New Award

Setting up a new award and following it to duration is a vital part of a Contract Manager's responsibility. We will address the process of setting up and reviewing a new award in the outline that follows.

The COE-ORA can set up a new award meeting with the faculty member(s) and department and a representative from the Office of Contracts and Grants. The purpose of the meeting is to discuss compliance issues, grant detail, specific guidelines, and responsibilities. These meetings have proven to be very successful with new faculty or administrative staff or for particularly complicated or multi-year projects. To arrange a meeting, please email Pat Hayes, director, with a copy to Laurinda Perez, assistant director, with reference to the 5 Ledger Project ID.

  • Contract Folder: Award File, a Budget File with Wolf Report printouts and a Cost Sharing File
  • Pending Folder (unpaid vouchers)
  • Paid Folder: File it by object code or by month of reconciliation. Just have a system in place that works for your department.
  • For Salaries, it is recommended to keep a copy of the appointment papers.
  • KABA (PDF): Time Collection Device: Temporary Employee: ledger five projects used, you must print out the time sheet and obtain original signatures for both the employee and the supervisor.  A C&G requirement to have certified effort on file since a temporary employee does not receive a TEARS report for effort certification.

  • Pre-Awards and Awards are one in the same. A Pre-Award and an Award share the same SPARCS Proposal Number (14xx) 0000-0000 and C&G WRS Project ID 5-XXXXX. A Pre-Award simply allows the PI to begin the work while the contract is being negotiated and ironed out. Once we receive the official award, the status on the project number is changed from pre- to award. For example, suppose a PI has a proposal for $50,000, and he requests a pre-award for $5,000 to begin the work while the contract is finalized. Once the official award is in place, then the project is set to the award status with a budget in place of $50,000. That $5,000 pre-award is part of the $50,000.
    • Send your requests for a pre-award account to Patrick Hayes with a copy to Laurinda Perez, who will then enter the action in RADAR (click here for fillable PDF) required by COE.
    • Documentation indicating status of pending award from Sponsor and PI
    • An existing PINS proposal must be in place.
    • The COE-ORA will request this in RADAR and will include the email address of the Contract Manager and the PI.
    • Please note that if the award fails to materialize, the department or unit will be responsible for all costs incurred on the pre-award account.

  • Notice of Sponsored Project Award: Example (PDF)
  • Check “College” and “Department.”
  • Check “Project Title.”
  • Check “Amount of This Action” and “Total Funding to Date.”
  • Check “Total Anticipated Funding” if applicable.
  • Check “Current Budget Period” and “Total Anticipated Project Period.”
  • Note whether it is New, Renewal, Supplement or Continuation.
  • Note the comments section of the award notice. Important information such as incremental funding, modifications, NCE, etc., . . . will be listed here.
  • Continuations, etc., will now even list who the Fiscal Manager is and the funding source (Federal, State, Industry).
  • New Award Notice Flow: Sponsored Programs & Regulatory Compliance Services (SPARCS) > Contracts and Grants (C&G) > College (COE-ORA) > Department – Contract Manager
  • Even though a PI may be notified that an agency is going to fund a proposal, the referenced flow above cannot take place until the agency sends an award to the SPARCS office.
  • If there is an immediate need to appoint a grad student or begin the research, then a “pre-award” is a viable option. (scroll down to item X.  Pre-Award Account)
  • If there are other PIs listed that are outside your department/unit, you will need to ensure they receive a copy of the award notice that you receive from the College. (This is so they can then make the request for a segment.)

