Office of Sponsored Programs - 600.04 - Sponsored Project Expenditures Accounting

Title

Office of Sponsored Programs - 600.04 - Sponsored Project Expenditures Accounting

Purpose

An awareness of the co-dependent relationship between departments and the Office of Sponsored Programs (OSP) underscores the significant impact each has in producing accurate, timely reports to sponsors and helps maximize expenditures efficiently. This operating standard provides common protocols for maintaining sponsored award accounts that uphold the integrity of research at the University.

Policy Statement

Since sponsored research utilizes funds belonging to organizations other than the University, OSP and the administering department work in tandem to provide fully-defined financial information to the sponsoring agency for all required financial reports.

Departments are expected to stridently follow the terms and conditions of the award when spending and recording expenditures. For reporting purposes, the following general standards apply:

• All expenditures must follow the protocols for direct and indirect costs as established in 2 CFR §200 Subpart E.
• Each line item must be described precisely to ensure funds are being expended properly. This is a requirement of the final report at closeout and is best practiced throughout the life of the project by use of a shadow system.
• No spending is allowable after the end date of an award period. Expenditures must occur within the assigned project period.
• The amount of funding for an established award is finite; thus, overspending on a project is unacceptable.

Financial reports are reviewed by OSP and sponsoring agencies for consistent spending behavior throughout the life of a project. Irregularities in spending habits are susceptible to questioning. To avoid the appearance of erratic or improper spending, it is critical that departments begin incurring expenses immediately and on a regular basis.

Departments are also responsible for maintaining and tracking current financial data in ConnectCarolina and for items that do not yet appear in the system. This includes maintaining accurate job titles, expensing to the correct categories for specific supplies and maintaining accurate personnel forms, including the number of hours worked.

When they are due, by utilizing the financial information in ConnectCarolina as well as information tracked by the department, OSP is responsible for preparing and submitting financial reports on behalf of the PI. OSP submits financial reports to the sponsor and makes these reports available to the administering department.

Exclusions

• Overdrafts are unallowable on sponsored project accounts. In such cases, the administering department will be required to pay for overdrafts from departmental accounts.
• Program income, the gross revenue earned from sponsored activities, which is borne as a direct cost toward meeting cost sharing or matching requirements, must be disclosed following specific agency requirements on periodical and final financial reports.

Related Requirements

• Research Administration Glossary at Carolina
• 2 CFR §200 Subpart E - Cost Principles

Unit Policies, Standards, & Procedures

• OSP Operating Standard 600.05 - Effort Reporting

Contact Information

For questions regarding this operating standard and its related procedure, please contact SponsoredPrograms@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. OSP Staff assignments are found in RAMSeS or on the OSP website.

History

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