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.
Grant, Contract & Gift Accounting Manual
Section 202: Revenue
To properly record all revenue of Oregon State University (OSU) in the appropriate fund where expenditures were incurred to generate that revenue.
Proceeds from any activity sponsored by OSU, evidenced in part by the use of OSU letterhead, and/or using state resources such as employee time and effort, 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.
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:
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
Fixed Asset invoices are also routed to the Office of Post Award Administration and Property Administration for approval prior to final processing by Business Affairs Payables. 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.
See FIS 1108: Approval Routing for additional information on Approvals.
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.
For Federally Sponsored awards, allowable costs generally fall within these guidelines:
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.
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.
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.
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.
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).
The current F&A rates are available at the Sponsored Programs website.
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.
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.
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.
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.
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.
These account codes apply to expenditures for acquisition of materials and supplies.
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.
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:
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.
These account codes are used in classifying expenditures for electrical usage, gas, sewage charges, steam, hogged fuel (wood chips), fuel oil, and water.
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.
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.
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.
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.
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.
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.
Direct charges on grants and contracts must meet the following criteria:
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.
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.
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.
Public relations and fundraising activity costs should not be placed on sponsored project funds.
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.
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:
These codes apply to transportation, lodging, meals, and incidental expenses incurred by persons traveling on behalf of the Oregon University System. There are four categories of travel expenses: In-State, Out-of-State, Foreign, and Group.
For each category of travel:
Domestic Travel – Travel authorizations are subject to departmental/unit policy.
Evidence of travel status must be provided:
Contracts and awards that require receipts to be submitted with the reimbursement request:
Travel expenses incurred when an agency, that doesn't follow F & A on speaker travel, sponsors a workshop and restricted funds are used to pay these travel expenses. There is no indirect cost charged against this account code. An example would be when NSF sponsors a workshop and pays travel expenses for the speaker.
Group travel is limited to field trip travel where students and advisors are present.
Passport Fees (24999)
The only passport fees allowed to be paid on restricted funds are for those directly connected with the sponsored projects.
Visa fees will be paid if related to project and required by project. Associated travel to obtain Visa is not allowed.
Note: Specific contracts or other awards may require the submission of receipts. The Office of Post Award Administration will assist departments in identifying these contracts or awards by noting the requirement on the original Award Information Sheet. Departments will be held responsible for receipts that are not submitted with reimbursements or for reimbursements that were done using incorrect methods. A cost overrun to the department will be prepared for any travel that is billed to the contractor and subsequently disallowed due to lack of receipts or documentation for the reimbursement. For additional information regarding travel see the Business Affairs Travel Policy & Procedure Manual.
Travel reimbursed by a source other than the awarding entity.
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.
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.
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.
Land (real property) cannot be purchased on restricted funds without specific sponsor approval.
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.
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.
See FIS 410-32 Participant Support Costs for additional information or clarification.
See GCG 208: Participant Support Costs for additional processing information.
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,
To determine whether a sponsored award is a procurement or subaward, see the Sponsored Programs website for guidelines.
To communicate with OPAA on any issues of non-compliance or if the Prime PI (OSU) is withholding payment for any reason.
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.
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.
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.
Any equipment being purchased on split funding that has state and restricted funds must have a title-to code of “SI” to be allowable.
For additional information or clarification on equipment policies please refer to:
Post Award Administration processes:
Business Center’s are requested to process other participant costs:
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
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.
Reimburse participants for books, travel and research expenses when allowed on sponsored project.
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.
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.
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.
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.
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.
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.
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.
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.
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.
To provide a structured method of accumulating a reserve fund to provide assistance to departments suffering audit disallowance's.
All units participating in contract and grant activity will fund this assistance reserve.
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.
The examination of source documents by the funding organization or their representative.
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.
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.
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.
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.
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.
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".
Indexes and funds for sponsored awards may be closed to further activity during the project period for various reasons.
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:
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.
See GCG 209-05: Over expenditures
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:
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.
To prescribe the conditions under which cost transfers may be accepted as charges to sponsored agreements or other restricted funds.
Persons in Oregon State University (OSU) departments who work with financial aspects of sponsored projects – principal investigators, project directors, accountants, and others.
Transfers of costs to or from grants/contracts 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.
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.
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.
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:
Justification for the transfer is documented by the PI/Dept and kept for audit purposes and review by the Office of Post Award Administration.
When entering a cost transfer journal voucher, ask yourself the following questions.
Does your text clearly show:
Any “No” answers on this checklist could result in delays or ultimately in the disapproval of the transfer.
Keep this standard in mind:
Would an outside auditor reviewing this documentation three years from now understand this explanation?
To the maximum extent possible, cost transfers should be made within 90 days of the original charge. When greater than 90 days, request approval from the Office of Post Award Administration. Approval can be requested by including additional text with the appropriate justification to FOATEXT in your Banner journal voucher entry form.
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 submitted to the Office of Post Award Administration, 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 forwarded to the Office of Post Award Administration. The department is required to retain backup documentation for review.
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.
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:
Acceptable Types of Approval
All journal voucher entries and complete supporting documentation should be kept by the department for verification during the course of an audit or other review.
To comply with the Fly America Act 49 U.S.C. 40118.
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.
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.
Gateway airport U.S.
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.
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.
Compliance: Each department is responsible for complying with the Fly America Act. Before making arrangements for air travel for OSU business, find out about 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.
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:
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:
Increase the number of aircraft changes outside the United States by two or more
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)
409 U.S.C 40118 = Fly America Act
See the United States Department Of Commerce website
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.
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.
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:
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.
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.
Gift funds earn, or are charged, interest based on the cash balance at the end of each month. This interest is recorded each quarter.
To explain the Personnel Activity Reporting (PAR) system.
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:
Uses for Effort Reports (current PAR Forms):
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.
Office of Post Award Administration
Office of Post Award Administration
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.
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.
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.
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."
Typical Categories of Cost Sharing
Cost Share Category
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.
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:
Expenditure categories that CANNOT be used for cost share include:
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.
|Cost Share Grant:
Cost Share Fund:
Cost Share Index:
|ED003S (for share)
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.
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:
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.
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.
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.
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.
See GCG 202-01: Program Income.
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).
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
Parallel grant not set up on Grants Billing (like cost share)
|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:
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|
|Xfer to Program Income||200||200|
|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%).
Grant, Contract and Gift Accounting Manual
Section 214: Cash Advances and Interest Calculation on Federally Sponsored Agreements
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.
Cash advance and interest calculated on federally sponsored agreements are governed by OMB Circular A-110 (C22 Payment).
Federal regulations define "Cash Advance" as follows:
The following forms shall be authorized for use by the recipients in requesting advances and reimbursements:
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."
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.
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.
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.