Expense Categories to Watch
Before approving any expenses in the following categories, check University policy and the terms and conditions of the award to ensure that the expenses are allowable.
Proposal Preparation Costs
Not Allowable
Costs of preparing proposals and applications for acquiring sponsored funding, including copying, mailing, long distance telephone charges, etc., are not allowable.
Equipment
Important considerations before purchasing equipment on a sponsored project:
Threshold. When the terms of an award set a lower dollar threshold for equipment-$1,000, for example-the PI’s administrative unit must track it as if it fell under the University’s definition of equipment.
Benefit. If a piece of purchased equipment will benefit more than one sponsored agreement or activity, the cost must be allocated to the various projects and activities proportionally based on the benefit directly received by each.
Purchase Date. If the equipment purchase is to be made within 120 days of the award end date, a justification must be submitted to the BOC or unit Business Manager for coordination, review, and approval by the OCG prior to purchase.
Maintenance and repair costs to keep project-specific equipment-whether pre-existing or purchased with project funds-in operating condition are allowable within the timeframe of the project’s performance period. As with equipment purchases, if the maintenance agreement or repair cost benefits more than one sponsored agreement or activity, the cost must be allocated to the various projects and activities proportionally based on the benefit directly received by each.
Food
Allowable
• Meal costs incurred during the course of travel generally are allowable.
• Food purchased for demonstrations or approved activities may be allowable if specifically identified in the proposal budget and approved by the sponsoring agency
Not Allowable
Food (e.g. meals and refreshments for meetings) is generally not allowable as a charge to a sponsored project unless specifically identified in the proposal budget and approved by the sponsoring agency.
Administrative Salaries & Expenses
Generally Not Allowable
Salaries and wages of administrative and clerical staff in general should not be direct charged to a project. However, the rules governing “major project or activity” exceptions have been removed and replaced with the following all of which must be met:
- Administrative or clerical services are integral to a project or activity;
- Individuals involved can be specifically identified with the project or activity;
- Such costs are explicitly included in the budget or have the prior written approval of the Federal awarding agency; and
- The costs are not also recovered as indirect costs.
Travel
Before charging travel to an extramural project, PIs and their administrative staff should review all relevant travel policies-
sponsor, program, federal, University, and ANR-and follow the most restrictive policy, noting any special requirements such as pre-trip approval.
Memberships & Subscriptions
Allowable
If memberships are required for attendance at a professional technical meeting related to the funded project, the membership cost may be allowable, provided it was specifically budgeted and justified in the project proposal.
Not Allowable
Memberships and subscriptions are normally considered to be indirect costs because their benefit to research and academic endeavors generally cannot be specifically assigned to individual awards.
Computers, software & Office Supplies
Allowable
Computing devices (under $5,000) are an allowable cost provided that the device is essential and allocable, but not solely dedicated, to the performance of the project. The project must not have reasonable access to other devices or equipment that can achieve the same purpose; devices may not be purchased for reasons of convenience or preference.
Not Allowable
General-purpose computers, computer supplies, software, office supplies and office are normally considered indirect costs.
Recharge and Service Centers
Allowable
Costs of approved University rate and recharge activities and service centers are allowable as direct costs to a sponsored project where such costs are required under the scope of the project. All usage must be accounted for and services must be charged to all users based on actual usage, using uniform,nondiscriminatory rates. The rates must be based on the direct costs of providing the services. Rates must be approved within University policies and appropriately revised based upon review of the actual direct expenses and charges to users.
Not Allowable
Charging a fixed percentage or fee to all sponsored projects for a particular service (e.g., programmer time) is not allowable.