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: 03/20/2014

  • 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: 1095X – GRA 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

GRA and GTA salaries may be paid on four different account codes.  The proper account code to be used depends on whether or not the sponsor pays tuition remission and if the responsibilities are teaching (GTA) or research (GRA).

GRA account codes are 10630 and 10632.  If the sponsor pays tuition remission, 10630 is used.  If the sponsor does not pay tuition remission, 10632 is used because the tuition must be subsidized by the university.  If the sponsor does not pay tuition remission, it is charged to the tuition remission Cost Share index that has been set up for each department.

GTA account codes are 10620 and 10622. If the sponsor pays tuition remission, 10620 is used.  If the sponsor does not pay tuition remission, 10622 is used because the tuition must be subsidized by the university.  If the sponsor does not pay tuition remission, the tuition is charged to the tuition remission Cost Share index that has been set up for each department.

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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:  1095X—GRA Tuition Remission

These codes are used to record expenditures for all graduate research assistants’ and graduate teaching assistants’ tuition remission costs. Allocation is based on salary distribution for the academic term. Tuition remission does not include other institutional fees, only instruction tuition. See Graduate School website for more information regarding GRA appointments.

  • The fund to which tuition remission is charged is not an option of the department. The tuition must be charged to the salary index, unless the charge is not allowed by the sponsor. In that case, the tuition must be charged to the department’s cost share index.
  • 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.
  • If GRA payroll is transferred from one index to another. Payroll will make proper corrections.

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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.