Procedures for Determining Costs
Procedures for Determining Costs Allowability on Sponsored Agreements and Identifying Direct and Indirect Costs on Federal Awards
Note: For all sponsored projects, always refer to the award's specific terms and conditions, which may include additional restrictions on cost allowability, or contact your SPA Representative
Payment Type | Federal Sponsor | State Sponsor | Private Sponsor |
---|---|---|---|
Advertising | Allowable when necessary to meet the specific requirements of the sponsored agreement | Same as Federal sponsors | Same as Federal sponsors |
Alcoholic beverages | Unallowable | Unallowable | Unallowable |
Books and journals | Allowable when necessary to meed the specific requirements of the sponsored agreement; otherwise provided as part of the University's library services | Same as Federal sponsors | Same as Federal sponsors |
Consulting services | Costs of consultant services rendered by persons who possess a special skill and who are not officers of employees of the University are allowable | Same as Federal sponsors | Same as Federal sponsors |
Donations and contributions | Unallowable | Unallowable | Unallowable |
Entertainment | Unallowable | Unallowable | Unallowable |
Equipment - special purpose (e.g., scientific equipment) | Allowable provided that items with a unit cost of $5000 or more have the prior approval of the sponsor | Allowable with prior approval | Same as State sponsors |
Equipment - general purpose (e.g., office, computer equipment) | Unallowable, except where approved in advance by the sponsor | Same as Federal sponsors | Same as Federal sponsors |
Goods and services for personal use | Unallowable | Unallowable | Unallowable |
Insurance | Costs of insurance required or approved pursuant to the sponsored agreement are allowable; otherwise treated as an F&A cost | Same as Federal sponsors | Same as Federal sponsors |
Materials and supplies | Allowable when necessary to meet the specific requirements of the sponsored agreement | Same as Federal sponsors | Same as Federal sponsors |
Office supplies | Unallowable as a direct cost, except where extensive use of office supplies is necessary to meet the requirements of the sponsored agreement | Allowable, provided the supplies are reasonable and directly related to the work of the sponsored agreement | Same as State sponsors |
Meetings and conferences | Allowable provided the primary purpose of the meeting or conference is the dissemination of sponsored agreement-related information | Same as Federal sponsors | Same as Federal sponsors |
Memberships, subscriptions, and professional activity costs | Generally unallowable as a direct cost except when necessary to meet the technical requirements of the award. The cost of membership in any civic or community organization is unallowable. | Same as Federal sponsors | Same as Federal sponsors |
Postage | Unallowable as a direct cost, except when extensively used (FedEx, UPS, etc....) or necessary to meet the technical requirements of the award | Allowable provided the postage is reasonable and directly related to the work of the sponsored agreement | Same as State sponsors |
Proposal development costs | Unallowable as a direct cost | Same as Federal sponsors | Same as Federal sponsors |
Prizes & Awards |
Unallowable. See 2 CFR §200.445 |
Unallowable | Unallowable |
Professional journal publications | Allowable where the article reports sponsor-supported work and the costs are levied impartially on all papers published by the journal | Same as Federal sponsors | Same as Federal sponsors |
Scholarships - Merit | Allowable only when the purpose of the sponsored agreement is to provide training to selected participants and the charge is approved by the sponsor. See 2 CFR §200.466 | Same as Federal sponsors | Allowable when approved in advance by the sponsor |
Taxes | Unallowable when exemptions are available to the University (e.g., sales tax) or are available to the University based on exemptions afforded the Federal government | Same as Federal sponsors | Same as Federal sponsors |
Telephone - local | Unallowable as a direct cost | Same as Federal sponsors | Same as Federal sponsors |
Travel - domestic | Allowable provided the travel is reasonable and related to the work of the sponsored agreement | Same as Federal sponsors. However, domestic travel is generally restricted to New York State. | Same as Federal sponsors |
Travel - international | Allowable provided the travel is reasonable, directly related to the work of the sponsored agreement, and compliant with the requirements of the Fly America Act | Generally unallowable unless specifically approved in advance | Allowable when approved in advance by the sponsor |
Tuition Remission | Allowable for graduate students and Ph.D. candidates at 50% of the University's published tuition rates. The charge must be approved in advance by the sponsor | Same as Federal sponsors | Same as Federal sponsors |
Salary, Wages, and Stipends
Payment Type | Federal Sponsor | State Sponsor | Private Sponsor |
---|---|---|---|
Faculty and professional staff | Allowable provided the salary is reasonable, directly related to the work of the sponsored agreement, and documented in accordance with 2 CFR §200.430 | Allowable provided the salary is reasonable, directly related to the work of the sponsored agreement, and documented in accordance with University procedures | Same as State sponsors |
Summer salary | Allowable at a rate (26.3%) not in excess of the base salary divided by the period to which the base salary relates. | Same as Federal sponsors | Same as Federal sponsors |
Post doctoral associate | Allowable provided the salary is reasonable, directly related to the work of the sponsored agreement, and documented in accordance with 2 CFR §200.466 | Allowable provided the salary is reasonable, directly related to the work of the sponsored agreement, and documented in accordance with University procedures | Same as State sponsors |
