Grants & Contracts (cont'd)

Purpose: The policy is set forth to minimize the risk of unauthorized use of funds on federal, federal flow-through, foundation and other private grants and contract projects, and to ensure that cost on these projects are within the scope and guidelines of the sponsoring agencies. Therefore, entries in the PeopleSoft General Ledger (PSGL) must be monitored monthly, cost sharing commitments must be met, and close out and reporting must be timely and accurately done.
References: MAPP 05.04.02, SAM 03.G.03
Procedures:
PT. I: Pre Award PT. XI: Contracts/Consulting Agreements
PT. II: Types of Awards and Sponsors PT. XII: Inventory/Equipment on the Grant
PT. III: Interim Funding PT. XIII: Closing Projects in the Department
PT. IV: Allowable vs. Non Allowable Costs (A21) PT. XIV: Record Retention
PT. V: Maintaining a List of Project Cost Centers PT. XV: Audits
PT. VI: Reconciling Projects in the Departments PT. XVI: Accessing Transmittal Forms Submitted Through NSM
PT. VII: Cost Transfers PT. XVII: RD2K Instructions for Loading Technical Reports
PT. VIII: Cost Sharing/Matching Funds PT. XVIII: Federal Grant Newsletters and Guide to Managing Federal Grants
PT. IX: Travel PT. XIX: Allowable/Unallowable Costs on Projects
PT. X: Sub-Recipients    
Review and Responsibility:
  • Responsible Party: Director, NSM Business Operations
  • Review: Every two years, on or before August 31
Approval:
  • Director, NSM Business Operations - Fred McGhee
  • Dean, NSM - John Bear
  • Date of Dean's Approval: 09/01/2008

VIII. Cost Sharing/Matching Funds

Principal Investigator's can cost share on a grant and contract in three ways

  • Mandatory Cost Sharing is cost sharing required by the sponsor.
  • Voluntary Committed Cost Sharing is the cost sharing the PI indicated on his proposal that was not required by the sponsor.
  • Voluntary Uncommitted Cost Sharing is a requirement of A-21 which requires that faculty document in the payroll accounting system, time and effort that is over and above that which is committed for the sponsored agreement.

The department is required to track only mandatory and voluntary committed cost sharing. The amount of cost sharing required and the method of meeting the requirements will be indicated on the NOA. Departments are responsible for setting up cost sharing folders and electronic tracking devices to track cost sharing. Cost sharing document must be kept in a cost sharing folder for the project on which cost sharing is specified. Spreadsheet used to certify and track time and effort and equipment cost sharing.

IX. Travel

The University MAPP policy 4.02.01 governs the payment and reimbursement procedures used for grants and contracts travel. However some sponsors may impose limits on travel funds and other more restrictive rules about travel. The PI and DBA can obtain sponsor specific travel requirement from OCG. One travel restriction that is important to remember is the requirement that travelers use U.S flag air carriers when possible as a means of travel between US and foreign countries. This requirement may not be waived because of cost or other reasons because it is the law. (The International Air Transportation Act of 1974). Travel benefiting more that one project should be split and charged appropriately to each project.

X. Sub-Recipients

Subrecipient agreements also referred to as third-party agreement awards in which two institutes engage in substantive work to accomplish the aims of a project. The party or institute receiving the award from the sponsoring agency is called the Prime recipient, and the other is called the subrecipient (party entering into an agreement with the prime recipient). When the University of Houston is the Prime Recipient, departments are responsible for managing the subs, by setting up subrecipient agreement folders and electronic tracking devices to track subrecipient invoices. Subrecipient documents must be kept in a subrecipient folder for the project. Spreadsheet used to track subrecipient invoices. When the University of Houston is the subrecipient, departments are responsible for following the policy of the main sponsor as well as those set forth by the prime recipient in the agreement. Invoicing to the prime recipient is the responsibility of OCG. The DBA should contact OCG when they become aware that invoices are not being sent to the prime recipient.

XI. Contracts/Consulting Agreements

The consulting agreements or service contracts on grants is an agreement that defines a scope of work and terms under which a private individual performs activities for the project. See MAPP 02.03.02 to determine if the PI should pay individual as an employee rather than a contractor. All contracts exceeding $14,000.00 must be reported to Contracts Administration for state reporting for see MAPP 04.01.02.

XII. Inventory/Equipment on the Grant

Most sponsors consider equipment to be items of $5000.00 or more that benefits a program for more than 3 years (1 year for federal programs). The definition for equipment for sponsored research varies from agency to agency and can be more restrictive than the state’s definition. If the notice of award does not indicate that the equipment is vested with the University of Houston, then Property Management must be informed and steps must be taken to return equipment at the end of the project. In general, any purchase of equipment must be specified in the approved budget prior to purchasing. Permission to transfer, loan, cannibalize, or discard equipment purchased on a grant or contract should be approved by OCG and Property Management. Equipment purchased within the last six months of the project must pass through the Office of Contracts and Grants for approval.

Continue to PT. XIII: Closing Projects in the Department...