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Manage Projects

Allowable Expenses on Internal Grants

Continuing Education (non-degree-seeking) - Provide an explanation of the benefit to the university.

Notary Services for university-related items.

Student Relations - examples include thesis binding and thesis defense receptions

Team Building - Provide an attendance sheet and an explanation of the activity. This is not intended to encompass employee birthday parties.

Visas (ex: H1B) - Renewals and expedite fees for employees of the university.

Continuing Education - for the PI and/or PI's staff in an area related to the field of research.

Books (professional)

Cell phones may be paid out of an R&D account if invoices are sent directly to the institution and the need is justified.

Computer hardware and software.  Reimbursements cannot be made to individuals; payment must go directly to the vendor.

Professional Dues and Journal Subscriptions if addressed to the University.

Meals (catered or in a restaurant) where research is discussed (list of participants and meeting purpose are required).

General Office Supplies 

Parking - Non-employee parking validation and visitor parking (including when KUMC faculty/staff are visitors off-site)

Personnel/Salaries

Recruitment - Costs associated with recruitment, such as advertising.

Research Supplies

Subject Payments - Subject payments are allowable on both the 1041 and 1042. Note: if payments to human subjects are made, a copy of the consent form must be sent to the accountant handling the PI's portion of the alphabet.

Travel to professional meetings/continuing education/abstract presentations-including registration, ground transportation, hotel and meals.

Unallowable (Personal charges)

"Early-bird" check-in - This is not a requirement for flight and is considered a personal convenience charge.

Employee parking (KU/KUMC parking) - This is a personal expense and should be processed through payroll.

Flowers/Gifts - This is a personal expense

Budget Reallocation

Occasionally investigators will wish to spend funds in a budget line item that has no funds in it or has a negative balance. When this happens, a budget reallocation request form must be submitted to RI to adjust the budget so it reflects the line items as the researchers now intend to spend it. The SPA email account will be checked daily to see if any budget reallocation requests have been submitted. If a request has been submitted, it will be forwarded to the appropriate Post-Award Administrator for processing.

* Upon receipt of a budget reallocation request, the post-award administrator will review sponsor guidelines to see if there are restrictions on re-budgeting. For example, budget transfers on federal grants must conform to the NIH Prior Approval Requirements. If there is an applicable restriction, the post-award administrator will email the PI to let him or her know the funding source requires written permission to re-budget. At that point, it will be up to the PI and/or departmental administrator to prepare the budget revision request and justification and send it to SPA for review. SPA will then forward the inquiry to the funding source to obtain approval.

* The post-award administrator will check award terms and conditions to ensure that the expense to be applied to the project is allowable, allocable, and reasonable.

* The transferring of funds into Equipment or Travel categories requires approval from the Associate Vice Chancellor for Research Administration (AVCRA) for review and signature approval. The AVCRA must also approve all re-budgeting requests on RI-funded accounts and international travel not specified in the original budget.

* Once all necessary approvals have been obtained, the post-award administrator will create the necessary budget entry and update the requestor that the change has been made.

Expenditure Monitoring

Post-Award Administrators will review all requisitions, inter-departmental billings (IDB), business procurement charges (BPC), and travel requests to ensure that the expenses to be charged to the respective awards are reasonable, allowable,  allocable, and consistent with university practices. If the expense does not meet one of the criteria and/or does not seem appropriate to the grants' scope of work, the Post-Award Administrator will contact the PI or the department administrator to obtain more information and suggest an alternate source of funds as necessary.

Post-Award Administrators will review all charges entered through the Market Center, IDB system, BPC log, and travel module.  Each of the following criteria must be true for the expense to be approved.

  • Requester must have been delegated purchasing authority by the PI. Contact ekeller@kumc.edu for access. If the requester has not yet been given authorization, the post-award administrator will email the research administrator and/or PI to verify the expense is valid.
  • Funds must be available in the grant's account.
  • The expense was listed in the budget proposal or is an allowable charge per sponsor guidelines.   Under some circumstances, it may be necessary to contact the sponsor for a budget revision.
  • All expense requests must follow institutional policies (i.e. recruitment reimbursement, gift purchases, procurement regulations, etc.) or other Guidelines to ensure all expenses posted to grants conform to KUMC policies and procedures.

Expense Transfer Requests

The Principal Investigator (PI) or the departmental administrative staff will sometimes wish to move an expense from one grant to another to correct an input or posting error. These entries can be completed by the RI if the department submits an Expense Reallocation formPayroll funding reallocations should be done through the Retroactive Funding Adjustment (RFA) process.