  • Internal to NC State can only be requested once the Prime project id number has been established with a University accepted award (pre-awards do not count).
  • Will be prepared through The Chartfield Request System: Launched in March 2012, it replaces the BA-148 form to request new projects via the Financials System, including project segment requests for ledger 5. For Contracts and Grants Projects, the Chartfield Request System may ONLY be used to request a new segment (ADD), to inactivate existing segments (INACTIVATE) OR to change information/attributes on an existing segment (MODIFY).
  • Will be requested by the unit seeking the segment
  • Will need approval from the prime in writing when making the request

Whenever, there is a situation where “NCSU funds NCSU” such as in the case of SiSoC, FREEDM, CBeRD, CICI, FMMC, etc., we should use PINS or RADAR for particular actions such as NCE’s, additional funding or a combination of both.

  • If a PI is submitting a new proposal with one of our centers being the funding source (NCSU SiSoC, NSCU FREEDM, etc.), it would be processed the same as any proposal. Once it reaches the College level, we will review and approve. Once it has been imported into RADAR and assigned an SPS number, Pat Hayes/Laurinda Perez will go into RADAR and make the award via an internal distribution. Please note in most cases any new proposals going forward will have to have been approved by the center’s IAB. Of course, there can always be the exception, but we will approach them on a case-by-case basis.
  • If a PI is submitting a proposal for additional funding when one of our centers is being the funding source, it would be processed the same as any proposal. Please note in the comments the SPS number of the project as well as the funding source SPS. The project requesting additional funding is known as the “Target,” and the funding source is known as the “Source”. Pat Hayes/Laurinda Perez will review, approve and make the internal award via RADAR.
  • If a PI is just needing an NCE on a project funded by one of our centers, you will not need to do a PMR. Simply send Pat Hayes/Laurinda Perez an email stating the “Target” project and “Source” project, along with the date to extend too as well as the justification. COE-ORA will complete the NCE request via RADAR.
  • Any other post-award action on a project funded by one of our centers such as a rebudget will need to be processed via the PMR system.

Just remember an action of funding, additional funding, an NCE or a combination, should be completed by the College via RADAR.

SPARCS website: Awareness and Training Programs at NC State, Procedures, and Practices, Non-Sponsored Research Export Control Systems at NC State, Federal Rules, Regulations and Laws and Other Reference Materials and Current Events

  • Look closely at your contracts for any exceptions regarding export controls.
  • Foreign Nationals is an issue recently brought to the attention of the College.
  • Please contact Richard Best, export controls compliance officer in SPARCS, for more details concerning export controls.
  • Richard will be conducting training on this issue for Engineering.

Three often misunderstood facts about export controls:

  • Export controls not only apply to sending materials, items or information to other countries but to the transfer of such materials, items and information to foreign nationals within the United States – this means to your foreign graduate students, postdocs and colleagues. Export controls may also apply to the visual inspection of controlled technology by foreign nationals.
  • The penalties for export control violations are both civil and criminal in nature and may be applied to you personally as well as the institution under certain circumstances. These penalties include up to ten years imprisonment and fines reaching as high as $1,000,000 per violation.
  • Acceptance of any “side-deal” restrictions on what you publish as a result of your research is not only a violation of university policy but erodes and often destroys the fundamental research exclusion. You will be personally liable for such violations of the export control regulations.

  • Print Project Reports P1: Financial Balances by Project using the Web On-Line Financial (WOLF) Reports and make sure all categories match the budget that was enclosed with the award notice (example).
  • Pay close attention to salaries in Summer Salary (1116) REG 05.58.01: 4.5) Additional Compensation Paid through the University) and Release Time (1118) REG 05.58.01: 7.2.1.1) object codes.
  • A Budget Correction may be needed if the original budget is loaded incorrectly in WOLF due to a misinterpretation of the budget categories based on the approved budget or due to a keying error. A Budget Modification Request for a correction to the budget may be submitted within the first 90 days from the date the Project ID is set up.
  • This type of request may be submitted in two ways:
    • Through the PMR system as a Budget Modification Request: The Justification MUST indicate the request is a Budget Correction.
    • By email to the Fiscal Manager (copy both Pat Hayes/Richard Duckworth). The email must indicate the specific change necessary to correct the budget categories.
    • All requests submitted 91+ days after the date the Project ID is set up will be subject to the general rules for processing a Budget Modification Request.
  • All correction requests are subject to a final review of the agency approved budget and approval by C&G.

