Glossary
Allocable costs
Allocable costs are those allowable costs that actually benefit the grant or contract activities to which they are being assigned. In effect, allocable costs is another term for direct costs, since indirect costs, by definition, are excluded from allocable costs.
Allowable costs
Those categories of costs that are allowable as a charge on a grant or contract as determined by the terms and conditions of the award and/or appropriate cost principles. Certain types of costs, such as the cost of alcoholic beverages, are not allowable and may not be charged to a contract or grant.
Animal care use protocol
A protocol that ensures the humane care and use of animals in research studies according to the guidelines set forth in the U.S. Public Health Service (PHS) Policy.
Award
An award is an agreement between a sponsor and the University for support of research, scholarly or professional training, or public service programs related to research or to scholarly or professional training.
Award number
The unique identifying number assigned by the sponsoring agency (or by the campus OCG in the absence of a sponsor assigned award number) to the contract, grant, or cooperative agreement award document.
Award period end date
The date the award ends. The project period for grants is for administrative planning purposes only and imposes no legal obligation by the Government to require performance or provide funding beyond the current budget period, and provides no legal rights to the grantee beyond the current budget period.
Award period start date
The date that a new, renewal, or supplemental agreement award becomes effective. The term effective, for reporting purposes, means the calendar date recognized by the award as the beginning for performance and incidence of costs.
Budget
A financial plan that estimates the costs of conducting future activities. The budget is intended to express the program objectives and how they will be carried out in terms of resources required.
Budget adjustment
The act of amending the budget by moving funds from one category or line item to another.
Budget periods
The intervals of time into which a multiple-year project period is divided for budgetary/funding purposes.
Certified effort
That effort shown on an effort report that has been certified by the employee performing the work or by a person with first-hand knowledge of the work performed. The purpose of the certification is to confirm that the work charged to a sponsored project was actually performed.
Certifier
A certifier is someone who has first-hand knowledge of work performed on specific projects and who certifies the effort reports attesting to the fact that the work has been performed. For academic or professorial titles and professional or high-level staff, the employee usually certifies his or her own report. Effort reports for non-professional employees are usually certified by the Principal Investigator or by the employee's direct supervisor.
Close out
The act of completing all internal procedures and sponsor requirements to terminate or complete a research project.
Committed cost sharing
Cost sharing specifically pledged in the proposal budget or award. Committed cost sharing can include mandatory cost sharing (cost sharing required by a particular funding agency) as well as voluntary committed cost sharing.
Voluntary committed cost sharing is cost sharing that was not required by the agency but was volunteered by the Principal Investigator (University) and quantified in the proposal.
Continuation project (non-competing)
Applicable to grants and cooperative agreements only. Refers to a project approved for multiple-year funding, although funds typically are committed only one year at a time. At the end of the initial budget period, progress on the project is assessed. If satisfactory, an award is made for the next budget period, subject to the availability of funds. Continuation projects do not compete with new project proposals and are not subjected to peer review beyond the initial project approval.
Contract
An agreement between two or more entities that creates an obligation to do (or not do) a particular thing one is otherwise entitled to do (or not do). To be legally enforceable, a contract must have subject, consideration, and competent party.
Cooperative agreement
A federal assistance agreement; distinguished from grants on the basis of the level of federal involvement. If the federal government is substantially involved in programmatic work under the award, the assistance arrangement is a cooperative agreement.
Conflict of interest
A situation in which an investigator’s outside financial interest(s) or obligation(s), whether real or perceived, have the potential to bias a research project or cause harm to human subjects participating in a research project. Investigators are subject to University of California systemwide policies as well as specific State of California law and federal regulations.
Co-Principal Investigators
Key personnel who have responsibilities similar to those of a PI on a project. While the PI has ultimate responsibility for the conduct of the project, the Co-PI is also obligated to ensure that the project is conducted in compliance with applicable laws and regulations as well as University policy governing the conduct of extramural projects.
Cost principles
A set of principles that provide guidance on determining whether charges to a federal award are allowable, allocable, and reasonable. They also provide guidance on developing indirect cost rates.
Cost sharing
All contributions, including cash and in-kind, that a recipient makes to an award. If the award is federal, only acceptable non-federal costs qualify as cost sharing and must conform to other provisions, including the requirements that they be necessary and reasonable to accomplish the program objectives, allowable under cost principles, verifiable to records, and auditable.
Direct costs
Those costs that can be identified specifically with a particular sponsored project or an instructional or institutional activity or with the provision of a particular good or service, and that can be directly assigned to the activity relatively easily with a high degree of accuracy.
Effort
Effort is the portion of time spent on a particular activity, expressed as a percentage of the individual's total activity for the institution.
Effort commitment
The portion of time committed to a particular activity, expressed as a percentage of the individual's total activity for the institution. An effort commitment is that effort committed or promised prior to or at the start of the project.
Effort reporting system
A system used to certify to federal granting agencies that the effort required as a condition of an award has actually been completed. Effort reporting is required by Federal OMB Circular A-21, which requires certification of effort spent by employees whose salaries are charged directly to federal funds and federal flow-through funds, as well as for reporting committed cost sharing.
Expiration date
The date signifying the end of the performance period for a project.
Extension
An additional period of time given by the sponsor to an organization for the completion of work on an approved grant or contract. An extension allows previously allocated funds to be spent after the original expiration date.
Extramural funds
Funds that are not regularly budgeted but rather are received under grants, donations, or contracts from sources (private, state, federal, etc.) outside the University.
Facilities and Administrative (F&A) costs
See Indirect costs.
