Grant, Contract & Gift Accounting

000 Introductory Material

001: Introduction

Grant, Contract & Gift Accounting Manual
Section 000: Introductory Material
Effective: 02/01/2004
Revised: 4/23/2012

The Grant, Contract & Gift Accounting Manual (GCG) is intended to assist OSU personnel who work with the financial aspects of sponsored awards; including principal investigators, project directors, accountants, and others.   The GCG policies and procedures apply to all university personnel and are to be used harmoniously with all other OSU Policy & Procedure Manuals when specific procedures are required by a sponsored agreement.   The GCG Manual is maintained by the Office of Post Award Administration.

The Office of Post Award Administration, a division of the Office of Business Affairs, is responsible for the proper administration of sponsored awards to Oregon State University.  The Office of Post Award Administration works with the Office of Sponsored Programs , the sponsoring agency, the principal investigator or project director, and Business Center’s to set up sponsored award  funds, invoice funding entities, monitor fund transactions to ensure that expenditures are allowable and within budget constraints, and close out the fund at project end.

The GCG Manual assists in accomplishing several important tasks:

  1. Ensure the proper administration of sponsored agreements.
  2. Ensure compliance with all applicable state and federal regulations.
  3. Properly identify costs for reporting and Facilities & Administrative (F&A) rate determination.
  4. Properly report all funds received by OSU.
  5. Provide financial monitoring and reporting for sponsored agreements.
  6. Prepare required financial reports and invoices for receipt of sponsored funds.
  7. All sponsored agreements are set up in FIS Banner. The degree of deviation allowed by the sponsoring agency varies widely from complete discretion by the project director to requiring agency approval for all changes. The reporting of expenditures also varies in the amount of detail required and the frequency of the reports.

The Office of Post Award Administration staff assists Business Centers in complying with federal guidelines, such as those published by the Office of Management and Budget (OMB), general federal policies regarding the use of funds and proper management procedures, and specific agency rules and regulations.  State regulations, such as rules for purchasing and travel, also must be applied to sponsored award expenditures.  In addition, special conditions incorporated into each award document must be carefully followed.  Additional service information and procedures may be found on the Business Affairs website

Corrections, changes, or suggestions for the GCG manual should be communicated to the GCG Manual Coordinator or the Office of Post Award Administration at: 541-737-4711.

In the event of an inconsistency or conflict, applicable law and State Board of Higher Education policies supersede university policies and university policies supersede college, Business Center or lower unit bylaws, policies, or guidelines.

The University reserves the right to add, amend, or revoke any of the contained rules, policies, regulations, and instructions or incorporate additional ones, with or without notice, as circumstances or the good of the university community may require.

002: Definitions

Grant, Contract & Gift Accounting Manual
Section 000: Introductory Material
Revised: 03/09/2004

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A

Account Code

The third element of a FOAPAL accounting string used to identify specific financial transactions. Account codes define the type of activity taking place, such as revenues, expenses, and transfers in the Operating Ledger, and assets, liabilities, and fund balances in the General Ledger.

Accountable Property

Property acquired for a current sponsored project that has not been released unconditionally to Oregon State University (OSU).

Affiliated Foundation

Supports the activities of the institution and must be approved by the president of the institution. OSU affiliated foundations are Oregon State University Foundation and Agricultural Research Foundation.

Agency-Owned Property

Property owned by a federal agency and furnished (on loan) for a specific project.

ACH (Automated Clearinghouse)

This is a method of electronically moving funds from bank to bank, similar to a wire transfer. ACH is available for domestic transactions only.

Allocable Costs

Goods or services that are chargeable or assignable to a particular project.

Assets

Cash, receivables, inventories, investments, land, buildings and equipment, intangibles, prepaid expenses, and anything that has a value of property or economic benefits that are owned.

Asset Tag

A permanent identifying label or decal attached to a piece of equipment. Federally-owned equipment also requires a “Property of U.S. Government” tag.

Award

Funds provided from an external sponsor for support of a project at OSU. This term is used for both original awards and supplements; it can mean monies or equipment.

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B

C

Capital Value

The original purchase price of the item or fair market value at the time of donation, loan, lease, or construction.

Closing of the Books

A process completed at fiscal year end to close all revenue and expense accounts and add net income or loss to fund balance. An additional fiscal period (accrual period 14) is opened in July for any adjustments needed after the last regular fiscal period is closed. No changes can be made to the financial records in FIS for the fiscal year after closing.

Close-Out

Completing the reporting and financial requirements of a sponsored agreement. This includes deliverables, technical reporting and patent reporting.

Compliance - Financial

Act of ensuring that expenditures are made and posted in accordance with all applicable laws, regulations, policies, procedures and sound business practices.

Conflict of Interest

Outside professional activities of faculty are encouraged but the level and type of engagement must avoid ethical and legal conflicts of interest and commitment. Conflicts of interest cover a range of situations, such as placing the financial interests of an outside organization or individual ahead of those of the university, attempting to influence a university decision that would benefit a company in which the faculty member has a financial interest; and directing students in research that is devised principally to serve the faculty member’s outside consulting interests. Conflicts of commitment covering such areas as the level of time and creative energy devoted to consulting, compromises the faculty commitment to university responsibilities and expectations. Sponsored program proposals submitted to the National Science Foundation or the Public Health Service require specific disclosures of all significant financial interests.

Contract

An agreement for services to be performed by an organization for the awarding agency.  Contracts are generally specific about the objectives, direction, specifications, costs, or methods of performance. A contract requires substantial involvement between the awarding agency and recipient during performance of the research.

Contractor-Acquired Property

Property acquired by OSU, which is purchased with sponsored project funds.

Cooperative Agreement

An agreement that provides for a mutual undertaking by the awarding agency and other parties to perform esearch. Both parties take part in the project and are mutually interested in the aims and benefits, even though there may be a difference in the scope of that interest.

Cost Accounting Standards Board (CASB)

A rule-making body established by Congress. CASB has issued four (4) cost accounting standards that apply to educational institutions and have been incorporated into Office of Management and Budget (OMB) Circular A-21 “Cost Principles for Educational Institutions.”  See GCG 104-07: Cost Accounting Standards Guidelines.

Cost Transfer

An adjustment or transfer of expenditures to or from an externally funded contract or grant account.  See GCG 209-08: Cost Transfers/Redistribution.

Cost Accounting Standards (CAS) Disclosure Statement (DS-2)

The Disclosure Statement is designed to disclose all relevant cost accounting policies and procedures. The statement is detailed and provides necessary information to document compliance with Cost Accounting Standards (CAS). Information in the statement is comprehensive; sections include: general information, direct costs, indirect costs, depreciation and use allowance, other costs and credits, deferred compensation and insurance costs, and central system or group expenses. The disclosure statement requires certification “under the penalty of perjury,” the same type of certification required by Circular A-21 for the Facilities and Administrative Rate Proposal. This statement covers all accounting policies related to sponsored projects, beginning with the proposal and including the recording of costs and the final reporting on the project.

The Disclosure Statement must be submitted and approved by OSU’s Federal Cognizant Agency, the U.S. Department of Health and Human Services (DHHS). OSU’s DS-2 was approved August 31, 1998 and revisions have been submitted since that time. See http://oregonstate.edu/fa/businessaffairs/costanalysis/csbindex.pdf for OSU’s latest DS-2.

Cost Overrun

Costs that are incurred for the project that are greater than what was authorized by the sponsor for reimbursement. See GCG 209-03: Grant and Contract Overrun Policy.

Cost Sharing

The financial relationship that results when OSU provides non-sponsored support (usually from education and general funds) for conducting a project.  The portion of project or program costs not borne by the sponsor.  Cost sharing may be mandatory or voluntary, depending on the terms of the award or contract.  Cost sharing is recorded in an unrestricted fund series.  This fund is identified with the sponsored fund in its title and numbering system. Cost sharing shown in the proposal is considered mandatory.  See GCG 212: Cost Share.

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D

 Depreciation

The process of setting aside reserve accumulation dollars for the purchase of replacement equipment. Only auxiliary and service center funds contain accumulated depreciation and are responsible for associated costs. All other depreciation is in the university plant fund.

Direct Costs

Direct costs can be identified specifically with a particular project, instructional activity or other institutional activity, or can be assigned to such activities relatively easily with a high degree of accuracy.

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E

Encumbrance

A reservation of funds for a specific purpose within a fund.  Encumbrances can be manually established for travel, personal service contracts, equipment, or other expenditures. The Office of Post Award Administration currently establishes encumbrances for all subgrants and subcontracts.

Equipment (Capitalized)

Tangible personal property with a unit value of $5000 or more, a life expectancy of more than one year, that is not consumed in the course of operation. Occasionally there is a more restrictive definition required by the research sponsor who furnishes the funds for equipment purchase. Software is excluded.

Equipment Share Program

An OSU program identifying equipment that is not fully utilized and making it available for sharing with other OSU researchers or departments.

Expanded Authority

Several federal agencies have adopted expanded authority policies, which are intended to reduce overhead costs, increase productivity, and reduce paperwork.  Where expanded authority has been authorized by the agency to the university, OSU has passed this responsibility on to the PI for most approvals except no-cost extensions, pre-award costs, and budget changes which must be prior-approved by the Office of Post Award Administration currently.  See GCG 103: Expanded Authority - Budget Changes, Pre-Award Costs & No-Cost Extensions.

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F

Facilities and Administrative Costs (F&A COSTS)

Formerly known as indirect cost. Expenditures associated with a grant, contract, or cooperative agreement that cannot be directly charged to, nor specifically identified with, individual projects. F&A costs involve expenditures necessary for the development and maintenance of an environment conducive to sponsored projects, including maintenance of facilities and library, and administrative services.  The policy for the calculation of an F&A cost rate is found in OMB Circular A-21.

Financial Administration Standards Operating Manual (FASOM)

The OUS Fiscal Policy Manual (formerly the Financial Administration Standard Operating Manual) – this manual sets the accounting/operating guidelines for the universities in the Oregon University System (OUS). 

Federal Acquisition Regulations (FAR)

FAR–Procurement standards that are applicable to federal contracts. Available on the FAR website.

Fellowships

An amount paid for the benefit of an individual to aid in the pursuit of study or research.

Fellowship Administration Fee

Sponsored fellowships that carry an institutional educational allowance are charged an administration fee. See GCG 208-07: Post Doctoral Fellowship Administration Fee Policy and GCG 208-08: Institution Educational Allowances (Fellowship Administrative Fees).

Financial Information Systems (FIS)

A comprehensive software package for entering, adjusting, and retrieving financial data.  Banner FIS is a complete financial system, with modules devoted to accounting, purchasing, accounts payable, fixed assets, grants/contracts, and budget development.

Fiscal Year

A twelve-month period of time to which the annual budget applies, and at the end of which an institution determines its financial position and the results of its operations. Oregon State University’s fiscal year extends from July 1st to June 30th of the following year. The fiscal year for the federal government runs from October 1st to September 30th of the following year.

Fixed Asset

A piece of equipment that is recorded on the fixed asset inventory. See Equipment (Capitalized) definition.

Fixed-Price Agreement

An agreement in which a price is determined in advance for the performance of a specific project or scope of work. Expenses are not subject to detailed billing. Invoices are prepared for a flat amount or by-task basis. Any residual funds, less F&A, after project completion will be authorized to be spent on further project-related research or made available to the department for use in instruction and departmental research.

FOAPAL

Acronym for the accounting distribution code fields in the Banner FIS system.  These fields are Fund/Organization/Account/Program/Activity/Location.

Fringe Benefits (OPE)

Benefits related to personnel listed in budgets that are paid through OSU (personnel does not include consultants).  Benefits are calculated on the portion of the salary charged to the sponsor and include retirement, Social Security, and medical benefits.

Fully Funded Grants

Non-governmental grants that are paid in advance earn interest.  Interest is calculated on the monthly cash balance and is posted quarterly. All restrictions in the grant document must be followed.

Fund Accounting

A method of recording financial information that groups resources into funds based on their source and any limitations on use.

Fund Balance

Fund balance is the excess of the assets of a fund over its liabilities. The term “net equity” is often used for fund balance.

Fund Code

Source of revenue/budget. Examples are: general funds, grant funds, gift funds.

Funding Source

Where the budget or funds for a project or activity come from.

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G

Governmental Accounting Standards Board (GASB)

OSU is subject to financial reporting requirements of GASB 34; 35.  For additional information see FIS 607: Depreciation or for full details view the OUS website.

General Ledger

A balance sheet made up of Asset, Liability, Fund Balance, and Control Accounts.

Gift

A cash donation other than an endowment, with no legal consideration imposed by the donor, i.e., nothing is expected by the donor in return for the gift.  Such funds are spent in accordance with university regulations and the stipulations of the donor and must not be overdrawn.   A Gift fund earns interest or is charged interest depending on the cash balance, which is calculated monthly and posted either as a credit or a charge quarterly throughout the fiscal year. A gift may be unrestricted or restricted as to use. OSU has established MXXXXX funds for the receipt of gifts.  See GCG 210-05: Gift Funds and GCG 210-07: Gift Fees.

Graduate Research Assistant/Teaching Assistant (GRA/GTA)

Assistantships awarded by departments to graduate students with outstanding records in their undergraduate and/or graduate work. To qualify, the student must: 1) be a regular advanced-degree graduate student at OSU; 2) be enrolled as a full-time graduate student at OSU, completing a minimum of 12 credit hours each term; 3) be making satisfactory progress toward an advanced degree; 4) appointment must be between .20 and .49 FTE per term.  See the Graduate School website for more information.

Grant

An agreement that provides for an agency to furnish money, property, or materials to a grantee.  The grantee has freedom to pursue the grant’s stated purpose.  The agency does not specify the manner of performance of the work and is not substantially involved in it.

Grant Ledger (FRIGITD)

Grants and contracts may be in operation for multiple years. These funds are tracked on Banner grant ledger screens in the financial system, which are not limited to current fiscal year activity only.

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H

Human Resources Information System (HRIS)

HRIS module contains employee information used for management decision-making, payroll, reporting, and employee self-service through InfoOSU.

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I

Index

A code that combines the appropriate Fund, ORG, and Program codes. Indexes are used when processing invoices and journal vouchers in the Operating Ledger and for processing payroll in the Human Resource Information System (HRIS). Indexes are not used on General Ledger entries because there is no ORG or Program on these.

Indirect Costs (IC)

Now known as Facilities and Administrative (F&A) Costs.

In-Kind Contribution

A non-cash contribution to a sponsored project or program provided by a party other than the institution or the primary sponsoring agency.  Third party in-kind contributions may be in the form of real property, equipment, supplies, or services directly benefiting and specifically designated for the project or program.

Interagency Agreement

An agreement between two different agencies of the State of Oregon.

Intergovernmental Personnel Act (IPA)

Allows for an OSU employee to work for a federal agency for a specific period of time at their determined location without losing benefits and status as an OSU employee.

Interest

Expense or income resulting from investment of funds over a period of time. Interest is calculated based on the monthly cash balance for all gifts and fully funded non-governmental grants.

Inventory Number

A unique asset number assigned to each asset or piece of equipment on the inventory.

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J

Journal Voucher (JV)

A document used to record debit(s) and credit(s) to be posted to the Operating and/or General Ledgers, reflecting a transaction or adjustment made between or within departments at OSU. JVs are also used (in the form of inter-institutional JVs) for transactions between OSU departments and those of other universities in the Oregon University System (OUS) or the Chancellor’s Office. Journal vouchers are also used to post and adjust budget entries and record manual encumbrances.

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K

 

L

Liabilities

The financial value of obligations owed.

Location Code

Assignment of building and room location for fixed assets, equipment and building inventory.

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M

Matching

A type of cost sharing, wherein a contribution to a sponsored project or program is pledged to match some portion of funds provided by the primary sponsor.  Matching contributions may be in any form acceptable to the sponsor, including cash and third party in-kind contributions.

Minor Equipment

Equipment that is valued at less than $5000; will not be consumed in the course of operation, and lasts a year or more. Exceptions include books, periodicals and reference materials that are not a part of a reference library and property held for resale (e.g. bookstore merchandise).

Modified Total Direct Cost (MTDC)

Total Direct Cost less exemptions.  Exemptions are usually GRA Tuition Remission, capitalized equipment, land and building rentals, subcontracts in excess of $25,000 and participant support costs.  MTDC is defined by the federal government.

Memorandum of Agreement (MOA)

An agreement sometimes used between public agencies.

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N

No-Cost Extensions

For most federal agencies, a one-time no-cost extension of time to complete a sponsored project may be requested through the Office of Post Award Administration, using an Organizational Prior Approval System (OPAS) form. All other requests for no-cost extensions must be made to and approved by the funding agency. This must be done 30 days before the end date of the award. See GCG 103: Expanded Authority - Budget Changes, Pre-Award Costs & No-Cost Extensions.

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O

Office of Management and Budget (OMB)

A regulatory arm of the executive office of the President of the United States. Federal grants and cooperative agreements are regulated by several OMB Circulars [A-21, A-110, A-133]. Guidance for preparation of F&A rate proposal included in (A-21). See the Office of Management & Budget webpage on the White House website.

Operating Ledger (OPAL)

The financial record of the day-to-day business of the university over a given time period, by fiscal year. Sponsored projects use a grant code to activate a grant ledger module, which combines all OPAL ledgers during the life of the award.

Oregon Administrative Rules (OAR)

Rules adopted under the Oregon Administrative Procedures Act located on the OARs website.

Oregon Revised Statutes (ORS)

 Statutes of the State of Oregon located on the ORS website.

Oregon University System (OUS)

The Oregon University System is comprised of seven four-year public universities. The system offers educational opportunities to Oregonians and students from around the world.

OUS Institutions: Eastern Oregon University, Oregon Institute of Technology, Oregon State University, Portland State University, Southern Oregon University, University of Oregon, Western Oregon University and Oregon Health & Science University (OUS affiliate).

Organization Code (ORG)

Identifies the budgetary unit within the university responsible for the budget, such as a department.

Organizational Prior Approval System (OPAS)

OSU’s system to approve requests to certain federal agencies for pre-award costs on grants and cooperative agreements for up to ninety days prior to the award start date or for no-cost extensions up to one year as authorized by OMB Circular A-110 (commonly known as expanded authority). Requests are sent to the Research Accounting Office, using an OPAS form.  See GCG 103: Expanded Authority - Budget Changes, Pre-Award Costs & No-Cost Extensions. OPAS form.

Other Payroll Expenses (OPE)

Expenditures for employee benefits, payroll and personnel assessments, accrued leaves and graduate fee remissions.

Other Sponsored Activities

Activities that involve the performance of work other than instruction and organized research fall into this category.  Examples are: sponsored instruction and workshops, course development, non-research training activities, public service activities, cooperative extension outreach, health service projects, community service programs, conferences, meetings, and other activities not utilizing research space.  This category also includes academic support of libraries, educational media services, and student services.

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P

Participant Support

Expenditures from funds received to support students (not employees) engaged in training or research in a specific field or program. Typical expenses are stipends, dependency allowances, tuition, fees, travel, books, materials and subsistence needs.

Personnel Activity Report Forms (PAR FORMS)

An accounting of time and effort expended by OSU employees. The form is required for all personnel working on grants and contracts to provide documentation to support effort expended toward sponsored agreements, including cost sharing. Student effort is documented by time sheets.

Pending Funds

Process used by OSU to give approval for expenditures to begin before the award is officially signed. The department head can send a written request to the Office of Post Award Administration, asking for a pending fund to be established. Start date of the award will be adjusted to the start date indicated on the award when the signed agreement is received. A signed proposal must be on file before set up of a pending fund is approved. All project costs can be placed on these funds up to the amount authorized by the Department Head.

Personal/Professional Service Contract (PSC)

A contract between the university and independent contractors for professional, specialized, educational, research, or creative services. A personal service contract can be for a length of time, for a one-time performance of services, or for services provided on a continuing basis.  A personal service contract is not used if primarily for a tangible product, even if professional services are needed to design or install the product.  Contact Business Services at 7-4712 for more information about PSCs or visit the Business Services website.

Personal Services Invoice (PSI)

This form is to be used for all contracted services of $5000 or less.  It does not require Contract Office approval and is the tool for payment of that service.  An example of a PSI (pdf format) is found on the Contracts Office website.   A PSI cannot be used to pay non-resident aliens or federal employees.

Posting

The official recording of a transaction (document) on a ledger (OPAL or GL). In FIS, the “posting process” is a background batch job that generally runs several times an hour. It takes approved documents and performs the appropriate accounting ledger updates. Once posted, documents will then appear on the transaction listing forms of FGITRND or FGIGLAC, and in all appropriate ledgers, including the grant ledger form FRIGITD.

Principal Investigator (PI)

The person directly responsible for coordinating and managing the timely implementation and completion of a specific project.  Principal investigators must ensure compliance with sponsor regulations for project costs incurred, patents, or licensing and reporting requirements, as appropriate.

Prior Approval Requirements

A federal agency's requirement that changes relating to a sponsored agreement have to be pre-approved by the sponsoring agency .

Program Code

Program codes identify the type of activities for which dollars are spent, such as Instruction, Administrative, Research and Public Service.

Project Director

Typically, a faculty member who submitted a proposal that was accepted and funded by an external sponsor, also referred to as the principal investigator, or PI. The project director has primary responsibility for technical compliance, completion of programmatic work, and fiscal stewardship of sponsor funds.

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Q

R

Reasonable

A cost may be considered reasonable if the nature of goods and services reflects prudent action. Generally, charges for goods or services that foster or support the on-going missions of the university are considered reasonable as long as they comply with regulations to which the university and/or project is governed.

Restricted Fund

Fund types used to identify resources that may be available for current operations, but that are to be used only for a specific purpose as directed by the donor or project sponsor. These include amounts received from non-university sources for student aid (scholarships) and construction.

Returned Overhead (ROH)

A distribution of funds recovered on sponsored projects for Facilities and Administrative (F&A) costs. An estimate of ROH is provided in the initial budget for those colleges and research centers with active projects. An adjustment to the budget is made in the next budget year, based on a reconciliation of individual funds for the prior year.

Revenue

Proceeds from any activity sponsored by OSU, evidenced in part by the use of OSU letterhead, and/or using state resources such as employee time and effort, or OSU property. These proceeds must be deposited into an OSU fund. Examples include proceeds from short course workshops and seminars, and testing services. These revenues must not be deposited in affiliated foundations (OSU Foundation or Agriculture Research Foundation).

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S

Sponsor

The federal agency or private entity that sponsors a project and provides funding or other resources toward project completion.

Sponsored Agreement

An agreement between OSU and a sponsoring agency where the agency provides funds for research, equipment, materials and services to be provided by OSU.

Sponsored Instruction

This is specific instruction or training activity sponsored by grants, contracts, or cooperative agreements.

Sponsored Research

Scholarly investigation conducted to obtain new knowledge. Basic or applied research that is separately budgeted and accounted for. This may also be called organized research.

Stipend

A subsistence allowance for students, post doc’s and participants to help defray general living expenses, in support of those engaged in training or research programs.

Subcontract/Subgrant/Subaward

An agreement between a party of an original contract and a third party, to provide all or a specified part of the work or materials required in the original award. In most cases, subcontracts must be approved by the sponsoring agency. Subcontractors should be identified in the proposal, including the subcontractor’s budget, their indirect rates, scope of work, and approval from their administration to participate in the project.

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T

Title-to-Code

Banner FIS fixed asset field that identifies who has title to an asset, and whether the State of Oregon insures the asset.  See GCG 207-03: Guidelines for Ownership Coding of Sponsor Funded Equipment.

Trade-In

Providing a vendor with a piece of used property in return for a credit on the purchase of a piece of new property. See GCG 207-02: Trade-in of Capital Equipment.

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U

Unrestricted Funds

Funds that identify resources with no specific limitations imposed by donors or external agencies. These types of funds represent the resources available for the general operations of the university. Included in this category is the general fund, with revenues primarily from state appropriations and student tuition, royalty income, service and testing income.

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V W X Y Z

003: List of Exhibits

See GCG-Ex1: Fly America Act - Federal Register Amendment Vol. 63, No. 219, Nov. 13, 1998.

See GCG-Ex2: Fly America Act Brochure and Fly America Act Waiver Checklist (pdf format)

Exhibit 1

Grant, Contract & Gift Accounting Manual
Section 000: Introductory Material - Exhibits

[Federal Register: November 13, 1998 (Volume 63, Number 219)]
[Rules and Regulations]              
[Page 63417-63421]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13no98-18]

[[Page 63417]]

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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 301-3 and 301-10

[FTR Amendment 74--1998 Edition]
RIN 3090-AG73

Federal Travel Regulation; Use of Commercial Transportation, Fly America Act

AGENCY: Office of Governmentwide Policy (OGP), GSA.

ACTION: Final rule.

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SUMMARY: This final rule amends the Federal Travel Regulation (FTR) provisions pertaining to use of U.S. flag air carriers under the provisions of 49 U.S.C. 40118, commonly referred to as the Fly America Act. This final rule reduces the connecting time for use of U.S. flag air carrier service at an overseas interchange point; requires that airline tickets issued under a code share agreement identify the U.S. flag air carrier's designator code and flight number; removes references to "gateway airports;"' and implements a new method for calculation of the employee's liability for unauthorized transportation on a foreign air carrier.

EFFECTIVE DATE: January 1, 1999.

