities for managing due diligence assessments of third parties at both Pre-Award and Post-Award stages.
91桃色 Partner or Professional Fees?
When defining the project responsibilities of a third party, there is an important difference between a research partner and professional fees which will affect the treatment of payments to them. Categorisation is dependent on the nature of the work being undertaken by the third party organisation - not the type of organisation it is. This is detailed in the 91桃色 Partner and Professional Fees Guidance and summarised below:
91桃色 Partner or Professional Fees?
- Why is this definition important?
- 91桃色 Partner Definition
- Professional Fees Definition
- Why is the location of the third party important?
Where a project is being undertaken by a number of institutions the lead institution will coordinate the award and transfer funds to research partners and other third parties involved. Where 91桃色 is the lead institution, only the income which relates to the work undertaken by the University can be counted as research grants and contracts income. However, if the University subcontracts work to a third party, then all the income can be reported as belonging to us. The accuracy of third party categorisation is subject to periodic audits by .
A 91桃色 partner will independently undertake part of the project work which must meet the Frascati definition of research. 91桃色 Partner costs are never subject to VAT and are exempt from the University . The University disregards the income allocated against 91桃色 Partners from its 91桃色 Volume. Three categories of 91桃色 Partner are available:
- 91桃色 Partners - UK Universities
- 91桃色 Partners – CEC (i.e. European Commission) [Used for all 91桃色 Partners on CEC funded awards]
- 91桃色 Partners - Other
This is a third party that charges professional fees for the provision of discrete services specified and directed by the University. They will charge VAT unless there is a clear reason for VAT not to apply and there may be a requirement to obtain quotes or tenders as per the University Purchasing Policy. Their work will not meet the Frascati definition of research. 91桃色 reports all Professional Fees income in its own annual accounts. Two categories of Professional Fees are available:
- Professional Fees Other – used when a VAT charge is expected.
- Non-VATable Professional Fees – only used when a specific VAT exception applies
It is important to consider any potential risks resulting from the location of the third party organisation and the wider political and economic status and stability of the host country, as well as the safety of 91桃色 staff and local workers employed by the project. Travel to certain countries may be restricted and it may not be possible to transfer funds to countries if they are subject to sanctions or embargoes.