Manage Expenditures

Allowable, Allocable, Reasonable and Consistently Treated Costs

SU follows the cost principles presented in the Uniform Guidance. To be charged to a sponsored project, each cost must be allowable,  allocable, reasonable, and consistently treated.

When is a cost allowable?

• When it is permitted according to the terms and condition of the specific award, SU policies and federal regulations
  • Costs unallowable per SU policy are not allowable unless a waiver of University policy is obtained.
• When it serves a purpose consistent with the University’s mission, including research, instruction, and public service

When is a cost allocable?

• When the cost provides a sole benefit to the project; benefits the project and other work proportions that can be readily estimated; or its is necessary to the overall operation of SU (i.e., an indirect cost).

When is a cost reasonable?

• When it is necessary for the performance of the sponsored project or for University operations;
• When a prudent person would purchase the item at that price given the circumstances; and
• When the incurrence of the cost is consistent with established SU policies and practices.

When is a cost consistently treated?

• When like expenses are treated in the same manner under like circumstances. That is, costs are either directly charged to the award or included in F&A recovery, not both.

Principal Investigators/project directors are expected to review regularly their award’s expenditures to ensure that all costs are correctly described and posted. Errors can result from transpositions of numbers during data entry or the misunderstanding or miscommunication of instructions given to those processing expenditures. Sponsors expect such errors to be corrected in a timely manner. Correction of errors ordinarily is considered timely when processed within 2 months following the journal date, as long as it is within the same fiscal year. Fiscal year end may reduce the window of opportunity to correct errors.  These internal deadlines are well publicized by the Comptroller’s office prior to year-end.

While cost transfers are expected from time to time, excessive cost transfers or those that occur predominantly at the end of a project are suggestive of lax oversight or ‘spending down’ an award, which is expressly not allowed under the federal regulations.

Please see the Office of Sponsored Accounting website for further information.

Requesting Payment from a Sponsored Program (Fund 13)

The extra service/overload (ES/OL) Request for Additional Pay (RAP) workflow includes OSP approval for activities paid by a fund 13 (sponsored) or fund 11 + project tail (sponsored cost share). OSP review and approval precedes Office of Sponsored Accounting’s review and approval.

Extra Service/Overload account code: 549979

What documentation does OSP require for ES/OL RAP workflow approval?

The following documentation in OSP’s records will support OSP RAP approval:

AT PROPOSAL SUBMISSION

1.  Proposal contents

a)   The proposal budget includes use of FICA only fringe rate; and

b)   the individual(s) is(are) named; and

c)    the activity is disclosed as ES/OL (work over and above institutional responsibilities) in the budget justification or proposal narrative .

2.  Approval by employee’s Chair / Supervisor on Internal Routing & Review Form

a)    ES/ OL is indicated on Internal Routing and Review form (IRR) (#4 f) and the chair or supervisor of the individual identified in the proposal as performing ES/OL has signed the IRR.

or

b)    When older versions of the IRR were used, which do not include ES/OL disclosure and approval, the Chair/supervisor notifies OSP via email of his/her approval prior to the work being performed.

POST AWARD

In the event ES or OL was not anticipated in the budget submitted or ES/OL was indicated, but the individual(s) was (were) “To Be Named”, OSP requires the approval of the faculty or staff member’s chair or supervisor to ensure that the activity is in fact ES or OL. OSP’s review also confirms that the compensation amount is reasonable for the work to be performed.

We strongly recommend that the PI in collaboration with the faculty/staff member document their mutual understanding of the activity, dates of service, and amount of compensation prior to the work being performed. This documentation ought to be approved in advance of performing the work by the chair/supervisor and dean, when required by the unit. See, for example, the MOU for ES/OL, which some units have used with considerable success.

The PI (or budget manager if so delegated) completes the MOU for ES/OL activities and emails the completed form to the OSP Research Administrator for review before an individual engages in extra service or overload activities.

The MOU should be signed by the PI, the individual to perform ES or OL and that individual’s chair or supervisor to approve the activity as ES or OL prior to the work occurring.

OSP’s actions:

Depending on facts and circumstances applicable to the request, OSP may:

• Approve outright;
• Disapprove because extra service is not allowable (i.e., PI’s, co-PIs or key personnel may not receive ES on an award for which they serve in these roles); or
• Obtain prior approval from the sponsor (mandatory for faculty on all federal awards).

OSP will notify the department and OSA of its and sponsor’s determination, as applicable.

What to do before you (or the SU employee) depart?