FOR FURTHER INFORMATION CONTACT: Technical information: Umeki G. Thorne, telephone (202) 501-1538. FTR ``plain language'' format: Internet GSA, ftrtravel.chat@gsa.gov.

SUPPLEMENTARY INFORMATION: Subsection 127 (d) of the General Accounting Office Act of 1996 (Pub. L. 104-316) amended 49 U.S.C. 40118 to require that the Administrator of General Services Administration (GSA) issue regulations under which agencies may permit payment for transportation on a foreign air carrier when such transportation is determined necessary. This final rule implements the Administrator's authority under the statute, identifying when U.S. flag air carrier service is deemed available (for transportation between a point in the United States and a point outside the United States) or reasonably available (for transportation between two points outside the United States). This final rule is written in the "plain language" style of regulation writing as a continuation of GSA's effort to make the FTR easier to understand and use. This final rule removes Part 301-3 of 41 CFR Chapter 301 and adds the provisions implementing the Fly America Act to Part 301-10. This final rule also modifies the proposed rule with request for comments published in the Federal Register on April 7, 1998 (63 FR 16936).

During the 30-day comment period provided by the proposed rule, GSA received comments from four Federal agencies, three U.S. flag air carriers, an air carrier association, and three non-Government entities. GSA carefully reviewed each comment. Changes based on comments received have been grouped by section of the proposed rule and subject area and are discussed in the following general analysis.

Section 301-10.134

What Is U.S. Flag Air Carrier Service?

U.S. Air Carrier Certificate

Section 301-10.134 of the proposed rule generally defines ``U.S. flag air carrier service'' as service on an air carrier holding a certificate under 49 U.S.C. 41102. One Federal agency requested that GSA clarify that although U.S. flag air carriers must hold a certificate, the transportation does not have to be authorized by such certificate, if it is authorized by rule or exemption. GSA has revised Sec. 301-10.134 accordingly.

Code Share Agreements

Ticket Stock

A comment from a non-Government entity supported the language in Sec. 301-10.134 of the proposed rule stating that service under a code share arrangement, when the entire ticket is issued by a U.S. flag air carrier, is deemed U.S. flag air carrier service. In contrast, three Federal agencies, two U.S. flag air carriers and the air carrier association objected to this requirement as too restrictive. Two of the Federal agencies and the air carrier association stated that many developing countries have neither U.S. flag air carrier facilities nor personnel. Accordingly, in such cases, obtaining a ticket on U.S. flag air carrier ticket stock is not practicable and could preclude travelers from benefiting from U.S. flag air carrier service through code share arrangements. The air carrier association also pointed out that the essential feature on an airline ticket is the air carrier designator code and flight number rather than the ticket stock. One U.S. flag air carrier stated that imposing a U.S. air carrier ticket stock requirement could, in some cases, divert traffic to foreign air carriers in those locations where no U.S. flag air carrier facilities or personnel are located. In addition, GSA notes that as airlines and travelers more frequently utilize electronic ticketing, a U.S. air carrier ticket stock requirement appears outdated. As a result of these comments, the language of the proposed rule has been revised. The final rule states that the ticket (or documentation for an electronic ticket) must identify the U.S. flag air carrier's designator code and flight number. The requirement that the ticket be issued on U.S. flag air carrier ticket stock has been removed.

Foreign Air Carrier Code Share Service as U.S. Flag Air Carrier Service

One U.S. flag air carrier objected, except under limited circumstances, to the determination that service by a foreign air carrier under a code share arrangement is service by a U.S. flag air carrier. Specifically, the U.S. flag air carrier stated that code share service by a foreign air carrier is merely a form of interline service and therefore should not be considered service by a U.S. flag air carrier unless the U.S. flag air carrier bears the financial risk of empty seats on the aircraft. In contrast, the air carrier association commented that code share arrangements between U.S. flag air carriers and foreign air carriers are consistent with the Fly America Act because they promote the intent of the Fly America Act by improving the economic and competitive position of U.S. flag air carriers.

The final rule provides that U.S. flag air carrier service includes service provided by a foreign air carrier under a code share agreement when the ticket, or documentation in the case of an electronic ticket, identifies the U.S. flag air carrier's designator code and flight number. It is GSA's position that codesharing between U.S. flag air carriers and foreign air carriers increases opportunities for U.S. flag air carriers to expand into new international markets, which in turn promotes revenues to U.S. flag air carriers, thereby furthering the goals of the Fly America Act. Additionally, the U.S. flag air carrier whose designator code and flight number appears on the ticket, or documentation in the case of an electronic ticket, takes responsibility for the passenger(s) traveling under the U.S. flag air carrier's designator code and flight number, supporting the determination that the code share service is properly deemed service by the U.S. flag air carrier.

Section 301-10.135

When Must I Travel Using U.S. Flag Air Carrier Service?

Exception for Transportation Under Bilateral and Multilateral Agreements

Section 301-10.135 of the proposed rule states that U.S. flag air carrier service must be used for all travel funded by the U.S. Government, unless one of the various exceptions applies. One Federal agency commented that Sec. 301-10.135(b), which addresses bilateral or multilateral agreements, could be misleading because the criteria from the Fly America Act for exchanging fly-national privileges under such agreements are to be applied by the negotiators at the time the agreement is made, not by the traveler. That agency also stated that as of the date of the proposed rule there were no bilateral or multilateral agreements in effect that met the requirements of the Fly America Act. Based on this comment, GSA has clarified Sec. 301-10.135(b). Under the final rule, a traveler is not required to use U.S. flag air carrier service if transportation by a foreign air carrier is provided under a bilateral or multilateral air transportation agreement which the Department of Transportation has determined meets the conditions specified in the Fly America Act. To verify existence of any qualifying bilateral or multilateral agreements, agencies should contact the U.S. Department of Transportation, Office of the Secretary, Office of International Aviation, Room X-40, Washington, DC 20590.

Direct Service by Foreign Air Carrier

A Federal agency commented on Sec. 301-10.135(d) of the proposed rule, which states that when no U.S. flag air carrier provides service on a particular leg of the route, foreign air carrier service may be used, but only to or from the nearest interchange point on a usually traveled route to connect with U.S. flag air carrier service. The agency requested that GSA eliminate the words, ``but only to or from the nearest interchange point on a usually traveled route'' in order to save travel time by enabling travelers to use direct service on a foreign air carrier. GSA is not persuaded that this change is warranted. While the use of a foreign air carrier may be more convenient when the foreign air carrier has nonstop or direct service, GSA does not consider a shorter travel time in these circumstances to be sufficient to consider U.S. flag air carrier service unavailable or use of a foreign air carrier necessary. Therefore, GSA did not adopt the revision proposed in the comment. Of course, if the traveler meets an exception provided in the regulation, such as those provided in Sec. 301-10.136, then the traveler may use a foreign air carrier.

Section 301-10.136

What Exceptions to the Fly America Act Requirements Apply When I Travel Between the United States and Another Country?

            Removal of the terms "gateway airport in the United States" and "gateway airport abroad."  The air carrier association requested clarification for the removal of terms "gateway airport in the United States'' and "gateway airport abroad." The association stated that it does not oppose the deletion of the terms but requested that GSA clarify any policy change intended by the elimination of these terms. GSA does not intend to make a significant substantive policy change through the removal of the terms "gateway airport abroad" and "gateway airport in the United States." However, as there are a myriad of potential travel situations, there may be instances where the removal of the terms result in a different outcome than that which would have resulted under the former rule.

Connecting Time

Section Sec. 301-10.136 (b)(3) of the proposed rule reduced the connecting time from 6 hours or more to 4 hours or more at an overseas interchange point for purposes of determining whether U.S. flag air carrier service is unavailable. One Federal agency and one non-Government entity commented in support of this policy change. In contrast, two U.S. flag air carriers and the air carrier association opposed this policy change. The U.S. flag air carriers and the air carrier association stated that this change would unnecessarily risk the loss of business by U.S. airlines as it is likely to result in U.S. flag air carrier service being deemed unavailable in more instances, thereby diverting more travel to foreign air carriers.

GSA has considered these comments, but the change included in the proposed rule reducing the connecting time from 6 hours or more to 4 hours or more remains in this final rule. GSA included a number of considerations in its review of the issue. When the Fly America Act was first implemented in the 1970's, the 6 hour or more connecting time rule was established as a reasonable standard for connecting service through an overseas interchange point. Since that time, U.S. flag air carriers have significantly expanded their service in international markets and increased their service at international interchange points so that passengers can connect in a shorter time frame. Expanded use of code share arrangements has also helped reduce connecting times at overseas interchange points.

In reviewing this issue, GSA's analysis of airline schedule data showed that the airlines' average layover or connecting time is 2\1/2\ hours. GSA's analysis also showed that there would not be a large number of flights impacted by this change. Therefore, reducing the connecting time from 6 hours to 4 hours should not result in a significant loss of revenue to U.S. flag air carriers. Under the final rule, U.S. flag air carrier service is deemed unavailable when connecting service at an overseas interchange point would require a connecting time of 4 hours or more. This exception applies only when no U.S. flag air carrier service is available within the 4 hour time period, including U.S. flag air carrier service under a code share agreement.

Section 301-10.138

In What Circumstances Is Foreign Air Carrier Service Deemed a Matter of Necessity?

Excess Foreign Currency

Section (b)(3) of this section of the proposed rule stated that "(b) Necessity includes, but is not limited to, the following circumstances when: (3) Your program or activity may only be financed, under statute, using excess foreign currency and all U.S. flag air carriers refuse to accept foreign currencies." As no excess foreign currency situations exist at the present time (and have not existed since 1992), GSA has determined that the provision included at Sec. 301-10.138(b)(3) of the proposed rule is unnecessary. Therefore Sec. 301-10.138(b)(3) of the proposed rule is not included in this final rule. Should excess foreign currency issues arise in the future, GSA will determine at that time whether a provision on the subject should be included in the regulation.

Safety Exceptions

The air carrier association commented on Sec. 301-10.138(b)(1)(2), stating that although the association did not object to the safety exceptions included in the proposed rule, GSA should inform travelers that security exceptions (due to a terrorist threat on a U.S. flag air carrier) should only be invoked after consultation with the Office of Civil Aviation Security of the Federal Aviation Administration (FAA). In the event of a threat to a U.S. flag air carrier, the FAA and the Department of State will issue a travel advisory notice to the general public. Agencies should take any such travel advisory notices into account when determining whether foreign air carrier service is deemed a necessity as provided in Sec. 301-10.138. Written approval is required for a determination that foreign air carrier service is a necessity based on a security threat to a U.S. flag air carrier and must be supported by a travel advisory notice. The language of this final rule includes this requirement. With respect to threats against Government employees or other travelers, which formulate the basis for a determination that foreign air carrier service is necessary (as contrasted with threats to a U.S. flag air carrier), evidence of such threats must accompany the agency's approval of the use of foreign air carrier service.

Section 301-10.144

What Is My Liability if I Improperly Use a Foreign Air Carrier?

Splitting the Cost of Air Travel Between Federal and Non-Federal Funds

One non-Government entity commented that the provision included in this section of the proposed rule for computing liability may encourage splitting the cost of a trip between non-Federal and Federal funds to permit the use of a foreign air carrier for convenience or lower rates. The comment stated that the entity's practice has been to deny payment of the total cost of the air travel (both foreign and U.S.) if a foreign air carrier was improperly used for any part of the trip.

Under Sec. 301-3.6(c)(4) of the current FTR, employee liability is computed based on a formula used to determine the amount of lost revenue to the U.S. flag air carrier(s) rather than denial of the entire cost of air travel. The new policy for employee liability, which denies reimbursement for use of any foreign air carrier for any part of the trip for which it was not authorized, is intended to simplify the process for computing employee liability. 49 U.S.C. 40118 applies only to transportation that is financed with U.S. Government funds and will not result in improperly splitting the costs of a trip between Federal and non-Federal funds. GSA's intent is to ensure that agencies establish internal procedures for disallowance of reimbursement to travelers who use foreign air carrier service that was not authorized or otherwise permitted under this regulation. Therefore this section has been modified to include a provision requiring agencies to establish such internal procedures.

Ticket Purchases Made Through a Government Contractor Travel Agency

One Federal agency stated that agencies which are not using charge cards for purchase of airline tickets should be allowed to make payment directly to the Travel Management Center, and then seek reimbursement from the employee when an employee has improperly used a foreign air carrier. The issue of whether a Federal agency must pay a travel management center/travel agency contractor when there is improper use of a foreign air carrier is a matter of contract administration. GSA notes that many Government contracts for travel management center/travel agency services include a provision requiring that the contractor abide by the terms of the Fly America Act in issuing tickets for Federal travelers and bear the financial burden for failure to do so.  Accordingly, GSA determined it unnecessary to revise Sec. 301-10.144 on this issue.

GSA has determined that this final rule is not a significant regulatory action for the purposes of Executive Order 12866 of September 30, 1993. This final rule is not required to be published in the Federal Register for notice and comment; therefore, the Regulatory Flexibility Act does not apply. The Paperwork Reduction Act does not apply because the proposed revisions do not impose recordkeeping or information collection requirements, or the collection of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 501 et seq. This final rule is also exempt from Congressional review prescribed under 5 U.S.C. 801 since it relates solely to agency management and personnel.

List of Subjects in 41 CFR Parts 301-3 and 301-10

Government employees, Travel and transportation expenses.  For the reasons set out in the preamble, 41 CFR Chapter 301 is amended as follows.

PART 301-3--USE OF COMMERCIAL TRANSPORTATION

  1. Under the authority of 5 U.S.C. 5707, part 301-3 is removed.
    PART 301-10--TRANSPORTATION EXPENSES
  1. The authority citation for 41 CFR part 301-10 continues to read as follows:
    Authority: 5 U.S.C. 5707; 40 U.S.C. 486(c); 49 U.S.C. 40118.
  1. An undesignated center heading and sections 301-10.131 through 301-10.144 are added to read as follows:

Use of United States Flag Air Carriers

Sec.
<!--[if !supportLists]--> 301-10.131    What does United States mean?
<!--[if !supportLists]--> 301-10.132    Who is required to use a U.S. flag air carrier?
<!--[if !supportLists]--> 301-10.133    What is a U.S. flag air carrier?
<!--[if !supportLists]--> 301-10.134    What is U.S. flag air carrier service?
<!--[if !supportLists]--> 301-10.135    When must I travel using U.S. flag air carrier service?
<!--[if !supportLists]--> 301-10.136    What exceptions to the Fly America Act requirements apply when I travel between the United States and another country?
<!--[if !supportLists]--> 301-10.137    What exceptions to the Fly America Act requirements apply when I travel solely outside the United States, and a U.S. flag air carrier provides service between my origin and destination?
<!--[if !supportLists]--> 301-10.138    In what circumstances is foreign air carrier service deemed a matter of necessity?
<!--[if !supportLists]--> 301-10.139    May I travel by a foreign air carrier if the cost of my ticket is less than traveling by a U.S. flag air carrier?
<!--[if !supportLists]--> 301-10.140    May I use a foreign air carrier if the service is preferred by or more convenient for my agency or me?
<!--[if !supportLists]--> 301-10.141    Must I provide any special certification or documents if I use a foreign air carrier?
<!--[if !supportLists]--> 301-10.142    What must the certification include?
<!--[if !supportLists]--> 301-10.143    What is my liability if I improperly use a foreign air carrier?

Use of United States Flag Air Carriers

Sec. 301-10.131

What does United States mean?

For purposes of the use of United States flag air carriers, United States means the 50 states, the District of Columbia, and the territories and possessions of the United States (49 U.S.C. 40102).

Sec. 301-10.132

Who is required to use a U.S. flag air carrier?

Anyone whose air travel is financed by U.S. Government funds, except as provided in Sec. 301-10.135, Sec. 301-10.136, and Sec. 301-10.137.

Sec. 301-10.133

What is a U.S. flag air carrier?

An air carrier which holds a certificate under 49 U.S.C. 41102 but does not include a foreign air carrier operating under a permit.

Sec. 301-10.134

What is U.S. flag air carrier service?

U.S. flag air carrier service is service provided on an air carrier which holds a certificate under 49 U.S.C. 41102 and which service is authorized either by the carrier's certificate or by exemption or regulation. U.S. flag air carrier service also includes service provided under a code share agreement with a foreign air carrier in accordance with Title 14, Code of Federal Regulations when the ticket, or documentation for an electronic ticket, identifies the U.S. flag air carrier's designator code and flight number.

Sec. 301-10.135

When must I travel using U.S. flag air carrier service?

You are required by 49 U.S.C. 40118, commonly referred to as the ``Fly America Act,'' to use U.S. flag air carrier service for all air travel funded by the U.S. Government, except as provided in Sec. 301-10.136 and Sec. 301-10.137 or when one of the following exceptions applies:

  1. Use of a foreign air carrier is determined to be a matter of necessity in accordance with Sec. 301-10.138; or
  2. The transportation is provided under a bilateral or multilateral air transportation agreement to which the United States Government and the government of a foreign country are parties, and which the Department of Transportation has determined meets the requirements of the Fly America Act; or
  3. You are an officer or employee of the Department of State, United States Information Agency, United States International Development Cooperation Agency, or the Arms Control Disarmament Agency, and your travel is paid with funds appropriated to one of these agencies, and your travel is between two places outside the United States; or
  4. No U.S. flag air carrier provides service on a particular leg of the route, in which case foreign air carrier service may be used, but only to or from the nearest interchange point on a usually traveled route to connect with U.S. flag air carrier service; or
  5. A U.S. flag air carrier involuntarily reroutes your travel on a foreign air carrier; or
  6. Service on a foreign air carrier would be three hours or less, and use of the U.S. flag air carrier would at least double your en route travel time; or
  7. When the costs of transportation are reimbursed in full by a third party, such as a foreign government, international agency, or other organization.

Sec. 301-10.136

What exceptions to the Fly America Act requirements apply when I travel between the United States and another country?

The exceptions are:

  1. If a U.S. flag air carrier offers nonstop or direct service (no aircraft change) from your origin to your destination, you must use the U.S. flag air carrier service unless such use would extend your travel time, including delay at origin, by 24 hours or more.
  2. If a U.S. flag air carrier does not offer nonstop or direct service (no aircraft change) between your origin and your destination, you must use a U.S. flag air carrier on every portion of the route where it provides service unless, when compared to using a foreign air carrier, such use would:
    1. Increase the number of aircraft changes you must make outside of the U.S. by 2 or more; or
    2. Extend your travel time by at least 6 hours or more; or
    3. Require a connecting time of 4 hours or more at an overseas interchange point.

Sec. 301-10.137

What exceptions to the Fly America Act requirements apply when I travel solely outside the United States, and a U.S. flag air carrier provides service between my origin and my destination?

You must always use a U.S. flag carrier for such travel, unless, when compared to using a foreign air carrier, such use would:

  1. Increase the number of aircraft changes you must make en route by 2 or more; or
  2. Extend your travel time by 6 hours or more; or
  3. Require a connecting time of 4 hours or more at an overseas interchange point.

Sec. 301-10.138

In what circumstances is foreign air carrier service deemed a matter of necessity?

  1. Foreign air carrier service is deemed a necessity when service by a U.S. flag air carrier is available, but
    1. Cannot provide the air transportation needed; or
    2. Will not accomplish the agency's mission.
  2. Necessity includes, but is not limited to, the following circumstances:
    1. When the agency determines that use of a foreign air carrier is necessary for medical reasons, including use of foreign air carrier service to reduce the number of connections and possible delays in the transportation of persons in need of medical treatment; or
    2. When use of a foreign air carrier is required to avoid an unreasonable risk to your safety and is approved by your agency (e.g., terrorist threats). Written approval of the use of foreign air carrier service based on an unreasonable risk to your safety must be approved by your agency on a case by case basis. An agency determination and approval of use of a foreign air carrier based on a threat against a U.S. flag air carrier must be supported by a travel advisory notice issued by the Federal Aviation Administration and the Department of State. An agency determination and approval of use of a foreign air carrier based on a threat against Government employees or other travelers must be supported by evidence of the threat(s) that form the basis of the determination and approval; or
    3. When you can not purchase a ticket in your authorized class of service on a U.S. flag air carrier, and a seat is available in your authorized class of service on a foreign air carrier.

Sec. 301-10.139

May I travel by a foreign air carrier if the cost of my ticket is less than traveling by a U.S. flag air carrier?

No. Foreign air carrier service may not be used solely based on the cost of your ticket.

Sec. 301-10.140

May I use a foreign air carrier if the service is preferred by or more convenient for my agency or me?

No. You must use U.S. flag air carrier service, unless you meet one of the exceptions in Sec. 301-10.135, Sec. 301-10.136, or Sec. 301-10.137 or unless foreign air carrier service is deemed a matter of necessity under Sec. 301-10.138.

Sec. 301-10.141

Must I provide any special certification or documents if I use a foreign air carrier?

Yes, you must provide a certification, as required in Sec. 301-10.143 and any other documents required by your agency. Your agency cannot pay your foreign air carrier fare if you do not provide the required certification.

Sec. 301-10.142

What must the certification include?

The certification must include:

  1. Your name;
  2. The dates that you traveled;
  3. The origin and the destination of your travel;
  4. A detailed itinerary of your travel, name of the air carrier and flight number for each leg of the trip; and
  5. A statement explaining why you met one of the exceptions in Sec. 301-10.135, Sec. 301-10.136, or Sec. 301-10.137 or a copy of your agency's written approval that foreign air carrier service was deemed a matter of necessity in accordance with Sec. 301-10.138.

Sec. 301-10.143

What is my liability if I improperly use a foreign air carrier?

You will not be reimbursed for any transportation cost for which you improperly use foreign air carrier service. If you are authorized by your agency to use U.S. flag air carrier service for your entire trip, and you improperly use a foreign air carrier for any part of or the entire trip (i.e., when not permitted under this regulation), your transportation cost on the foreign air carrier will not be payable by your agency. If your agency authorizes you to use U.S. flag air carrier service for part of your trip and foreign air carrier service for another part of your trip, and you improperly use a foreign air carrier (i.e., when neither authorized to do so nor otherwise permitted under this regulation), your agency will pay the transportation cost on the foreign air carrier for only the portion(s) of the trip for which you were authorized to use foreign air carrier service. The agency must establish internal procedures for denying reimbursement to travelers when use of a foreign air carrier was neither authorized nor otherwise permitted under this regulation.

Dated: November 5, 1998.
David J. Barram,
Administrator of General Services.
[FR Doc. 98-30344 Filed 11-12-98; 8:45 am]
BILLING CODE 6820-34-P

100 General Administration of Award

101: Introduction

Grant, Contract & Gift Accounting Manual
Section 100: General Administration of Award
Effective: 09/19/2004
Revised: 04/23/2012

Purpose

To insure proposals meet institutional standards.

Applicability

All employees.

Policy

Signature authority for sponsored proposals and related sponsored award issues rests with the Director of the Office of Sponsored Programs, or designee. Sponsored projects may require a variety of institutional signatures in order to be accepted by the sponsor. Signatures must be obtained prior to submission of proposals.

Procedure

Use the information below to complete application materials for all proposals sent to external sponsors.

The following persons have signature authority in their authorized capacities.

  • Institutional Representative
  • Organizational Representative
  • Authorized Institutional Official
  • Individual Authorized to Sign

Patricia A. Hawk, Director
Office of Sponsored Programs
Oregon State University
312 Kerr Administration Building
Corvallis, OR 97331-2140
(541) 737-4933 phone
(541) 737-3093 fax
Sponsored.Programs@oregonstate.edu

  • Contract Officer
  • Negotiator
  • Individual Authorized to Sign and Approve Research Grants and Contracts
Eric Anundson, Lin Reilly, Aedra Reynolds, Vickie Watkins
Office of Sponsored Programs
Oregon State University
312 Kerr Administration Building
Corvallis, OR 97331-2140
(541) 737-4933 phone
(541) 737-3093 fax
Sponsored.Programs@oregonstate.edu
  • Financial Officer
  • Business Official
  • Person authorized to approve invoices & financial reports sent to sponsors of grants and contracts.
  • The person who checks should be sent to.

Kim Calvery,  Assistant Director Business Affairs, Office of Post Award Administration Oregon State University
B306 Kerr Administration Building
Corvallis, OR 97331-2147
Phone: (541) 737-4711
Fax: (541) 737-2069
Kim.Calvery@oregonstate.edu

102 Sponsored Project Overview & Responsibilities

102-01: Sponsored Project Overview & Responsibilities - Proposal

Grant, Contract & Gift Accounting Manual
Section 100: General Administration of Award
Effective: 6/23/2008
Revised: 4/23/2012

Purpose

To identify the process for submitting proposals.

Top

Applicability

All employees.

Top

Procedure

All OSU personnel seeking external funds for research, other sponsored activity,  instructional enhancement, buildings or renovations should follow the proposal process.

All proposals for externally sponsored support that are subject to regulatory or sponsor restrictions and that involve a commitment of university resources must be reviewed and approved by the appropriate academic and administrative unit officials prior to submission to sponsors.

If external proposals are submitted without proper review and approval prior to submission, any resulting award acceptance is dependent upon completion of the standard internal approval process.

For administering these awards, use the Research Office website, the Grant, Contract & Gift Accounting Manual, and the policies of the sponsoring agency.

