Grants Specialist Jennifer Kore is available to walk you through the terms of your award and relevant Rutgers policies. In addition, look below for general guidance regarding key aspects of award management.
- Award Management Activities
- When is a Cost Allowed?
- Which Actions Require Prior Approval from the Sponsor?
Award Management Activities
Key responsibilities include the following:
- Modifying the award budget, personnel, and timeframe. Significant budget revisions, change in key personnel, and no cost extensions generally require prior written approval from the sponsor. Contact Grants Specialist Jennifer Kore to facilitate these changes and secure any necessary approvals.
- Expending funds. As the leader of a sponsored project, you are responsible for carefully reviewing and approving expenditures by all contributors, collaborating institutions, and other contractors. Expenses are not permitted unless they are allowed by the sponsor and in accordance with the approved budget and Rutgers purchasing policies. Information about Rutgers policies is available from University Procurement Services.
- Monitoring budget expenditures. Federal audits consider the burn rate of award funds. Spikes in expenditures occurring near the end of the award period draw particular audit attention, as such increases may indicate unnecessary spending. To facilitate efficient spending, the finance team will prepare regular budget reconciliations. After comparing actual and projected spending to your current budget, you should work with Jennifer Kore to implement changes as needed.
- Completing progress and final reports. Sponsors generally request two types of reports: financial and programmatic. The Rutgers Division of Grants and Contract Accounting will submit financial reports. Project leaders are responsible for programmatic reports. Jennifer Kore is available to help complete and submit these reports.
- Acknowledging the sponsor. Many awards require than a specific acknowledgement of financial support be included in presentations or publications of results obtained using grant funds. The exact requirement will be spelled out in the award document or guidance specified therein.
Proper award administration involves many layers of administrative support. To see which office is the best suited to help you with a grant management activity, see our Help Directory.
When is a Cost Allowed?
As a general rule, a cost is allowed if it has been explicitly included in the budget approved by the sponsor. Exceptions occur for federal grants issued under conditions referred to as Expanded Authorities. For awards issued under these (fairly common) conditions, the onus is on Rutgers to ensure that all planned expenditures are consistent with the terms of the award; and Rutgers is accountable for any costs falling outside of these terms. These facts highlight the importance of preparing detailed budget justifications and working closely with the research services staff when creating and revising budgets.
General conditions under which costs are allowable under federal grants are set forth in the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. This “Uniform Guidance” is consistent with principles that many non-federal sponsors follow as well. As such, all project leaders should aware of the key aspects of this regulation.
To qualify as an allowable cost under the Uniform Guidance, a cost must meet the following standards:
- Be reasonable in its nature and amount. The cost may not exceed what a prudent person would spend for similar goods or services. Further, the cost must be if a type generally recognizable as needed for efficient performance under the award. Factors used to determinable whether a cost is reasonable can be found here.
- Be allocable to the award. Expenses are chargeable and assignable to the federal award in accordance with the relative benefits received. For example, if a workshop benefits 100 students and 40 of them are participants in a federally funded traineeship, then at most 40% of the direct costs of the workshop may be charged to the traineeship award. This requirement complicates matters when a federally funded project leader attends a conference in furtherance of a sponsored project. If attending the conference also furthers one or more goals that are unrelated to the project, the project leader must provide a reasonable means of determining what fraction of the cost can be allocated to the grant. The sponsor’s approval of a conference cost does not obviate this requirement.
- Meet any limitations specified in the specific award terms or included by reference.
- Food costs are disallowed unless explicitly approved by the sponsor. Contact us before charging any food costs to federal grants, even training awards.
- Administrative and clerical salaries are allowable as direct costs if the three conditions are met: 1) the services are integral to the project, 2) the individual’s specific role can be clearly identified with the project, and 3) the sponsor has provided prior written approval for the cost.
- Expressly disallowed costs include proposal preparation costs, alcoholic beverages, alumni activities, entertainment costs, lobbying costs, attorney fees to defend against federal government claims, bad debts, and parking permits for travelling to and from work.
- Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities.
- Be treated consistently. This means no double dipping. An expense may not be charged as a direct cost to a grant if a similar expense is treated as an indirect cost (overhead). For example, the School of Nursing provides computers for full-time administrative staff. If a nursing research grant supports the salary of a full-time administrative hire, that person’s computer is not an allowable direct expense to the grant. This cost for this standard issue is accounted for when Rutgers negotiates its indirect cost rate agreement and so should be paid by Rutgers.
- Be determined in accordance with generally accepted accounting principles. Rutgers financial policies are consistent with generally accepted accounting principals.At the time of application, project leaders should keep this requirement in mind when assessing the value of a committed cost share.
- Not be included as a cost share for any other federally-financed program.
- Be adequately documented. For example, if you attend a conference and allocate a portion to the cost to an award, you should document your reasons for determining the grant-related fraction of the cost.
To see the Uniform Guidance, look here.
Which Actions Require Prior Approval from the Sponsor?
Certain grant-related activities disallowed without prior written approval from the sponsor. These activities generally include, but are not limited to, the following:
- Changing the Scope of Work
- Changing the project leader or other key personnel named in the award notice
- Reducing the effort of the project leader or other key personnel named in award notice
- Adding administrative personnel to be paid with grant funds
- Changing collaborating institutions or subawards
- Making significant budget revisions
- Transferring funds out of the participant/trainee support category
- Adding patient care costs
- Incurring pre-award costs to be charged to the award
- Extending the award period
- Carrying forward balances from one grant year to the next
- Purchasing/disposing of equipment/real estate
Consult Jennifer Kore to determine which activities require prior approval under the conditions of your award. If prior approval is required, we will help you secure it from the sponsor.