Reallocations from one grant to another must be allowable and allocable to the receiving project and be within 90 days of the original charge, or within 90 days of the discovery of errors. When clearing overspent amounts on grant awards, the expenses can only be moved to a departmental or R&D account. Simply transferring overspent amounts from one grant to another to cover the overrun is not allowable according to the Uniform Guidance (2CFR200). In the end, the cost must be allowable on the grant to which it is being moved, must be covered by the available balance on the award, and must benefit that award.

Occasionally it is necessary to move expenses to the correct budget period of the same award. This is only allowable when the expense was actually incurred within the current period but was posted to a previous budget period. If expenses were incurred prior to the start of the new project period, they must be transferred with an internal grant.

It is important to provide justification for the expense reallocation that will satisfy an auditor. Remarks such as "to clear overspent amount" or "to transfer from GR-000xxx to GR-001xxx do not constitute satisfactory justification. Additional information may be requested, if the justification is vague.

No Cost Extensions

An extension of the final agreement period on a sponsored award may be granted to Principal Investigators (PI) without additional funds being provided. Sponsored agreements are written with the expectation that Principal Investigators will complete a project within a certain time frame. When that time frame cannot be met, the PIs may request a time extension at "no cost", meaning additional time will be provided to complete the project, but additional funds will not be provided by the granting agency.

To request a no cost extension, the PI will fill out the on-line form prior to the project end date.  The Sponsored Programs Administration (SPA) staff will review the request and forward it to the sponsor. A request for an extension should contain the following:

  1. the amount of time being requested to complete the project;
  2. a statement explaining the necessity for a time extension; and
  3. information regarding how the balance of funds in the project will be expended.

A request is not considered to be justified if the sole reason for the extension is to spend out the remainder of the funds in the grant. If a subsequent no cost extension is being requested, additional information may be required. The SPA Grant Administrator can provide guidance on what is needed.

If sponsor approval is obtained, the request is granted, and a new end-date for the project given, all financial and invention reports must be submitted to the Grant Administrator no later than 60 days after the new award end-date to complete project close-out.

General Guidelines on Research Spending

Federal awards

Health Resources and Services Administration (HRSA)

1. The recipients may take the following actions without prior approval of the Grant Management Officer (GMO):
a) Incur pre-award costs up to 90 days prior to the award.
b) Initiate an on-time extension of the expiration date of the award of up to 12 months.
c) Carry over unobligated grant funds up to the lesser of 25% or $250,000 of the amount awarded for that budget period. If the unobligated balance is in excess of 25% or $250,000, the grantee must obtain prior approval from the GMO.
d) Administrative personnel, office supplies may be allowable if approved by the funding agency.

2. Significant rebudgeting of project costs (the less of 25% or $250,000) would require prior approval. Check with GMO on any rebudgeting request.

National Science Foundation

Written prior approval from the NSF Grants and Agreements Officer is required for:

1. Preaward Costs in Excess of 90 days
2. Salaries of Administrative or Clerical Staff
3. Rearrangements/Alterations aggregating $25,000 or over
4. Adjustments to cost sharing commitments reflected on Line M of the NSF award budget.
5. Written prior approval from the cognizant NSF Program Officer is required for reallocation of funds provided for participant support costs.

Department of Defense

* IRB/IACUC - Principal Investigators (PIs) and applicant organizations may not commence performance of research involving human subjects, human anatomical substances, and/or human data or laboratory animals or expend funding on such effort, until and unless applicable regulatory documents are reviewed, and approved by the U.S. Army Medical Research and Materiel Command (USAMRMC) to ensure that Department of Defense (DoD) regulations are met.

1.       Cost of preparing applications - Not allowable

2.       NIH Salary cap does not apply

3.       Costs to attend one or more scientific/technical meetings per year: Costs should not exceed the amount specified in the Program Announcement/Funding Opportunity.

4.       Costs for travel associated with the execution of the proposed work (if applicable): Reasonable costs for travel

5.       Prior approval is required for foreign travel unless identified in the proposal or incorporated as part of the award.

6.       Costs to attend required meetings (if applicable): These travel costs are in addition to those allowed for annual.

7.       Prior approval is required for equipment purchase unless otherwise identified in the budget incorporated as a part of the award.

8.       Prior approval is required for the transfer of funds budgeted for indirect costs to absorb increases in direct costs, or vice versa; transfer of funds between budget categories when the cumulative amount of such transfers exceeds 25% of the total approved budget for the budget period.

National Aeronautics and Space Administration (NASA)

1.       Recipients are encouraged to purchase only American-made equipment and products.

2.       Revised budgets should be submitted in the same format as the original budget submission.

3.       On an exceptional basis, NASA permits acquisition of special purpose and general purpose equipment specifically required for use exclusively for research activities.

NIH Research Grants (R01, R03, R21)

Uniform Guidance -Cost Principals for Federal Awards

1.       Office supplies, membership, local phone and postages would normally be treated as F&A costs.

2.       Grantee institution is allowed to grant a one-time no-cost extension up to 12 month.  A second no cost extension requires agency's approval.