  • OMB Circular A-21 establishes principles for determining costs applicable to grants, contracts, and other agreements with educational institutions.
  • OMB Circular A-110 and FARs apply to sponsored agreements from a federal agency or federal flow-through.
  • OMB Circular A-133or FARsand Cost Accounting Standards apply to all sponsored agreements.
Responsible Party Action

Business Center/
Principal Investigator (PI)/College or Unit Staff

Prepares and submits to the Office of Sponsored Programs (a unit of the Research Office):

  • The original proposal with itemized budget (or electronic version through Cayuse or sponsored-required system)
    • In the proposal budget, all direct costs, F&A rates, and cost sharing (GCG - 212 - Costshare) in the proposal must meet the criteria outlined by OMB Circular A-21 and A-110 (or FAR if a contract) and be approved by OSU.  OSU costs and cost share must be traceable in the accounting system.
  • If a subaward is included in the budget, PI provides a copy of subaward budget, scope of work, and their equivalent Organizational Representative approval.
  • Identifies cost sharing by budget line item and source of cost share funds.

Responds to any questions from the agency concerning budget or scope of work.

Office of Sponsored Programs (OSP)

  • Reviews the proposal for content, use of animal and human subjects, use of OSU facilities, F&A cost rate and application, budget content, and other required items.
  • Contacts department for adjustments, corrections, clarifications, etc.
  • Approves the proposal on behalf of OSU upon determination that content is correct and accurate.
  •    Any subsequent changes in the proposal, scope of work or budget need to be reviewed by the Office of Sponsored Programs prior to the award being received.

Returns original signed proposal to Department/PI or submits electronically.

Department/PI
  1. PI/Department mails signed proposal to sponsoring agency if Sponsored Programs has not submitted electronically.
Office of Sponsored Programs
  1. Retains copy of proposal for 18 months or until award is made, whichever is earlier. Copy becomes part of the complete official agreement packet.

102-02: Award Approval & Set Up

Grant, Contract & Gift Accounting Manual
Section 100: General Administration of Award
Effective:
Revised: 4/23/2012

Purpose

To identify the process for award approval & set up.

Top

Applicability

All employees.

Top

Procedure

If an award is received by an individual or an office other than Sponsored Programs,  it should immediately be forwarded  to the Office of Sponsored Programs for proper review, negotiation and acceptance on behalf of Oregon State University.  No other OSU personnel have the authority to approve or sign any agreement committing OSU facilities or staff for sponsored activities.  See GCG 101: Signature Authority- Proposals, Contracts, Financial Reporting.

Responsible Party Action

Project Directors, Faculty, Deans, Department Heads and Principal Investigators

  • Upon receipt, send award directly to the Office of Sponsored Programs(312 Kerr Administration Building) for review, negotiation and approval.

Office of Sponsored Programs

  • Receives the award document.
  • Matches the awarding document with the proposal.  If no proposal is found, the Office of Sponsored Programs will contact the PI to obtain the proposal.
  • Reviews awarding documents and negotiates final document with agency if necessary.  (Award documents are reviewed for compliance with state laws if there is an approved proposal. Office of Sponsored Programs may negotiate with the agency on specific contractual clauses to bring the document into compliance with state laws.)
  • If required, routes the award to the General Counsel for legal sufficiency review.  Approves and signs the award, officially as the “State of Oregon acting by and through the State Board of Higher Education on behalf of Oregon State University.”
  • Sends the fully executed document to the awarding sponsor, when a return copy is required.
  • Notifies the Business Center and PI (via email) that the award is signed.
  • Sends the fully signed award and proposal to the Office of Post Award Administration for financial set-up and administration of the sponsored funds.
  • If a Subaward is needed, the Office of Sponsored Programs writes the agreement.
    • Obtains from the department/PI the necessary information to write the subaward.
    • Assigns a number to the subaward that identifies it with the prime contract/fund number.
    • Prepares the subaward, sends it to General Counsel for review if needed, and then sends it to the subrecipient for signatures. 
    • Forwards the original signed subaward to the Office of Post Award Administration.

Business Affairs (Office of Post Award Administration)

  • Reviews the award for proper coding that will be input into FIS Banner and establishes an accounting grant, fund, and index.
  • Enters the award data and budget into FIS Banner.
  • Manages restricted funds, invoices sponsors, and receives sponsor payments.
  • Notifies the PI and Business Center accounting staff of the index number and award requirements.
  • Files an electronic copy of the award along with the Award Information Sheet and notifies the Business Center.
Business Center Accountant
  • Reviews sponsored agreement for terms and conditions and communicate those terms and conditions to the PI.

103: Expanded Authority - Budget Changes, Pre-Award Costs & No-Cost Extensions

Grant, Contract & Gift Accounting Manual
Section 100: General Administration of Award
Revised: 08/20/2013

Purpose

To describe the processing of pre-award costs, budget changes and no-cost extensions for sponsored programs funded by various federal agencies. To identify the federal agencies who have granted OSU expanded authority.

Applicability

Applies to grants and cooperative agreements, but does not apply to contracts. To determine whether an agreement is a grant, cooperative agreement, or a contract either of these banner screens can be used:

FTMFUND – if the predecessor fund ends in a five, it’s a contract.
FRAGRNT – if grant type box is “C”, it’s a contract. If grant type is a “G”, it’s a grant. If grant type is “A”, it’s a cooperative agreement.

Note: There are other grant types that are not covered under expanded authority.

Background

Several federal agencies have adopted expanded authority policies that waive the normally required sponsor prior approval for specific actions.  Expanded authority is intended to reduce overhead costs, increase research productivity, and reduce paperwork.

Definition

Expanded Authority

The authority granted to OSU that waives certain prior approval requirements by a federal sponsoring agency.   Expanded authority is used only for changes that are necessary for the completion of the project within its original scope and original total budget.

Prior Approval Requirements

A Sponsoring Agency's requirement that the Agency approve changes prior to the change occurring.

Policies and Procedures

Federal agencies that have given expanded authority are:

ONR – Office of Naval Research (except no-cost extensions)

NASA – National Aeronautics & Space Administration

NSF – National Science Foundation

USDA/NIFA (formerly CSREES)  Note: Expanded Authority has been delegated for NIFA (formerly CSREES) only, not all branches of USDA.)

US-Ed – US Dept of Education

NIH/PHS – National Institutes of Health/Public Health Service

NOAA/US Dept of Commerce – Nat’l. Oceanic & Atmospheric Administration  

Note: Expanded Authority has been delegated for NOAA only, not all branches of US-Dept. of Commerce. No rebudgeting direct for F&A or vice versa, unless noted in special terms and conditions.

DOE – US Dept of Energy

EPA – Environmental Protection Agency

ARO – Army Research Office

DOT - Department of Transportation  

BUDGET CHANGES

A reallocation of budget line items may be requested.  For agencies who have granted expanded authority, such changes are accomplished by a budget JV using journal type 1PBB - include proper justification in the text field; the Office of Post Award Administration (OPAA) must approve the JV. 

PRE-AWARD COSTS

Normally, expenditures may not be charged against sponsored programs before the effective date of a sponsored agreement. However, some federal agencies allow requests for pre-award expenditures to be reviewed and approved within OSU via expanded authority.

NSF, NASA, USDA-NIFA (formerly CSREES), NOAA, NIH/PHS, ARO,DOE, DOT, EPA, US-ED and ONR: Approval may be granted for expenditure of funds up to 90 days prior to the expected start date of a new grant or cooperative agreement. Advance funding must be necessary for the effective and economical conduct of the project.  Pre-award costs will not be approved unless a Department Head/Chair or a Dean/Director guarantees to reimburse the university in the event the grant or cooperative agreement is not received.  Request pre-award costs using Pre-Award Cost form. 

ALL OTHER AGENCIES OR SPONSORS: OSU is not authorized to approve pre-award costs for other agencies. However, it may be possible for OPAA to set up a “pending index” for awards anticipated to be funded, but for which the award document has not yet been received or fully executed. See GCG 105: Cost Accounting Standard Guidelines, #4 in Grants & Contracts section.

NO-COST EXTENSIONS

NSF, NASA, USDA-NIFA (formerly CSREES), NOAA, NIH/PHS, ARO, DOE, DOT, EPA and US-ED: OSU, via expanded authority approve a one-time no-cost extension of up to one year beyond the original expiration date.  The request must be submitted to OPAA at least 30 days prior to the expiration date of the project.  OPAA must notify the agency at least 10 days prior to the expiration date of the project. Review of request will consider summary of progress, estimate of funds remaining, and plans for the completion of the project. Complete the OPAS/No-Cost Extension form and submit to the OPAA Grant Accountant responsible for the specific agency. 

Examples of when such an extension may be requested are as follows:

  1. additional time is required to assure completion of the original approved objectives; or
  2. continuity of grant support is required while a competing application is under review; or
  3.  extension is necessary to permit an orderly phase out of a project that will not receive continued support. The fact that funds remain in the grant is not in itself justification for a no-cost extension.

Specific for: USDA - NIFA (formerly CSREES): up to a maximum potential award period not to exceed five years. The award period will commence as of the effective date cited in the grant; however, if OSU has elected to charge allowable pre-award costs under the grant, the award period will commence, for the purpose of determining the beginning of the maximum potential five year award period, on the date the first pre-award cost is incurred.

Specific for ONR: Complete the OPAS/No-Cost Extension form and forward to the OPAA Grant Accountant for review and processing.  Upon approval, the Assistant Director of Business Affairs/OPAA will forward the request to ONR via e-mail.

No cost extensions cannot be processed under expanded authority if the award is past the end date.  The OPAS/No-Cost Extension form must be completed and the request for extension must be made by the PI, in writing, on letterhead. The letter should be signed by the PI and include a blank line so that it can be countersigned by the Assistant Director of Business Affairs/OPAA.  OPAA will forward to the sponsoring agency.

EXAMPLES OF CHANGES NOT COVERED UNDER EXPANDED AUTHORITY (written agency approval is required to do any of the following):

104: General Guidelines

Grant, Contract & Gift Accounting Manual
Section 100: General Administration of Award

 

All persons associated with a sponsored project are responsible for knowing the applicable regulations, principles, standards and policies.  These may include federal polices as well as sponsor, State of Oregon, Oregon University System (OUS), and Oregon State University (OSU) guidelines.   These include, but are not limited to, the following:

104-01 Office of Management & Budgets (OMB) Circular A-21 Cost Principles for Educational Institutions 

This Circular establishes principles for determining costs applicable to grants, contracts, and other agreements with educational institutions. The principles deal with the subject of cost determination, and make no attempt to identify the circumstances or dictate the extent of agency and institutional participation in the financing of a particular project. The principles are designed to provide that the Federal Government bear its fair share of total costs, determined in accordance with generally accepted accounting principles, except where restricted or prohibited by law. Agencies are not expected to place additional restrictions on individual items of cost. See OMB Circular A-21 (Adobe .pdf document) on Cost Principles for Educational Institutions.

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104-02 OMB Circular A-110 Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations 

This Circular sets forth standards for obtaining consistency and uniformity among Federal agencies in the administration of grants and cooperative agreements with institutions of higher education, hospitals, and other non-profit organizations. For additional guidelines see OMB Circular A-110 on Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education

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104-03 OMB Circular A-133 Audit of Institutions of Higher Education and Other Non-Profit Organizations 

This Circular is issued pursuant to the Single Audit Act of 1984, P.L. 98-502, and the Single Audit Act Amendments of 1996, P.L. 104-156. It sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of states, local governments, and non-profit organizations expending Federal awards. For additional guidelines see OMB Circular A-133 on Audits of States, Local Governments, and Non-Profit Organizations 

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104-04 Federal Acquisition Regulations (FAR)

The Federal Acquisition Regulations system is established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies. FAR applies to contracts.

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104-05 OREGON UNIVERSITY SYSTEM-FINANCIAL ADMINISTRATION STANDARD OPERATING MANUAL (FASOM)

FASOM covers basic accounting principles of OUS and is now being integrated into the OUS Fiscal Policy manual.

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104-06 OSU FISCAL OPERATIONS MANUAL (FIS)

The FIS Manual provides the user with policies and procedures applicable to accounting-related transactions at the university. The fiscal policies and procedures apply to all university departments.

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104-07 COST ACCOUNTING STANDARDS BOARD (CASB)

The CASB was created by Congress to establish accounting rules and regulations. The Cost Accounting Standards (CAS) Handbook may be obtained by contacting the Office of Post Award Administration at 737-4711.  The CAS most applicable to OSU are:

CAS 501 – Consistency in Estimating, Accumulating, and Reporting Costs by Educational Institutions.
This standard requires that cost accounting practices used for estimating costs in proposals be consistent with the cost accounting practices used in accumulating (recording) and reporting costs. The standard is designed to provide a basis to compare proposal cost estimates with the actual costs. In its simplest terms, the standard requires that if costs are included in the project proposal, they must be accounted for as project costs; this includes cost sharing. When salaries are charged, effort reports must tie with accounting records (including any cost transfers), with proposal budgets, and with all progress reports to the sponsor.

CAS 502 – Consistency in Allocating Costs Incurred for the same Purpose by Educational Institutions.
This standard deals with consistency in accumulating like costs incurred for the same purpose. It requires that each type of cost be allocated only once, and on only one basis to any contract or other cost objective. The institution must identify which costs are charged (1) only as direct, (2) only as indirect, or (3) both as direct and indirect. In its simplest terms, the standard requires that cost coding must consistently identify like costs in like circumstances as always direct or always indirect. If a contract is charged directly for a cost, the same type of costs should not be in the F&A rate, and vice versa.

CAS 505 – Accounting for Unallowable Costs – Educational Institutions.
This standard contains guidelines on consistency in identifying unallowable costs and how they are treated within the cost accounting system. The standard does not provide additional guidance on what is unallowable; educational institutions will still follow OMB Circular A-21. In its simplest terms, the standard requires that costs expressly unallowable under OMB Circular A-21 or mutually agreed to be unallowable under terms of the agreement must be identified and excluded from any billing, claim, application, or proposal applicable to a sponsored agreement. Detailed records should establish and maintain visibility of identified unallowables, including allocation and cost accounting treatments.

CAS 506 – Cost Accounting Period – Educational Institutions.
This standard requires that the cost accounting period and all costing information (both direct and indirect) is based on the same period as the institution’s fiscal year. For OSU that period is July 1 to June 30.

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Cross Reference

See GCG 407: Reference Websites for specific agency information and other website references.

105: Cost Accounting Standard Guidelines

Grant, Contract & Gift Accounting Manual
Section 100: General Administration of Award

 

Applicability 

Persons in Oregon State University (OSU) departments who work with financial aspects of sponsored projects – principal investigators, project directors, accountants, and others. 

Procedure 

All Funds:

  1. Deposit all income in the same index that is used to accumulate the related expenses of the activity.
  2. Charge all fund raising and public relations costs to State funded indexes identified as “Development”.
  3. Keep track of all “Lobbying” costs. All trips to Washington, DC are suspect.
  4. Use the correct Account Code to record expenditures.
  5. Move State budget to index where costs are incurred; don’t move cost to budget.
  6. Record cost sharing or matching expenditures in the cost share index associated with the project.
  7. Complete Space Inventories accurately and promptly.
  8. Cooperate in completing Equipment Inventories accurately and promptly.

Grants and Contracts:

  1. Budget for all project costs in proposals. See outlined instructions listed in the Proposal Process webpage on the Research Office Website.
  2. Budget for and pay GRA tuition/fees on grants (unless specifically unallowed by the sponsor).
  3. Request a 90-day OPAS pre-award through the Office of Post Award Administration in those cases where justification exists for starting the project prior to the award date.
  4. If agency does not allow pre-award costs, submit a pre-award memo to the Office of Post Award Administration to establish a pending index/fund to account for costs incurred if official award document has not been received.  See GCG 103: Expanded Authority -  Budget Changes, Pre-Award Costs & No-Cost Extensions.
  5. Read the award documents so you are aware of all restrictions and reporting requirements/deadlines
  6. Pay all allocable project costs on applicable grant index.
  7. Make any cost transfers timely and before the project end date. Labor Distribution forms and JV’s both require justification if transfers are retroactive. See GCG 209-08: Cost Transfers/Redistribution. 
  8. Prior to submitting subcontractor charges for payment, review invoices for incurred costs in relation to approved project activity and progress.    
  9. Initiate project budget changes if necessary and when the agency allows. Use JV journal type “1PBB”. Include proper justification in text of JV.
  10. Complete quarterly Effort Reports (PAR forms) required under OMB Circular A-21. Ensure that any change in effort is reflected and is processed through payroll on a revised Labor Distribution form.
  11. Complete all progress and final reports called for in the award documents before required due dates.
  12. Request a no-cost extension either using OPAS system through the Office of Post Award Administration or directly to the agency if the project cannot be completed by the current end date.  Requests need to be made 45 days prior to end date.

All Funds:

  1. Do not promise to make donations – either from State, Federal or sponsored funds. Donations are unallowable.
  2. Do not charge proposal preparation costs to grant indexes. Such costs are departmental costs.

Grants and Contracts:

  1. Do not pay for administrative support (e.g. clerical, accounting) directly on a grant, unless included as a specific line item in the proposal budget approved by the sponsoring agency. Administrative support refers to type of duties regardless of pay account code.
  2. Do not charge telephone unit or line costs to a grant. Only long distance costs are allowable as a direct cost.
  3. Do not pay utility costs on grant funds unless the project is at an off-campus location and utility costs are specifically budgeted.
  4. Do not pay subcontract invoices unless budgeted and the researcher has assured that the subcontractor is providing the project deliverables as defined in the scope of work.
  5. Do not pay for subscriptions or memberships on grant indexes. Unless they are directly related to the project.
  6. Do not make expenditures that are not included in the approved budget. Be particularly aware of equipment, international travel, subcontracts and participant support/stipend costs.

200 Specific Administration of Award

201: Award Overview and Responsibilities

201-01: Award Administration During Award Period

Grant, Contract & Gift Accounting Manual
Section 201: Award Overview and Responsibilities
Effective: 08/08/2003
Revised: 4/23/2012

 

Procedure 

Business Center Accounting Staff/Principal Investigator (PI)

  • Upon receipt of award or amendment, reviews the agreement for all special restrictions, start date and end date, cost sharing agreements, and non-financial reporting requirements. Follows all award conditions.
  • Initiates Labor Distribution forms.
  • Initiates Purchase Orders.
  • Initiates all payment documents.
  • Ensures that recording of actual costs are consistent with the proposal budget.
  • Reviews subrecipient invoices for cost reasonableness as compared to progress towards work accomplished.
  • Balances expenditures on each fund monthly on the Financial Information System (FIS-Banner) FRIGITD screens or inception-to-date reports.
  • Compares actual costs with proposal budget for consistency.
  • Completes quarterly Personnel Activity Reports (PAR) forms.
  • Processes OSU cost sharing expenses on individual cost sharing fund(s).
  • Completes all interim and progress reports or other deliverables to ensure OSU receives funds to recover project expenditures.

Business Affairs (Office of Post Award Administration)

  • Monitors recording of actual costs for consistency with the proposal budget.
  • Ensures that the level of accounting detail equals or exceeds the level of budget detail in proposals.
  • Reviews direct costs charged to grants and contracts to ensure that such costs are not already included in the F&A rate.
  • Reviews and approves all capital equipment purchase requests before purchase orders are issued.
  • Reviews specified purchases for agreement allowability, sponsor, and OSU regulations.
  • Reviews expenses on FIS Banner for allowable costs.
  • Assists Business Center accounting staff and PI with questions concerning contract regulations and cost allowability.
  • Monitors subawards, including subaward invoices, closeout releases, and audit reports.
  • Prepares and mails required invoices to sponsors.  Business Centers may be requested to assist, if extra detail is required.
  • Receives and deposits sponsor payments.
  • Maintains accounts receivable. Initiates past due notices and collection procedures.
  • Prepares required monthly, quarterly, semi-annual, and annual financial reports. Prepares and submits patent reports and small business reports as required.

201-02: Project Accounting

Grant, Contract & Gift Accounting Manual
Section 201: Award Overview and Responsibilities
Revised: 08/08/2003

 

Procedure

Departmental Accounting Staff / Principal Investigator (PI)

The payroll process is initiated at the department level, assisted by the Payroll Department, and the Human Resources Office.

Processing bills for payment is handled at the department level. Invoices need to be approved according to departmental guidelines and entered into FIS Banner for payment.

All invoices to external sponsors are prepared in the Office of Post Award Administration. There may be times that the complexity of the award requires the assistance of the Project Director or their staff. Department offices should not send invoices.

All cost share requirements are to be met.  The Office of Post Award Administration personnel will work with project staff for proper verification, accounting of, and reporting of cost share.

Use of project funds may be temporarily terminated.  See GCG 209-06: Temporary Terminations Policy.

202: Revenue

Grant, Contract & Gift Accounting Manual
Section 202: Revenue
Effective: 6/3/2008
Revised: 4/23/2012

Purpose

To properly record all revenue of Oregon State University (OSU) in the appropriate fund where expenditures were incurred to generate that revenue.

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Policy

Proceeds from any activity sponsored by OSU, evidenced in part by the use of OSU letterhead, and/or using state resources such as employee time and effort, state facilities, state vehicles, etc., are deemed to be State of Oregon revenue and must be deposited into an OSU fund. (e.g. proceeds of short course workshops, testing services, and sales of products generated from university instruction or research projects.)

State revenue must not be diverted to foundations or any other non-state entity. To divert state revenue into a non-state fund is the same as directing state revenue into a personal bank account. Unauthorized bank accounts must not be used for university activities. Such an action not only jeopardizes the tax deductibility of gifts, but also can cause serious liability problems for those administering the funds.

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Procedure

202-01 Program Income

The only miscellaneous revenue that may be deposited into a grant or contract is program income. Program income is revenue that is directly generated by a supported activity or earned as a result of the award. Program income includes, but is not limited to:

  • Income from fees or services performed
  • The sale of commodities or items fabricated under an award
  • Workshop fees paid by participants of a funded workshop
  • Sale of residual goods that were originally purchased on the award.

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202-02 Depositing Revenue as a Reduction of Expense

Revenue deposited as a reduction of expense is very limited under Oregon Executive Department rules. If the vendor was overpaid and a refund was received, the refund is to be credited to the fund and account code to which the purchase was charged. An overpayment may be the result of returning prepayments, the return of defective merchandise, or credit for early payment.

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202-03 Revenue Transfers

Revenue should NOT be transferred from one fund to another fund using a journal voucher by debiting an expense account code and crediting an income account code. This causes both income and expense to be inflated. Income account codes should be credited in restricted funds only in the following circumstances:

  1. When the cash is received from outside the institution;
  2. When revenue is moved from one fund to another (a correction), and the debit is also to an income account code (reference original "F" document number), only in instances where the restricted fund does not record revenue through the Banner Grants Billing module.

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202-04 Electronic Receipt of Grant Funds

Several federal agencies have granted permission to the university to electronically request funds in payment for expenditures made on grants and cooperative agreements. This allows for prompt reimbursement (typically the next day after the request is submitted). Only selected individuals in Business Affairs are given authority to make these draws, and considerable password security has been established.

Excel spreadsheets are maintained for each of the agencies, detailing grant number, OSU index, authorized amount, payments received to date and remaining balance. When payments are requested, these spreadsheets are updated and used to accurately record the revenue in the Banner Grants Billing module. . All draws must be made within ninety days after the official end date of the award.

Quarterly reports of expenditures are provided to each of the agencies reconciling the records of the university with those of the sponsors.

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202-05 Monitoring Receipt of Scheduled Payments

Some sponsored agreements contain automatic payment schedules. The Office of Post Award Administration is responsible for ensuring that all payments are received on time. The Principal Investigator is responsible for completing all project requirements of the agreement so the sponsor will make the task or scheduled payments according to the award terms.

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202-06 Invoicing Grants and Contracts

Invoices are prepared by the Office of Post Award Administration staff from financial data that is supported in FIS Banner. A standard invoice includes a detail sheet generated from FIS Banner. Invoice detail includes: budget, current period expenditures, cumulative expenditures, encumbrances and available budget.

The invoices are prepared according to sponsor instructions. This includes the timing of the invoice and any required supporting documentation. Invoices are not generated more often than monthly for any individual award.

If a sponsor requires supporting documentation such as receipts or special reports, the PI or Project Director's Business Center will be responsible for obtaining the information and providing it to the Office of Post Award Administration to be included with the invoice.

All invoices for sponsored awards are submitted and mailed by the Office of Post Award Administration.

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202-07 Accounts Receivable

Invoices are generated through the Banner Grants Billing module.    Aged accounts receivable reports are generated from Banner Grants Billing.  Reports are reviewed by Grant Accounts and past due notices are generated as appropriate.

The report is given to the Assistant Director Business Affairs/ Office of Post Award Administration for review. Receivables that are 90 days and older are further reviewed for collection.

  • The Principal Investigator, Department Head and Business Center Accountant are notified if it appears that we are having a problem collecting the receivable.
  • If all award requirements have been met and the sponsor is a commercial company, the receivable will be forwarded to the Collections Manager at OSU to pursue collection. If it still is not collected, it may be forwarded to an outside collection agency.

203: Expenditure Approvals

Grant, Contract & Gift Accounting Manual
Section 203: Expenditure Approvals
Effective: 6/3/2008
Revised: 9/30/2013

Background

There are four Cost Accounting Standards that govern expenditures for educational institutions, see GCG 105: Cost Accounting Standard Guidelines. Some agencies have provided a waiver of prior approval requirements; see GCG 103: Expanded Authority.

Policy

Revisions are permitted only if necessary for the completion of the project within its original scope and budget.  Per agency guidelines and award agreements, there may be other limitations to reallocation of budget line items.

