The University of Kansas Center for Research, Inc. (KUCR) has
compiled the following policy and procedures related to expenditure
monitoring in accordance with the OMB
Circular A-21, Cost Principles for Educational Institutions.
All expenditures charged to externally-sponsored projects must
meet the following criteria:
- Costs must be reasonable. Both the nature and amount of a
cost must reflect prudent action at the time the decision was
made to incur the cost;
- Costs must be allocable: A cost must be incurred solely to
advance the work under the sponsored agreement. It must reasonably
benefit the sponsored agreement. It must be necessary to the
overall operation of the institution and can be assignable
to a specific sponsored project;
- Each cost must be given consistent treatment according to
generally accepted accounting principles appropriate to the
project; and
- Each cost must conform to principles outlined in OMB circulars
or specific agency guidelines.
Unallowable costs, which are not eligible for reimbursement
on sponsored projects, include, but are not limited to:
- Alcoholic beverages;
- Bad debts;
- Commencement or convocation costs;
- Contingency provisions;
- Contributions, donations, and remembrances;
- Entertainment;
- Fines and penalties;
- Fundraising;
- Goods or services for personal use of employees; and
- Lobbying.
In addition to Circular A-21, the University of Kansas Center
for Research is required to comply with the following cost
accounting standards:
- CAS 501 - Consistency in Estimating, Accumulating, and Reporting
Costs;
- CAS 502 - Consistency in Allocating Costs for the Same Purpose;
- CAS 505 - Accounting for Unallowable Costs; and
- CAS 506 - Cost Accounting Period.
All costs must be included in the awarded budget, or the cost
must be permitted within rebudgeting authority granted by the
sponsor.
Responsibilities
The Principal Investigator (PI), or departmental staff acting
on behalf of the PI, is responsible for the review and approval
of all transactions. The PI signature, indicating approval, is
required on all invoices, purchase requests, and travel expense
reports. The KUCR project number or account to charge must also
accompany each invoice.
The Business Services department is responsible for assisting
PIs and/or their support staff to expend their funding according
to generally accepted business practices as well as to determine
allowability and allocability to a research project. Business
Services also provides guidance and training to ensure compliance.
The Office of Post Award Services is responsible
for auditing sponsored project expenditures in accordance with
federal and sponsor guidelines by determining allowable and unallowable
costs. Post Award Services also provides guidance and training to ensure compliance.
Procedures
The PI, or departmental staff acting on behalf of the PI, initiates
payment by submitting invoices to Business Services or by entering
payment vouchers directly into the financial system.
Business Services receives all approved invoices. These are
audited and initialed for payment. After approval and clearance
by Post Award Services, the payments are made to vendors.
Questions? Please contact:
Barbara Armbrister
785-864-7688 | barmbris@ku.edu
Interim Manager | Post Award Services
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