What are Financial Operations Contracts?

Financial Operations manages numerous types of contracts.  Below is a list of the most commonly encountered types of contracts.  Expand a section for additional information related to each.

Art Loans

Art loan agreements permit the exhibition of art owned by a third party in a University venue. Most art loans involve exchanges between galleries, individual collectors and museums.  All art loans must be reviewed by both Financial Operations and by the Office of Property Liability & Risk Management to ensure that they are properly insured while in the University's possession and control.

• For loans to a University department or unit other than a museum, contact the Office of the Vice President for Finance.

Educational Service Agreements

These contracts are agreements to provide custom-delivered educational program for an external company, government agency or school system

Employee Leases

These contracts authorize the sharing of a faculty or staff member with a University foundation, most commonly between the School of Medicine or School of Nursing and the University of Virginia Physicians Group. Note that certain employee leases are also handled through the Office of the Executive Vice President and Chief Operating Officer.

Entity Agreements

Entity Agreements are required when an external party intends to use University resources (sometimes including space) for approved purposes.  For instance, this type of agreement would be appropriate where a national association has offices at the University and uses University financial systems for its operations

Faculty Exchanges

These contracts are employed where faculty from another institution are teaching at the University for a short duration, usually one semester or up to one year.  The faculty member is paid by, and remains an employee of, his or her home institution, with the University reimbursing the home institution for the cost of the faculty member’s salary and fringe benefits.

Location Agreements

Location agreements are contracts between a film producer and the property owner permitting use of the property in a specified work. University location agreements allow the filmmaker to enter the University's property for the purpose of recording content and address the filmmaker's right to use the recording, insurance and liability requirements, and restrictions on the use of the University's trademarks. To obtain permission to film on University premises, please contact the University Communications Office at 434-924-1400. University Communications will work with General Counsel and this office to approve film location requests and to develop an appropriate location agreement.

Music License Agreements

The University maintains umbrella music license agreements with ASCAP, BMI and SESAC which permit the broadcast of most copyrighted music on University property for internal purposes.

• ASCAP License
• BMI License
• SESAC License

Service Agreements

Business units with authorized revenue-generating activities often provide services to third parties at rates approved by the Office of Financial Planning & Analysis.

• Note: Service activities are distinguishable from sponsored programs in that services are activities that occur repeatedly in substantially the same fashion and on substantially the same terms, whereas sponsored programs involve services customized specifically for a particular sponsor.  Service activities must be authorized under University policy FIN-049. The "Sponsored Project versus External Service Questionnaire” can help determine whether an activity should be handled as a service or a sponsored project. 
• Note: Service activities are often of very short duration (a single assay, for example), are priced very modestly, and involve little risk to the University.  A formal signed contract may be impractical and unnecessary in such circumstances. The University recognizes that it may instead be appropriate to conduct the transaction through a simple invoice issued by the department providing the service. In order to protect the interests of the University, departments transacting business on an invoice-only basis should include on each invoice a reference to the University’s Standard Service Terms and Conditions. 

Special Arrangement Contracts

Authorized pursuant to Virginia Code § 23.1-508, special arrangement contracts are entered into between a public university and a Virginia employer or a federal agency with a facility in Virginia to extend in-state tuition pricing to employees who would not otherwise qualify for in-state rates. The employer or federal authority must assume liability for paying, to the extent permitted by federal law, the tuition for the employees in question

Student Practica

Student practica or placement agreements are entered into with health care providers, school systems, government agencies and other employers to set forth the terms for the provision of supervised practical experiences for University students. Financial Operations provides contractual review and serves as signatory, but practicum site relationships and correspondence are managed through local school offices.

Leases and facility use agreements are signed by Financial Operations but are negotiated by the Real Estate and Licensing Services (REaLS) unit.  University units wishing to initiate a rental arrangement should contact the REaLS office directly.

In general, student internships are considered relationships between the student and the internship site.  The University will not ordinarily enter into a contract with the internship site on behalf of the student, even if the student will receive academic credit from the University for the internship experience. 

In certain circumstances, however, agreements are required by governmental policy or by law and the internship cannot proceed without an agreement confirming the student’s status at the University.  In such cases, the University will enter into a contract provided it specifies that the student is not acting as an employee or agent of the University during the internship period.