3.       Carryover shall automatically be rolled over to the next budget period.

4.       RI approval is required for rebudgeting funds to equipment (costs $5,000 or more per item) or travel category that was not included in the original budget proposal.

5.       Short-term, travel visa costs are generally allowable expenses if these costs are necessary for the conduct of the project and consistent with the institutional policy.

6.       Costs of promotional items and memorabilia, including models, gifts and souvenirs are not allowable.

7.       Meals and refreshments are not allowable charges unless these are part of the conference costs. (A conference is defined as a meeting, retreat, seminar, symposium, workshop or event whose primary purpose is the dissemination of technical information beyond the non-Federal entity and is necessary and reasonable for successful performance under the Federal award.)

8.       H-1B visa fees are allowable if they are part of the recruiting costs.  Visa renewal fee is not allowable.  Expedite processing fees are not allowable until they become part of "standard processing fees".

NIH Center Grant (P20, P30, U54)/ Department of Health & Human Services (DHHS)

1.       Written prior approval is required if any of the individual(s) named on the NoA withdraws from the project entirely, is absent from the project during any continuous period of 3 months or more, or reduces time devoted to the project by 25% or more from the level that was approved at the time of award.

2.       Carryover from one budget period to the next requires GMS approval.

3.       Rebudgeting approval is required from RI for equipment purchase (costs $5,000 or more) or travel that was not listed in the original budget proposal.

4.       Administrative personnel, office supplies, computer may be allowable on the Administrative Core.

Fellowship / Training Awards (T32, F31, F32 and any fellowship award funded by private sponsor)

1.       Fellow/Trainee's compensation should be processed through stipends unless the fellow/trainee also works on other sponsored projects.

2.       Fringes (except health insurance) are not allowable and should be charged to the department fund or R&D account.

3.       Funds budgeted for stipends, tuition and fees should not be reallocated to other budget categories unless approval is received from the funding agency.

4.       Annual financial reporting is required on T32 grant.  Stipends and tuition for the reminder of trainee's appointment period can be encumbered under unliquidated obligations line.

Private Sponsors

American Heart Association  (AHA)

CATEGORY OF EXPENSES

ALLOWABLE / UNALLOWABLE

Advertising to recruit personne

No

Alterations and Renovations

Only if essential, prior AHA approval is required

Books, Subscriptions

No

Co-PI Salary/Fringes

May be requested, prior AHA approval required and within specified limits

dComputers

Yes, prior AHA approval required for over $5,000

Consultative Services

May be requested

Equipment

Yes, prior AHA approval required for over 25% of annual Project support

Expenses in Obtaining a VISA

No

Indirect Costs/Overhead

Up to 10% of total annual expenditures

Malpractice Insurance

No

Membership Dues

Yes, ONLY for AHA membership dues.

Other Personnel Salary/Fringes

Yes, personnel with doctorate degrees must be approved by AHA

Parking Fees

No

Patient Care, Hospitalization, Diagnostic

No

Patient Transportation

May be requested

Payment of Human Subjects

May be requested

Personnel Recruitment

No

PI Salary/Fringes

Yes, within specified limits

Postage - Overnight Mail related to Project

Yes

Publication Costs and Reprints

Yes

Receptions and Meals

No

Scientific Meetings Abroad

No

Service Contracts

Yes

Supplies

Yes

Telephone - Long Distance related to Project

Yes

Travel � Domestic

Yes, up to $3,000 per year

Travel � Foreign

May be requested, prior AHA approval required and within specified limits

Tuition Costs

No

Uniforms, Wearing Apparel

No

Carryover Unexpended Funds

1. Continuing Year
  Between $100 - $10,000
  In excess of $10,000


May be carried forward without prior approval
AHA prior approval required

2. Extension Year
  Minimum of $500 up to $10,000
  In excess of $10,000


May be carried forward without prior approval
AHA prior approval required

Funds remaining at the end of extension year must be returned to AHA
SECOND extension year is not allowed.

American Cancer Society (ACS)

The principal investigator may make minor alterations within the approved budget except where such expenditures conflict with the policies of the Society. Major changes require written approval from the Society. A major budget change is one that is greater than $15,000/year during the grant funding period. The $15,000 threshold does not apply to the purchase of permanent equipment. The purchase of permanent equipment has a $5,000/year threshold, beyond which written approval is required by the Society.

