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<p class=MsoNormal>Yesterday, the Governor signed an Executive Order that
suspends personal service contracts effective July 31, 2008. The UCOP
Research Administration Office has been in contact with the state Department of
General Services (DGS) which confirmed that no work shall be performed or
costs incurred on suspended contracts until the suspension is officially
lifted. <o:p></o:p></p>
<p class=MsoNormal> <o:p></o:p></p>
<p class=MsoNormal>Late yesterday, UCR received its first Suspension Notice
from the California Department of Food and Agriculture, and we expect to
receive more letters over the next few days from several state agencies.
Following is the text of a suspension letter:<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=Body>“On Thursday, July 31, 2008, the Governor’s Office issued
Executive Order S-09 -08. This Order requires that except for services and
functions of state government deemed critical and exempt, all State agencies
and departments under the Governor’s direct executive authority to immediately
suspend the activities of individuals providing services under contract
effective <br>
July 31, 2008.<o:p></o:p></p>
<p class=Body><o:p> </o:p></p>
<p class=Body>Under this Order, your contract is not exempt. Therefore,
performance under this contract is hereby immediately suspended. No work
shall be performed or costs incurred under this contract until further notice.”<o:p></o:p></p>
<p class=Body><o:p> </o:p></p>
<p class=MsoNormal>UCOP executive management is aware of this situation and is
expected to issue guidance shortly. Once the Office of Research receives
guidance from UCOP on how to proceed, we will immediately pass that information
along. <o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal>In the meantime, departments and Principal Investigators
with contracts and other awards from the State of California, should
immediately begin considering the impact of contract suspensions. In
particular, the suspensions may result in the need to shift the effort of
personnel from state contracts to other sponsored awards or to department/college
funds. Please note that in shifting personnel effort to other sponsored
awards, it is important to ensure that the costs associated with such effort
are allowable on the sponsored awards that will be charged. For such
costs to be allowable, the personnel effort must have directly benefited the
sponsored award. Other factors that may affect allowability include the
award terms and conditions, UC/UCR policies and 2 CFR 220 (Cost Principles for
Educational Institutions).<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal>Please contact the <a
href="http://or.ucr.edu/home/Staff.aspx?t=3">Contract and Grant Officer
assigned to your unit</a> with any questions that you may have regarding the
suspension of state contracts.<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>Bruce Morgan</span><span
style='font-family:"Times New Roman","serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>Assistant
Vice Chancellor for Research<o:p></o:p></span></p>
<p class=MsoNormal><o:p> </o:p></p>
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