205: Expenditure Account Codes
Grant, Contract & Gift Accounting Manual
Section 205: Expenditure Account Codes
- 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
- 205-19: 39492 – In-State Sponsor Workshop Speaker Travel – No Indirect Cost
- 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
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.
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.
- 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.
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.
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.
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.
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.
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.
- 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.
Direct charges on grants and contracts must meet the following criteria:
- 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.
- 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.
- 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.
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:
- Use in-state codes for travel TO and WITHIN Oregon.
- Use employee codes for travel by OUS employees, including students traveling as employees;
- Use non-employee codes for employees of other state agencies, students who are not employees, and all other non-employees.
- Use 55XXX account code series for sponsored student (participant trainee) travel costs.
- All international travel using federal funds must be by U.S. flag air carriers if service by such a carrier is available. Cost is not a factor in determining availability. The first or last leg of travel from or to the U.S. must be by a U.S. flag air carrier in almost all instances. Business class is permitted. See GCG 209-09 Fly America Act (Federally Funded Air Travel).
- Travel fares charged to a federal project must be for less than first-class air accommodations.
- Many subcontracts, e.g., University of Washington, Jet Propulsion Laboratory (JPL), National Renewable Energy Labs (NREL), etc., are funded with federal money, and all federal regulations must be followed. If unsure of the prime-funding source, check with the Office of Post Award Administration before making travel arrangements.
- Some agencies require prior approval before use of funds for international travel.
- A Foreign Travel Authorization form is required for all international travel (including non-employees) using restricted grant, contract funds before making travel arrangements.
Domestic Travel – Travel authorizations are subject to departmental/unit policy.
Evidence of travel status must be provided:
- Regardless of the funding source or basis of reimbursement
- Normally in the form of lodging receipts
- Vehicle rental, local transportation, meal receipts, or other receipts showing the travel location may be used.
Contracts and awards that require receipts to be submitted with the reimbursement request:
- The Office of Post Award Administration will assist departments in identifying the contract or other awards by noting the requirement on the original Award Information Sheet.
- Departments are 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.
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.
- 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.
- 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.
- 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.
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.
- 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.
See GCG 208: Participant Support Costs for additional processing information.