Susan G. Komen Foundation

Expenditures

  •         Personnel on the project are limited to a base salary at or below $250,000 per year; salary support for the Lead Mentor or members of the Mentor Committee is NOT allowed
  •         Reasonable travel costs ARE allowed for purposes specifically related to the proposed Research Project
  •         Publication costs and meeting-related poster printing costs ARE allowed for purposes specifically related to the proposed Research Project
  •         Reasonable coursework and training expenses (i.e. laboratory management course, trans-disciplinary training etc.)
  •         Equipment costs are limited to no more than 25% of total direct costs
  •         Graduate Students and Postdoctoral Fellow tuition costs are NOT allowed
  •         Visa costs are NOT allowed
  •         Professional membership dues or subscription dues are NOT allowed
  •         Komen will not be responsible for:
    a) any expenditure made prior to the effective date or after the termination of the Grant,
    b) commitments made during the Grant term but not paid within sixty (60) days following the expiration of the Grant Agreement,
    c) expenditures that are not permitted as described within the RFA, or
    d) any expenditure that is inconsistent with the approved Research Plan and budget or that exceeds the total amount of the Grant.
  •          Any unexpended balance at the end of the Grant must be remitted to Komen. 


Re-budgeting of Funds

  •         Awards up to $450,000 total funds - Grantees, at their discretion and without a formal request, may move up to five percent (5%) of total funds across budget categories within any single year of the Grant.
  •         Awards larger than $450,000 - Grantees, at their discretion and without a formal request, may move up to $35,000 across budget categories within any single year of the Grant. 


Carry Forward of Funds

  •         Grantees may carry forward up to twenty-five percent (25%) of total Grant funds from one Grant year to the next year without prior written approval from Komen.
  •         Upon submission of the financial report, if the amount carried forward to the next contract year is greater than twenty-five percent (25%) of the annual budget, specific written approval by Komen is required.
  •         Grantees with a carry forward equal to or greater than forty percent (40%) will be required to submit an interim financial report prior to approval of their next payment. The Komen Science Manager will determine the length of time the report is to cover and if an interim progress report should also be submitted.


Patient-Centered Outcomes Research Institute (PCORI)

1.       The recipient may incur research project expenditures up to three (3) months prior to the effective date.

2.       Prior approval is required for:
a) Significant changes in the scope of the research project or specific aims.
b) Significant changes in approach, methodology, or number of participants.
c) Transfer of Principal Investigator.
d) Significant new contracting or otherwise transferring the research project effort.
e) Naming of new or replacement Principal Investigator or key personnel.
f)  A change in the annual percentage effort of a principal Investigator that exceeds a variance of 25% (increase or decrease) of the approved effort.
g) Budget adjustments that cause a change within any budget category that exceeds a 25% variance (increase or decrease) from the total amount approved for that category as set forth in the approved budget.
h) No budget adjustment shall cause the indirect cost rate to exceed the approved rate.

3.       Required Notifications:
a) Absence of a Principal Investigator or key personnel for a time period exceeding three continuous months or a change in the overall time to be spent on the research project by 25% or more of the approved effort.
b) Conflicts of interest that recipient becomes aware of during the term of and related to this contract.

4.       Record Retention Financial records, supporting documents, statistical records, and other records relevant to this contract and performance under it must be retained for 5 years from the
a) submission of the final progress report
b) date of the final payment
c) conclusion of any audit or litigation related to this contract.

Research Institute

  •         Equipment should not exceed 10% of the total budget
  •         No faculty salary is allowed, although research assistants are permitted.
  •         Travel is not permitted unless clearly needed to collect data.
  •         Should not be used to cover normal department operating expenses.

New Account Spending Procedures

1. A Notice of Grant Award (NGA) or a fully executed Subaward/Subcontract Agreement from the sponsor must be sent to the Sponsored Programs Administration (SPA) for process and acceptance.

2. SPA will review the terms and conditions on the NGA to make sure that it does not contain provisions that are incompatible with the University's policies on sponsored research. Subcontracts containing patent, copyright or licensing terms will be forwarded to Contracting Office for review and approval.

3. The approved NGA or Subcontract Agreement will be forwarded to the Post-Award Office for a new account set up in PeopleSoft Financial System. Training is required to access Workday and Workday Support. Please go to Workday Service Center website for training schedules.

4. The Post-Award Office will send the PI an account activation notice and an overall grant status summary report from the Workday Financials system which details the account number, budget period, and dollar amounts.

5. PI needs to complete an Authorization Form for each account indicating who is authorized to request Budget Reallocations and/or to submit Personnel forms, Requisitions, BPC, and Travel Requests. Authorization can be assigned to more than one individual. PI is automatically authorized on the use of the account.

Contact your post-award administrator for any grant account related questions.

SPA will consider the request for an advance account set up if the PI received word from the sponsor that an award will be issued shortly. PI needs to complete a Provisional Costs Agreement form, obtain approval from the department chair and the Vice Chancellor for Research, then forward to SPA for provisional account set-up.

Last modified: Mar 31, 2021
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