Office of Sponsored Research - 500.22 - Unallowable Expenditures and Overdrafts

Title

Office of Sponsored Research - 500.22 - Unallowable Expenditures and Overdrafts

Purpose

To receive funding, the University must adhere to Federal, State, and University guidelines regarding financial oversight of sponsored projects.

Policy Statement

Principal Investigators (PIs) and Departmental Administrators (DAs) are responsible for tracking expenditures to prevent unallowable expenditures and overdrafts on sponsored projects. PIs and DAs must immediately resolve unallowable expenses and cost overdrafts as soon as they are identified. These expenses will not be billed to the sponsor and must be removed from the project.

The Office of Sponsored Research (OSR) monitors sponsored projects to ensure resolution of unallowable expenditures and overdrafts in conjunction with the administrating department. If the unallowable expenses and overdrafts are not removed within the timeframe indicated in OSR’s communication, the expenses will be charged to the administrating department’s unrestricted chartfield string.

Roles and Responsibilities

I. PI & DA Responsibilities

  • Reviewing and reconciling sponsored projects on a monthly basis to ensure that all expenditures are correct and appropriate
  • The PI is responsible for authorizing direct charges in accordance with Uniform Guidance 2 CFR §200.413 and applicable funding agency guidelines
  • The DA is responsible for removing all unallowable expenses or correcting overdrafts immediately

II. OSR Responsibilities

  • Managing regulatory compliance with Federal, University, and sponsor guidelines
  • Maintenance of individual Project IDs for sponsored projects
  • Review of transactions on sponsored funds
  • Removing any unallowable or overdraft charges from a sponsored project if not completed by the department

Definitions

  • Expenditures: All charges made to a sponsored project.
  • Unallowable: Expenditures that do not meet the Cost Principles and are not able to be charged to a sponsor based on applicable Federal, Sponsor, or University regulations.
  • Overdraft: All charges more than the obligated funds provided by the sponsor; a negative balance.

Related Requirements

Unit Policies, Standards, & Procedures

Contact Information

For questions regarding this operating standard and its related procedure, please contact ResAdminOSR@unc.edu.

For questions regarding Pre-Award management or Post-Award administration, please contact the assigned Sponsored Projects Specialist (SPS).

For invoicing, reporting and other financial matters, please contact the assigned Sponsored Projects Accountant. OSR Staff assignments are found in RAMSeS or on the OSR website.

History

Document History
Date Revision
05/15/2018 Revised to coincide with the release of the new OSR Website.

The operating standards in the Office of Sponsored Research Operating Standards & Procedures Manual supersede any OSR operating standards, procedures and appendices previously included in the University Business Manual, a publication of UNC-Chapel Hill’s Division of Finance.

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Details

Article ID: 132327
Created
Thu 4/8/21 9:28 PM
Modified
Fri 7/23/21 1:15 AM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
02/19/2021 9:19 AM
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Distinguished Professor
Last Review
Date on which the most recent document review was completed.
02/19/2021 9:19 AM
Last Revised
Date on which the most recent changes to this document were approved.
05/17/2019 12:00 AM
Origination
Date on which the original version of this document was first made official.
07/01/2008 12:00 AM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Research