Determine what will be unallowable and allowable travel expenses before you depart

• Review the award’s terms and conditions for allowable expenses; some sponsors defer to the University’s travel policy http://supolicies.syr.edu/admin/travel.htm.
  • Common,ordinarily allowable expenses for international activities include travel, ground transportation, itemized receipts for meals, transcription or translation services.
• The award document is the ultimate guide for determinations of allowability; if silent – SU policies ordinarily apply.

Consider requesting a travel advance if you don’t have an SU credit card

• Enroll in direct deposit for travel advances as well as reimbursements
  • GO TO: myslice.syr.edu | Employee Services | Employee Reimbursement
  • SU matriculated students can sign up for direct deposit at (Yes – you might not be an employee but this should still work)
• Request the advance at least two weeks before departure to ensure funds are available when needed
  • For travel expenses only, use the travel voucher.
  • For travel and research expenses, use the Employee Expense Reimbursement Request form located here.
    • Distinguish costs for travel advance and research activities (estimated amounts for each)

Determine if your grant allows “pre-award expenditures” to facilitate essential travel expenditures.

• Contact OSP for guidance (process similar to forward funding request).
• Pre-award expenditures will not allowable for agencies/programs that require prior approval of international travel, e.g., Dept of Defense and associated services or US Dept of Education.

Confirm you have sponsor prior approval for international travel prior to purchasing tickets.

• Check the award’s terms and conditions, budget and budget narrative
• NOTE: Some federal agencies have waived the need for prior approval, but for others i.e. defense agencies, prior approval is required even if written into the approved budget (see https://www.nsf.gov/awards/managing/rtc.jsp).
  • Work with OSP well in advance; some agencies are notoriously slow in approving foreign travel, e.g. NSA
  • The cost of int’l travel will be disallowed if necessary approvals are not obtained.

If travel will be supported by a federal agency, be sure to fly on a US air carrier or code share arrangement (US carrier is on the ticket stub) unless an exception or Open Skies Agreement applies.

• Consider working with BTI – request expert in international travel
• Use Travelocity, Expedia etc to use/identify US carriers.  Or book directly through a US carrier.
  • NOTE: There are some exceptions to “Fly America Act.”
  • Work with OSP before booking ticket to identify if applicable or for any questions.
  • Save all search results in your files to document; sort travel results by duration and print copy for your files.

Check the state department for travel warnings and alerts

Warnings (long term) and Alerts (short term):  https://travel.state.gov/content/passports/en/alertswarnings.html

Country specific information https://travel.state.gov/content/passports/en/alertswarnings.html

• If the destination is listed under warnings or alerts, (i.e. “considered not suited for travel”) approval from the Vice Chancellor is needed.
  • Secure this approval before tickets are purchased; be sure OSP and OSA are copied on decision.
  • If circumstances change, please contact OSP for guidance.

Have your department’s budget manager (or whomever is applicable) book travel-related expenditures on their University credit card. 

• Reminder, only the card owner may make these charges.
• Trip insurance etc only benefits the card holder

What to do when abroad to streamline reimbursement on return

Document expenses daily while you’re away

• Record them in a little black note-book, a loose-leaf binder or similar aide
• Bring along a 30 day expandable folder for receipts
• Don’t tape over ‘thermal tape’ receipts, because the information will be lost
• Note the purpose of the expenditure on receipts or in your log as memories fade
• Bring a receipt book with you, for occasions where receipts not the norm.  At a minimum, keep your daily expenditure log current as that will be suitable means of documentation.
• You must have an itemized folio for hotel lodging
  • There are no exceptions to this requirement

Facilitating reimbursement on your return

Submit the travel voucher, your corresponding and organized receipts and expenditure log in a timely manner (i.e. ideally within two weeks of your return).

• Currency conversion: Convert international currency to US dollars
  • Plug in currency, date rate, and select CSV for format
  • Copy data to word,  replace spaces with tab, convert text to table,  copy to excel, copy again, past special, transposed
  • When you have a range of dates: http://www.oanda.com/convert/fxhistory
  • For a single or few dates: http://www.oanda.com/converter/classic
  • For extended travel aboard:
    • Document details on a single spread sheet; roll-up amounts in travel voucher categories and present on “University” travel voucher
    • Clarify in ‘notes’ that exchange rate applied is the rate in effect on date currency was exchanged.
    • For un-receipted currency exchange:  the rate in effect on the date of purchase will be applied.

Whether food or meals are an allowable expense on a federally sponsored project can be a source of confusion.  Meals are ordinarily considered an entertainment cost, which are not allowable on federal awards; however, food or meals can be charged under some circumstances.

When can meals or food ordinarily be charged to a federal sponsored award?