  • Summer Salary is closely scrutinized by our internal auditors due to a recent audit finding.
  • The Office of Contracts and Grants: information related to summer salary from sponsored project funds for 9-month faculty
  • OMB Circular A-21 allows that charges for work performed by faculty members on sponsored agreements during the summer months will be determined for each faculty member at a rate, not more than the base salary divided by the period to which the base salary relates. During the summer, a nine-month (academic year) EPA employee may work for NC State in teaching, research, extension, or some combination of these activities. An individual may earn up to a total of 33.33% of their nine-month salary across these areas.
  • If the SS is from National Science Foundation (NSF) funds, please ensure it is not greater than the two-ninths (2/9) rule (2 months) from all NSF-funded and NSF flow-through grants. Please reference NSF Salaries, Wages, and Fringe Benefits, section 611.1 Salary and Wages. Note: This is the responsibility of each department/unit within Engineering.
    • Pay close attention to the time frame for which you are paying SS. If it is for a complete three months, then ask yourself two questions:   Is the faculty member going to take a day off during this three-month time frame? Is the faculty member teaching in addition to his/her research?
    • If the answer is yes to either question, then you cannot charge a complete three months.
  • Sponsored Awards often provide varying policies on what is allowable for summer salary from a specific project. It is important always to be familiar with the agency specific guidelines regarding salaries, specifically the amount of summer salary allowable for any given period.
  • Checking now will help you when it comes time to prepare summer salary sheets (click here for fillable PDF).
  • Summer Salary is prepared for Summer Earnings for Nine-Month EPA Employee: May 16-31, June 1-30, July 1-31, and August 1-15
  • Once the SS (additional pay) form is sent to Connie Reno, assistant dean of personnel and administration in the college, she will give to Pat Hayes/Laurinda Perez to review and approve for all ledger five accounts.
  • You should only provide SS when it is part of the approved budget or when we have prepared a Project Modification Request (PMR) requesting SS, and the agency has approved it.

  • Please make sure you have addressed the following. If not, this will only delay your faculty member getting paid.
    • Tutorial: Administrative Summer Salary tutorial must be completed for any administrators who will be entering/approving Summer Salary. There is a Faculty Summer Salary tutorial that must be completed by any faculty member who is to receive Summer Salary in May, June, July or August.
    • Is the person you are requesting the SS for listed on the award notice or mentioned in the budget/budget justification? Note: You cannot pay SS for someone not working on the project either in the original proposal or via a post-award action.
    • Are the dates of the request within the budget period of the project? Remember “budget period” and “project period” are two different things.
    • Is the SS being requested available in the 1116 object code either in the original proposal or via a post-award action?
    • Does the overall salary category have sufficient funds? Even if it appears there are funds in the 1116 object code, but the overall salary category is in the negative, the SS will not be approved — the same if the overall project is in the negative.
    • If you have an ePAR pending approval for an SS action, please note such on the form.
    • If there is a continuation or supplemental proposal pending in RADAR, note such on the form.

