State Support Program Guidelines
Overview
Cotton Incorporated annually funds a Producer State Support Program (“PSSP”) through which established PSSP Committees (the “State Committees”) are provided the opportunity to develop and recommend funding for cotton research projects and extension programs (“Projects”) of interest to producers in their state. This program is primarily managed by the Agricultural and Environmental Research Division of Cotton Incorporated (“AERD”).
Projects eligible for funding under the PSSP must be beneficial to the producer stakeholders of the Cotton Research and Promotion Program, be consistent with the mission of the Cotton Research and Promotion program, and be consistent with the strategies and activities of the core research and promotion program. In general, PSSP Projects are developed and funded on a fiscal year basis. The fiscal year for purposes of the PSSP corresponds to the calendar year.
After proposed Projects are evaluated and recommended for funding by the State Committee, Cotton Incorporated shall review projects to verify they meet the criteria of the Research and Promotion Act. If a project is not found to meet those criteria, Cotton Incorporated shall provide an explanation to the State Committee. Funding decisions of Cotton Incorporated are final.
These Guidelines contain both general recommendations for the state programs as well as requirements mandated under the AMS USDA Guidelines as well as contractual obligations between The Cotton Board and Cotton Incorporated. For clarity purposes “shall” and “must” indicate where there are requirements and “may” and “could” when recommendations are made.
Responsibilities of Cotton Incorporated
Projects Eligible for PSSP Funding
As determined by Cotton Incorporated, all PSSP Projects must adhere to the overall objective of the Cotton Research and Promotion Program. Such Projects must be consistent with the strategies and activities of the core Cotton Research and Promotion Program as both the Cotton Board and Cotton Incorporated are accountable for how funds are expended.
When developing PSSP Projects, please keep in mind Cotton Incorporated’s national advertising and promotion program to avoid any regional efforts inconsistent with the promotion and protection of the brand. As a general rule, funding cannot be used for regional advertising, mall promotions, billboard ads and such similar uses. The AMS USDA Guidelines strictly prohibit expenditures for spouse/family expenses, open bars, and influencing government policy or action.
The State Committees may choose any of the following options in developing proposals for utilizing PSSP funds:
- Cooperative research projects;
- Educational programs; and
- Extension Programs – (cotton field days, breeder’s tours, meeting support, etc.).
Development of Proposed Projects
State Committees may develop their own procedures for the solicitation of proposed Projects to be funded under the PSSP. However, each Project submitted to Cotton Incorporated AERD for evaluation and recommendation must include the following –
- Descriptive Title of the Project
- Name of the Principal Investigator and Cooperators
- Name of the Performing Institution, Company, or Organization
- Name of the Responsible Financial Officer
- Objective
- Justification
- Outline of the Plan of Work
- Budget
All Request for Proposals (RFPs) or other Project solicitations developed by State Committees should state that funding and technical support are provided by the Cotton Research and Promotion Program as conducted by Cotton Incorporated and administered by the Cotton Board through the Cotton Incorporated State Support Program(s). In some cases, the RFP for projects may be issued jointly between internal state check off program and SSP funds (not to be confused with the USDA check off program).
If there are questions regarding the appropriateness of projects under consideration, it is suggested that the Committee contact the Cotton Incorporated State Support Liaison appointed for that state for clarification or assistance. Cotton Incorporated State Support Liaisons are appointed by Cotton Incorporated AERD and will be listed on the Cotton Incorporated website.
All proposals for Projects received by a State Committee, through an RFP, must be forwarded to Cotton Incorporated AERD for review.
Project Funding Evaluation and Rules and Recommendations
The AMS USDA Guidelines specify how funding maybe used and on what type of projects it may be spent. Upon receipt of proposed PSSP Projects from a State Committee, Cotton Incorporated AERD will assign appropriate staff to review the proposed Project. Staff will consider the appropriateness of the Project, the possibility of duplication, the technical feasibility of the Project, the status of the Project if it is a proposed renewal, and the amount of funding requested. For each proposed Project submitted upon request of the State Committee, Cotton Incorporated shall –
- Evaluate the Project and provide a recommendation to “fund” or “not fund” along with a relative recommended priority;
- If appropriate, provide suggestions for improving the proposed Project.
State Committee Review and Selection
The State Committee will review proposed PSSP Projects and develop a funding recommendation for such Projects, and, along with Cotton Incorporated, finalize the PSSP Projects selected for funding for a fiscal year. Cotton Incorporated will assist the State Committee in the evaluation, and review of PSSP Projects.
While approved Projects are funded on a fiscal year basis (one year at a time), Cotton Incorporated will work with State Committees to structure multi-year plans for PSSP Projects that require more than one year to complete. Additional information regarding carryover funding is in the “Disbursing Funds” section.
