Expenditures

Principles of Sponsored Project Support

According to Uniform Guidance, direct costs are those costs that can be identified specifically with a particular sponsored project, an institutional activity, or that can be directly assigned to such activities relatively easily and with a high degree of accuracy. Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect costs. Where an institution treats a particular type of cost as a direct cost of sponsored agreements, all costs incurred for the same purpose in like circumstances should be treated as direct costs of all activities of the institution. Itemized direct costs are line items specified in the grant or contract. They can include salaries of persons working on the grant, applicable fringe benefits, travel directly associated with the project, supplied specifically used on the project, contractual services and equipment.

The PI must sign all expenditure documents to process direct costs.

In order for an expenditure to be charged as a direct cost, it must be allowable. To be considered allowable, the cost must meet all of the following federally assigned criteria as per 2 CFR § 200.403 - Factors affecting allowability of costs.

1. Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles.
2. Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items.
3. Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the non-Federal entity.
4. Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost.
5. Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this part.
6. Not be included as a cost or used to meet cost sharing or matching requirements of any other federally-financed program in either the current or a prior period. See also §200.306 Cost sharing or matching paragraph (b).
7. Be adequately documented. See also §200.300 Statutory and national policy requirements through 200.309 Period of performance of this part.

Initiating Expenses on Sponsored Funds

It is the PI’s responsibility to initiate the appropriate documentation to incur expenses on the sponsored fund. If the PI has delegated this authority to the departmental administrator or other personnel working on the project, the PI maintains responsibility for ensuring the costs are allowable on the project and still needs to sign the documentation. The PI is responsible for ensuring the expense is allowable on the project and it falls within the time frame of the project.

All documentation for expenses incurred on sponsored projects are reviewed and approved in the SPFAC office by the appropriate Post Award Specialist, in addition to any other approval signatures that are required by the expenditure document (e.g.. Department Head, Dean, etc.). The Post Award Specialist will review the documentation to ensure the expense is allowable on the project and it falls within the time frame of the project. If questions arise, the Post Award Specialist will reach out to the PI for clarification.