Grant Proposal Effort on Sponsored Agreements

For compliance purposes, effort associated with proposal preparation is accounted for as an indirect cost only at the University. Federal regulations state that proposal preparation is a department administration expense and shall be treated as an indirect cost.

Direct charging of proposal preparation effort is unallowable on sponsored agreements. Proposal preparation activities include the effort associated with competitive renewal proposals.

Direct charging of this effort may result in the double charging of a sponsored agreement.  Specifically, Facilities and Administrative rates are used to charge sponsored agreements for indirect costs incurred by the University to support the objectives of sponsored agreements. Proposal preparation costs are included in the F&A rates. Direct charging of effort associated with proposal preparation would result in double charging the sponsor.