  • Certification should not exceed one month per Summer Salary form.
    • If two months are paid in one payroll, two separate forms will need to be submitted. These must be completed by the 15th of the month following payment.
  • Summer salary should be paid for the actual time period worked.
    • Just because there is summer salary in the budget does not mean it has to be paid out to a PI. Effort must match payment.
  • Only 2 months summer salary (in most cases two months of a year) can be paid from NSF and NSF flow-through funds.
  • Summer salary should not be used to increase an employee’s FTE during the summer months.
  • Graduate students are not eligible for summer salary.
    See http://www.ncsu.edu/policies/employment/faculty/REG05.20.14.php for calculation information.
  • Twelve-month employees are not eligible for summer salary.
  • There are only three months in the summer. It would be impossible to teach a full load in the summer and work 100% for three months on a research project.
    • If three full months of summer salary are paid, the PI should be able to explain why no time was used for: proposal work or submission, administrative activities, supervision of graduate students on other
      projects, vacation or sick time.
  • Summer salary is not paid only from ledger 5 projects. It is often paid from multiple ledgers and the same rules apply to all.
  • Certification of pay earned during a pay period is not the same thing as a summer effort report.
    • Certification: is verifying that work was actually performed during the time period and no unexpected days off or consultant time was taken that would warrant a change to the payroll amount.
    • TEARS Summer Effort Report: the percentages of time spent on actual projects for the entire period is correct. (This is based on direct pay)
  • Faculty does not get paid consultant days during the summer.
    • This time period is not under contract and pay should be only for actual time worked on the specific project
  • Earnings code 99 should NEVER be used for summer pay.
    • The correct earnings codes are 601 and 602 (603 is used for retroactive adjustments July 1 thru August 15 – HR enters these earnings codes).
  • Summer salary payments must be processed no later than October 31.
  • Summer salary payments should not be used to “spend out” an award.
  • Summer salary must be based on base salary.

  • Memo from Contracts and Grants (PDF), July 2008
  • Prepare Employee Release Time Form (PDF).
  • Retro 90 Day (PDF) “Out of Compliance Justification” Form: If you submit RT 120 days outside of the intended time frame, then you must submit it along with the Out of Compliance Justification Form. If we do not receive it along with the RT form, we will NOT approve/process the RT. An example of this would be when RT is for the period from August 16 – September 30, and we receive it in February to process.
  • There is two release time periods:
    • Fall of current academic year (08/16/xx–12/31/xx)
    • Spring of current academic year (01/01/xx–05/15/xx)
  • Turn in release time sheets to Pat Hayes/Laurinda Perez (by email or campus mailbox 7901), who will review, approve and give to Connie Reno, assistant dean of personnel and administration in the College, to enter into the system.
  • You should only provide RT when it is part of the approved budget or when we have prepared a Project Modification Request (PMR) requesting RT and the agency has approved it. Note: while awaiting agency approval, COE-ORA will approve the RT if the department head signs that they acknowledge responsibility if the re-budget is denied.
  • If you have a multi-year project where all the RT has been given to the project up front, you will want to prorate the amount given for each fiscal year as to account for the faculty member’s effort for the life of the project.
  • Remember that RT affects a faculty member’s effort. If you make adjustments to RT after it has posted to the account, you will want to make sure the effort report is adjusted accordingly.
  • ORA will not approve RT that is not in object code 1118.  If you need to re-budget to move money into this category, then prepare the needed “budget modification” and reference the PMR number on the RT form.
  • ORA will not approve RT when the project number referenced is in the negative in direct costs.

W: Fabricated $5,000 Inventory Required (Sponsor requires reporting)
X:  Fabricated $5,000 No Inventory Required (Sponsor does not require reporting)
Y:  Equipment
Z:  No Equipment

