<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:x="urn:schemas-microsoft-com:office:excel" xmlns:p="urn:schemas-microsoft-com:office:powerpoint" xmlns:a="urn:schemas-microsoft-com:office:access" xmlns:dt="uuid:C2F41010-65B3-11d1-A29F-00AA00C14882" xmlns:s="uuid:BDC6E3F0-6DA3-11d1-A2A3-00AA00C14882" xmlns:rs="urn:schemas-microsoft-com:rowset" xmlns:z="#RowsetSchema" xmlns:b="urn:schemas-microsoft-com:office:publisher" xmlns:ss="urn:schemas-microsoft-com:office:spreadsheet" xmlns:c="urn:schemas-microsoft-com:office:component:spreadsheet" xmlns:odc="urn:schemas-microsoft-com:office:odc" xmlns:oa="urn:schemas-microsoft-com:office:activation" xmlns:html="http://www.w3.org/TR/REC-html40" xmlns:q="http://schemas.xmlsoap.org/soap/envelope/" xmlns:rtc="http://microsoft.com/officenet/conferencing" xmlns:D="DAV:" xmlns:Repl="http://schemas.microsoft.com/repl/" xmlns:mt="http://schemas.microsoft.com/sharepoint/soap/meetings/" xmlns:x2="http://schemas.microsoft.com/office/excel/2003/xml" xmlns:ppda="http://www.passport.com/NameSpace.xsd" xmlns:ois="http://schemas.microsoft.com/sharepoint/soap/ois/" xmlns:dir="http://schemas.microsoft.com/sharepoint/soap/directory/" xmlns:ds="http://www.w3.org/2000/09/xmldsig#" xmlns:dsp="http://schemas.microsoft.com/sharepoint/dsp" xmlns:udc="http://schemas.microsoft.com/data/udc" xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:sub="http://schemas.microsoft.com/sharepoint/soap/2002/1/alerts/" xmlns:ec="http://www.w3.org/2001/04/xmlenc#" xmlns:sp="http://schemas.microsoft.com/sharepoint/" xmlns:sps="http://schemas.microsoft.com/sharepoint/soap/" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:udcs="http://schemas.microsoft.com/data/udc/soap" xmlns:udcxf="http://schemas.microsoft.com/data/udc/xmlfile" xmlns:udcp2p="http://schemas.microsoft.com/data/udc/parttopart" xmlns:wf="http://schemas.microsoft.com/sharepoint/soap/workflow/" xmlns:dsss="http://schemas.microsoft.com/office/2006/digsig-setup" xmlns:dssi="http://schemas.microsoft.com/office/2006/digsig" xmlns:mdssi="http://schemas.openxmlformats.org/package/2006/digital-signature" xmlns:mver="http://schemas.openxmlformats.org/markup-compatibility/2006" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns:mrels="http://schemas.openxmlformats.org/package/2006/relationships" xmlns:spwp="http://microsoft.com/sharepoint/webpartpages" xmlns:ex12t="http://schemas.microsoft.com/exchange/services/2006/types" xmlns:ex12m="http://schemas.microsoft.com/exchange/services/2006/messages" xmlns:pptsl="http://schemas.microsoft.com/sharepoint/soap/SlideLibrary/" xmlns:spsl="http://microsoft.com/webservices/SharePointPortalServer/PublishedLinksService" xmlns:Z="urn:schemas-microsoft-com:" xmlns:st="" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv=Content-Type content="text/html; charset=us-ascii">
<meta name=Generator content="Microsoft Word 12 (filtered medium)">
<style>
<!--
/* Font Definitions */
@font-face
{font-family:Wingdings;
panose-1:5 0 0 0 0 0 0 0 0 0;}
@font-face
{font-family:Wingdings;
panose-1:5 0 0 0 0 0 0 0 0 0;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:11.0pt;
font-family:"Tahoma","sans-serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
p.MsoListParagraph, li.MsoListParagraph, div.MsoListParagraph
{mso-style-priority:34;
margin-top:0in;
margin-right:0in;
margin-bottom:0in;
margin-left:.5in;
margin-bottom:.0001pt;
font-size:11.0pt;
font-family:"Tahoma","sans-serif";}
p.Body, li.Body, div.Body
{mso-style-name:Body;
margin:0in;
margin-bottom:.0001pt;
line-height:16.0pt;
mso-line-height-rule:exactly;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
span.EmailStyle19
{mso-style-type:personal;
font-family:"Tahoma","sans-serif";
color:windowtext;
font-weight:normal;
font-style:normal;}
span.EmailStyle20
{mso-style-type:personal;
font-family:"Calibri","sans-serif";
color:#1F497D;
font-weight:normal;
font-style:normal;}
span.EmailStyle21
{mso-style-type:personal-reply;
font-family:"Calibri","sans-serif";
color:#1F497D;
font-weight:normal;
font-style:normal;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page Section1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.Section1
{page:Section1;}
/* List Definitions */
@list l0
{mso-list-id:995955245;
mso-list-type:hybrid;
mso-list-template-ids:-489632602 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}
@list l0:level1
{mso-level-number-format:bullet;
mso-level-text:\F0B7;
mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-.25in;
font-family:Symbol;}
@list l1
{mso-list-id:1058824888;
mso-list-type:hybrid;
mso-list-template-ids:255879900 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}
@list l1:level1
{mso-level-number-format:bullet;
mso-level-text:\F0B7;
mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-.25in;
font-family:Symbol;}
@list l1:level2
{mso-level-tab-stop:1.0in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level3
{mso-level-tab-stop:1.5in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level4
{mso-level-tab-stop:2.0in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level5
{mso-level-tab-stop:2.5in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level6
{mso-level-tab-stop:3.0in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level7
{mso-level-tab-stop:3.5in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level8
{mso-level-tab-stop:4.0in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level9
{mso-level-tab-stop:4.5in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l2
{mso-list-id:1453549804;
mso-list-type:hybrid;
mso-list-template-ids:-612960962 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}
@list l2:level1
{mso-level-number-format:bullet;
mso-level-text:\F0B7;
mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-.25in;
font-family:Symbol;}
@list l2:level2
{mso-level-tab-stop:1.0in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l2:level3
{mso-level-tab-stop:1.5in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l2:level4
{mso-level-tab-stop:2.0in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l2:level5
