In this Open Comment: Section 22 - Charge Self-Supporting Goods and Services to Sponsored Project Funds
A new policy and procedure will be in place for charging self-supporting goods and services to sponsored project funds. This change is to comply with the new policy from the Federal Office of Management & Budget, titled "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards" (also called OMB Uniform Guidance). Please review the new section titled "Charge Self-Supporting Goods and Services to Sponsored Projects" and provide comments.
Please review this policy and submit your feedback. Thank you!
Charge Self-Supporting Goods and Services to Sponsored Project Funds
Before You Begin
Federal sponsored project guidelines limit the timeframe in which charges to a sponsored award must be posted following the close of the funded activity’s performance period (Code of Federal Regulations §200.343). Some sponsors also limit the billing timeframe for each budget year within a multi-year project. Timely billing of University internal charges to sponsored project funds is necessary to assure that the sponsor will reimburse all charges.
To comply with this requirement, any self-supporting activity that provides goods or services to a sponsored project must bill the related project fund monthly. Units with sponsored awards that require billing all project costs within thirty days of closing the project must notify related self-supporting activities of the billing deadline, and the self-supporting activity must then bill the project for all related goods and services before that deadline.
Unreimbursed charges must be paid by:
- The unit that operates the self-supporting activity, when that unit failed to bill within the required timeframe
- The unit that requested the service, when that unit failed to notify the self-supporting activity of more stringent billing deadlines, or provide other needed billing information, such as the C-FOAPAL.
Units may negotiate who pays unreimbursed charges when responsibility is shared.
Banner program code designated for exclusion from campus indirect cost studies. The self-supporting activity cannot recover the unreimbursed charge from future charges for goods or services or otherwise absorb the charge, such as by only reversing the billing and related revenue. If the responsible unit does not have any state, institutional, or gift funds, contact OBFS University Accounting and Financial Reporting to discuss options.
To charge self-supporting goods and services to sponsored project funds:
- Determine whether the activity’s customer base includes charges to sponsored project funds.
- If the activity will charge a sponsored project fund currently or in the future, implement billing procedures to assure charges are billed monthly.
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