  • Fabricated equipment is defined as an item of equipment that is built or assembled in its original form from individual parts by a PI and other sponsored project personnel, an internal shop, or an external shop. When a completed item of fabricated equipment has an aggregate cost of $5,000 or more, when its service life is longer than one year, and when that item will be recorded as capital equipment in the University’s capital asset management system, the individual component costs associated with the fabrication (regardless of the individual amounts) will not be assessed the Facilities & Administrative (F&A) rate. However, fabricated equipment costs do not include routine maintenance and repair costs associated with a piece of fabricated equipment. Furthermore, equipment that is fabricated as a deliverable to the sponsor where title to the finished product will be transferred to the sponsor should include F&A charges. An instance where components are simply connected in a system, such as when individual computers and servers are joined to create a network, does not constitute a fabrication.
  • Fabricated equipment must be identified before the acquisition of parts. Please note the fabricated equipment deliverable in the statement of work.  In the budget justification, specific guidance concerning the fabricated equipment should include:
    • The specific relationship the activity will have with the performance of the overall project scope,
    • How the component costs will be accounted,
    • The anticipated functionality,
    • The value of the finished fabrication, and
    • The expected ownership vesting of the equipment.
  • Costs that should be budgeted and charged to a sponsored account include materials and supplies necessary for the fabrication, as well as any internal or external shop service fees. Although project personnel may participate in the fabrication, their salaries will not be exempt from the F&A rate assessment. Only labor costs that are implicit in the internal or external shop rates will be F&A exempt. Labor, travel and other costs associated with the services of an outside party in a fabrication should be incorporated in the external shop service fees.
  • If a fabricated equipment item has an aggregate cost of less than $5,000, the individual costs for all acquisitions are subject to the relevant F&A rate. If you initially anticipate that the total fabrication will cost more than $5,000 and as such exempt the individual components from F&A but the final product ends up aggregating to less than $5,000, then all component costs will then be subject to F&A.
  • Once your project is funded and you begin procuring fabricated equipment components, you will charge those individual costs to the equipment account code series (5000 series), but you will need to make a special notation on invoices before sending them to accounts payable. You must consult with your college business office before incurring fabricated equipment component costs so as to avoid administrative errors.
  • Remember: If ownership of the final product is to transfer to the sponsor, the F&A rate applies to the individual fabrication components.

It is the Contract Manager’s responsibility to review the project for fabrication before making a request to the Fiscal Manager in Contracts & Grants. The Fiscal Manager is responsible for confirming that fabrication exists, and the account should be coded before forwarding to Management for coding.

  • Questions to answer when reviewing a project for fabrication of equipment:
    • Was fabricated equipment clearly stated in the proposal/award/budget? If not, what is being fabricated?
    • You will need to provide a detailed listing of the parts description and individual price.
    • Is this a part of an existing piece of equipment? If so, will the parts increase the value significantly? Asset Management can assist with this matter.
    • How does it relate to the project?
    • Is agency approval needed?
    • Is a re-budget needed?
    • Is this an instance where a single piece of equipment is created through extensive construction or assemblage?
    • Is it a simple connection of components together in a system?
    • Can the items listed operate on a stand-alone basis?
    • Will the item have an aggregate cost of $5K or more?
    • Will the individual parts be reported in the financial system as “equipment” by using a 5XXXX account code?
    • Will the item be recorded as capital equipment in the University’s asset system (CAMS)?
  • Final Review Process: Projects coded as fabricated equipment must have a CAMS/ASSET ID number listed on the close-out/reconciliation.
    • The CAMS/ASSET ID number should be confirmed.
    • If a CAMS/ASSET ID number is not listed, follow up with your PI/CAMS/ASSET ID person if needed.
    • Was the fabrication completed or needed?
    • If not, all items under $5K will need to be moved to supplies or other appropriate account code.