Implementation of Projects
Once a PSSP Project is selected and approved by the State Committee, Cotton Incorporated will work with the State Committee and the Principal Investigator of the PSSP Project to develop a Cooperative Research Agreement (“CRA”) establishing the terms for funding, implementation, and oversight of the PSSP Project. Unless specifically agreed to by Cotton Incorporated, all CRAs should be made directly between Cotton Incorporated and the performing institution or Principal Investigator. CRAs are subject to the same requirements within Cotton Incorporated as are Core Budget Project Agreements.
Among other provisions, the CRAs will provide that –
- funding will be on an individual Project basis and lump sum funding will not be made to an intermediary organization;
- no indirect or overhead costs on research projects may be charged against the PSSP funding;
- each principle investigator, as specified in the CRA, will submit progress reports to Cotton Incorporated and, if requested, copies to the State Committee members and others designated by the State Committee;
- Cotton Incorporated shall have access to and the right to examine any directly pertinent books, documents, papers, and records of the contractor or any subcontractors, involving transactions related to the CRA; and
- unless specifically approved by Cotton Incorporated, PSSP Project funds may be used for the purchase of equipment/personal property, if approved and follows the guidelines for fixed asset purchasing. Cotton Incorporated is charged with the custody and control of all acquired personal property over $10,000 and durable life of greater than one year, and must provide an accounting to the Cotton Board on an annual basis.
Disbursing Funds
Following approval of Projects by the State Committee and the execution of an applicable CRA, Cotton Incorporated will follow specific procedures when disbursing the allocated funds.
Funds will be disbursed upon presentation to Cotton Incorporated of the required reimbursement documents. Reports of progress should be submitted to Cotton Incorporated as specified in the CRA by the cooperator.
The actual timing of the disbursement during a given fiscal period will depend on the nature of the approved Project and should be described in the proposed Project budget or CRA.
State Support Committees are authorized to set minimum thresholds for carryover requests on specific projects.
A cooperating organization must submit all invoices by the date established annually by Cotton Incorporated.
Oversight and Management of Projects
Cotton Incorporated will oversee all PSSP Projects and will collaborate with the State Committee to optimize Project results, ensure Projects are monitored, and the results reported.
Other Terms
Acknowledgement should be given to the State Support Committee as conducted by Cotton Incorporated and administered by the Cotton Board on all publications and all oral presentations where the results of a PSSP Project are discussed.
Producer State Support Program Committee
State Committee Membership
Each PSSP Committee is generally comprised of a minimum of the following members:
- State Directors and Alternates of Cotton Incorporated’s Board
- State Members and Alternates of the Cotton Board
The PSSP Committee may have such other members (voting or non-voting) as are provided for in the State Committee’s Bylaws. The committee’s bylaws shall define voting and non-voting members.
Each PSSP Committee may have the following Advisory Members:
- Cotton Incorporated staff member(s)
- Cotton Board staff member(s)
- State and federal research institutions representatives
- State Extension Cotton Specialist
- Such other Advisory Members as provided for in the State Committee’s Bylaws
- Representatives from Certified Producer Organizations
- Representatives of State certified Cotton Commissions or Boards
- Other cotton producers in that state as defined by the committee’s bylaws.
State Committee Administration
It is strongly recommended that each PSSP Committee develop Bylaws governing the operation of the State Committee. The Bylaws should generally govern the activities of the Committee. The Bylaws should, at a minimum, provide for (1) membership, including voting or non-voting membership; (2) the election of officers, including, where possible, a Chair, Vice Chair, and Secretary; and (3) upon reasonable notice to its membership, the holding of a meeting at least once per year for the purpose of soliciting, evaluating, and reviewing PSSP Projects. A set of model bylaws is attached to these Guidelines. These are model Bylaws to be used as a template for any State Committee that does not have a set of Bylaws or wishes to use the model Bylaws to amend theirs as needed.
It is recommended that all members of the State Committee should be eligible to hold office, but the committees should elect those who are deemed most capable to administer the PSSP. It is suggested that in those cases where the State Committee is of considerable size, an Executive Committee and/or Subcommittees be appointed or elected to expedite the operations of the State Committee.
The Cotton Board and Cotton Incorporated staff advisors to the State Committee(s) or their representative should be present at State Committee meetings.
State Committee Responsibilities
It is the primary responsibility of the State Committees to develop and recommend funding for Projects of interest to producers in their state. In addition, the State Committees should review Project activities overseen by the State Committee.
The State Committee shall –
- Work in conjunction with Cotton Incorporated to identify strategic research priorities;
- Formulate specific Project initiatives;
- Assign funding and relative priority levels to Project initiatives; and
- Review and report on Project activities.
State Committees may elect to partner with other states to fund coordinated, regional research or, if appropriate, to fund cooperators at institutions in other states.