{mso-level-tab-stop:2.5in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l2:level6
{mso-level-tab-stop:3.0in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l2:level7
{mso-level-tab-stop:3.5in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l2:level8
{mso-level-tab-stop:4.0in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l2:level9
{mso-level-tab-stop:4.5in;
mso-level-number-position:left;
text-indent:-.25in;}
ol
{margin-bottom:0in;}
ul
{margin-bottom:0in;}
-->
</style>
<!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang=EN-US link=blue vlink=purple>
<div class=Section1>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>On June 8, the Governor signed Executive Order S-09-09, which is
applicable to all contracts for good and services where funds were encumbered on
or after March 1, 2009. The Executive Order (EO) requires that the funds
encumbered by the State for the effected contracts be disencumbered and revert
to their original funding source. In addition, the EO also imposes on
state agencies a minimum 15% reduction in each department’s appropriation
for contracts during FY 09/10.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Since the issuance of the EO, the Department of General Services
and the Department of Finance have issued guidance to the state agencies on how
to implement the EO’s requirements. Even with this guidance certain
aspects of the EO remain unclear, which makes it difficult to identify which,
if any, UCR contracts or subcontracts will be effected by the EO.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><u><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>What we know at this time:<o:p></o:p></span></u></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo5'><![if !supportLists]><span
style='font-size:12.0pt;font-family:Symbol;color:#1F497D'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Interagency Agreements are exempt from the EO. While most
of UCR’s state contracts supporting research programs are Interagency
Agreements, some of our awards utilize a different contract instrument.
Thus, some UCR contracts may be adversely effected by the EO. The Office
of Research is working diligently to identify contracts that may be at risk.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo5'><![if !supportLists]><span
style='font-size:12.0pt;font-family:Symbol;color:#1F497D'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>The EO and the Department of Finance guidance include a number
of other specific and generic exemptions. The exemptions are very similar
to those included in the EO issued in August 2008. Therefore, we believe
that any UCR contract that received an exemption from EO S-09-08 will likely
receive an exemption from EO S-09-09.<o:p></o:p></span></p>
<p class=MsoListParagraph><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo5'><![if !supportLists]><span
style='font-size:12.0pt;font-family:Symbol;color:#1F497D'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>The Department of Finance has clarified that state agencies are
prohibited from entering into any new contracts or amending existing contracts.
This will mean that most, if not all, state contracts currently under
negotiation will likely not be funded this fiscal year. It is unclear
whether this prohibition extends to Interagency Agreements that have not been
executed.<o:p></o:p></span></p>
<p class=MsoListParagraph><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo5'><![if !supportLists]><span
style='font-size:12.0pt;font-family:Symbol;color:#1F497D'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Funds for contracts that were encumbered prior to March 1, 2009
are not subject to the EO. The Department of Finance has defined “encumbered”
to mean a commitment of all or part of an appropriation for goods and services
not yet received. This is a fairly broad definition and may work to UCR’s
advantage as more is learned about how state agencies will respond to the EO. However,
because the encumbrance process is not transparent, it is very difficult to ascertain
when funds were encumbered, which complicates identifying contracts effected by
the EO.<o:p></o:p></span></p>
<p class=MsoListParagraph><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo5'><![if !supportLists]><span
style='font-size:12.0pt;font-family:Symbol;color:#1F497D'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>The EO requires state agencies to develop plans for reducing the
amount of their FY 09/10 appropriations to be encumbered by new contracts or
extended contracts by 15%. Until the state agencies publish their plans, it
will not be clear how this required reduction will impact research
funding. However, it is reasonable to assume that research funding by
state agencies will decrease, perhaps markedly, as compared to recent years.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>The Office of Research and the UCOP Research Administration
Office are working with state agencies to learn more about how the EO will be
implemented and its impact on UC research funding. In the meantime, the
Office of Research is reviewing UCR’s state contracts to identify those
that appear to be at risk given what we currently know about the EO. As
those contracts are identified, we will contact the PI and the department/unit
administering the contract. In the meantime, we recommend that PIs and
departments/units proceed cautiously and direct any questions regarding the EO
and its impact on individual contracts and subcontracts to the <a
href="http://or.ucr.edu/home/Staff.aspx?t=3">Contract and Grant Officer
assigned to your unit</a>. <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>The Office of Research will provide additional notices regarding
the EO as more information is learned.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<div>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Bruce Morgan</span><span style='font-size:12.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Assistant Vice Chancellor for Research<o:p></o:p></span></p>
</div>
</div>
</body>
</html>