Expenditures charged to a sponsored project are reviewed and approved by GCSR to confirm that the expense is consistent with the terms and conditions of the award and to identify that sufficient documentation and justification is provided.
An expense is allowable on a sponsored project if it meets the following criteria:
- Reasonable – a prudent person would have purchased this same item and paid same price; an arms-length arrangement.
- Allocable – expense is allocated to a project in proportion to the benefits derived to the program objectives; the investigator is the responsible person who determines the proportional charge to the project.
- Consistently Treated – like expenses are treated the same by the institution given same circumstances.
- Allowable – all three above criteria met and the expense is permitted as a direct cost per the terms and conditions of the award.
Expenditures on Federal agreements are subject to the provisions of OMB Circular A-21 "Cost Principles of Educational Institutions". If you have questions regarding the allowability of an item, you are encouraged to contact GCSR prior to placing the purchase. Click A-21 Restrictions to read a notice regarding expenditures on Federal awards.
(4/9/2008)