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

XIX. Allowable/Unallowable Costs on Projects

Allowable/Unallowable Costs on Projects
Expense Category Federal Non-Federal State - non HEAF Welch
Administrative Services Gen Unallowable Gen Unallowable Gen Unallowable Unallowable
Advertising Allowable if in Approved Budget Allowable if in Approved Budget Allowable if in Approved Budget Allowable if in Approved Budget
Alcoholic Beverages Unallowable Unallowable Unallowable Unallowable
Alterations/Renovations Unallowable Unallowable Unallowable Unallowable
Animals Allowable Allowable Allowable Allowable
Audiovisual Activities Allowable Allowable Allowable Allowable
Related Books/Periodicals Allowable Allowable Allowable Allowable
Chemicals Allowable Allowable Allowable Allowable
Construction/Remodeling Gen Unallowable Gen Unallowable Gen Unallowable Gen Unallowable
Consultant Allowable Allowable Allowable Allowable
Contracts for Materials Allowable Allowable Allowable Allowable
Contracts for Services Allowable via sub contract agreement on approval from agency Allowable via sub contract agreement on approval from agency Allowable via sub contract agreement on approval from agency Unallowable
Copying (Publication/Reprints) Allowable Allowable Allowable Allowable
Custom & Import Duties Unallowable Unallowable Unallowable Unallowable
Donor Fees Unallowable Unallowable Unallowable Unallowable
Drugs Allowable Allowable Allowable Allowable
Entertainment Unallowable Unallowable Unallowable Unallowable
Equipment Allowable Allowable Must be listed on Approved Equip List Not for general use costing a min. of $5k
Food (for Research Only) Allowable Allowable Allowable Allowable
Freight Allowable Allowable Allowable Allowable
Fringe Benefits Allowable Allowable Unallowable Allowable
Late Interest Payment Unallowable Unallowable Unallowable Unallowable
Legal Costs Gen Unallowable Gen Unallowable Gen Unallowable Unallowable
Library/Information Services Allowable Allowable Allowable Allowable
Long Distance/Fax Calls Allowable Allowable Allowable Allowable
Meals Unallowable Unallowable Unallowable Unallowable
Membership Dues (from UH approved agencies) Gen Unallowable Gen Unallowable Gen Unallowable Unallowable
News Release Costs Allowable Allowable Allowable Unallowable
Office Supplies Gen Unallowable Gen Unallowable Gen Unallowable Gen Unallowable
Participant Costs Allowable Allowable Allowable Allowable
Postage Gen Unallowable
Must be in Approved Budget
Gen Unallowable
Must be in Approved Budget
Only if required to complete project Unallowable
Publication Costs
Preparing & publishing results of research accomplished under thegrant including page charges, reprints, illustrations, charts, graphs, etc.
Allowable Allowable Allowable Allowable
*Rebudgeting FDP Grants
Gen Allowable w/o prior agency approval via OCG
Non-FDP Grants
Normally up to 10% through request from OCG
See Agency Guidelines ATP
Not >5K from Student Salaries
Not >10K across budget categories w/o prior THECB approval
Not >10K between categories
Over 10K - letter at the Reporting Phase is needed
Recruitment Costs Allowable Allowable Allowable Allowable
Rent & Utilities (Offsite Only) Allowable Allowable Allowable Allowable
Sabbaticals Unallowable Unallowable Unallowable Unallowable
Salary (note project & agency guidelines) Allowable Allowable Allowable Allowable
Secretarial Services Gen Unallowable Gen Unallowable Gen Unallowable Unallowable
Speaker Fees Allowable Allowable Allowable Unallowable
Stipends Gen Unallowable
Must be in Approved Budget
Gen Unallowable
Must be in Approved Budget
Gen Unallowable
Must be in Approved Budget
Unallowable
Telephone Equipment & local phone service/line charges Unallowable Unallowable Unallowable Unallowable
Travel (Domestic) Allowable Allowable Allowable $1,500/year max
Travel (International) Allowable Allowable Only if in Approved Budget $1,500/year max
Tuition Gen Unallowable Gen Unallowable Unallowable Unallowable

*For additional and latest rebudgeting information, refer to US NSF - Awards - Federal Demonstration Partnership - Section relating to FDP Prior Approval and Other Requirements Notes:

  • Generally Unallowable: Expenses must either be in the approved project budget or be justified as to their use on the project.
  • Unallowable Costs: In almost all circumstances unallowable costs cannot be on project/grant.
  • Allowable Costs: In almost all circumstances allowable costs can be on project/grant.
HEAF - Allowable/Unallowable Costs
Allowable Unallowable Commonly used Account Codes
Computer Books 53914
Equipment & Cabling CD's - Floppy Disks 54006
Equipment parts to build fabricated equipment Chemicals/Gases 54355 - 54359
Furniture/File Cabinets iPod - DVD Disks 54363
Maintenance Agreement (if purchased w/equipment) Liquids - Compressed Air 58000 - 58605
Keyboard Minor Repairs 58229 - 59230
Lab hardware in bulk Payroll 58612
Monitor Plastic/Wash Bottles  
Network Card Surge Protectors  
Renovation of lab Transfers b/w cost centers  
Software/Operating System Tools  
  Travel