  • Check award for any cost sharing of Effort, Non-Salary Modified Total Direct Cost (MTDC), Equipment & Tuition, Contracts and Grants, Subcontractors, Third Party/Other or Multiple Accounts Under Prime.
  • If a PI is not receiving direct pay or release time for his/her academic effort, a TEARS (The Employee Activity Reporting System) set-up is required. Reference: REG 10.05.15)
  • Be sure and track any other cost sharing on the project. Keep a cost sharing spreadsheet, which will help you keep track of department, college and university commitments. Note: Third Party cost sharing needs to be confirmed using their letterhead of Industry signed by the responsible party.  Cost Sharing & TEARS Checklist (PDF) the Quick Reference Checklist Guide (PDF).
  • At times you will receive a Cost Sharing Confirmation from the college that requires you to complete, sign and return within 30 days (example, PDF). As a reminder, confirmations for projects that are renewed, continued or supplement received, the amount on the confirmation represent cumulative planned cost share to date. On salaries, estimate the current year and gather previous years, if applicable, from TEARS. Also, be sure to include fringes in your estimate.
    • Under the Federal Demonstration Partnership Act, you can’t go greater than three months without showing a level of effort on your research projects or have a reduction of effort greater than 25%. If you do, we have to notify and receive approval from the sponsor.
    • The way you avoid going over three months without showing a level of effort is by setting up a cost share record via the TEARS system.
    • 1% came about since that is the minimum % the system will allow.
    • Note: Once the effort reports have been created you should be using the “Cost Sharing Yearly Report” to obtain the total for the fiscal year NOT the “Cost Sharing Report,” which is used to obtain the monthly total. The “Cost Sharing Yearly Report” dollar amounts are updated to reflect changes to the effort reports up until we close the system for a given period; therefore, they have the most accurate totals. The yearly report also gives you the total amount for all employees, including Grads, if you run it by typing the SL-5 ID into the “To Acct Cd” field. The totals on the “Cost Sharing Report” are a point in time totals (i.e., the totals are as of the day the report was created after the applicable pay period) and do not update so they are not as accurate. You must also run separate reports to obtain totals for monthly employees and Grads when running the “Cost Sharing Report.”
      • Here is an example of the process for reporting the final cost sharing amount for effort from TEARS: Effort (for NC State’s purposes) is the actual amount of time spent on a sponsored research activity either as a direct charge to a project or as cost share via the TEARS system. TEARS: always be a true representation of your effort.
        • Project Period is 10/1/2002 to 9/30/08
        • You need to run the “Cost Sharing Yearly Report” for fiscal years 2003, 2004, 2005, 2006, 2007, and 2008. Also, you need to run the “Cost Sharing Report” for the fiscal year 2009, period 3. (If Grads were cost shared, you need to run a separate “Cost Sharing Report” to obtain the total to include for them.) Add the totals of all the reports, and this is the total amount of effort cost shared on the project.
  • Cost Sharing Confirmations in regards to the effort component only:
    • Cost Sharing Confirmations are to be cumulative from the beginning of the project. Typically, we receive a cost-sharing confirmation form for each budget period. For example, if a project is for five years, then we should have five cost sharing confirmations. The final one should be cumulative for all five years.
    • Pay close attention to each cost sharing confirmation and each budget period it pertains too. On occasion, a faculty member will receive academic year salary for certain years and not for others. On the years he/she does not receive academic year salary, you would want to create a TEARS record and fill out the cost sharing confirmation form.
    • If a TEARS period has closed and been archived and you determine there should have been cost sharing of effort, you will have to complete an After the Fact memo. These are not to be reflected on the cost sharing confirmation, as they are a % only. Special Note: you will not report After the Facts on the closeout cost sharing either.
    • You should not be using Salary Distribution to gather effort dollars for your cost sharing confirmation form or your closeout cost sharing. If you are setting up a new record in TEARS, you will do so; then you will manually calculate the effort by taking XX% of the annual salary and then applying the appropriate fringes. If you are setting up a continuation record in TEARS, simply modify the existing TEARS record. You will run the fiscal year or monthly cost sharing report for the previous period and then manually calculate the new period and add the two (or three, etc.) together and that amount goes on the cost sharing confirmation record.
    • After the Fact Memo: If a cost sharing set up was not done and the period is closed, you will have to do an After the Fact Memo, and this is not listed on the cost sharing confirmation.
    • The 1% rule is the minimum required, but not the absolute rule. A PI can decide to expend more effort on a project, and that is completely acceptable.
    • Remember the effort portion of the cost sharing confirmation form and the TEARS system is used to capture a PI’s effort on a project that he/she is not receiving any academic year salary on or to capture any cost sharing of effort that was disclosed to the agency/sponsor as a firm commitment.

