Payroll costs for employees working on grants and contracts should be reflected at the level proposed and certified to actually performed. Salary adjustment should be consistent with University’s Policy and Procedures.

The principal investigator should submit the Personnel Action Form (PAF) through the appropriate channel as required by the particular department or school. Consult the fiscal administrator in the department/school for procedures.

The PAF and effort certification reports are the documented source for direct charges to grants/contracts.

Long Distance Telephone and Fax Costs

These costs should be linked to the sponsored agreement by means of a detailed log and analyzing the long distance phone bill or using a direct telephone code. Arbitrary allocations are not permitted.

General Office Supplies

Supplies drawn from a central storeroom or inventory must be charged directly to a sponsored index if their applicability to the sponsored agreement is recorded at the time of withdrawal. All such costs must be charged to the sponsored index based on the anticipated usage at the time of withdrawal.

OTHER COSTS

In order to comply with University and Federal regulations for disbursing funds for consultants and contractual services on grants and contracts, there must be evidence that the following criteria have been met:

1. The services to be provided are essential and cannot be provided by persons receiving salary support under the grant.
   
2. A selection process has been employed to secure the most qualified person available and a senior officer of the grantee or organization has approved the selection.
   
3. The charge is appropriate considering the qualifications of the consultant, his/her normal charges, and the nature of the services rendered. If the consultant is an employee of the grantee institution, the consultant must be across departmental lines and in addition to actual duties or it must involve a separate or remote operation, and the work performed is in addition to the consultant's regular departmental work.

The determination as to compliance with the above provisions may be made at the University level.

Unless consultant costs are specifically outlined in the approved budget and there is evidence that the above criteria have been met, the principal investigator must maintain records to support the selection process.

The travel policies and procedures apply to travel on grants and contracts, unless the sponsor’s policies are more restrictive.

The travel must directly benefit the grant/contract to be allowable. The terms and conditions of the award will specify whether sponsor approval in advance is required.

All requests for travel authorizations for sponsored programs are forwarded to Accounts Payable and Support Services.

The principal investigator should ensure the allowability of travel costs and availability of budget prior to submitting the travel request. If the request causes travel expenditures to exceed the travel budget, the department should re-budget funds prior to the travel being incurred.

Travel costs that exceed charges normally allowed by the institution in its regular operations as a result of an institutional policy, commercial airfare costs in excess of the lowest available commercial discount airfare, Federal Government contract airfare or customary standard airfare unless not available, must be justified and documented on a case-by-case basis and applicable condition. Air travel by other than commercial carrier shall not exceed the cost of allowable commercial air travel.

Foreign travel may require specific prior approval for each trip and American flag carrier restrictions normally apply.

Equipment               

In most cases, equipment purchases are itemized and approved in the original budget. Prior approval may be necessary from the sponsor to purchase equipment that has not been authorized. The department must maintain justification for the purchase of general-purpose equipment when it is not included in the budget.

Fabrication is defined as special purpose equipment that is to be assembled or fabricated that will result in an article of nonexpendable tangible property. Fabrication is allowed when it is more economically feasible or if fabrication is the only means of acquiring specialized equipment.

Generally, the University is directly accountable for each item of government contracts equipment at termination of the contract. Under most government grants, equipment is vested with the University, with the exception that certain agencies may reserve the right to transfer the equipment following completion of the contract. This right is reserved to facilitate cases where the principal investigator transfers to another institution and the grantee has no further need for the equipment.

Service Center Charges

Services from a service center should be charged directly to the sponsored index under these procedures. (See University procedures for the Financial Management of Service Centers)