REG 10.05.12 – Sponsored Awards – Expenditures

Authority: Vice Chancellor for Finance and Administration

History: First Issued: January 1, 2002. Last Revised: March 3, 2004.

Additional References:
Contracts and Grants Website
Office of Management and Budget

Contact Info: Assistant Director, Systems and Compliance (919-515-8011) Office of Contracts and Grants.

1. Introduction

This statement provides the criteria to be used by Colleges/Schools/Departments/Units when performing “preaudit” and compliance reviews to determine whether costs may be charged to sponsored awards.

2. Rule

2.1. Due to the restrictive nature of sponsored awards, expenditures charged to these projects must comply with all applicable regulations. These regulations will vary with each award, but generally include:

2.1.1. UNC General Administration, State, and University regulations and procedures (travel reimbursements, consulting, payroll, purchasing, etc.),

2.1.2. the University’s Cost Accounting Disclosure Statement,

2.1.3. OMB Circular A-21, and

2.1.4. specific Sponsor regulations.

2.2. It is the responsibility of each college to perform “preaudit” reviews of all expenditures to sponsored awards to ensure that specific costs comply with all applicable regulations.

2.3. The budget as approved and awarded by the Sponsor, along with all policy restrictions must be consulted/reviewed prior to posting expenditures to any given award.

2.4. The Prior Approval Request process should be used to obtain prior approval for specific re-budget issues and other post-award costing requests. For more information on the Prior Approval Request process, refer to NCSU REG10.05.07 – Post Award Administrative Prior Approval Requests.

2.5. Expenditures for goods and services should not be made in an attempt to “spend out” a project’s available balance.

2.6. It is the responsibility of the Principal Investigator (PI) or Project Director to support and justify all direct costs charged to a sponsored award if questioned during an audit.

For more detailed information regarding the allow ability of expenditures, and a definition and examples of direct and facilities & administrative costs (including the treatment of administrative and clerical salaries), visit the Contracts and Grants website. For more detailed information regarding OMB Circular A-21, go to the Office of Management and Budget Website.