Office of Sponsored Programs - 500.22 - Unallowable Expenditures and Overdrafts

Title

Office of Sponsored Programs - 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 Programs (OSP) 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 OSP’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. OSP 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

• Research Administration Glossary at Carolina
• UNC Finance - Accounting Services

Unit Policies, Standards, & Procedures

• OSP Operating Standards 500.22, Procedure 1 - Unallowable Expenditures and Overdrafts

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.