Expense Approvals on Restricted Funds
Expenses that are charged to restricted funds are routed electronically to the appropriate Business Center for review and approval prior to going to Business Affairs Payables for check generation.  Any expense $300,000 and over will route electronically to Business Affairs for final review and approval before check generation. 

Fixed Asset Approvals
Prior to purchasing a fixed asset (item over $5,000 which must be recorded in the university's inventory), unit personnel are required to get purchase approval by preparing a departmental requisition, obtaining necessary approvals, and sending the document to the appropriate Business Center.  Once the expenditure is approved by the Business Center (up to $24,999 or PaCS ($25,000 or over), a purchase order can be issued for the asset. (Purchase Orders on restricted funds are routed through an OPAA approval queue.) Payment for the item can be made against the purchase order by processing an invoice for the fixed asset in Banner FIS. When a capital asset is paid for in Banner FIS using commodity level accounting and account code 40XXX it is required that inventory information be entered into the text screen.

Additional Information

See FIS 1108: Approval Routing for additional information on Approvals.

204: Expenditure

Grant, Contract & Gift Accounting Manual
Section 204: Expenditure
Revised: 10/23/2012

 

Background Information

There are four Cost Accounting Standards that govern expenditures for educational institutions, see GCG 105: Cost Accounting Standard Guidelines. Some entities have provided a waiver of prior approval requirements; see GCG 103: Expanded Authority.

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Policy
204-01:  Costs

All allowable costs will be determined by OMB Circulars A-21, A-110, Federal Acquisition Regulations, and/or by the granting entity through grant manuals or award terms and conditions.

For Federally Sponsored awards, allowable costs generally fall within these guidelines:

  1. Costs must be reasonable. This is defined as the action that a prudent person would take under the circumstances.
  2. Costs must be allocable to federally sponsored agreements under the principles and methods described in OMB A-21. (See OMB Circular A-21; Unallowable Costs.)
  3. Costs must be given consistent treatment through application of Generally Accepted Accounting Principles (GAAP) appropriate to the circumstances as dictated by Cost Accounting Standards (CAS). This includes the use of account codes for cost classification.
  4. Costs must conform to any limitations or exclusions set forth in OMB Circular A-21 or in the sponsored agreement as to types or amounts of cost items.

Under CAS these same principals are applied to all sponsored awards received by OSU, regardless of funding source.

All sponsored projects are set up on a budget. The degree of deviation allowed by the granting agency varies widely from complete discretion by the project director to requiring agency approval for all changes. The reporting of expenditures also varies in the amount of detail required and the frequency of the reports.

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204-02:  Cost Classification: Assigning Account Codes

The administration of a contract, grant or cooperative agreement project involves identifying all costs associated with it. Cost information is needed both to manage the internal affairs of the university and to satisfy external requirements. An account code is assigned to each cost to classify the expenditure according to goods or services received.  Each department/Business Center/PI is encouraged to use the FIS Banner system to record encumbrances and to stay current with commitments made during the project.  See GCG 205: Expenditure Account Codes.

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204-03:  Allowable Direct Costs

Direct costs are expenditures associated with grants, contracts, and cooperative agreements that are necessary for and can be identified with the performance of a specific sponsored project.  Direct costs of a sponsored project include all personnel costs charged to the project; applicable payroll assessments, graduate tuition remissions, expenditures for supplies and equipment, travel expenses, printing, other service department charges, and any other expenses specifically identified with the project.

Principal Investigators and Business Center accountants should refer to the award document for requirements or restrictions specific to the project. Contact the Office of Post Award Administration for assistance with specific questions.

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204-04:  Unallowable Costs

Unallowable functions, such as lobbying, public relations, and fund raising, are groups of costs that due to the nature of the function will make the expenditure unallowable.  For example, salaries and wages are generally allowable costs; however, those same salaries and wages incurred for the benefit of a fundraiser are unallowable.  Therefore, the function makes the expenditure unallowable.

Some unallowable costs, such as alcoholic beverages, are types of expenditures that are specifically unallowable by law, regulations and/or contract terms.  See     OMB Circular A-21 section J. Both unallowable costs and expenses connected with unallowable functions must not be direct charged to sponsored agreements.

Other costs, such as utilities and building maintenance are unallowable as a direct cost unless approved in the proposal process and by the sponsor. See GCG 205: Expenditure Account Codes, for guidance.

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204-05:  Facilities and Administrative Costs (Formerly Indirect Costs)

Facilities and Administrative (F&A) costs are expenditures associated with a grant, contract, or cooperative agreement that cannot be directly charged to nor specifically identified with individual sponsored projects. These costs include maintenance of physical facilities, library services, administrative services, and departmental administration. In general, F&A costs involve expenditures necessary for the development and maintenance of an environment conducive to research and other sponsored projects.

Most grants and contracts provide for the recovery of F&A costs incurred in their executions and management. The recovery is based upon negotiated rates and assessed to individual projects on a percentage basis. The rates for Oregon State University are negotiated with the U.S. Department of Health and Human Services, Division of Cost Allocation (DHHS-DCA). The negotiation is based on a review of the university’s costs and assessment of the reasonableness of the charges.

In most cases, F&A costs for a sponsored project are calculated by multiplying the approved F&A rate and the Modified Total Direct Cost (MTDC) paid on the award. MTDC is determined by subtracting tuition remission (1095x); equipment/capital expenditures (4xxxx); subawards over $25,000 (399xx); participant costs (5xxxx & 2863x) and other excluded items from the total direct costs (salaries and wages, fringe benefits, materials and supplies, services, travel, and subawards) posted on the sponsored project account. Account Code 70005 is used to record the recovery of F&A costs (formerly indirect costs).

  • F&A cost is charged based upon the rate and base in the approved award, up to the federally negotiated rate.
  • Slight F&A cost adjustments may be made manually by the Office of Post Award Administration during the award closeout process.

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Additional Information

The current F&A rates are available at the Sponsored Programs website.

205: Expenditure Account Codes

Grant, Contract & Gift Accounting Manual
Section 205: Expenditure Account Codes
Effective: 01/01/1995
Revised: 09/26/2014

  • 205-01: 1XXXX-Salaries and Wages
  • 205-02: Graduate Research Assistant (GRA) and Graduate Teaching Assistant (GTA) Salaries
  • 205-03: 1090X – Other Payroll Expenses (OPE)
  • 205-04: 10640 and 10941 - Graduate Assistant Perquisites and Health Insurance Benefit
  • 205-05: 106XX and 1095X—GRA/GTA Salary and Tuition Remission
  • 205-06: 20XXX, 21XXX – Supplies, Minor Equipment
  • 205-07: 220XX, 225XX – Communications and Shipping
  • 205-08: 230XX, 233XX – Utilities & Waste Disposal
  • 205-09: 235XX – Maintenance and Repairs
  • 205-10: 240XX – Rentals and Leases
  • 205-11: 245XX – Fees and Services
  • 205-12: 24503 – Computer Use Changes
  • 205-13: 2860X – OSU Sponsored Conference Expenses
  • 205-14: 2861X – 28612 Hosting
  • 205-15: 28613 – Public Relations Activity
  • 205-16: 2863X – Non-OUS Participant Support & Post Doc Fellowships
  • 205-17: 289XX – Memberships and Dues
  • 205-18: 39XXX – Travel (See GCG 215: Travel on Sponsored Projects)
  • 205-19: 39492 – In-State Sponsor Workshop Speaker Travel – No Indirect Cost (See GCG 215: Travel on Sponsored Projects)
  • 205-20: 39XXX – Subcontracts
  • 205-21: 401XX, 40201, 40104 – Equipment, Vessels, Vehicles
  • 205-22: 40299 – 40319 Real Property, Land
  • 205-23: 405XX – Buildings
  • 205-24: 55XXX – OUS Participant/Student Support

 

205-01:  1XXXX — Salaries and Wages

This group of account codes applies to all payroll expenditures in each personnel category. Payroll is to be charged to a research fund only for the award period. Salaries and wages for project personnel are accounted for on a fiscal year basis according to the percentage of an individual’s effort that is allocable to and budgeted in the sponsored project.

  • Payroll is not to be charged to a sponsored project index after the award’s expiration date.
  • Because of the complexities and time involved in payroll adjustments, it is very important that payroll be placed on the proper indexes initially. Payroll distribution should be reviewed periodically and adjusted for effort expended on the project. This review must be completed no less frequently than quarterly in conjunction with PAR form certification.
  • NSF 2/9 Rule – Allows faculty to budget only two months’ salary in the summer for those faculty who have nine-month academic year appointments.
  • Salary Caps – The National Institute of Health has a salary cap, an amount equal to Federal Executive Pay Level I. Department of Defense (DOD) also imposes salary caps for certain programs. It is very important to review the guidelines of the particular granting agency.
  • Communication Allowance– Per OMB Circular A-21, communication access costs are considered part of indirect cost and are not an allowable direct cost on grants and contracts; this includes federal and match state-wide funds. This allowance is posted as account code 10240 Unclassified Perquisites or 10440 Classified Perquisites. See FIS manual 1402-15 or this GCG manual 205-07 for more information.

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205-02:  Graduate Research Assistant (GRA) and Graduate Teaching Assistant (GTA) Salaries

See 205-05:  106XX and 1095X—GRA/GTA Salary and Tuition Remission

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205-03:  1090X— Other Payroll Expenses (OPE)

OPE is payroll and personnel assessment expenditures such as Federal Insurance Contributions Act (FICA), Public Employees’ Retirement System (PERS); State Accident Insurance Fund (SAIF); Medical, Dental, and Life Insurance; and assessments from the Personnel Division Workers’ Compensation Board and Employee Relations Board. Also commonly known as fringe benefits.

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205-04:  10640 and 10941 - Graduate Assistant Perquisites and Health Insurance Benefit

OSU provides Graduate Assistants (teaching and research) a health insurance benefit as part of their compensation package, which should be paid on account code 10941.  Additionally, account code 10640 should be used to record other compensation (such as meals or lodging allowances) which Graduate Assistants may receive.  For additional information see the Graduate Employee Contract Information web page and the OSU Graduate School home page.  Questions about how this policy relates to sponsored research should be emailed to the Office of Sponsored Programs and Research Compliance.

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205-05: 106XX and 1095X—GRA/GTA Salary and Tuition Remission (Revised 9/25/2014)

The following codes are used to record expenditures for all graduate research assistants’ and graduate teaching assistants’ salary and tuition remission costs. Allocation is based on salary distribution for the academic term. Tuition remission does not include other institutional fees, only instruction tuition.  The fund to which tuition remission is charged is not an option of the department.

See Graduate School website for more information regarding GRA appointments.

  • If salary is prorated between indexes, the tuition is also prorated. Tuition remission charges are calculated using default pay salary indexes for the academic term.
  •  When correcting GRA\GTA pay, a labor distribution for the C69999 position should be done at the same time to affect a transfer of applicable tuition.
  • If tuition is allowed on the sponsored project, both salary and tuition MUST be posted to the same index.  Use salary account code 10630 for GRA and 10620 for GTA.
  • If tuition is allowed on the sponsored project, and salary and tuition is being used as cost share per the department’s choice,  post both salary and tuition on the project’s cost share index. (i.e. G1234S). Use account codes 10630 for GRA and 10620 for GTA. .  In this case, the tuition is considered the department’s financial responsibility and will not be charged to the University cost share account.
  • If tuition is NOT allowed on a sponsored project, then it must be cost shared.  In this case the tuition will automatically post to the University cost share account (CS index). Use salary account code 10632 for GRA and 10622 for GTA.

Code

Title

Definition

10630

Graduate Research Assistants

Pay to research assistants serving under unclassified appointments. This code should not be used for stipends or other support expenditures.

10620

Graduate Teaching Assistants

Pay to teaching assistants serving under unclassified appointments. This code should not be used for stipends or other support expenditures.

10632

GRA Requiring Fee Remission Subsidy

Pay to graduate research assistants serving under unclassified appointments on grants, contracts or cooperative agreements for which fee remission costs are not an allowable expenditure. Related fee remission costs are charged to accounts other than pay accounts. (See account code 10952 - Graduate Assistant Fee Remission Subsidy).

10622

GTA Requiring Fee Remission Subsidy

Pay to graduate teaching assistants serving under unclassified appointments on grants, contracts or cooperative agreements for which fee remission costs are not an allowable expenditure. Related fee remission costs are charged to accounts other than the pay accounts. (See account code 10952 - Graduate Assistant Fee Remission Subsidy)

10951

Graduate Assistant Fee Remissions

Charges for actual graduate assistants' fee remissions' expense. The amount of instruction fee remitted for a graduate assistant is disbursed to accounts from which he or she is paid during the term.

10952

Graduate Assistant Fee Remission Subsidy

Charges for actual graduate assistants' instructional fees remitted but charged to accounts other than the account from which the salary is paid -- for all terms except Summer Term . This covers cost-sharing or subsidy costs for grants, contracts or cooperative agreements for which graduate assistants' fee remissions are not an allowable expenditure. (See account codes 10622 - GTA Requiring Fee Remission Subsidy and 10632 - GRA Requiring Fee Remission Subsidy).

 

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205-06:  20XXX, 21XXX—Supplies, Minor Equipment

These account codes apply to expenditures for acquisition of materials and supplies.

  • Generally, all supplies, equipment, and services must be ordered and received before the expiration date of the award and used in the course of the project. Final vendor invoices for payment of these goods should be processed through FIS Banner and Accounts Payable immediately upon receipt in order to meet financial reporting requirements.
  • Account codes 20200 through 20216 should be used for minor equipment purchases. Minor equipment includes items, which will not be consumed (supplies) and do not meet the capitalized equipment (40101) definition. Purchases made toward the end of the award will be carefully reviewed.
  • Subscriptions and Publications 201XX

For a subscription or publication cost to be a direct cost and chargeable to a grant, contract or other direct program such as instruction or public service depends on the circumstances.  The alternative is to treat the expense as indirect and pay the cost on departmental funds.

To be a direct expense, the subscription or publication must be necessary toward meeting the goals or functions of the program.  The material contained in the publications is to be used in the project being performed as compared to professional development of a person’s proficiency or keeping current in his/her field.

OMB Circular A-21 requires that all expenses charged to grants and contracts be identified with the sponsored work.  When the cost of a subscription or publication is deemed necessary as a direct cost to a grant or contract, the justification must be in the text file of the Banner invoice or in letter format to the Office of Post Award Administration, the Banner invoice text file will reference the letter.  Each subscription and publication request must be individually approved.

Unique Electronic Items
The purchase of personal digital assistants, laptop computers, watches, digital cameras, video equipment and other unique electronic items with sponsored project funds must be in conformance with OMB Circular A-21, part D.1.

  • must be specifically identifiable with a particular sponsored project
  • must be properly justified in the text of the invoice payment in Banner as to the direct relationship to the research project
  • ownership of these items will remain with OSU
  • these items must be maintained on the department’s minor equipment/supplies inventory
  • appropriate loan forms must be completed if item is removed from OSU locations.

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205-07:  220XX, 225XX—Communications and Shipping

These account codes are used for expenses arising from the use of telephone, mail, freight, and express services.

Per OMB Circular A-21, communication access costs are considered part of indirect cost and are not an allowable direct cost on grants and contracts; this includes federal and match state-wide funds. Therefore, any charges to research projects (sponsored, AES-funded, or FRL-funded) or other sponsored activities (sponsored or Extension-funded) must be approved in advance. Request for an unlike circumstance, such as remote location (field study), or emergency access must be made to and approved in writing by the Assistant Director of Business Affairs, Office of Post Award Administration (OPAA). The Communication Allowance is not an option available as a direct charge.

Requests for an unlike circumstance should be supported as follows:

  • Costs should be identified in approved proposal
  • Itemized bill needs to be made available for audit purposes
  • Budget on 22013 for cell phones

Direct charge will only be allowed for an OSU provided cell phone purchased through OSU Telecommunications. If this option is not available, Telecommunications and PaCS must be involved in the selection and contract acceptance process.

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205-08:  230XX, 233XX — Utilities & Waste Disposal

These account codes are used in classifying expenditures for electrical usage, gas, sewage charges, steam, hogged fuel (wood chips), fuel oil, and water.

  • This type of expense is allowed on sponsored awards for research at off-campus locations only and only if indicated as a line item in the budget. These expenses are included in F&A cost for on-campus activities.
  • Occasionally there may be a project that requires an above normal use of utilities at an on-campus site (such as the wave tank). This additional cost is allowable as a direct charge if justified in the proposal and approved by the sponsor.
  • Charges for radioactive waste disposal are allowed, if waste is generated by the project and specifically budgeted for in the proposal.

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205-09:  235XX — Maintenance and Repairs

These account codes apply to expenditures for maintenance and repairs of buildings, grounds, and equipment. They are intended for ordinary expenses of a recurring nature, including maintenance contracts.  Outside labor charges for maintenance and repair services are included.

  • Building or grounds maintenance and repairs should not be charged to sponsored awards. (These expenses are included in the F&A rate).
  • Repairs to equipment that do not increase the original value of the equipment by more than $5000 nor extend the estimated useful life of the equipment will be recorded as “Equipment Maintenance and Repairs” and not as “Equipment”, regardless of dollar amount.

Equipment maintenance costs are allowable as a direct cost for those items that are used in the project.

In most cases, any item that appears to be general purpose or that will outlast the project cannot be direct charged.

Maintenance Contracts

Equipment service contracts can be paid with grant funds if the equipment was purchased with that grant’s funds (or in the case of continuing grants from the same agency). The service maintenance contract cannot be for a time period past the end date of the agreement.

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205-10:  240XX — Rentals and Leases

These account codes record payments for rental or lease of equipment, land, and buildings, except equipment acquired on a lease-purchase arrangement.  To direct charge to a sponsored agreement, these costs should be identified in the proposal.  Building and land rentals are excluded from modified total direct costs and facilities and administrative costs are not calculated on these costs.

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205-11:  245XX—Fees and Services

These account codes record expenditures for professional fees, e.g., consulting and legal fees, services rendered by commercial firms; service charges by institutional service departments; and fees assessed by other state agencies.

  • Generally, all services must be performed within the award period.  Journal vouchers must reflect the date that the service was performed.

Exception: National Science Foundation (NSF) and National Oceanic and Atmospheric Administration (NOAA) grants allow for printing of technical reports after the expiration date. These printing estimates should be encumbered through the FIS Banner Purchase Order encumbrance system before the expiration date of the grant.

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205-12:  24503--Computer Use Charges

Direct charges on grants and contracts must meet the following criteria:

  1. Charge is for services over and above that provided to all faculty and staff; i.e. email, communications, word processing, spreadsheets and other common functions.
  2. The charges are from a unit which distributes costs to all users (not just grants and contracts) AND the distribution method has been approved by Business Affairs and listed as an approved fee in either the University Fee Book or OSU Internal Fee Book.
  3. Costs included in this category include network, server and computer/software maintenance charges.

Computer operations that do not meet the criteria above are included in the Facilities and Administrative (F&A) rate proposal and are charged to the grant and contract in the F&A cost rate.

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205-13:  2860X —  OSU Sponsored Conference Expenses

These accounts should be used for workshop activity on workshop and restricted funds. This includes rental of the facility (28606). These charges should be in the approved budget.

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205-14:  2861X — 28612 Hosting

28610 Entertainment and 28611 Interdepartmental Refreshment costs should not be charged on sponsored project funds. 28612 Hosting Groups and Guests, meals/expenditures for hosting official guests can be directly charged to sponsored project funds when hosting a speaker or other activity appropriate to the award.

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205-15:  28613 — Public Relations Activity

Public relations and fundraising activity costs should not be placed on sponsored project funds.

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205-16:  2863X — Non-OUS-Participant Support & Post Doc Fellowships

Support for non-OUS students and participants. Support could include tuition, stipends, room and board, book allowances, etc.

See FIS 410-32 Participant Support Costs for additional information or clarification.

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205-17:  289XX— Memberships and Dues

Normally, memberships are considered to be institutional and not individual (personal).

To be a direct expense, the membership must be necessary toward the goals or functions of the program.

OMB Circular A-21 requires that all expenses charged to grants and contracts be identified with the sponsored work. Justification must be in the text file of the Banner invoice or in letter format to the Office of Post Award Administration; the Banner invoice text will reference the letter.

For additional information on Memberships and Subscriptions view the Fiscal Operations Manual at Section 400: Expenditures:

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205-18:  39XXX—Travel

See GCG 215: Travel on Sponsored Projects

 

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205-19:  39492 – In-State Sponsor Workshop Speaker Travel – No Indirect Cost

See GCG 215: Travel on Sponsored Projects

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205-20:  39XXX—Subcontracts

These are subaward agreements written by OSU to another entity to perform a portion of the sponsored agreement. These account codes are only allowed on restricted grant, contract or cooperative agreement funds. See GCG 206: Subcontracts for further details on subawards.

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205-21:  401XX, 40201, 40104—Equipment, Vessels, Vehicles

These codes are used to record expenses related to the purchase and/or construction of equipment, vessels and vehicles.  Equipment is tangible, personal property that is not consumed in the normal course of business; has a unit value of $5,000 or more; and has a useful life of more than one year.  The State of Oregon specifically excludes software from the equipment category. Refer to Property Management Handbook for specific definitions of equipment and components.

  • Many awards require prior agency approval before purchase of equipment. Watch this area closely.
  • Read equipment clauses in awards carefully:
  • Sponsoring agency may have ownership rights to purchased equipment or equipment upgrades.
  1. Disposition of equipment becomes complicated when there is federal ownership and multiple sources of funds have been used to purchase the equipment. Cost sharing the purchase or upgrade of equipment between different sponsoring agencies is discouraged unless specifically approved by the sponsoring agency.
  2. Some sponsors often require submission of copies of invoices for equipment purchases to the agency at the time of purchase.
  • Any purchase on grant or contract funds identified as a capital fixed asset; using 401XX, 40201, or 40104 must be approved by the Office of Post Award Administration prior to placing order.

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205-22:  40299—40319 Real Property, Land

Land (real property) cannot be purchased on restricted funds without specific sponsor approval.

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205-23:  405XX Buildings

Buildings cannot be purchased or constructed on restricted funds without specific sponsor approval. If approval is given to construct a building, an 8XXXX plant fund will be established to record the costs.

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205-24:  55XXX—OUS Participant/Student Support

These account codes apply to expenses related to participant support and sponsored fellowships.   These account codes cannot be used with Endowment funds, Service Department funds, or any General State funds.

  • These codes are used to classify expenditures from funds received to support students engaged in training or research in a specific field or program. Typical expenses are stipends, dependency allowances, tuition, fees, travel, books, materials, and other subsistence needs. There must be participant support line-item(s) in the budget to use these account codes.

See FIS 410-32 Participant Support Costs for additional information or clarification.

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Additional Information

See GCG 208: Participant Support Costs for additional processing information.

206: Subawards

Grant, Contract & Gift Accounting Manual
Section 206: Subawards
Effective: 07/01/2001
Revised: 12/2/2013

 

Background

Oregon State University (OSU) annually receives over 200 million dollars in support of research and sponsored projects.  Most of the funds come from federal agencies and OSU passes through a portion of the sponsored award to another entity for the purpose of completing programmatic effort on the project. The legal relationship is between the prime recipient (OSU) and the subrecipient.  It is important to maintain this relationship to avoid conflicts of interest between the sponsor and subrecipient.  All project administrative matters of the subaward must go through OSU.  See Conflict of Interest Policy.

Those entities consist of other universities, private companies and, occasionally, other federal agencies that will assist and/or collaborate with the OSU principal investigators on sponsored projects.  The agreements with other entities are called subawards and are written by the Office of Sponsored Programs – Research Contracts.  The terms and conditions of a sponsored award received by OSU in support of a project are incorporated into the subaward.

There is a series of account codes assigned for tracking of budget, revenue and expenditures for individual subawards. This series allows for tracking of up to fifteen different subawards per grant fund. The list of account codes and their descriptions can be found on the OUS Fiscal Policy Manual,

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206-01:  Subaward vs. Procurement

To determine whether a sponsored award is a procurement or subaward, see the Sponsored Programs website for guidelines.

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206-02:  Managing Subawards

Responsibility of PI, Business Center

  • Notify the university Office of Sponsored Programs – Research Contracts when a subaward or amendment needs to be written.
  • Provide an adequately prepared statement of work describing how the prime recipient (OSU) expects the subrecipient to accomplish the tasks.
  • Review invoices, approve for payment and input into Banner. If the encumbrance number is not referenced when paying invoices on a subaward, Business Centers will need to make manual encumbrance corrections.
  • Communicate with Key Personnel listed in subaward.
  • Ensure all reporting obligations are met.
  • Verify that the subaward scope of work has been completed.

To communicate with OPAA on any issues of non-compliance or if the Prime PI (OSU) is withholding payment for any reason.

Responsibility of Subrecipient

  •  Be aware of all award terms and conditions; OMB Circulars A-110, A-21, and A-133 are the guides for flow down from a federal assistance award. Commercial sub-recipients also need to be aware of Federal Acquisition Regulations subpart 31.2 –Contracts with Commercial Organizations.
  • Submit invoices with signed certification, detailed by budget line item, to the university no more frequently than monthly, but at least quarterly.
  • If subrecipient has committed to cost share, subrecipient shall document the cost share for the period with each invoice.
  •  Maintain acceptable financial systems and accurate records that identify  the award’s expenditures.  
  • Maintain effective control over and accountability for all funds, property, and other assets.
  • Maintain consistency with applicable cost principles.
  • Communicate with the Principal Investigator at Oregon State University.
  • Ensure all reporting requirements are met.
  • Submit final invoice and closeout documentation after award termination date or as otherwise noted in agreement.
  • To comply with record and retention requirements.
  • To provide backup documentation, when requested, for all costs.