The online PMR system streamlines prior approval requests from the department/PI to the COE-ORA, then on to C&G and Sponsored Programs. The online PMR system also provides accountability for all who manage and process PMRs.

  • Access MYPACK Portal: Financial Systems: Contracts and Grants: Project Modification Request
  • Financial System PMR 9.1 Financial System user guide (PDF)
  • You must provide proper and adequate justification. To move things through the PMR System as quickly as possible, it is requested that you upload justifications as a Word document and ensure your justification contains the level of detail that thoroughly explains the request.
  • Read Questions to ask yourself when preparing a Project Modification Request (PMR).
  • Access to the system is granted thru the COE-ORA. Please contact Patrick Hayes, or Richard Duckworth for the following roles (detailed definitions can be found on page 21 of the user guide):
    • GADM: Grant Administrator (bookkeeper)
    • GBM: Grant Business Manager (review/approve GADM entry)
    • DH: Department Head
  • Grant Approvers: Current assignment can be viewed by OUC through MYPACK Portal: Financial Systems: Contracts and Grants: Grant Approvers.
  • PIs are granted access based on when they receive a ledger five award. This is automatic through the Financials System at the onset of an award.
  • If your PI or administrator is absent, a department can contact the College office to initiate the PMR on their behalf, bypassing the PI, Bookkeeper, and Department Head approval. This will only be done in extreme circumstances.

F&A Calculation When Re-Budgeting:

(+) Equipment/Tuition (Student Aid) = (-) overhead
(-) Equipment/Tuition (Student Aid) = (+) overhead

*Total Adjustment to Equipment/Tuition (Student Aid)
 Current Overhead Rate or Rate Used in Award (i.e. 51.5%=1.515; 9.5%=1.095)

*$ amount from above: subtract from Total Adjustment = Overhead

1112 Salary – Graduate Research Assistant
1116 Salary – Summer Faculty Support
1118 Salary – Release Time
1119 Salary – EPA Regular All Other – Post Doc
1219 Salary – SPA Regular Salary (Technician)
1410 Salary – Non-Student Regular Wage
1450 Salary – Student Regular Wage
1899 Fringe Benefits
1950 Honorariums
1990 Contracted Services
2999 Supplies
3110 In-State Travel
3120 Domestic Travel
3130 Foreign Travel
3999 Current Services
4999 Fixed Charges
5999 Equipment
6575 Graduate Tuition
6961 Undergraduate Tuition
6962 Stipends (no employment obligation)
6980 Subcontracts
8960 Facilities & Administrative Costs (Indirect)
8950 Budget Pool

  • All NSF awards that involve PSC will have a segment established for these costs.
  • This will allow the costs charged to be readily identified with ease as PSC.
  • This will be done automatically by C&G at the onset of an NSF award.
  • The College strongly recommends that each department creates a segment for all other non-NSF projects that contain PSC.

Subsistence is an allowance for meal costs, including gratuities. To be eligible for allowances while in travel status, the employee must be acting in an official capacity as required by his or her work activities and the travel destination must be at least 35 miles from the employee’s duty station or home, whichever is less.

Check to see if there is an email from Contracts and Grants concerning “Meal Exemptions” (two types: per diem is exempt and per diem is NOT exempt).

  • New Form required to request meal exemptions:
    • This form must be signed by the Principal Investigator (PI)
    • The Contract Manager and the College (ORA).
  • You can scan in the form with the appropriate signatures and email it to Pat Hayes with a copy to Laurinda Perez. They will print, review, sign and email the form directly to Contracts and Grants (C&G) with a copy to you.
  • The current per diem rates can be found at University Controller’s Office.

In-State Per Diem
In-State travel rates apply to travel within the State of North Carolina or when employees use hotel and meal facilities located in North Carolina immediately prior to and returning from out-of-state or out-of-country travel during the same travel period.

