University of Vermont

Sponsored Project Administration - SPA

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Cost Policy on Sponsored Agreements - New July 1, 2012

10-08-12 - PeopleSoft Accounts and F-Levels link updated (scroll down toward bottom)

Please find below some helpful information about UVM's new Cost Policy for Sponsored Projects, which went into effect on July 1, 2012.  As many of you already know from earlier training sessions, the policy provides guidance for properly allocating expenses to all sponsored projects, including federal formula fund awards.

Cost Policy on Sponsored Agreements 

Training Power-Point link

  • Among other things, the new Cost Policy addresses the concept of charging expenses in a consistent manner as either a direct or indirect cost. 

  • Costs that are typically considered indirect may only be directly charged to federally funded sponsored projects (or as cost share on those projects) in “unlike circumstances.”  

  • If an unlike circumstance exists, it is perfectly allowable to directly charge these typically indirect costs and therefore we have form to evaluate and document the process. 

  • The form is entitled the Direct Cost Justification Form and should be completed and approved prior to proposal submission, if there is a known unlike circumstance identified at that time, or after the award is accepted and set up.

  • The Direct Cost Justification Form is required before any of the following costs, shown along with their respective F level budgetary account, may be directly charged to a federal project:

Cost CategoryF Level Budget Account
Adminstrative & Clerical SalariesUnder existing F5000
General Supplies & ServicesF6002
Computer Supplies & ServicesF6020
Memberships & SubscriptionsF6006
Equipment MaintenanceF6510
Work OrdersF6007
Telephone and TelecomF6320

UVM Sponsored Project Direct Cost Justification Form

UVM Sponsored Project Direct Cost Justification Form - also  available in Forms Library

Administrative Titles

A list of Administrative titles is available here.

List of Administrative Titles link

Process Flows

Please find below the link to the process flow documents that can help you figure out when the form is needed and how it will work.

Process Flow Documents link

To aid in the implementation and management of the Cost Policy, we have made several positive changes in PeopleSoft.  Based on feedback from end users across campus, we created the following new expense accounts to facilitate coding of expenses:

AccountAccount DescriptionF Level Budget Account
60506Domestic Travel - Internet SvcF6050
60526Foreign Travel - Internat SvcF6052
63508Rental - External Facilities - short termF6000
80214Participant Related ICF6101
64039Certification FeesF6999
61265Advertising for Subjects / ParticipatnsF6000

We created a number of additional F level budget accounts and moved expense accounts from existing F level budget accounts to these new F level budget accounts to assist with the roll out of the new policy. 

Please find below a comprehensive spreadsheet which identifies all expense accounts with their associated budgetary account prior to July 1, 2012 and on and after July 1, 2012.

PeopleSoft Accounts and F Levels link - updated 10-08-12

We also made changes financial reports in PeopleSoft. 

Please find below a document that contains that some information clarifying the changes.

Helpful Information about PeopleSoft Changes link

For more helpful information about the cost policy, please go to UVM"s Cost Accounting Services website that has FAQs and examples.

Last modified October 09 2012 01:32 PM

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