Responsibility of the Office of Post Award Administration

  • Set up subaward to create a file in Nolij.  
  • Encumber subaward in Banner and verify budget dollars. Notify Business Center accounting staff and OPAA grant accountant, if any adjustments are necessary.
  •  Review invoices prior to sending to Business Center, and monitor subawards to ensure invoices are tied to general encumbrance, appropriate account codes were used for payment, equipment purchased only if allowed on subaward , monitor reporting of cost share, and verify correct indirect cost rate used.
  • Send closeout letters to subrecipient   prior to award termination date, and begin the closeout process.

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206-03:  Property Purchased by Subrecipients

Subawards are usually predicated on the prime award and a copy of the prime is typically attached to the subaward agreement.  Typically the terms of the prime award flow down to the subrecipient.  If there are unusual property requirements, they will be stated in a special conditions attachment to the subaward.  These will include title restrictions and reporting requirements.

Any equipment purchased or constructed by a subrecipient with award funds must be approved in the budget.  If property is federally owned, the subrecipient  is required to comply with federal regulations (per A-110 or FAR 45.510, as appropriate) to adequately care for and maintain that property and assure that it is used only as authorized by the award.  The subrecipient’s approved property control system must include procedures necessary for accomplishing this responsibility.  Equipment reports must be submitted to OSU for referral to the sponsoring agency, as required by the prime award.

207: Equipment

Grant, Contract & Gift Accounting Manual
Section 207: Equipment
Revised: 08/08/2003

 

207:  Equipment

Property acquired from a research sponsor or purchased with sponsored research funds is accountable to the grant or contract for which it was obtained.  Contract authority must exist for the acquisition of facilities, special test equipment and other equipment on sponsored research funds.  Equipment budgeted in the grant or contract award is assumed to be approved by the award sponsor.  Additional acquisitions of capital equipment on award funds must be pre-approved in writing by the sponsor when required by the regulations of that sponsor.

There may be additional management procedures and restrictions required by an award sponsor.  In the case of federally sponsored research, procedures and restrictions are specified in OMB Circular A-110 (Property Standards section), OMB Circular A-21, the Federal Acquisition Regulations (FAR), and the NASA Grant Handbook, as well as terms of the individual contract or grant.  (Note: The NASA Grant Handbook has been updated as of October 19, 2000.  The revised rules are not retroactive, but affect awards begun after that date.)

Active information circulars are located in the NASA Grant & Cooperative Agreement Handbook.  Select circular number GIC 01-01, dated: March 29, 2001 Guidance on Property Administration Requirement for Special Purpose and General Purpose Equipment.)

Principal Investigators acquiring equipment for sponsored research are held accountable for following the sponsor’s requirements, as well, as OSU’s policies, regarding screening, acquisition, maintenance, physical inventories, reporting and disposition of property. 

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207-01:  Purchasing Equipment from OSU Surplus Property

Surplus property normally cannot be purchased on grants and contracts. The reason is that Property Administration is unable to verify what funding source originally purchased the property. OMB Circular A-110 and FAR state that property that was originally purchased with federal funds cannot be re-purchased with federal funds. Because of the CAS principal of consistency, this policy is applied to all sponsored projects.

The exception is when the surplus property did not come from OSU. Occasionally, OSU sells surplus property for other entities, like Benton County. 

Note: only scientific equipment can be purchased, not general-purpose desks and other items.

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207-02:  Trade-in of Capital Equipment

  • Property Management should clear all assets prior to offering as a trade-in. Verbal approval will be given on the telephone.
  • After approval, prepare a Property Disposition Request (PDR) to remove the traded asset from inventory. Be sure to note the amount of credit that is to be received from the vendor for the traded asset. If multiple assets are being traded there must be a specific amount for each asset – not a lump sum for all.
  • The PDR should be attached to the Department Requisition that is sent to Purchasing.
  • Purchasing will set up the Purchase Order in Banner to reflect the full value of the new asset (including the value of the trade-in credit, rather than less the value of the trade-in credit). There should be a text notation on the Purchase Order regarding the amount of credit to be received from the vendor.
  • Purchasing will provide a copy of the PO as well as the original PDR to Inventory Control to keep on file until the asset is received and paid for.
  • The invoice for the new asset must be processed for the full amount of the asset (including trade-in credit) even though the invoice from the vendor will probably be reduced by the value of the trade-in allowance. In order to pay the correct amount, a credit memo will be created in Banner for the amount of the trade-in allowance. Be sure to process the invoice and credit memo simultaneously (cross-referencing the document numbers in the text field of both). This allows the proper payment to the vendor.
  • The credit memo will be set up for the amount of the trade-in, and posted to fund 095880 (Asset-Undistributed Income Clearing) and account code B5801 (Undistributed Income).
  • Inventory Control will create the new asset record from the origination tag created by the invoice. Then the disposition of the traded asset will be processed in the Fixed Asset module under the ‘sale of asset’ function. This function will take the ‘proceeds’ of the sale (the credit amount in the undistributed clearing account from the credit memo) and return it to the appropriate departmental fund. This process allows the proper recording of the gain or loss on the disposal of the traded-in asset. Gain or loss will only be posted to 09XXXX Service Center and 1XXXXX Auxiliary funds.

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207-03:  Guidelines for Ownership Coding of Sponsor Funded Equipment

  1. In determining ownership codes, the award or contract, subsequent official modifications and contract specific correspondence from the agency supersedes agency regulations.

  2. Agency regulations are the specific guide to that agency’s implementation of OMB Circular A-110 (grants & cooperative agreements), and thus are the guidelines for equipment ownership coding in all areas not covered by the award document. Appropriate FAR clauses are used for contracts in conjunction with the award document.

  3. Unless otherwise specified in the agency regulations or the agreement itself, contractor-acquired equipment valued at $5000 or more, purchased under agreements with agencies that require final equipment reports and provide disposition instructions, will be source coded “CI” (Conditionally Owned, Insured) or “FN” (Federally-owned, Not Insured) as appropriate.

  4. Unless otherwise specified in the agency regulations or the agreement itself, all equipment purchased with grant funds from agencies that do not require final equipment reports or issue disposition instructions will be source coded “SI” (State-Owned, Insured).

  5. Caution should be taken to avoid split purchase of a piece of equipment between agency funds which have “CI” or “FN” ownership codes unless it is the same agency, e.g., NASA.

    Any equipment being purchased on split funding that has state and restricted funds must have a title-to code of “SI” to be allowable.

  6. “OI” Equipment does not belong to OSU and must be dispositioned at the end of the award. This equipment is usually left in a foreign country. The department is required to fill out a PDR form that will remove it from inventory. That form is to be approved by the Office of Post Award Administration. Also, the award must state that the piece of equipment is to be left with another party. All “OI” equipment must be ‘signed off’ by the receiving entity at the conclusion of the project.

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Additional Information

For additional information or clarification on equipment policies please refer to:

208: Participant Support Costs

Grant, Contract & Gift Accounting Manual
Section 208: Participant Support Costs
Revised: 10/23/2012

  • 208 Participant Support Costs
  • 208-01 Participant Support Account Codes
  • 208-02 Reimbursement for Participants
  • 208-03 Making Payment Directly to a Vendor for Participant Support
  • 208-04 New Fellow/Participant
  • 208-05 Reporting
  • 208-06 Correcting JV’s

 

208:  Participant Support Costs

Post Award Administration processes:

  1. Recurring long-term (more than 3 months) stipend payments,
  2. OSU tuition payments, and
  3. OSU health insurance reimbursements.
  4. All stipends paid to non-resident aliens

Business Center’s are requested to process other participant costs:

  • Short-term stipend payments (3 months or less)
  • Fellowship/participant support payments can only be made with sponsored award  funds using a payment request form.
  • Non-sponsored award fellowship and scholarship payments are made through the Financial Aid and Scholarship Office and are applied as credits to the student’s account.
  • Payments processed in Banner must include the student’s name in the commodity line of an invoice or description line of a JV.  These documents must not include the student’s ID or social security number.  Also DO NOT include Student’s ID or social security number on original Banner FIS documents.

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208-01:  Participant Support Account Codes

55XXX for OUS students

2863X for Non-OUS students, Post Docs and workshop participants

Do not pay stipend payments to anyone on the State of Oregon’s payroll, unless concurrent employment is authorized.

551XX Account Codes

  1. These account codes are not authorized for use with Education & General (E&G) funds.
  2. These account codes are only allowed for use with sponsored awards.
  3. These account codes are to be used when paying or reimbursing OUS students only.
  4.   If paying stipend to a non-resident alien, account code 28632 should be used.

55102 Stipends – Expenditures in the form of subsistence allowances paid to students engaged in training or a sponsored program. This payment is not salary and is made primarily to defray general living expenses, although participation and adequate progress in research  project work is often required for continuous support.

55105 Travel Payment for Participant – Payments made on behalf of participants for travel in connection with the objective of the sponsored program. This code applies to transportation, meals, lodging and other travel expenses. Use this code even when travel is included as a part of the registration fee for a course or conference.

55106 Book Allowance for Participant – Payments made to a participant, either as a book allowance or reimbursement of expenditure.

55107 Room and Board for Participant – Expenditures for room and board for  participants under training or sponsored programs.

55108 Group Activities – Expenditures for cultural and recreational activities of participants in training or sponsored programs. This code covers group support, for which individual identification may not be practical. It also covers the cost of food, lodging, travel, admission fees, service fees, and equipment rental fees.

55109 Medical and Dental Payment for Participant – Expenditures for health care by licensed practitioners, whether or not the patient is confined to a hospital or infirmary. This code covers expenditures for medication, health insurance, laboratory fees and analyses.

55110 Miscellaneous Participant Support – Expenditures from participant support funds that cannot otherwise be classified.  This may include memberships, subscriptions, moving expenses, storage, photography, copying, computer supplies, research supplies, etc. when allowed by sponsor.

28630 NON-OUS Participant Support / Tuition and Registration Fees – Participant support for Non-OUS students and Non-OUS employees for tuition and registration fees paid to Non-OUS entities.

28631 NON-OUS Participant Support / Other – Participant support for Non-OUS students and Non-OUS employees for costs other than tuition and registration fees. This includes payments to workshop participants. This code covers housing, books, and stipends. It excludes travel costs. (Must have receipts)

28632 NON-OUS Participant Support-Non-Resident Alien – Non-resident  alien participant support costs that are not documented by receipts. Code covers tuition and registration fees, stipends, room and board, and book allowances. It excludes travel. Transactions are IRS form 1042S reportable.

28633 NON-OUS Participant Support – Book Allowance – Payments made to a non-OUS participant, either as a book allowance or reimbursement of expenditures.  The expenditures must be supported with receipts.

28634 NON-OUS Participant Support – Room and Board – Expenditures for room and board covering charges incurred by non-OUS participants under training or research programs. The expenditures must be documented with receipts.

28635 NON-OUS Participant Support – Travel Payment – Payments made on behalf of non-OUS participants for travel in connection with the objective of the sponsored award . This code applies to transportation, meals, lodging, and miscellaneous travel expenses. Expenses must be documented with receipts.

28636 NON-OUS Participant Support – No Receipts – Non-OUS participant support costs that are not documented by receipts. Code includes tuition and registration fees, stipend, room and board, and book allowances. Transactions are IRS form 1099 reportable.

See FIS 410-32 Participant Support Costs or the OUS Fiscal Policy Manual, formerly the FASOM Manual, for additional information or clarification.

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208-02:  Reimbursement for Participants

Reimburse participants for books, travel and research expenses when allowed on sponsored project.

  • A reimbursement form signed by the participant is required.
  • Attach corresponding backup information and original receipts . This may include credit card receipts, OSU bookstore receipts, conference registration forms, hotel bills, etc.
  • Travel costs may be allowed as per diem payments, as permitted by OSU policy.

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208-03:  Making Payment Directly to a Vendor for Participant Support

The procedure is used when paying a vendor directly on behalf of the participant . This payment must be tied to the participant for audit/tracking purposes.

See FIS 1106-04: Payment when Check Disbursed to other than Vendor for guidance in entering a different check payee from the vendor.

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208-04:  New Fellow/Participant

When a new sponsored award  is received that supports a new fellow/participant, instruct the participant to contact the Office of Post Award Administration at 7-4711 or come to B306 Kerr Administration Building.  Additional information is required to start the process.  See the Office of Post Award Administration website for additional information.

  1. Name of participant
  2. Student ID number
  3. Campus phone/email address
  4. Student status: Graduate, Undergraduate, Post Doc
  5. Residency status  
  6. Complete vendor activation form   
  7.  Other concurrent support  

Stipends  are normally processed  so that the fellow/participant receives the funds  on the first of the month for that current month.   Direct deposit of funds is encouraged.

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208-05:  Reporting

At the end of each month the Office of Post Award Administration provides the Financial Aid Office with a list of those students receiving participant support, amount and type.

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208-06:  Correcting JV’s

When processing a correction to participant support, put student’s name on description line.  DO NOT put student ID or social security number in description line or text.

209: Policies

209-01: Compensation

Grant, Contract & Gift Accounting Manual
Section 209: Policies
Revised: 08/08/2003

  • 209-01: Compensation
  • 209-01A: Sabbatical Leave
  • 209-01B: Vacation Leave Pay-Off
  • 209-01C: Faculty Fellowship Leaves
  • 209-01D: Overload Compensation

 

209-01A:   Sabbatical Leave

Sabbatical pay can only be charged to university general funds.  Sabbatical pay is not allowed on sponsored agreements.  If supplemental pay is requested during sabbatical leave from restricted grant or contract funds, approval must be received in writing from the sponsoring agency or be separately identified in the approved budget. Authorization from the Office of Post Award Administration is necessary before department or payroll can place supplemental pay on sponsored project funds.

Travel expenses during sabbatical leave charged to a restricted grant or contract must also be approved by the sponsoring agency and is taxable to the employee. These are paid as a per diem flat amount without receipts. The employee is responsible for documentation to the IRS.

Sabbatical Leave Application and Contract, and Form is located at the OSCAR website under the "employee leave" link at the left menu.

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209-01B:   Vacation Leave Pay-Off

Only vacation leave that was “earned” on the award may be charged to the grant or contract.  Vacation leave time should be taken within the life of the award if it is expected that the project will cover the cost of such leave. It is up to the individual and supervisor or unit head to arrange for leave at an appropriate time.  If there are exceptional circumstances that prevent the employee from taking the leave, a request in advance of the pay-off, must be made to and approved by the Office of Post Award Administration before charging the award.  The department/unit will need to cover the costs of any vacation leave pay-off not approved by the Office of Post Award Administration.

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209-01C:    Faculty Fellowship Leaves

A fellowship leave is available to faculty who have received certain fellowships that support research, writing, advanced study or travel related to scholarly or professional activities, including but not limited to Fulbright, NEA, NEH, Guggenheim, or other comparable federal or private fellowships, payable directly to the faculty member.

Any unclassified employee appointed at .5 FTE or more might be granted a fellowship leave upon approval of an institutional president or designee.  In addition, an institutional president or designee may authorize continuation of institutional health care coverage and payment of employer contribution toward health care or other personnel expenses during a fellowship leave.

Each faculty member, in applying for a fellowship leave, shall sign an agreement to return to the institution for a period of at least one year’s service on completion of the leave.  If the faculty member fails to fulfill this obligation, the faculty member shall repay the full costs of benefits paid by the institution during the leave.  This amount is due and payable three months following the date designated in the institution’s fellowship leave agreement for the faculty member to return to the institution.

If continued fringe benefits are authorized, it is the responsibility of the department to pay the fringe benefit costs associated with these faculty fellowship awards.  Faculty members who receive such fellowships should contact the Human Resources Department regarding their status, fringe benefits, and agreement to return. 

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209-01D:   Overload Compensation

Overload compensation is NOT allowed on grants and contracts.  OMB Circular A-21 states that salary will be based on the individual faculty member’s regular compensation, which constitutes the basis of his salary.  Compensation is only allowed at the base salary rate.

209-02: Audit Disallowance

Grant, Contract & Gift Accounting Manual
Section 209: Policies
Effective: 07/01/1989
Revised: 08/08/2003

 

Purpose

To provide a structured method of accumulating a reserve fund to provide assistance to departments suffering audit disallowance's.

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Applicability

All units participating in contract and grant activity will fund this assistance reserve.

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Definition

Costs

For this policy only, refers to “costs disallowed by audit” and do not include costs disallowed for any other reason such as costs being outside of the project’s time period.

Audit

The examination of source documents by the funding organization or their representative.

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Policy

Oregon State University is required to provide funding organizations the necessary proof that provided funds were expended for ordinary and necessary project expenses.  Normally, the proof will be made available for the funding organization's review for three years after the project is terminated.

Oregon State University will refund to funding organizations project costs that have been found to be unallowable charges against the projects. 

A portion of the Facilities and Administrative fees (formerly known as indirect cost recoveries) will be diverted to a disallowance reserve  fund that is used to pay the unallowable charges. 

Each fiscal year, up to one percent (1%) of the total F&A costs recovered will be transferred into a Disallowance Reserve fund before return of overhead is distributed.  Amount transferred will be limited to the amount required to maintain fund balance as set by the Vice President for Finance and Administration.

Because the reserve is funded by Facilities and Administrative charges, audit disallowance's on projects not receiving full F&A recovery will not be funded to the same extent as audit disallowance's on projects recovering full F&A.

Oregon State University strives to apply a maximum relief from the reserve of 50% of audit disallowance's on any one instrument that is or has received full F&A recovery.  The unit to which the instrument was assigned will provide the remaining 50%.  Reserve participation will decrease as the F&A recovery rate varies from full recovery.

If there is any dispute in applying this policy, the Vice President for Finance and Administration will dictate compliance.

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Procedures

The costs in this fund are all considered university cost sharing because the cost was incurred for the purpose of completing the sponsored activity.  As the expense is placed on the reserve fund, the fund is replenished from the F&A recovery fund.

The award which incurred the disallowance is analyzed.  If appropriate full F&A is recovered, 50% of disallowance comes from reserve fund and 50% charged to the department cost overrun index.  If no F&A is recovered on the award, 100% of the disallowance is charged to the department cost overrun index. The percent charged to the department cost overrun index will vary with the F&A rate charged to the award.

209-03: Grant and Contract Overrun

Grant, Contract & Gift Accounting Manual
Section 209: Policies
Revised: 10/23/2012

 

Purpose

To ensure that Oregon State University adheres to applicable Cost Accounting Standards.

Applicability

Personnel at Oregon State University (OSU) who work with financial aspects of sponsored awards – principal investigators, project directors, accountants, and others.

Policy

Major universities, including Oregon State University, are required to comply with Cost Accounting Standards and are subject to disclosure requirements.  This two-fold requirement necessitates that cost accounting practices for sponsored awards comply with the applicable Cost Accounting Standards and that such accounting practices be disclosed in a certified Cost Accounting Disclosure Statement.

The Department of Health and Human Services has accepted Oregon State University’s CASB Disclosure Statement (DS-2).  These standards stipulate that costs of any project not contractually authorized (e.g. cost overruns and other unallowable costs) be accounted for and remain in the same direct cost pool.  Thus, cost overruns in restricted grants and contracts will need to be considered cost share.

See CGC 302: Closeout

Procedure

In order to comply with the regulatory standards and properly account for these costs, the Office of Post Award Administration will transfer such expenditures (items not allowed by the sponsored award   or costs greater than the award) to a departmental-funded cost share index. This will be accomplished when completing the final financial reports to the sponsoring agency. In most cases, the final reports are due within 45 to 90 days following the end date of the agreement.  See GCG 105: Cost Accounting Standards Guidelines.

Standard 90 Day Closeout
The cost overrun will be processed after closing of the accounting period following 60 days after the end date without further notification.

60 Day Closeout
The cost overrun will be processed after closing the accounting period following 30 days after the end date, without further notification.

Less Than 60 Day Closeout
Business Center accountants will need to notify the Office of Post Award Administration of adjustments in process.  Documentation of corrections must be forwarded immediately.  This includes copies of labor distribution forms with amounts, associated OPE, F&A, invoice and journal voucher document numbers.  If the Business Center accountant does not notify the Office of Post Award Administration, a cost overrun will be processed without further notification.

Costs may not be transferred after the cost overrun has been completed.  The cost overrun may not be transferred to another index.

209-05: Over Expenditure

Grant, Contract & Gift Accounting Manual
Section 209: Policies
Revised: 10/23/2012

Policy

Principal Investigators (PI) are only permitted to spend up to the authorized award amount as stipulated in the agreement during the award period.  The PI’s department will be liable for all excess spending.  Failure to comply with the terms of the award may result in the award being temporarily terminated.

Procedure

Available balances on an award should be reviewed on a monthly basis by the PI and Business Center personnel.  The authorized award amount may not be exceeded at any time during the award period.

  • Awards that have multiple year funding may be budgeted in different ways depending on the award document.
    • If the agency commits funding for the entire project period, the award budget will be entered for the entire authorized amount of the award.
    • If the agency commits funding incrementally, the award budget will be entered for that increment’s authorized amount only.
  • It is never appropriate to spend increments before they are awarded by the agency or before the start date of the budget period.
    • Some agencies have expanded authority, which allows OSU to approve pre-award cost 90 days before the award or budget period start date.
    • If the agency allows pre-award costs, the Principal Investigator must complete a Pre-Award Cost form requesting approval to spend before the start date.  The department head must sign the form guaranteeing that the costs will be cost shared by the department if the award or increment does not arrive. See CGC 103: Expanded Authority – Budget Changes, Pre-Award Costs & No-Cost Extensions
  • If an award has a negative available balance greater than $10,000 at any time during the project period, the Business Center will be responsible for communicating with the PI to ascertain the status of future funding or resolution of the deficit.  The Business Center is responsible for updating OPAA on the status.  If necessary, OPAA may contact the sponsor.
    • If additional funding is going to be committed within 90 days of the start of the next budget period, the procedures above for pre-award costs will apply.
    • If additional funding is going to be committed more than 90 days in the future, prior approval to spend the increment must be obtained from the agency. Failure to obtain written commitment from the sponsor may result in temporary termination of the grant fund. See GCG 209-06: Temporary Terminations Policy.
    • If the sponsor does not provide written verification for a commitment of additional funds, the project will be closed to further activity and the closeout process will begin.  Any over expenditure of project costs will be charged to the department as a cost overrun. See GCG 209-03: Grant and Contract Overrun Policy.

The Office of Post Award Administration accountant will send out an over expenditure email when it is determined that the index is overspent. This email notice includes the clause that any over expenditure remaining at project closeout will be charged as a cost overrun.

To view the notification that is sent, please go to the Business Affairs website and look in the drop down menu under "Forms".   Then click on "Notice of Over expenditure".

209-06: Temporary Terminations

Grant, Contract & Gift Accounting Manual
Section 209: Policies
Revised: 04/12/2004

 

Policy

Indexes and funds for sponsored awards may be closed to further activity during the project period for various reasons.

Procedure

If it is necessary to close a project to further activity, both the index and fund will be terminated.  The department will be responsible for removing any personnel payroll defaults that have been established on that index and fund until such time that the fund can be reopened.  Any continuing research is recorded as unsponsored department research and expenses should be charged to a cost share index.

Examples for temporary terminations:

  • The award budget is overspent without documentation of further funding from the sponsor within the next 30 days.
  • Dispute with the sponsor over progress of the research
  • Contractual default by either party
  • Mismanagement of funds
  • Sponsor issues a stop work order
  • Default on scheduled progress payments by sponsor

Temporary termination of a sponsored project due to a deficit balance may be avoided if the department submits a guarantee letter to the Office of Post Award Administration.

The guarantee letter must provide an index that will be responsible for the deficit balance if the sponsored award does not receive additional funding.  Department Head and Dean signatures are required.  Expenditures will be allowed up to the amount guaranteed.  If expenditures exceed the amount guaranteed, a revised guarantee letter must be submitted or the temporary terminations policy will apply.

The Principal Investigator, Department Accountant and Department Head will be notified when closures are necessary. The reason for termination, any necessary action for reactivation and timing issues will be provided.

Cross Reference

See GCG 209-05: Over expenditures

209-07: Clerical and Administrative Salaries on Sponsored Programs

Grant, Contract & Gift Accounting Manual
Section 209: Policies
Effective: 08/06/1993
Revised: 07/01/2004

 

Salaries of administrative and clerical staff should normally be treated as F&A costs.  Direct charging of administrative and clerical staff may be appropriate where a major project or activity explicitly budgets for administrative or clerical services and the individuals involved can be specifically identified with the project or activity.  (OMB Circular A-21 defines major as: large grants (e.g. center grants and program project grants) which may require a larger than normal amount of administrative and/or clerical support.)

In order to be an allowable direct charge, one of the following criteria must be true:

  1. It is a clerical position performing program related work,
  2. It is a large, complex program,
  3. The project requires an unusual amount of travel arrangements to be made, or
  4. The funding is for a Center or Institute on campus that has an administrative core component. 
  5. The position involves extensive data accumulation, analysis, and tabulation or preparation and production of manuals, large reports, or books.
  6. The position involves management of multiple sub-awards or management of projects in locations that are remote from campus.

