209-03: Grant and Contract Overrun
Grant, Contract & Gift Accounting Manual
Section 209: Policies
To ensure that Oregon State University adheres to applicable Cost Accounting Standards.
Personnel at Oregon State University (OSU) who work with financial aspects of sponsored awards – principal investigators, project directors, accountants, and others.
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.
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.