Financial interest
Any financial investment in a business entity in which you, your spouse or registered domestic partner, or your dependent children have a direct, indirect, or beneficial interest totaling $2,000 or more. Reportable investments include stocks, bonds, warrants, and options, including those held in margin or brokerage accounts.
Generally accepted accounting principles (GAAP)
Uniform minimum standards of and guidelines to financial accounting and reporting. Currently, the Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB) and the Federal Accounting Standards Advisory are authorized to establish these principles. The UC system complies with GASB.
Grant
Federal assistance award authorized by federal law to support programs which the government wishes to encourage and accomplishes a public purpose.
Indirect costs
The costs of conducting business that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with particular projects (such as individual grants or contracts) or with a specific activity (such as instruction, research, or public service). For purposes of charging federal grants, UC negotiates Facilities and Administrative (F&A) cost rates with the U.S. Department of Health and Human Services. There are two negotiated rates: • The Off-Campus F&A Rate is applied to sponsored projects conducted at facilities not owned or leased by the university.
Institutional Review Board (IRB)
The Institutional Review Board (IRB) is an administrative body established to protect the rights and welfare of human subjects in projects conducted under the auspices of the University of California. The IRB has the authority to approve, require modifications in, or disapprove all project activities that fall within its jurisdiction.
Mandatory cost sharing
That portion of the total project costs of a sponsored agreement borne by the University and required by the sponsor as a condition of obtaining an award.
Modified total direct costs
A subset of direct costs, used to calculate indirect costs. Consists of direct costs for salaries and wages, fringe benefits, materials and supplies, services, travel, and subgrants and subcontracts up the first $25,000 of each subgrant and subcontact (regardless of the period covered by the subgrant or subcontract). Equipment capital expenditures, charges for patient care and tuition remission, rental costs, scholarships, and fellowships, as well as the portion of each subgrant and subcontract in excess of $25,000 are excluded from modified total direct costs.
No-cost time extension
An extension of the period of performance beyond the expiration date to allow the principal investigator to finish a project. No additional funds are provided.
Non-University differential (NUD)
A percentage surcharge assessed to a non-University client, in addition to the recharge rate. NUD is UC’s mechanism for recovering the indirect (or overhead) costs for a recharge activity from non-University clients.
Notice of grant award
The legally binding document that serves as a notification to the recipient and to others that a grant or cooperative agreement has been made. It contains or references all terms of the award and it documents the obligation of funds.
Office of Management and Budget (OMB)
OMB's primary mission is to assist the President of the United States in overseeing the preparation of the federal budget and to supervise its administration in Executive Branch agencies. In helping to formulate the President's spending plans, OMB evaluates the effectiveness of agency programs, policies, and procedures, assesses competing funding demands among agencies, and sets funding priorities. OMB ensures that agency reports, rules, testimony, and proposed legislation are consistent with the President's Budget and with Administration policies. In addition, OMB oversees and coordinates the Administration’s procurement, financial management, information, and regulatory policies. In each of these areas, OMB's roles are to help improve administrative management, to develop better performance measures and coordinating mechanisms, and to reduce any unnecessary burdens on the public.
OMB Circular A-21
An official document that defines direct and indirect costs for purposes of accounting for federal funds. See www.whitehouse.gov/omb/circulars_a021_2004.
OMB Circulars
Regulatory circulars issued by the federal Office of Management and Budget.
Participating campus
A campus that assists in carrying out the scope of work awarded to the prime campus. Each participating campus is responsible, on its respective campus for its portion of the project, to carry out contract and grant administration policies and responsibilities that are assigned or delegated by the prime campus.
Prime campus
The campus submitting the overall multiple-campus proposal to and receiving an award from a sponsor. The prime campus is responsible for carrying out all contract and grant administration policies and responsibilities as presented in the Contract and Grant Manual (ucop.edu/raohome/cgmanual).
Principal Investigator
The Principal Investigator (PI) is the individual designated as head of a research project. To be eligible as a PI, the individual must be an academic appointee. More information about eligibility (section 1–500) and responsibilities (section 10–330) can be found in the UCOP Contract and Grant Manual (ucop.edu/raohome/cgmanual).
Project period
The total time for which support of a project has been programmatically approved. A project period may consist of one or more budget periods.
Proposal
An application for funding that contains all information necessary to describe project plans, staff capabilities, and funds requested. Formal proposals are officially approved and submitted by an organization in the name of a principal investigator.
Rebudget
The act of amending the budget by moving funds from one category or line item to another.
Sponsor
The organization or entity that funds a research project.
Sponsored projects
Projects that are funded by outside sources as the result of a proposal and award. The term commonly refers to projects funded by the various federal agencies.
Subaward/subcontract
A collaborative subaward is written under the authority of and is consistent with the terms and conditions of an award (a grant, contract, or cooperative agreement), and transfers a portion of the research or substantive effort of the prime award to another institution or organization. These agreements, commonly referred to as subcontracts, can be in the form of a subgrant, subcontract, or subagreement.
Supply
Generally, a supply item is classified as one that is expendable and that has an acquisition value of less than $5,000 and a normal life expectancy of less than a year.
Terms of award
All legal requirements imposed on an agreement by the sponsor, whether by statute, regulation(s), or terms in the award document. The terms of an agreement may include both standard and special provisions that are considered necessary to protect the sponsor interests.
Total cost
The sum of the direct cost plus the F&A costs (also referred to as indirect costs) of a project.
Total direct cost (TDC)
The sum of all direct costs of a project.
Voluntary uncommitted cost sharing
All effort over and above that which is committed and budgeted for in a sponsored agreement.