If any of the above criteria are true, the following must be included in the proposal that is submitted to the Office of Sponsored Projects and Research Compliance.  In addition, a copy of the position description should be kept on file by the responsible department as evidence that the position is in direct support of program objectives and meets the above criteria. 

  1. The PI must write a justification statement regarding the duties that will be performed and why they fit the above criteria.
  2. The salary and OPE must be specifically identified in the budget.
  3. The salary/budget must be approved by OSU Administration, in advance, before proposal is submitted to the sponsor.

209-08: Cost Transfers/Redistribution

Grant, Contract & Gift Accounting Manual
Section 209: Policies
Effective: 09/10/2007
Revised: 02/24/2014

Purpose

To prescribe the conditions under which cost transfers may be accepted as charges to sponsored agreements or other restricted funds.

Background Information

Cost transfers occur when expenditures are moved to or from a sponsored project fund.  The administration of cost transfers is critical because expenditures may only be charged to a particular sponsored project if they can be specifically identified with the funded activity they benefit.  Office of Management and Budget Circular A-21 states that expenses “. . . may not be shifted to other sponsored agreement in order to meet deficiencies caused by overruns or other fund considerations, to avoid restrictions imposed by law or by terms of the sponsored agreement, or for other reasons of convenience.”  The Circular also provides “Any cost allocable to activities sponsored by industry, foreign governments or other sponsors may not be shifted to federally sponsored agreements.” 

Inadequate documentation can result in audit findings and/or a disallowance of the cost.

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Applicability

Persons in Oregon State University (OSU) departments who work with financial aspects of sponsored projects – principal investigators, project directors, accountants, and others.

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Policy

Transfers of costs to or from sponsored agreements that represent corrections must be made promptly after the errors are discovered.  The transfer/redistribution must be supported by documentation that contains a full explanation of how the error occurred and a certification of the correctness of the new charge.  An explanation that merely states that the transfer was made “to correct error” or “to transfer to correct project” is not sufficient. 

The documentation for cost transfers must be retained for the period stipulated in the record retention schedule and be made available for verification during the course of an audit or other review.

Once a transfer is made, the new source of funding is considered correct.  Further transfers of that same cost are not allowable.

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Procedure

A. Types of Transfers or Corrections

  1. Correction of Errors
    Correction of clerical errors must be made promptly after errors are discovered. The transfer must be supported by text explaining how the error occurred, i.e.: obvious typographical error.
  2. Unallowable Cost
    If you have been notified by the Office of Post Award Administration that this cost is not appropriate on the grant/contract and is to be paid from state funds, just state that fact.
  3. Closely Related Work
    When closely related work is supported by more than one funding source, a cost transfer may be made between those indexes, provided it is a proper charge and the transfer is supported by an explanation.

    A proper explanation might be: “Both these projects concern DNA research conducted by Dr. Meeks and it has been determined that this glassware charge more properly belongs on E0078A.”

When closely related work is supported by more than one funding source, a cost transfer between funds may be made under these conditions:

  • The cost is proper and allowable.
  • The transfer is made within 90 days of the time of the original charge.

Justification for the transfer is documented by the PI/Dept.  and kept for audit purposes and review by the Office of Post Award Administration.  The Business Center making the cost transfer d should file a copy in Nolij under the document number.

B. Text Checklist

  1. The text of a cost transfer JV must include the following: The reason why the expense was charged incorrectly to the  original  project  
  2. How the expense directly benefits the receiving project  
  3. The reasons for any delay in a timely processing of the transfer  (After 90 days)
  4. The transactions should be corrected document-by-document, line-item by line-item, referencing the original document number and/or referencing to the support documentation in Nolij under the JV number.  (ex-see Nolij J0XXXXXX for detailed information)  
  5. Contact Name (First, Last) and phone number

If the above information is not included in text, approval of the document could be delayed or disapproved.  Explanation must be self-explanatory for possible future audits.

C. Timeliness of Transfers

Cost transfers should be made within 90 days of the original charge.  Transfers in excess of 90 days require approval from the Office of Post Award Administration.  Approval can be requested by including additional text with the appropriate justification in FOATEXT of your journal voucher.  Transfer will not be approved without valid explanation of late transfer, see section B Text Checklist.

Payroll corrections are completed through the HRIS Payroll system by using a Labor Distribution form.  Refer to the Payroll Manual for further information.  Note that any changes or cost transfers must be supported by accounting records. Progress reports sent to sponsoring agencies must reflect data reported on effort reports.  Payroll changes are very limited after fiscal year end close. 

Note: Prior year corrections must contain appropriate justification on the labor distribution form and be approved by the Office of Post Award Administration Manager.  The approved redistribution will be entered by the Business Affairs Payroll staff.

If payroll correction is for a prior quarter, and the Personnel Activity Report (PAR) form has already been signed and filed in Nolij, it will be necessary to correct the PAR form.  The individual will need to re-sign the form.  The corrected PAR form should then be filed in Nolij. The department is required to retain backup documentation for review. (See Section 211: Personnel Activity Effort Reporting (PAR)

Once the grant or contract has ended, the 90-day rule does not apply.  It will be necessary to follow the policy for closeout.  See Section 300: Closeout of Award in the GCG Manual.

D. Backup Documentation

Purpose: Documentation is a key element in providing support for a cost transfer and explains the purpose of why the cost transfer was done. Cost transfer documentation is needed for OSU's external auditors. Additionally, Federal auditors carefully examine cost transfers made by universities. Thorough explanations and documentation is essential to avoid audit comments and possible disallowances.

Documentation should be able to provide the reviewer with a clear purpose as to why you are making the entry. Documentation must also be clearly labeled, should be understandable to the reviewer, and include an acceptable type of approval as outlined below.

Examples of Documentation Types:

  1. Transaction Detail Reports
  2. Banner Reports
  3. Data warehouse reports
  4. Supporting schedules-such as excel documents and stand-alone reports from independent operating systems.
  5. Other documents-if specific e-mails or word documents provide a better understanding of the entry, you should attach those documents to the entry. Previous journal entries that were done incorrectly can provide support on a corrected journal entry.

Acceptable Types of Approval

  1. E-mail from PI approving or confirming change
  2. Written request for change from PI
  3. Detail report signed by PI, that includes correction

All journal voucher entries and complete supporting documentation should be  filed in Nolij by the  Business Center for verification during the course of an audit or other review.

Record Retention for Business Centers

  1. 3 years after final financial report is submitted and the project is closed, or
  2. All records for any project under audit must be kept, even if it exceeds 3 years.

http://archives.library.oregonstate.edu/handbook/chapter5/titles_D_N.html#19

209-09: Fly America Act (Federally Funded Air Travel)

Grant, Contract & Gift Accounting Manual
Section 209: Policies
Effective: 08/08/2003
Revised: 03/20/2014

(See GCG 215: Travel on Sponsored Projects)

210: Gift Funds

Grant, Contract & Gift Accounting Manual
Section 210: Gift Funds
Revised: 08/08/2003

  • 210-01: Gift Types
  • 210-02: Revenue
  • 210-03: Deposits into Agricultural Research Foundation (ARF) and OSU Foundation (OSUF)
  • 210-04: Transferring Funds from OSUF or ARF to OSU
  • 210-05: Gift Funds
  • 210-06: Interest

210-01:  Gift Types

Gift Funds:

  1. Are established upon request for affiliated foundation donations to OSU. 
  2. Are established for direct gifts to the university.
  3. Generally, are not defined at a level lower than the department.
  4. Use activity codes to further define donations and expenditures.
  5. Should not be deposited into or expended from OSU education and general funds, statewide funds or designated operations funds.
  6. Can be expended when cash is available.
  7. Are not budgeted.
  8. Can have all allowable expenditures for OSU placed on them.
  9. Fundraising or donor-related activities should be paid directly from the affiliated foundation.

Gift Fund Account Codes

FSXXXX – Any OSU foundation source

438XXX – Endowment earnings from OSU Foundation with State match (008XX)

FEXXXX – Endowment earnings from OSU Foundation with no State match

FAXXXX – Gifts from Agricultural Research Foundation
Note: If fund title contains an end date, this fund is a contract, not a gift.

M2XXXX – Gifts to OSU from any outside source for restricted expenditures.

M3XXXX – Gifts to OSU for Library Book purchases

M4XXXX – Gifts to OSU for scholarships.  Also OSU endowment earnings for scholarships.

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210-02:  Revenue

Donations or gifts received for OSU restricted gifts should be forwarded to the Office of Post Award Administration for reporting and deposit.  Include with the check any letter or other documentation received from the donor.  OSU cannot accept donations from current employees or emeritus faculty.  These donations must go through OSU Foundation. The Office of Post Award Administration (OPAA) will send each donor an acknowledgement as required by IRS statutes.

All gifts to OSU are charged a gift fee. See GCG 210-07: Gift Fees.

See GCG 202: Revenue for further information on revenue.

Information on gifts to the OSU foundation is located on the OSU Foundation website.

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210-03:  Deposits into Agricultural Research Foundation (ARF) and OSU Foundation (OSUF)

Deposits into OSUF and ARF are restricted to true gifts or proceeds from fund raising activities in which the donor intends that the gift go to the foundation(s). The following procedures apply:

  1. Gifts deposited into foundations must be payable to the foundations. If checks or other negotiable paper are made payable to Oregon State University, they must be deposited directly with OSU. If the department can document that the donor intended the gift to go to the foundation, Business Affairs will issue an OSU check to the foundation.
  2. Copies of all documents supporting the fact that it was the donor’s intent that funds be deposited to the foundation instead of OSU must be attached to the check request.

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210-04:  Transferring Funds from OSU Foundation or Agricultural Research Foundation to OSU

Funds transferred from the OSU Foundation (OSUF) or Ag Research Foundation (ARF) must be placed in an OSU restricted fund that properly reflects their intended use.

To transfer amounts from OSUF and ARF to restricted OSU funds, send a departmental request to OSUF or ARF that complies with the donor’s restrictions. This allows the foundations(s) to make a deposit to the OSU restricted fund. OSUF requires data warehouse query be attached as evidence that OSU has approved expenditure payments which OSUF is reimbursing.

Restricted OSUF and ARF funds should not be over drafted.  Departments should request that funds from the foundation(s) be transferred before or as soon as possible after the expenditures are made.

These funds are interest bearing.  The Oregon University System (OUS) Controller’s Division will charge interest to any fund in overdraft status at month-end, as is the policy for all gift funds.  Payroll and other payroll expenses (OPE) can be requested one month in advance.

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210-05:  Gift Funds

Gifts cannot be deposited into general funds.  Checks received as gifts should be routed to the Office of Post Award Administration for deposit along with donor letter and/or restrictions.  Special indexes have been established for each department for the deposit of gifts.  These indexes all begin with “M”.  Gifts cannot be deposited into an FS index.  These indexes are only for deposits from OSUF.  See GCG 210-07: Gift Fees.

When a gift is received that is for the specific purpose of cost sharing, the Office of Post Award Administration will set up a restricted fund to hold the cash donations for the cost share.  A gift fee is not applied to these funds.

Information on gifts to the OSU foundation is located on the OSU Foundation website.

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210-06 Interest

Gift funds earn, or are charged, interest based on the cash balance at the end of each month.  This interest is recorded each quarter.

211: Personnel Activity Effort Reporting (PAR)

Grant, Contract & Gift Accounting Manual
Section 211: Personnel Activity Effort Reporting (PAR)
Effective: 12/01/1998
Revised: 10/20/2008

Purpose

To explain the Personnel Activity Reporting (PAR) system. 

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Background Information

The Personnel Activity Reporting (PAR) system is the method used by Oregon State University to reasonably substantiate the activities (effort) of employees who are compensated in any part by restricted funds or cost share funds as required by OMB Circular A-21.  The PAR system is only an effort tracking system that recognizes where an employee’s effort is applied.

This system DOES NOT alter the indexes from which salaries and wages are paid.  The information accumulated on the PAR system is subject to audit verification and, if found to be inaccurate by federal auditors, disallowance of both direct and indirect costs can be assessed.

Requirements of OMB Circular A-21, Section J.8:

  1. Payroll system will reasonably reflect the activity for the employee.
  2. Method must recognize the principle of after-the-fact confirmation.
  3. Practices vary as to activity constituting a full workload.  Therefore, the payroll system may reflect categories expressed as percent of total distribution.
  4. Payroll charges may be made initially to sponsored agreements on basis of estimates made before services are performed. When such estimates are used, significant changes in the work activity must be identified and entered into the payroll distribution system. Short-term fluctuations need not be considered as long as the distribution is reasonable over the longer term, such as an academic period (school term).
  5. Confirmation of effort (activity reports) will be reported on a percentage basis and reasonably reflect the activities for which employees are compensated by the institution.
  6. Effort confirmation will be signed by the employee, principal investigator, or responsible official using means of verification that the work was performed; i.e., person with first-hand knowledge.
  7. Reports will be prepared each academic term for all academic, professional faculty, or classified employees who are paid either totally or in any part by restricted funds or by cost sharing funds. For other employees (students and temporary), no effort reports are generated.
  8. Time cards or other forms of after-the-fact payroll documents should be signed by the principal investigator as original documentation for payroll charges.  Copies of these forms should be kept at the department and will then serve as documentation for effort reporting purposes.

System Approval:

  1. The PAR system is approved by our cognizant audit agency DHHS.
  2. Method of meeting effort reporting requirement is in our CASB Disclosure Statement DS-2.

Uses for Effort Reports (current PAR Forms):

  1. The OMB A-21 requirements are fulfilled.
  2. State, federal compliance auditors, and other agency auditors review these documents.  There could be possible dollar disallowance's if the PAR forms are not completed and signed.
  3. The forms should be used by departments to properly classify the use of individual offices (research or instruction) in the university’s space inventory. The space inventory is used for many purposes, including the F&A Rate Proposal.
  4. When effort is expended on a sponsored agreement and not charged to the sponsor, PAR forms can be used to document the effort as university cost share.

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Policy

At the end of each quarter, PAR forms are produced from the HRIS payroll system.  Parameters are selected to identify the calendar year and quarter to be reported.  Selection is limited to only those individuals who have been paid either in full or in part during the quarter from restricted grant funds or cost sharing funds.  The PAR form has been designed to list all the indexes from which the individual is paid, the amount paid from each index, and the percentage of total pay for the quarter that amount represents.

PAR forms will be sorted by home organization.  The Office of Post Award Administration will send the forms to the designated PAR coordinator for each department.

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Procedure

Responsible Party Action

Office of Post Award Administration

  1. Sends PAR forms to the designated PAR coordinator for each department.
PAR Coordinator
  1. Responsible for review with the employee (or other individual having first-hand knowledge of the employee’s efforts) the information printed on the PAR forms. The person with first-hand knowledge should be either the employee’s direct supervisor or the principal investigator for the grant or contract on which the employee is working.
  2. If the information is found to be accurate, the originals are signed by the employee or appropriate other party. They should not be signed by the PAR coordinator or by the department head unless that person has directly supervised the individual for whom the PAR form has been generated.
  3. If the employee has left the university or moved to another department, the form should be returned to the Office of Post Award Administration with a note of explanation as to why the form was not signed.
  4. If substantial changes are necessary (in excess of plus/minus 5 percent), corrections should be made to the form before signature.  A labor distribution must be completed and a copy must be attached which indicates that the Payroll Office has been notified of the necessary changes.
  5. Return original signed PAR forms to the Office of Post Award Administration where they are checked off in a log and reviewed for signatures and any manual changes.  All PAR forms must be returned to the Office of Post Award Administration.
Department
  1. A copy of each PAR form should be kept at the department for use in space inventory designation or in case revisions are subsequently required.
  2. A revised PAR form (with new signature) must be completed and submitted to the Office of Post Award Administration whenever there is a retroactive payroll redistribution that affects the prior quarter’s reporting period(s).

Office of Post Award Administration

  1. Completed PAR forms are retained in the Office of Post Award Administration for eight years for immediate access for audits.

 

212: Cost Share

Grant, Contract & Gift Accounting Manual
Section 212: Cost Share
Effective: 03/01/2000
Revised: 10/13/2008

 

Purpose

To ensure that cost sharing requirements of sponsored agreements are proposed, accounted for, and reported in a manner consistent with the requirements set forth in federal regulations, primarily the Office of Management and Budget (OMB) Circulars A-110 and A-21, as well as Cost Accounting Standards. 

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Background Information

Once an award is made, ALL cost sharing commitments are considered to be mandatory and represent binding obligations by the university regardless of whether cost sharing is mandated by the sponsor or it is voluntarily offered by the university or principal investigator.  Therefore, the use of cost sharing should be kept to a reasonable level because of the burden that cost sharing places on university and departmental resources.

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Definition

Cost Sharing

That portion of a project or program cost that is not reimbursed by the sponsor, but is nonetheless part of the costs of that project or program.  Cost sharing represents a commitment by the university or third party and may be in the form of dollars, commitment of effort or in-kind contribution.  The sponsor, as a condition of the award, may require cost share or the university may voluntarily offer it. 

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Policy

The amount of cost sharing should be balanced between what is mandated by the sponsor, what is necessary for the proposal to be competitive, and what can be committed and accounted for after an award is made.  If cost sharing is not required by the sponsor, necessary for completion of the project, or to ensure the competitiveness of a proposal, principal investigators should refrain from making such commitments voluntarily.

Where cost sharing is not required as a condition of the award, mandated for the competitiveness of the proposal, and if the effort expected to be contributed to the project is less than 5 percent of an individual’s total effort, the following statement should be inserted in the text of the proposal or on the budget justification:

"Oregon State University assures that the faculty member will make a contribution to this project, but the expected level of effort is not a significant portion of the individual’s overall effort."

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Procedure

Typical Categories of Cost Sharing

Cost Share Category

Restrictions

How Tracked by University

Effort of Principal Investigator and/or employees devoted to sponsored agreements, including employee benefit costs.

All activities including cost share may not exceed 100% total effort.  Activities include instruction, research, Dept. Admin. and public service.

Charged to cost sharing index specifically established for project.

Equipment purchased for use by the project.

Equipment must be titled to OSU and must be purchased between the start and end dates.

Charged to cost sharing index specifically established for project.

Supplies and services purchased for the project.

Must be purchased between the start and end dates.

Charged to cost sharing index specifically established for project.

Travel when related to project.

Must be purchased between the start and end dates.

Charged to cost sharing index specifically established for project.

Indirect costs on cost share salaries, benefits, supplies and services.

Only if proposed and allowed by sponsor.

Calculated and reported by accountant in the Office of Post Award Administration.

Volunteer services.

Hours and value must be documented.

Documented and certified by PI Form available in the Office of Post Award Administration.

Subcontractor's portion of cost sharing.

Same type of costs as allowed by OSU.

Reported with subcontractor's invoices.

Unrecovered indirect cost - the difference between what the sponsor allows and what the university is authorized to charge.

Sponsor must allow using this as cost sharing (not allowed on US-ED or USDA / CSREES awards).

Calculated and reported by accountant in the Office of Post Award Administration.

Fee Remissions for Graduate Assistantships when sponsor will not allow as direct cost against project.

Sponsor must state in written policy that these charges will not be paid.

GTA / GRA salary setup using account code 10622 or 10632.  Fee remissions are charged to department's CSxxxS index by Payroll; The Office of Post Award Administration accountant reports amount specific to grant.

Expenditures recorded as cost share must be:

  • necessary and reasonable for the project’s objectives,
  • incurred during the effective dates of the award,
  • verifiable, either within the university’s accounting system or properly documented, if provided by sources outside the university, and
  • (for federal awards) allowable under OMB Circular A-21 and guidelines of the funding agency .

Expenditure categories that CANNOT be used for cost share include:

  • use charges for equipment, computers, or networks that already exist,
  • use charges for land or buildings owned by OSU,
  • salaries and fringe benefits of administrative/clerical personnel (unless these costs have been approved in the proposal process as cost share and would be allowed as a direct project expense),
  • funds received from a federal source (unless the federal agency agrees to cost share with another federal sponsor), and
  • expenditures that have previously been reported as cost share.

Mandatory Cost Share
When an agreement is received that has cost sharing indicated (either in the agreement itself, or in the proposal, which becomes a part of the agreement), The Office of Post Award Administration will set up the appropriate cost sharing fund(s), and notify the PI and college/department accountant.

All cost sharing expenses for the project will be recorded in the unrestricted cost share fund.  The college/department accountant will complete Labor Distribution forms as needed to reflect appropriate salary. Equipment purchases, travel or other cost share expenses will be charged directly to the cost share fund. As each expenditure is posted to the cost share fund, a corresponding transaction will be automatically posted moving funds required to cover this expenditure from the unrestricted fund budget that has been designated for cost share recovery.

If mandatory cost share is not met, the award will be reduced in proportion to the amount of cost share not met. The proportional amount of cost share not met will be charged to the department as a cost overrun. The same amount will be returned to the sponsor.

Non-Mandatory Cost Share
The department will notify The Office of Post Award Administration to set up a cost share fund/index when needed for non-mandatory cost share.

Grant Specific Cost Share Documentation
When an award requires cost sharing, documentation will be posted in Banner FIS through use of an unrestricted fund, which will be set up for each agreement which requires cost sharing. The grant roll-up and index will identify the cost sharing with the sponsored grant and fund in the following manner.

Sponsored Grant:
Sponsored Fund:
Sponsored Index:
ED0030
ED003A
ED003A
Cost Share Grant:
Cost Share Fund:
Cost Share Index:
ED003S (for share)
005005
ED003S

 

A matrix has been established which identifies a single “general fund” index for each department or organization as the most likely to cover the costs for cost sharing. Cost share methods have been established through a Banner FIS table which links the cost share fund to that organizational general fund index. As each charge is posted to the cost share index, Banner FIS automatically makes a corresponding transfer to credit the cost share index and debit the general fund index for the expenditure. These transfers appear as account 9xxxx entries. The result is that the cost share index always maintains a “zero” bottom line, and year-end adjustments are unnecessary.

No budgets are applied to the cost share indexes.  Instead, the information is entered into an Access database that is linked to OSU’s data warehouse. The resulting cost share report displays the beginning budget that has been committed, as well as picking up any costs which have been posted through the Banner FIS System and calculating a remaining balance spread out over the life of the award. Copies of the updated cost share reports are distributed to all departments twice per year.

NSF—Minimum 1% Cost Share Documentation

The National Science Foundation has a statutory requirement of cost sharing a minimum of 1% of the aggregate total costs of all projects funded. Each department that has active NSF awards has been assigned a cost share index to record expenditures toward meeting this requirement.

Any NSF project that has specifically required cost sharing will have a separate cost sharing grant, fund, and index established for documentation of those costs. These projects are exempt from the 1% requirement.

Also exempt are:

  1. Awards for international travel only (usually related to sabbatical leave).
  2. Awards for construction, improvement or operations of facilities.
  3. Awards for purchase of equipment only.
  4. Awards for Ship Operations (COAS).
  5. Awards for education and training; this includes individual fellowships.
  6. Awards for purpose of publication and translation of scientific data.
  7. Awards for workshops.

USDA/PNW GRA Fee Remission Documentation

USDA/Pacific Northwest Area (PNW) has determined that GRA Fee Remissions are an allowable cost share item. Each department has been assigned a cost share index designated to receive these charges. When GRA salaries are budgeted to the sponsored index, account code 10632 is used to pay these costs which alerts the Payroll Office to record the corresponding fee remission to the cost share fee remissions index.

General GRA Fee Remissions

When graduate research assistants’ salaries cannot be charged directly to the project (per sponsoring agency’s written policy), they should be charged to the cost share index.  The corresponding fee remissions will be posted by Payroll to special cost share indexes that have been set up for each department. The process is triggered by the use of account code 10632 used when paying the GRA salaries on the cost share index.

To document cost share from outside sources, please use the "Cost Share from Outside Sources" form available on the forms online web page maintained by the Office of Post Award Administration.

213: Program Income on Grants

Grant, Contract & Gift Accounting Manual
Section 213: Program Income
Effective: 10/23/2008

 

Purpose

To ensure that income generated by grant-funded programs is recorded appropriately and is easily identifiable for monitoring and reporting.  This policy allows program income, as well as costs to be charged against that income, to be recorded in a companion index and easily reported in conjunction with the grant revenue and expenditures.   Identify and recording program income and costs in this manner will ensure compliance with the requirements set forth in federal regulations, primarily the Office of Management and Budget (OMB) Circulars A-110 and A-21, as well as Cost Accounting Standards. 

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Background Information

Prior to the implementation of the Grants Billing module in Banner, all program income and associated costs could be recorded in the grant fund and index and reported appropriately.  Limitations with the Grants Billing module, however, require implementation of a different mechanism for properly recording these transactions.  The process described herein allows these costs to be reported with the grant, while also allowing for full functionality of Grants Billing.

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Definition

See GCG 202-01: Program Income. 

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Policy

All program revenue and associated expenses will post to the main grant.  At least annually, before fiscal year-end close, a transfer will be completed by OPAA to record expenses in the program income index.  Program revenue will be posted directly to the program income index.

As with all costs, departments should have all program income costs posted to the main award in time to allow OPAA to meet the deadline in submitting the final invoice and financial report to the sponsoring agency (see closeout policy GCG 302 for further detail).