Administrative and clerical staff |
Unallowable as a direct cost unless the following conditions are met (2 CFR §200.413): (1) Administrative or clerical services are integral to a project or activity; |
Allowable provided the wages are reasonable, directly related to the work of the sponsored agreement, and documented in accordance with University procedures | Same as State sponsors |
Graduate Assistant wages | Allowable provided the wages are reasonable, directly related to the work of the sponsored agreement, and documented in accordance with 2 CFR §200.430 | Allowable provided the wages are reasonable, directly related to the work of the sponsored agreement, and documented in accordance with University procedures | Same as State sponsors |
Graduate Teaching Assistants salary | Allowable only when the purpose of the sponsored agreement is instruction or training, the charge is approved in advance by the sponsor and documented in accordance with 2 CFR §200.430. | Same as Federal sponsors | Same as Federal sponsors |
Graduate Research Assistant stipend | Allowable when a degree seeking graduate student performs original, professional research related to his or her academic program. The student must be fully matriculated in a graduate or Ph.D. degree program and be under the supervision of an appropriate faculty member | Same as Federal sponsors | Same as Federal sponsors |
Other Stipends | Allowable only when the purpose of the sponsored agreement is to provide training to selected participants and the charge is approved by the sponsor | Same as Federal sponsors | Same as Federal sponsors |
Student Wages - Academic Year | Allowable provided the wages are reasonable, directly related to the work of the sponsored agreement, and documented in accordance with 2 CFR §200.430 | Allowable provided the wages are reasonable, directly related to the work of the sponsored agreement, and documented in accordance with University procedures | Same as State sponsors |
Other Student Wages - Summer | Allowable provided the wages are reasonable, directly related to the work of the sponsored agreement and documented in accordance with 2 CFR §200.430 | Allowable provided the wages are reasonable, directly related to the work of the sponsored agreement, and documented in accordance with University procedures | Same as State sponsors |
Definitions
Allowable Costs
2 CFR §200 Subpart E- Cost Principles identifies direct and indirect costs that may be charged to federal grants and contracts, otherwise known as sponsored agreements. 2 CFR §200 Subpart E also identifies those charges that cannot be charged to sponsored agreements and are considered unallowable expenses. 2 CFR §200 Subpart E offers the factors affecting the allowability of costs applied to federally sponsored agreements.
Allowable costs must be:
- Reasonable - For a cost to be considered reasonable, it must be necessary for fulfillment of the agreement, acquired by means consistent with federal and state laws and regulations, and consistent with University policies and practices.
- Allocable - A cost is allocable to a sponsored agreement if the goods/services involved are charged in accordance with the relative benefits received by that agreement. To be considered allocable, a cost must be incurred solely to advance the work under the sponsored agreement or benefit both the sponsored agreement and other work of the institution in proportions that can be approximated through use of reasonable cost allocation methods.
Note: Any cost that is allocable to a particular sponsored agreement may not be moved (e.g., cost transfer) to another sponsored agreement in order to meet deficiencies caused by overruns or other funding considerations, to avoid restrictions imposed by law or by terms of the sponsored agreement, or for other reasons of convenience. - Treated consistently throughout the University - similar costs normally cannot be treated as both direct and indirect costs.
- Conform to any limitations or exclusions in the sponsored agreement.
Direct Costs
According to 2 CFR §200.413, direct costs are those costs that can be identified specifically with a particular sponsored project, an instructional activity, or any other institutional activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.
- compensation of employees for performance of services under the sponsored agreement including related benefit costs;
- costs of materials consumed or expended in the performance of the work;
- travel, including expenses for transportation, lodging, subsistence, and related items incurred by employees who are traveling on official business directly related to the sponsored project
Indirect/F&A Costs
Costs incurred for common or joint objectives which cannot be identified specifically with a particular sponsored project are treated as indirect costs. Examples include:
- utilities, maintenance and operation
- building and equipment use expenses
- administrative costs (see details below)
- library costs
- student service costs
Most sponsored agreements include a percentage of the direct cost to cover these charges known as the Facilities and Administrative Cost Rate (F&A).
Administrative Costs
Federal regulations limit instances where administrative costs can be charged to grants and contracts. The following is a list of the types of expenses that are generally not allowable as a direct cost per the Federal government. An exception may be made if there is EXTENSIVE use of such expenses, the expenses have been properly justified/documented in the grant/contract proposal, and they have been approved as a direct cost by the appropriate federal agency.
The most common administrative costs are:
- Administrative and clerical salaries and wages
- Printing and copying costs
- Office supplies
- Postage and mail
- Telephone and internet expense