• When the person receiving the meal is on travel status (see exception below)
• When the meal is integral to and a necessary part of a conference or workshop
• Incidental items such as non-alcoholic beverages or snacks for coffee breaks may also be allowable

Ordinarily the costs for food or meals when on travel status or for conferences is explicitly included in the budget justification of the award.

When are meals not allowable on a federally sponsored award?

• When the meal is included in conference registration fee for the person on travel status
• When the meal is not integral or necessary part of the conference

The greatest source of confusion regarding the allowability of meals is associated with activities supporting collaborations.

Example #1: On a collaborative research award, scientists from other institutions come to Syracuse University to discuss research results. The meeting is not included in the budget justification and there is no meeting agenda. In this instance, the costs of the visiting scientists’ meals are allowable, as they are on travel status. However, the costs of meals for the SU personnel are not allowable as they are not essential to the activity.

Example #2:  A budget justification for a training program includes meetings whose participants are non-SU trainees and SU faculty. There is an agenda that includes lunch; however, the participants break for lunch and eat at Panda West. In this case, the cost of meals for trainees is allowable, but meals for SU faculty are not allowable as the meal is not essential to the event, as indicated in part by the location of the meal.

What documentation is needed to substantiate the costs of food or meals?

• Original, itemized receipts showing detailed list of food and beverages purchased and the name(s) of participant/traveler.
  • Provision of itemized receipts demonstrates that unallowable costs (e.g., alcoholic beverages or unreasonably costly meals) are either (a) not part of the expense, or (b) will be charged to another, appropriate SU chartstring.
• Conference registration information, if applicable, to document that the meals were not also provided by the conference.
• In the event that an itemized receipt is unavailable, the travel reimbursement form should indicate that no alcoholic beverages were included in the expense; if alcohol was purchased, the amount should be specified and charged to another appropriate SU chartstring.
• For conferences and workshops: invoices or receipts for food or meals should be accompanied by a list of participants’ names and affiliations, as well as the conference/workshop agenda, which makes clear the purpose of the activity.

Salaries of Administrative and Clerical Personnel – The salaries of administrative and clerical personnel are normally treated as an indirect cost unless they meet the definition of “unlike purpose and circumstance” and are integral to the award. As stipulated in the Uniform Guidance, direct charging of administrative salaries is allowable when all of the following 4 conditions are met:

• Administrative or clerical services are integral to a project or activity;
• Individuals involved can be specifically identified with the project or activity;
• Such expenses are explicitly included in the budget or have the prior written approval of the federal awarding agency; and
• The costs are not also recovered as indirect costs.
• NOTE:  if the item is not included in the awarded budget or the proposed budget narrative, OSP approval post award is required.

Please contact the Treasurer’s office (x1957) or purchasing (x2281) for questions regarding:

• Credit Cards – are a convenient form of payment.
• Sales tax incurred on credit card
• Work with Purchasing to get the Best Prices on Goods & Services
• Wire transfers – foreign transactions

Unallowable costs are those expressly disallowed in an award or its solicitation, which was incorporated by reference in the award.

The cost principles also identify certain activities and specific items of cost as unallowable. However an award’s terms and conditions may identify specific costs as unallowable that would ordinarily be allowable under the cost principles or SU policy. Some examples include prohibitions on international travel, tuition, equipment.

Unallowable activities include:

• Alumni activities
• Organized fundraising
• Lobbying
• Commencement and Convocation
• General public relations and alumni activities
• Student activities such as intramural activities and student clubs
• Managing investments solely to enhance income
• Prosecuting claims against the federal government
• Defending or prosecuting certain criminal, civil, or administrative proceedings
• Housing and personal living expenses of University officers
• Selling or marketing of goods and services (does not include selling goods or services internal to SU by any service centers)

Unallowable costs include:

• Advertising (only certain types are allowable)
• Alcoholic beverages
• Entertainment
• Fundraising or lobbying costs
• Fines and penalties
• Memorabilia or promotional materials
• Relocation costs if employee resigns within 12 months
• Certain recruitment costs, such as color advertising
• Certain travel costs, such as first-class travel
• Cash donations to other parties, such as donations to other universities
• Interest payments, except certain interest specifically coded as paid to outside parties and authorized by SU
• Membership in civic, community, and social organizations or in dining and country clubs
• Goods or services for the personal use of employees, including automobiles
• Insurance against defects in the University’s workmanship

The subrecipient monitoring process consists of two components. The first is a general assessment of the entity receiving the subaward; the second is the on-going monitoring of each active subaward.

The procedures for each are summarized and displayed in process maps in the attached document