Procedure

OPAA will set up a companion index to record program income (similar to the mechanism used to record cost share).  To do so, a grant consistent with the number of the corresponding grant but ending in “P” will be established, as will a companion fund and index.   This grant will not be set up under Grants Billing.  The same org and program codes as the main award will be used in setting up the program income index.  Program income expenses will be charged an indirect cost rate of 8% on total direct costs unless the specific award is restricted to a rate lower than 8% TDC

For example:
Parallel grant not set up on Grants Billing (like cost share)

Grant Fund Index
E01370 E0137A E0137A (main award)
E0137P E0137P E0137P (program income)
E0137S 034921 E0137S (cost share)
E0137S 030B58 E0137T (cost share)

If “P” index is not available, another index will be assigned.

Typically, program income expenses on the main award will be transferred to the “P” index via journal voucher.  It will use account codes consistent with the cost overrun JVs, as in the following example:

Index Account Code Sign
E0137A 28999 C
E0137P 28999 D

A final journal voucher transferring program income-related costs will be done prior to the final invoice, thereby allowing the project-related costs to be located on the project to which they are related.  This will prevent the sponsoring agency from being billed for these costs.  As the program income grant will not be set up on Grants Billing, all revenue will be deposited directly to the proper 0xxxx revenue code on the program income index.  Below are the T accounts showing anticipated expenses and transactions.

T accounts for Program Income
  Main Grant Index   Program Income Index
Revenue 03xxx   06xxx
Conference Registration          
Workshop Income      
           
Expenses 2xxxx 28999   28999*
Original Expenses   100
100

100

     
More Expenses      
Xfer to Program Income 200   200
More Expenses      
Xfer to Program Income      
To Close Index 100   100

*8% F&A on total costs will be charged consistent with the Designated Operations rate (unless grant is limited to less than 8%).

214: Cash Advances and Interest Calculation on Federally Sponsored Agreements

Grant, Contract and Gift Accounting Manual
Section 214: Cash Advances and Interest Calculation on Federally Sponsored Agreements
Effective: 07/01/2009

Purpose

To ensure that cash advances from federally sponsored agreements are deposited into an interest bearing account and that the interest income is properly recorded and reported in compliance with OMB Circular A-110.

Background Information

Cash advance and interest calculated on federally sponsored agreements are governed by OMB Circular A-110 (C22 Payment).

Definition

Federal regulations define "Cash Advance" as follows:

  • Advance means a payment made by Treasury check or other appropriate payment mechanism to a recipient upon its request either before outlays are made by the recipient or through the use of predetermined payment schedules.

Policy

The following forms shall be authorized for use by the recipients in requesting advances and reimbursements:

  1. SF-270, Request for Advance or Reimbursement
  2. SF-271, Outlay Report and Request for Reimbursement for Construction Programs

Payment

Per OMB Circular A-110, "Cash advances to a recipient organization shall be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the recipient organization in carrying out the purpose of the approved program or project. The timing and amount of cash advances shall be as close as is administratively feasible to the actual disbursements by the recipient organization for direct program or project costs and the proportionate share of any allowable "Facilities and Administrative" costs."

  • "Whenever possible, advances shall be consolidated to cover anticipated cash needs for all awards made by the Federal awarding agency to the recipient.
    1. Advance payment mechanisms include, but are not limited to, Treasury check and electronic funds transfer.
    2. Advance payment mechanisms are subject to 31 CFR part 205, "Withdrawal of Cash from the Treasury for Advances under Federal Grant and Other Programs."
    3. Recipients shall be authorized to submit requests for advances and reimbursements at least monthly when electronic fund transfers are not used.
    4. Requests for Treasury check advance payment shall be submitted on SF-270, "Request for Advance or Reimbursement," or other forms as may be authorized by OMB. This form is not to be used when Treasury check advance payments are made to a recipient automatically through the use of a predetermined payment schedule or if precluded by special Federal awarding agency instructions for electronic funds transfer."
  • Recipients shall maintain advances of Federal funds in interest bearing accounts, unless (1), (2) or (3) apply.
    1. The recipient receives less than $120,000 in Federal awards per year.
    2. The best reasonably available interest bearing account would not be expected to earn interest in excess of $250 per year on Federal cash balances.
    3. The depository would require an average or minimum balance so high that it would not be feasible within the expected Federal and non-Federal cash resources.

Procedures for Calculation of Interest

Federal Funds

Funds awarded in advance from a federal agency will be subject to interest calculation. These funds are distinguished from reimbursable agreements by a separate bank code (BV) in the Financial Information System.

Funds drawn on agreements with a Letter of Credit are on a reimbursable basis; not advance payment.   Advance payments are only received on predetermined payment schedules.  Interest will be calculated on indices with a positive cash balance.

Interest will be calculated on the ending cash balance at the close of each month.

Interest

At the close of each quarter the OUS Controller’s Office will provide the Office of Post Award Administration with the daily interest rate used for calculating interest.

The "hard copy" Interest Report is filed in the Office of Post Award Administration and is retained as supporting documentation.

The Controller’s Office prepares a journal voucher to transfer the quarterly interest to index QBA160 (Interest Clearing Federal Advance Payment).

At fiscal year end, the interest earned in index QBA160 is remitted to the Department of Health and Human Services (DHHS) - less $250.00 that is retained for administrative costs as allowed by Federal regulation.

Remitting Interest

Interest shall be remitted annually to Department of Health and Human Services, Payment Management System, Rockville, MD 20852. Interest amounts up to $250 per year may be retained by the recipient for administrative expense.

215: Travel on Sponsored Projects

Grant, Contract & Gift Accounting Manual
Section 215: Travel on Sponsored Projects
Effective: 02/25/2014

 

Background

Travel costs for federally funded sponsored research projects are governed by OMB Circular A-21 (section J53. Travel Costs), the Federal Acquisition Register, the terms and conditions of the individual agreement and the OSU travel policies (FIS 411).

Policy

215-01: Definitions/Explanations

Grant, Contract & Gift Accounting Manual
Section 215: Travel on Sponsored Projects
Effective: 02/25/2014

 

Types of Funding

Sponsored research projects can be funded from various sources including but not limited to the following:

 1) Federal government 2) state government 3) other Universities 4) foundations 5) corporations

Note: if the prime funding source is federal, all federal regulations must be followed. For example, many subawards, e.g., other universities, Jet Propulsion Laboratory (JPL), National Renewable Energy Labs (NREL), etc., are funded with federal money.  If you are unsure of the prime funding source, contact the Office of Post Award Administration prior to making travel arrangements.

Allowable Expense

A necessary, reasonable and appropriate expense incurred for the primary benefit of University business and therefore permitted to be reimbursed or directly charged based on the permission of the University or by the terms of federally or privately sponsored agreements.

Reasonable Expense

An expense that is ordinary and reflects a prudent decision to incur the expense on behalf of University business.

Per Diem

A per diem is an allowance to cover meals and incidentals while travelling for business purposes.  OSU per diem rates are based on the US government rates and are published in the Fiscal Operations FIS Manual.

Air Fare

Air transportation should be the lowest reasonable economy fare.  OSU has contracted travel agents who provide planning services for the traveler which are billed directly to the University. In addition, the agents have access to unrestricted city pair tickets which can represent a significant savings. OSU promotes the use of contracted travel agents; however, their use is not mandated. Information for the current contracted travel agencies is available on the PacS website.  The recommended agents are aware of the Fly America Act and can assist in planning so that travel adheres to this rule.  Alternative modes of transportation cannot exceed the cost of reasonable air transportation costs per OMB circulars.

215-02: Domestic Travel

(The 50 states of the U.S. and its possessions, and territories)

Grant, Contract & Gift Accounting Manual
Section 215: Travel on Sponsored Projects
Effective: 02/25/2014

 

Travel authorizations are subject to departmental/unit policy.

Regardless of the funding source or basis of reimbursement, evidence of travel status must be provided.  Evidence includes:

  • Travel itinerary
  • Lodging receipts
  • Vehicle rental, local transportation, meal receipts, or other receipts showing the travel location may be used

Awards that require receipts to be submitted with the reimbursement request:

  • The Office of Post Award Administration will assist the PI/Business Center in identifying the awards by noting the requirement on the Award Information Sheet.
  • PI/Business Center is responsible for including receipts in their reimbursement.
  • A cost overrun will be charged to the department for any travel that is billed to the sponsor and subsequently disallowed due to lack of receipts or documentation for the reimbursement.
  • For additional information regarding travel see the Fiscal Operations (FIS) Manual (411: Travel).

215-03: Foreign Travel

Grant, Contract & Gift Accounting Manual
Section 215: Travel on Sponsored Projects
Effective: 02/25/2014

The definition of travel may vary by sponsor; therefore, the individual award should be reviewed for this definition as well as for sponsor prior approval requirements. 

Before making any foreign travel arrangements on restricted funds, a foreign travel authorization form must be completed for each traveler and submitted to the Office of Post Award Administration for approval. This form is required for all international travel and applies to anyone traveling, including but not limited to, employees, non-employees and students.  

A. Fly America Act (Federally Funded Air Travel)

**Fly America Waiver forms, if applicable, can accompany foreign travel authorization forms.

Purpose

To comply with the Fly America Act 49 U.S.C. 40118. (See Federal Acquisition Register 47.401)

The General Services Administration issued an amendment to the Federal Travel Regulations in the November 13, 1998 edition of the Federal Register (Vol. 63, No. 219).  The amendment relates to the use of U.S. flag air carriers under the Fly America Act.

Applicability

The Fly America Act (49 U.S.C. 40118) and its implementing regulations (41 C.F.R. 301-3.6) apply to all air travel relating to federally-funded grants, including pass through agreements from other entities.

Definitions

  • Gateway airport United States - Where traveler last embarks from the U.S. or first arrives in the U.S.;
  • Gateway airport abroad - Where traveler last embarks en route to U.S. or first arrives from the U.S.

 

Policy

The Fly America Act requires that all travelers and others performing U.S. Government-financed air travel use U.S. flag carriers to the extent such carriers are available, even if their use would cost more.  Even when the entire trip cannot be made on U.S. flag carriers to the extent possible they should be used to the farthest interchange point on a usually traveled route.  301-3.6 (b)(4)(ii).  Chartered flights are also subject to the requirements.

  • Use of a foreign carrier may be authorized if use of a U.S. flag carrier will not accomplish the agency’s mission (e.g., the traveler will miss the start of an important meeting) or if a U.S. flag carrier is not available 301-3.6 (b)(2) and (3). 
  • Use of foreign air carrier may also be used if bilateral agreements permit such travel pursuant to 49 U.S.C. 40118(b). 
  • A copy of the agreement should accompany the request to use foreign air carrier. 
  • Use of foreign carrier is permitted where U.S. flag carrier involuntarily reroutes the traveler to a foreign carrier 301-3.6 (b)(4)(ii)(c).

Compliance: Each department is responsible for complying with the Fly America Act.  Before making arrangements for air travel for OSU business, confirm the funding type and, if applicable, ensure the booking is in accordance with the Act.

Code-Sharing arrangement:  ticket issued by U.S. flag air carrier which leases space on foreign aircraft.
Restrictions include:

  1. Entire ticket must be issued by and on the U.S. flag carrier;
  2. At least one leg must be on the U.S. domestic service beyond the gateway;
  3. A code-sharing flight may not be used solely for travel between the U.S. and foreign gateway or vice versa, unless no other U.S. carrier participates in that market. 70 Comp. Gen. 713 (September 25, 1991). Payment must be made to a U.S. flag air carrier.

Determining unavailability of U.S. carrier as justification for use of foreign carriers:
Criteria for determining unavailability are set forth in 301-3.6 (b)(5) and involve the extension of time in travel status.  Extension of time in travel status includes accelerated arrival and delayed departure.

Use of foreign air carrier is allowed in these circumstances:

  1. Travel between gateway airports need not be on a U.S. carrier if the gateway abroad is the origin or destination point and use of a U.S. carrier would extend time in travel status by at least 24 hours;
  2. If the gateway abroad is an interchange airport, a U.S. carrier is unavailable if its use would require a wait of 6 hours or more to make connections or time in travel status would be extended by 6 hours or more;
  3. For travel between two points outside U.S. – use of foreign air carrier is allowed if it eliminates 2 or more aircraft changes or 6 or more hour extension in time in travel status;

If using a non-U.S. carrier, a justification statement, in the form prescribed by the regulations must be prepared and submitted to the sponsor with a request for approval 301-3.6 (c)(3).  Approval must be requested and obtained prior to the scheduled travel. The approval must be on file in the Office of Post Award Administration.

If approval is not submitted to the Office of Post Award Administration and expenditures are disallowed, the department or traveler will need to cover the cost.

Exceptions to the Fly America Act: Travel that is to be reimbursed from federal grants and contracts must be booked through U.S. carriers except in the following circumstances:

  • When the use of U.S. carrier service would extend travel time (including delay at origin) by 24 hours or more
  • When the costs of transportation are reimbursed in full by a third party, such as a foreign government or an international agency
  • When U.S. carriers do not offer nonstop or direct service between origin and destination. However, a U.S. carrier must be used on every portion of the route where it provides service unless, when compared to using a foreign air carrier, such use would:
    • Increase the number of aircraft changes outside the United States by two or more
    • Extend travel time by at least six hours or more
    • Require a connecting time of four hours or more at an overseas interchange point.

See GCG-Ex1: Fly America Act - Federal Register Amendment Vol. 63, No.   219, Nov. 13, 1998.

See GCG-Ex2: Fly America Act Brochure and Fly America Act Waiver Checklist (pdf format)

49 U.S.C. 40118 - Government Financed Air Transportation

See the United States Department of Commerce website

B. Open Skies Agreements:

Federally funded travelers are generally required by the “Fly America Act” to use U.S. flag air carriers for travel. An exception to this requirement is transportation provided under a bilateral or multilateral air transportation agreement to which the U.S. Government and the government of a foreign country are parties and which the Department of Transportation has determined meets the requirements of the Fly America Act.

Current Open Skies agreements can be found at Airline Open Skies Agreements on the General Services Administration’s website. Travelers need to be aware that there are limitations to the use of non-US carriers under an Open Skies agreement notably that the current Open Skies agreements do not apply to Department of Defense supported activities and the prohibition against non-US carriers for specific Open Skies agreements if a City Pair contract fare exists.

C. Travel Visas (Passport and Visa Fees)

The only passport and visa fees allowed to be paid on restricted funds are for those directly connected with the sponsored award.  This does not include recruitment costs, which are not reimbursable by most federal agencies.  This includes only the passport/visa fee, and not any travel or expedited processing fees associated with obtaining the passport/visa.  The cost of obtaining a photo for the passport is allowable.   In the case of extraordinary circumstances, approval from OPAA must be obtained.

D. 215-05: Vaccinations

Expenses for required vaccinations related to the sponsored award are allowable expenses.  The OSU Student Health center can provide vaccinations.

215-04: Registration with Office of Risk Management

Grant, Contract & Gift Accounting Manual
Section 215: Travel on Sponsored Projects
Effective: 02/25/2014

 

OPAA will send a copy of the foreign travel authorization form to Risk Management.

See http://risk.oregonstate.edu/international.

215-05: Account Codes

Grant, Contract & Gift Accounting Manual
Section 215: Travel on Sponsored Projects
Effective: 02/25/2014

 

DOMESTIC Travel

Employee Travel Domestic

39115 Empl Travel - Domestic

Travel expenses incurred when an employee travels within the U.S. for the benefit of the department or institution.  Also used when traveler coming from outside Oregon or foreign country to Oregon.

Non-Employee Travel - Domestic

39117 Non-EmployeeTravel - Domestic

Travel expenses incurred when a non-employee travels within the U.S. for the benefit of the department or institution.

Group Travel - Domestic

39119 Group Travel - Domestic

Travel expenses incurred when an academic class takes a field trip or an athletic team travels to a sports event for competition within the U.S. Use for all trip expenses for the group including any employee sponsors (instructors, academic advisors, or coaches ) and students (class members, participants, or players). Note: This account cannot be used when all participants are employees.

Participant Travel

55105 Travel Payment for Participant

Payments made on behalf of student participants for travel in connection with the objective of the fund grant. This code applies to transportation, meals, lodging and other travel expenses. Use this code even when travel is included as a part of the registration fee for a course or conference.

 

FOREIGN Travel

Employee Travel Foreign

39615 Foreign Employee Program Travel

Travel expenses incurred when an employee travels out of the United States for the benefit of the department or institution.

Non-Employee Travel - Foreign

39645 Foreign Non-Employee Program Travel

Travel expenses incurred when a non-employee travels out of the United States for the benefit of the department or institution.

Group Travel - Foreign

39646 Foreign Group Travel

This code should be used for group travel to, from, or within a foreign country. Use for all trip expenses for the group including any employee sponsors (instructors, academic advisors, or coaches) and students (class members, participants, or players). This account cannot be used when all participants are employees.

Participant Travel

55105 Travel Payment for Participant

Payments made on behalf of student participants for travel in connection with the objective of the fund grant. This code applies to transportation, meals, lodging and other travel expenses. Use this code even when travel is included as a part of the registration fee for a course or conference.

 

TAXABLE Travel

Taxable Travel - Employees

39712 Employee Travel - Taxable

Employee Travel - Taxable (W-2 Subject)

Taxable Travel - Nonemployees

39742 Non-Employee Travel - Taxable

Non-employee Travel - Taxable (tax reportable)

 

Old 

New 

39415

39115

39416

39115

39445

39117

39446

39119

39492

39117

39515

39115

39516

39115

39545

39117

39546

39119

39616

39615

39713

39742

215-06: Travel Reimbursement by Source Other than Awarding Entity

Grant, Contract & Gift Accounting Manual
Section 215: Travel on Sponsored Projects
Effective: 02/25/2014

 

When travel expenses are reimbursed by an outside entity other than the awarding entity, the expense must be moved to the department’s general fund, by journal voucher. The reimbursement may then be deposited as a reduction of expense in the department’s general fund.

300 Closeout of Award

301: Close of Award Responsibilities

Grant, Contract & Gift Accounting Manual
Section 300: Closeout of Award
Revised: 08/08/2003

Purpose

To facilitate the closing of awards.

Applicability

All employees.

Policy

Awards will be closed in a financially responsible manner and within the appropriate time period for closeout. All reports and documents necessary for closeout will be completed and submitted by the appropriate deadline.

Procedure

Responsible Party Action

Departmental Accounting Staff or Principal Investigator (PI)

  1. (a) At close of award, process:
  • all costs for sponsored fund and cost share fund in a timely manner. (Generally, all costs must be for services or goods received before the end date of award.)
  • All invoices quickly after the end date to meet financial reporting deadlines.
  1. (b) When requested, review final financial reports prepared by the Office of Post Award Administration and/or approve final invoice amount.
  1. Completes all project deliverables.
  2. Prepares and submits all required technical reports directly to the agency.
  3. Answers email inquiries from the Office of Post Award Administration regarding technical reports and patents.
  4. Retains all technical reports for three years following closing of award.
  5. Ensures all subcontractors have completed deliverables, all reporting obligations have been met, and that the scope of work has been completed.
  6. Completes subcontract closeout document for the Office of Post Award Administration.
  7. Ensures that any and all cost share from outside entities has been met, reported and accounted for.
  8. Retains student timecards and other documents noted in GCG 302-03: Record Retention.

Business Affairs (Office of Post Award Administration)

  1. Prepares and submits final financial report and/or invoice at or before required deadline.

  2. Coordinates submission of other closeout documents.

    These documents may include:

  • Invention Statement or Patent Report
  • Equipment Statement and request for release of accountability or physical transfer of equipment from funding agency
  • Subcontract Release and Contractor's Release
  • Cost-Sharing Report
  1. Balances the fund, verifying that: All costs incurred have been reported to the sponsor; all dollars have been received from the sponsor; any necessary adjustments have been made; and cash balance is zero.
  2. Closes the fund from future activity in FIS Banner.

302: Closeout

Grant, Contract & Gift Accounting Manual
Section 302: Closeout
Revised: 08/08/2003

Purpose

To identify the procedures for closing awards.

Applicability

All employees.

Background

The Office of Post Award Administration has designed a suggested Grants & Contract Closeout Check-off Sheet to help facilitate the closeout process. A sample of the Grant & Contract Closeout Checkoff Sheet is located on the Business Affairs website.

Definition

Closeout Date

The date that all final documents must be received by the sponsor.

Closeout Date

The period that all final documents must be processed and sent to the sponsor. For example, if it says 90 days, you will have until closing of the period following 60 days after the end date to make corrections. To allow for processing time the department should process all corrections 30 days prior to the contractual due date of reports. Remember that this information will be noted on the Award Information Sheet of the original award only. It will not be noted on the Award Information Sheet of future amendments.

Policy

The Office of Post Award Administration will identify the closeout period on the original Award Information Sheet. Departments will facilitate the closeout process in a timely manner including the processing of necessary corrections and adjustments.

Procedure

Responsible Party Action

The Office of Post Award Administration

  1. Sends email to the Principal Investigator (PI) and department accountant requesting the date the technical report was submitted and information regarding patents/inventions.

Department

  1. Facilitates the closeout process in a timely manner. This includes processing necessary corrections and adjustments.

The request for Technical Report/Patent Information is uniformly carried out for all agencies except National Science Foundation (NSF). Notice is electronically received in the Office of Post Award Administration from NSF when the technical reports are submitted. Patent reports are not required for NSF although the OSU Technology Transfer office should still be contacted for any possible patents.

Awards from DOD (Army, Air Force, ONR), Dept of Energy, or NASA requires Standard Form 298 "Report Documentation Page" when ONR has administrative authority. Even though a complete Technical Report may have been submitted to the program officer, the tech report will not be checked off as completed until the SF 298 is submitted.

  • The Office of Post Award Administration sends out the first Tech Email within 30 days after the end date of the award with a respond by date. This request for information will be sent to the:
    > Department Accountant and the PI.
  • If the first request is not received back, a second request is sent out after the original respond- date.
  • If the second request is not answered, a third request is sent out stating that the Department Head and the Dean will be notified.
  • If no response has been received, the Director of Sponsored Programs is notified.

To view a sample of the Tech Email, click on "Forms" from the Office of Post Award Administration web site and choose "Tech Email",

Closing the Grant Fund

  1. There is a button on data warehouse to help monitor awards that are ending. It is under multi-year operating ledger. The button is titled "Ending Award by Org". The query will prompt for the org number and date. It is recommended that this report be run at the beginning of each month entering the current date at the prompt, paying close attention to projects ending within the next 60 days that have a balance. Any necessary corrections and adjustments should be started at this time to facilitate the closeout process. The department should continue to monitor these awards until they show up on the terminated funds report, which is located under current operating ledger in data warehouse. Charges have been known to show up after the end date unexpectedly. Note that the report may duplicate fund numbers when there has been a change in F&A cost basis, cost share basis or Fund Financial Manager attributes, there will be lines for the activity showing the old and new data. The report will also list funds with zero balances until the grant is closed. Once the grant is closed, the fund will drop off this list. Funds with zero balances can be ignored.
  2. The report FGROPNE in Banner FIS can be run to check for open encumbrances. All encumbrances must be liquidated before indexes and funds can be terminated. (Subcontract encumbrances will be liquidated by the Office of Post Award Administration).
  3. There is a canned query in the HR Data Warehouse that can be run to check for default pay. The buttons are titled "active jobs for an index" and "active jobs for a fund". If there is still default pay set up at the time of closure, and it is a student or temporary job, the Office of Post Award Administration will fill out a labor distribution change request form moving the default pay to "ZNOPAY". If not a student or temporary job, the Office of Post Award Administration will request the department to move the default pay or terminate the employee job in HRIS, if appropriate.
  4. Departments are responsible for informing the Office of Post Award Administration of adjustments or corrections that have not posted to Banner FIS before the department's closeout deadline. This includes invoices, journal vouchers and payroll documents.
  5. If the fund has been expended in excess of the approved budget at end of closeout period, the Cost Overrun Policy will be initiated. See GCG 209-03: Grant and Contract Overrun Policy.

302-01: Closing Fixed-Price Grants

Grant, Contract & Gift Accounting Manual
Section 302: Closeout
Revised: 08/08/2003

 

Purpose

To identify the procedures for closing awards.

Applicability

All employees.

Background

The Office of Post Award Administration has designed a suggested closeout check-off sheet to help facilitate the closeout process.  A sample of the Grant & Contract Closeout Checkoff Sheet is located in the drop-down menu under "Forms" on the Business Affairs website.

Definition

Closeout Date

The date that all final documents must be received by the sponsor.

Closeout Date

The period that all final documents must be processed and sent to the sponsor. For example, if it says 90 days, you will have until closing of the period following 60 days after the end date to make corrections. To allow for processing time the department should process all corrections 30 days prior to the contractual due date of reports. Remember that this information will be noted on the Award Information Sheet of the original award only. It will not be noted on the Award Information Sheet of future amendments.

Procedure

A fixed price agreement is invoiced for a flat amount for the task or scope of work and the expenses are not subject to detailed reporting.  OSU is under Cost Accounting Standards, that state that costs will be estimated (the proposal) and incurred in the same manner.  Therefore, if there is salary in a fixed price budget, it is expected that salary will be expended on the index set up for the award.

