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 Category	F Level Budget Account
Adminstrative & Clerical Salaries	Under existing F5000
General Supplies & Services	F6002
Computer Supplies & Services	F6020
Utilities	F6301
Memberships & Subscriptions	F6006
Equipment Maintenance	F6510
Work Orders	F6007
Telephone and Telecom	F6320

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:

Account	Account Description	F Level Budget Account
60506	Domestic Travel - Internet Svc	F6050
60526	Foreign Travel - Internat Svc	F6052
63508	Rental - External Facilities - short term	F6000
80214	Participant Related IC	F6101
64039	Certification Fees	F6999
61265	Advertising for Subjects / Participatns	F6000

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