When Oregon State University (OSU) receives a fixed-price award, the funding entity intends that it be spent for a specific project.  Once that project is completed, unless restricted by the award document, it is OSU’s policy to allow the department to retain the remaining cash for their use toward the support of departmental research.  After ensuring that all appropriate expenditures have been posted, the remaining cash is considered by OSU to be a restricted gift. Cash balances exceeding 20% of total award will require agency approval. The cash is transferred to a departmental restricted M2XXXX fund less appropriate F&A costs, if award allows F&A costs.  The Manager of the Office of Post Award Administration must be informed in writing that the fixed-price project is completed so the appropriate transfer can be made.  The appropriate M2XXXX index should be included in the request.

The end date of the fixed price agreement means the same as the end date of a cost reimbursable agreement.  This date is when the project is to be completed and the technical reports (deliverables) submitted to the sponsor. Whether OSU is allowed to bill in total or is required to invoice in detail has no bearing on the technical project.

If the project is not complete by the end date shown on the award, then a no-cost extension should be requested by the PI to the sponsor.  The sponsor needs to know how the research is progressing and when it can expect the deliverables.  If the sponsor does not require a formal amendment, the no-cost extension request can contain an agency approval signature-line.  Once signed the approval should be forwarded to the Office of Post Award Administration for input.

Assuming that the project is completed within the end date these funds should close in the same timely manner as cost reimbursable funds.

302-02: Equipment Closeout

Grant, Contract & Gift Accounting Manual
Section 302: Closeout
Revised: 08/08/2003

 

Applicability

All employees.

Procedure

Upon termination or completion of an award, a physical inventory of federally owned property must be completed.  A list of accountable property is generated by Property Management or The Office of Post Award Administration and sent to the Principal Investigator or the departmental inventory coordinator for a physical review of the equipment.  The Office of Post Award Administration will confer with the PI and ask what equipment disposition he/she may want to request from the sponsor.  Regardless of whether there is sponsor-owned property or not, the Office of Post Award Administration must send a property listing to the sponsor if required by the terms of the award document.

If the sponsoring organization releases equipment title to OSU, t he Office of Post Award Administration notifies Property Management to correct the title codes on the equipment records.  The release date is also recorded on the inventory record in place of the award number.  The PI and/or department are also notified of any release.  If the value of the released asset is below the capital threshold for OSU, Property Management will remove it from inventory and notify the owning department to add the item to their supply inventory.

The sponsor may allow accountability for equipment to be transferred to a new or continuation award.  The Office of Post Award Administration will notify Property Management to make the necessary changes (new award code and sponsor ID number) to the asset records.  Title will remain vested with the sponsor. When accountability transfers to a new award it is no longer considered contractor-acquired property, but government-furnished property.

If the disposition instructions from the sponsoring organization require that the equipment be returned to the sponsor or sent to a third party, the responsible department will handle the shipping arrangements.  A copy of the disposition instructions should be attached to a completed Property Disposition Request (PDR) and forwarded to the Office of Post Award Administration.  The Office of Post Award Administration will forward the PDR to Property Management for removal of the record from inventory.

302-03: Record Retention

Grant, Contract & Gift Accounting Manual
Section 302: Closeout
Revised: 08/08/2003

 

Purpose

To provide a record of the establishment and administration of individually sponsored awards on restricted funds.

Applicability

All employees.

Policy

Document compliance with fiscal reporting requirements, including billing information for accounts receivable to sponsoring agencies.  Awards may be federal, state, commercial, or non-profit.   This may include but is not limited to: proposal; project summaries; grant authorizations; contract documents; project budget change and adjustment forms; invoices; receipts; cashier’s receipts; equipment purchase orders; prior approval request forms; account request forms; vendor telephone contact logs; subcontracts; grants and contracts monthly budget summary statements; institution billings; balance sheets; SF272 reports for grants and contracts that are operating on direct payments; final financial reports; property reports; patent/invention reports; contractor’s release reports; assignment of refunds and rebate documents; equipment disposition reports; and related documentation and correspondence.

Procedure

Office of Post Award Administration:

  1. Retains Record Copy
    Retention Period:
  • 5 years after final financial report is submitted and the fund is closed, or
  • for awards that are renewed quarterly or annually, 5 years after quarterly or annual financial report is submitted unless specified as longer by the terms of the contract.

Business Affairs:

  1. Retains all invoices, ledgers, reconciliation statements, etc. for the required time period.

Unit/Department/PI:

  1. Retains Copy of Record
    Record Retention:
  • 3 years after final financial report is submitted and the account is closed, or
  • for awards that are renewed quarterly or annually, 3 years after quarterly or annual financial report is submitted unless specified as longer by the terms of the contract, or
  • 3 years after audit, whichever is longer.
  1. Required to keep Time card backup for all students and persons paid on hourly wage.  These must be kept for the entire duration of the award and 3 years after the award termination date.  If these are not separated out by funding source, it is recommended keeping these for 8 years.
  2. Should keep any correspondence with the sponsor and all technical reports and deliverables for the 3-year retention period.  Do not keep paper purchase orders (PO) if the PO is in Banner (eliminate duplication).  Retention of packing slips is not required unless specifically noted in award terms and conditions.  If it is a ‘sensitive contract’ that requires lots of backup, keep everything connected with that agreement for 3 years after end date.

400 Supplemental Information

401: OMB Circular A-133 Audits

Grant, Contract & Gift Accounting Manual
Section 400: Supplemental Information
Revised: 08/08/2003

 

The A-133 single audit is intended to provide a cost-effective audit.  Efficiencies can be considerable when an organization-wide audit, or single audit, is conducted in lieu of multiple audits of individual Federal programs.

Any Non-Federal Entity that expends $500,000 or more in Federal awards in its fiscal year is required to have a single audit.  OSU meets this criteria.

Non-Federal Entities subject to audit must:

  1. arrange for a timely audit,
  2. prepare appropriate financial statements and a schedule of expenditures of Federal awards,
  3. ensure the audit is properly completed,
  4. submit the single audit report when due, and
  5. take corrective action on audit findings.

The single audit report includes:

  • the financial statements (auditee’s responsibility to provide),
  • a schedule of expenditures of Federal awards (auditee’s responsibility to provide),
  • auditor’s opinions on the fair presentation of the financial statements and schedule of expenditures of Federal awards,
  • auditor’s report on internal control and compliance pertaining to financial reporting,
  • auditor’s report on internal control and opinion on compliance pertaining to major programs,
  • auditor’s schedule of findings and questioned costs,
  • auditee’s corrective action plans, and
  • a summary schedule of prior audit findings which includes planned and completed corrective actions (auditee’s responsibility to provide).

The auditee is responsible for submitting a report that meets the requirements of the Circular.

If the auditee is a subrecipient, it must also forward a copy of a report containing audit findings to affected pass-through entities.  If the report contains no findings, the subrecipient is only required to provide the affected pass-through entities with a notification that the audit was completed.

The auditee is responsible for preparing a corrective action plan, taking corrective actions on audit findings, and reporting the status of corrective actions in subsequent reports.

An audit finding may include questioned program costs.  If any of the questioned costs are disallowed by the management decision, the auditee may have to refund the disallowed amount.

Most audit reports are a matter of public record.  Information is provided on the results of the audit that is entered into a database maintained by the Federal Audit Clearinghouse.  The Federal Audit Clearinghouse serves as the central collection point, repository, and distribution center for single audit reports.

Cognizant Agency – Recipients who annually expend awards in excess of  $25 million have a Federal cognizant agency for audit.  Oregon State University’s cognizant agency is the Department of Health and Human Services (DHHS).

Pass-Through Entities – Recipient entities are responsible for ensuring their subrecipient(s) meet the requirements of the Circular and specific requirements of the award.

Areas that auditors review: (but are not limited to)

  • Cost Sharing - Is cost share required? If so, has cost share been met and documented?
  • Equipment - Was approval obtained to purchase equipment? Was any equipment purchased within the last 6 months of the project? Are title-to codes correct?
  • Rebudgets – Are rebudgets properly justified? Was prior approval obtained, if required?
  • Dates - Are all transactions within start and end dates of the award?
  • F&A Cost Rate - Is the correct basis being used?
  • Student Pay – Are time certificates properly signed?
  • Reports – What reports are required? Due dates? Dates that reports were submitted?
  • Subcontracts – Are subawards reviewed, approved, spent correctly in the proper time period?
  • Outside Program Income – What was it for? What method was used to account for it?
  • Fee remissions – Approved by sponsor? Was there associated salary? Recruitment and Retention Differential?
  • Effort Reporting documentation – Do we have signed PAR forms for everyone (except students) paid on award? Do we have time sheets for students?

Occasionally, the Office of Post Award Administration may contact departments to submit documentation to help assist in the audit process. Some of those areas might be student timecards, technical reports, etc.

If the Department or PI receives notification that a sponsor is coming for a site visit or audit, the Office of Post Award Administration should be contacted so the appropriate personnel can be included in these activities.

To view additional information on Federal audits see the Office of Management and Budget's webpage on the White House website.

402: Public Access to Research Data

In 1998, Congress passed a, now controversial, two sentence amendment to the budget bill ordering the Office of Management & Budgets (OMB) to revise regulations governing federal research grants to ensure that all research results and data would be publicly available through Freedom of Information Act (FOIA) requests.  The public comment period generated over 12,000 reactions.  Many in the scientific community feared that such early and unrestrained access would chill the willingness of individuals and businesses to participate in research.  Opponents of this proprietary information could not be assured confidentiality.

The OMB issued revised regulations, effective November 8, 1999, which limit public access to sensitive data that is part of federally financed scientific research projects.  The regulations redefine research data thereby providing more concise guidance on what data can be accessed under federal FOIA requests.

OMB modified the regulations in response to public comment.  Public Law 105-277 now specifically excludes from the definition of research data the following:

  • preliminary analyses,
  • drafts of scientific papers,
  • plans for future research,
  • peer reviews, or communications with colleagues,
  • trade secrets,
  • commercial information,
  • materials necessary to be held confidential by a researcher until they are published, and
  • personnel and medical information and similar information, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy, such as information that could be used to identify a particular person in a research study. 

The changes set forth in Public Law 105-277  further define "published" and the term used by the federal government. 

Procurement contracts are also excluded from the scope of the revised regulations.

Questions may be directed to OSU’s legal advisor at (541) 737-2474.

Additional Information

Federal Register Online

Federal Register, October 8, 1999, Volume 64, Number 195, pages 54926 – 54930

The Office of Management and Budgets (see Grants Management)

403: Small Business Reporting

The U.S. Small Business Administration requires that small, small disadvantaged and women-owned small businesses have maximum practicable opportunity to participate as subcontractors on Federal contracts, to the extent that such opportunity is consistent with efficient contract performance.

“Minority or Women Business Enterprise” means a small business concern which is at least 51 percent owned by one or more minorities or women, or in the case of a corporation, at least 51 percent of the stock of which is owned by one or more minorities or women, and whose management and daily business operations are controlled by one or more of such individuals.

When OSU receives a Federal contract or subcontract over $500,000 there will be a subcontracting plan with separate and distinct goals for small businesses, small disadvantaged businesses, and women-owned small businesses.  The proposed subcontracting plan must be accepted and approved by the contracting officer before the contract can be awarded.  Once approved, the subcontracting plan is incorporated into the company’s (OSU in this case) contract.  If an amendment is received on a contract that increases the award to $500,000 or more, a subcontracting plan must be written at that time.

OSU is required to submit periodic reports to the Government showing its achievements against the goals in its subcontracting plans, along with a summary report showing its aggregate subcontracting achievements on all Federal contracts.

The requirement for a subcontracting plan flows down to all other-than-small business subcontractors with subcontracts over $500,000.

Current agencies that require Minority Business Enterprises (MBE) / Women Business Enterprises(WBE) use and reporting are NASA, Airforce, Army, EPA and some National Labs.

OSU encourages and promotes doing business with minority owned, women owned, small, and Americans with Disabilities Act (ADA) registered businesses.  For additional information, see PaCS 305-01: Certified Status Vendors in the Procurement and Contract Services (PaCS) Manual. 

OSU purchasing will assist Principal Investigators, Project Directors and departmental accounting staff with setting goals for any subcontracting plan.

The Office of Post Award Administration is responsible for completing and submitting periodic reports to the Government.

404: Grant Related FIS Data Warehouse Buttons

Where can the following information be found?

  1. What grant funds are ending?
    Operating Ledger; Future Ending Grant Funds; Enter Org
  2. What grant indexes are assigned to my ORG?
    Operating Ledger; Index for an ORG; Enter Org
  3. What indexes are the responsibility of a particular PI?
    Operating Ledger; PI indexes; Enter PI’s Last Name
  4. I have a large grant with many indexes. How can I get a list of all indexes for that grant?
    Operating Ledger; Grant/Fund Index; Enter Grant Code
  5. What grant funds have terminated so I can begin my 3-year record retention?
    Operating Ledger; Terminated Funds by ORG (this fiscal year only); Enter Org
    Operating Ledger-Multi; Terminated Funds by ORG (since FIS began); Enter Org
  6. What has been spent to date, what is budget balance?
    Operating Ledger-Multi;      -Inception to date by Fund; Enter Fund
                                                -Inception to date by Grant; Enter Grant Code
  7. What are the detail transactions for the period(s)?
    Transactions; Detail by Index and Period; Enter index, Enter Fiscal Period
  8. I have a JV number on my Award Information Sheet. I want to have a copy of the JV.
    Transactions; JV Listing; Enter JV#
  9. I know a budget JV was done during the period, but don’t know the number. I want the account code line-item detail.
    Transactions; Budget JV’s; Enter Index, Enter Fiscal Period
  10. My department head wants to know the amount of awards (budget increase) received last fiscal year.
    Transactions-prior year; Grant Awards; Enter Org
  11. My department head wants to know the amount of expenditures by fund type (federal $ vs. commercial $ vs. State $) for grants for a given fiscal year.
    Operating Ledger-multi; Annual Grant Expenditures; Enter Fiscal Year, Enter Org
  12. I need to figure how much Returned Overhead my department should receive. How can I do this? (This is the amount recovered by OSU, not percent returned to unit.)
    Operating Ledger; Indirect Cost (current fiscal year only)
    Operating Ledger-multi; Indirect Cost (select desired fiscal year); enter org
  13. I have gift funds and need to make sure there is a positive cash balance at fiscal year end. What do I use to find current cash balance?
    General Ledger; Fund Balance; Enter Fund
  14. When I query for Cost Share – any tips?
    Grant – ends with “S”
    Account – does not begin with “9” 
    Cost share transfers are 91501 and 92501, if these are included the report shows $0, because they net out the costs.)
  15. Where can I find default pay for an employee?
    Payroll ledger, Default Pay, Reports
    Default Pay – 1 Employee, enter university ID number
  16. Where can I find the default pay for a particular index?
    Payroll ledger, Default Pay, Reports
    Default Pay – 1 index, enter index

405: FIS Banner Screens

FAAINVE
FOAUAPP
FOIAPPH
FOAAINP
FGAJVCD
FGIDOCR
FGIJVCD
FWRJVLR
FFIMAST
FGROPNE
FGAENCB
FGIENCD
FGRIDOC
FOIIDEN
*FRIGRNT
FOATEXT
FTMFUND
FTMACCI
*FRAGRNT
*FRIGITD
FGITBAL
To input payment document
Approvals Screen
Approval History
Who still needs to approve?
To input journal voucher, and liquidate encumbrance by jv
Approved JV’s
Unapproved JV’s
Print JV’s
Fixed Asset by tag #
Open Encumbrance Report
To create an encumbrance or change an encumbrance
View Encumbrance Detail Activity
Incomplete document report
Person Search
Search on Sponsor ID number, all fields
Add or change text
Is fund terminated?
Index code; shows fund, org, & program for that index.
Current grant information
Grant inception to date
General Ledger trial balance

 

* Grant Ledger Specific Screens/Reports

Reports

*FZRGRNT
*FRRGITD
*FRR0050
*FRR0060
*FRR0090
*FRR0100
one-line summary for each index/fund by org or PI
Grant Inception To Date Report (org or specific grant)
Grant & Contract Summary Statement (Detail Sheets)
Grant Ledger Summary Report (includes breakout of student pay and ope)
Grant Ledger Summary Report
Grant Ledger Summary (by account for fund/org)

406: Restricted Fund Prefixes

Prefix Agency Prefix Agency
BP
C
DA
DI
E
ED
F
FA
FE
FS
G
GS
HT
J
K1
K2
K3
K4
K5
K6
K7
K8
K9
L
M2
M3
M4
DOE/BPA
USDA/CSREES
Other USDA
Other USDI
EPA
US-ED
Foundations (Other than ARF and OSUF)
ARF

OSUF
DOE
USDI/USGS
USDA/Hatch
Individual, and other Non-Profit, Commercial
ODA
ODEQ
ODEd
ODFW
ODOT
OEDD
ODOE
ODF
All Other Oregon
USDI/BLM
Misc gifts
Library gifts
Scholarships

N
NA
NL
NS
P
PK
R
RD
RF
RM
S
SL
T
U
UC
US
UW
UX
V
W
X
X
X
X
X
X
X
Y
Z
ONR/Navy
NOAA
National Labs
NASA
PHS/NIH
USDI/NPS
USDA/ARS
USAID
Air Force
Army
NSF
USDA/Smith-Lever
USDOT
Other Universities
Univ. of California
Utah State University
Univ. of Washington
Washington State Univ.
Commercial
USDA/PNW
Peace Corps
Darpa
Other Federal
NRC
Dept. of State
HUD
FEMA
Governments, Local
Cooperatives

See Business Affairs website for listing of the Office of Post Award Administration Accountants that manage specific prefixes.

407: Reference Websites

Grant, Contract & Gift Accounting Manual
Section 400: Supplemental Information
Created: 08/08/2003
Revised: 02/10/2011

OSU Websites

Name Link
Contract Office http://www.business_services.oregonstate.edu/Contracts/index.cfm
Environmental Health & Safety http://oregonstate.edu/dept/ehs/
Fiscal Operations Manual http://oregonstate.edu/dept/budgets/manuals/fis
OSU Foundation http://www.osufoundation.org/
Accounts Payables http://oregonstate.edu/fa/businessaffairs/accountspayable/
Payroll http://oregonstate.edu/fa/businessaffairs/payroll/
Property Management http://www.property.orst.edu/Property/
Safety Manual http://oregonstate.edu/dept/budgets/SAFManual/SAFTOC.htm
Small Business Vendors http://www.property.orst.edu/Central_Purchasing/docs/links.cfm
(Click on Certified Status Vendors)
Sponsored Programs http://www.oregonstate.edu/research/SponsoredPrograms

Granting Agency Websites

Name Link
American Heart Association http://www.americanheart.org/
EPA http://www.epa.gov/
Howard Hughes Medical Institute http://www.hhmi.org/
Jet Propulsion Laboratory http://www.jpl.nasa.gov/
Oak Ridge National Laboratory http://www.ornl.gov/
Office of Naval Research  (ONR) http://www.onr.navy.mil/
NASA http://ec.msfc.nasa.gov/hq/grcover.htm
NASA - Goddard http://genesis.gsfc.nasa.gov/
National Institutes of Health (NIH) http://grants.nih.gov/
NOAA http://www.rdc.noaa.gov/
National Science Foundation (NSF) http://www.nsf.gov/
NSF Fastlane http://oregonstate.edu/research/
SponsoredPrograms/Forms/NSFFastlaneRegistration.html
Sandia National Laboratories http://www.sandia.gov/
USAID http://www.info.usaid.gov/
USDA Forest Service http://www.fs.fed.us/r6/coop/
US Dept. of Education http://www.ed.gov/fund/landing.jhtml
US Dept. of Energy/Idaho Operations http://www.id.doe.gov/
US Dept. of Energy/Oakland Operations http://www.oak.doe.gov/
US Environmental Protection Agency  (EPA) http://yosemite.epa.gov/

Other Reference Websites

Name Link
Code of Federal Regulations http://www.gpoaccess.gov/cfr/index.html
Federal Acquisition Regulation http://www.arnet.gov/far/
Office of Management & Budget http://www.whitehouse.gov/omb/
Oregon University System http://www.ous.edu/cont-div/fpm/

408: Acronyms for Agencies

Acronym Agency
ARF Agricultural Research Foundation
BPA Bonneville Power Administration
DOE Dept. of Energy
EPA Environmental Protection Agency
NASA National Aeronautics and Space Administration
NIH National Institute of Health
NOAA National Oceanic and Atmospheric Administration
NSF National Science Foundation
ODA Oregon Department of Agricultural
ODEd Oregon Department of Education
ODEQ Oregon Department of Environmental Quality
ODF Oregon Department of Forestry
ODFW Oregon Department of Fish & Wildlife
ODOE Oregon Department of Energy
ODOT Oregon Department of Transportation
ONR Office of Naval Research
OSUF OSU Foundation
PHS Public Health Service
PNW Pacific Northwest
USDA United States Department of Agricultural
USDI United States Department of Interior
USEd United States Dept of Education
USGS United States Geological Survey

Manual Revision Record (MRR)

Grant, Contract & Gift Accounting Manual
Section: Manual Revision Record
Effective: 03/09/2004

2004-2007

2007

Date

Policy

Summary of Change

11/02/2007

GCG 205-18
39XXX - Travel

Updated last bullet for category of travel.
10/22/2007

GCG 209-08
Cost Transfers/
Redistribution

Updated all verbiage for policy.

2006

Date

Policy

Summary of Change

10/05/2006

GCG 204-05
Facilities and Administrative Costs (Formerly Indirect Costs)

Further defined what constitutes "indirect costs" and minor editing of text throughout.
10/05/2006 GCG 302-01
Closing Fixed-Price Grants
Added a sentence to the procedure section "Cash balances exceeding 20% of total award will require agency approval."
8/25/2006

GCG 205-07
220XX, 225XX - Communications and Shipping

Added "Communication Allowance" to list of costs not allowable grants and contracts.

GCG 205-01
Internet Connection Charges on Sponsored Projects

Deleted "internet" from account code category and updated policy according to OMB Circular A-21.

5/12/2006

GCG 205-07
220XX, 225XX - Communications and Shipping

Deleted last sentence in GCG 205-07 referencing GCG209-04.

5/12/2006

GCG 209-04
Internet Connection Charges on Sponsored Projects

Deleted GCG 209-04 from GCG manual.

3/21/2006

GCG 209-08
Cost Transfers/Redistribution

Policy was updated to reflect the current FIS Banner approval process.

2004

Date

Policy

Summary of Change

4/12/2004

GCG 209-06
Temporary Terminations

Temporary termination of a sponsored project due to a deficit balance may be avoided if the department submits a guarantee letter to the Office of Post Award Administration.

3/9/2004

Entire manual

Updated contents and reformatted manual to the PPMM Program.

2008-2010

2010

Date

Policy

Summary of Change

02/09/2010 GCG 206
Subcontracts
Updated policy.
02/09/2010 GCG 103
Expanded Authority - Budget Changes, Pre-Award Costs & No-Cost Extensions
Updated link to OPAS form.
02/09/2010 GCG 102-02
Award Approval & Set Up
Updated Responsible Party for Procedure 2.
12/20/2010 GCG 214
Cash Advances and INterest Calculation
Created New Section

2009

Date

Policy

Summary of Change

03/11/2009 GCG 213-01
Program Income on Grants
Created new policy.

2008

Date

Policy

Summary of Change

10/20/2008 GCG 211
Facilities and Administrative Costs
Updated use of effort reports with additional information.
10/15/2008 GCG 204-05
Facilities and Administrative Costs
Updated link to Sponsored Programs website.
10/13/2008 GCG 103
Expanded Authority - Budget Changes, Pre-Award Costs & No-Cost Extensions
Removed US Department of Interior (USDI).
GCG 205-19
39492 In-State Sponsored Workshop Speaker Travel - No Indirect Cost
Updated verbiage for in-state sponsored workshop speaker travel.
GCG 211
Personnel Activity Effort Reporting (PAR)
Updated percentage under PAR Coordinator from 10% to 5%.
GCG 212
Cost Share
Updated percentage under policy from 10% to 5%.

2011-2014

2014

Date Policy Summary of Change
  209-08:Cost Transfers/Redistributio Entire section updated
  215: Travel on Sponsored Projects Created new section
  205-18: 39XXX-Travel deleted content. See GCG 215: Travel on Sponsored Projects
  209-09:Fly America (Federally Funded Air Travel) deleted content. See GCG 215: Travel on Sponsored Projects
  205-19: 39492 – In-State Sponsor Workshop Speaker Travel – No Indirect Cost deleted content. See GCG 215: Travel on Sponsored Projects
26 205-05:  106XX and 1095X—GRA/GTA Salary and Tuition Remission updated section
26 205-02: Graduate Research Assistant (GRA) and Graduate Teaching Assistant (GTA) Salaries removed section content

2013

Date Polciy Summary of Change
8/20 103: Expanded Authority - Budget Changes, Pre-Award Costs & No-Cost Extensions Removed AID – Agency for International Development
9/30 203: Expenditure Approvals general update
12/2 206: Subawards Changed terminology from Subcontracts to Subawards

2012

Date

Policy

Summary of Change

10/23/2012 GCG 208: Participant Support Costs Updated content throughout entire section
10/23/2012 GCG 209-03: Sponosred Award Cost Overrun Updated content throughout entire section
10/23/2012 GCG 209-05: Over Expenditure Updated content throughout entire section
10/23/2012 GCG 204: Expenditure Account Codes Updated content throughout entire section
10/23/2012 GCG 206: Subcontracts Updated content throughout entire section

2011

Date

Policy

Summary of Change

02/09/2011 GCG 407
Reference Websites
Removed link to TRA manual