Out-of- State Per Diem
Out-of-State travel rates apply to travel within the United States except for North Carolina or when employees use hotel and meal facilities located outside North Carolina but within the United States immediately prior to and returning from out-of-country travel during the same travel period.

Out-of-Country Per Diem
Out-of-Country travel rates apply to travel outside the United States and remains in effect until the employee returns to the country.

Federal Per Diem
Federal per diem rates may be available for out-of-country travel on a Contracts and Grants account if the Federal contract authorizes the per diem rate, and the Office of Contracts and Grants and the Controller’s Office approves the use of this rate prior to the travel occurring. The Controller’s Office approval is contingent on approval from the Office of State Budget and Management. If approved, the reimbursable rate is the prevailing Federal per diem rate at the time of travel.

Meal Allowances When in Travel Status but Not Traveling Overnight
Employees are eligible for the breakfast and evening meal allowances when approved in advance of the expense by the department head or designee and the following applies:

  1. Breakfast – depart duty station prior to 6:00 A.M. and extend the workday 2 hours.
  2. Dinner – Return to duty station after 8:00 P.M. and extend the workday 3 hours.
  3. Lunches are not reimbursable from state funds if travel does not involve an overnight stay.
  4. Meal allowances are not allowed from state, federal or F&A funds for travel related to internal conferences unless overnight travel criteria are met.

Meal Allowances When Traveling Overnight
University employees when in overnight travel status are eligible to receive reimbursement for meals (including lunches) for full days of travel and for partial days (less than 24 hour period) when the partial day is the day of departure or the day of return and the partial day involves an overnight stay. The following applies to be eligible for meals on partial travel days:

  1. Breakfast – Depart duty station prior to 6:00 A.M. and extend the workday by 2 hours.
  2. Lunch – Depart duty station prior to Noon (day of departure) or return to duty station after 2:00 P.M. (day of return).
  3. Dinner – Depart duty station prior to 5:00 P.M. (day of departure) or return to duty station after 8:00 P.M. (day of return) and extend the workday by 3 hours.

When  Meals are Provided
The costs of meals included in other related travel activities (registration fees, conference costs, hotel registration, etc.) that are predetermined and not optional, may not be duplicated in the reimbursement request.

Employees may be reimbursed for breakfast even if their lodging establishment, conference or meeting offers a free continental breakfast.

University employees are allowed to claim reimbursement for meals even though they are shown and offered as a part of one’s flight schedule on a commercial airline.

Excess Travel Meals
No excess reimbursement for travel meals is allowed to employees from state agencies or institutions unless

  1. they are predetermined charges,
  2. excess meals are prior approved for out-of-country travel, or
  3. the Office of State Budget and Management has approved the reimbursement for excess meals (for example, if the use of a Federal per diem is approved by the Office of Contract and Grants, the Office of State Budget and Management must prior approve the use of the federal per diem rate). As required by NC General Statute 138-6 and the Office of State Budget and Management.

The department head or his/her designee may grant excess subsistence for meals for out-of-country travel. Approval must be documented and must be granted as part of the prior authorization process. Itemized original receipts are required for all excess meal reimbursements.

Entertainment Meals
Entertainment meals for purposes such as gift development, faculty/staff/student recruitment, or other approved purposes are considered non-travel meals. Entertainment meals are different than travel meals in purpose, scope, and amounts, and for gift development and recruitment purposes are considered a customary and usual business expense. If employees are traveling and incur expenses for an entertainment meal at a business meeting for purposes of gift development, faculty/staff/student recruitment, or other approved purpose, they should request reimbursement for the entertainment meal following the requirements under the “Internal Conferences and Meeting Expenses” guidelines, section 1 “Non-Travel Meals Authorization and Expense Form,” and section 4 “Business Meetings with University Guests and Other Individuals External to the University.” Entertainment meal expenses paid to an employee must be charged to account number 53991 and paid from exempt non-State appropriated trust funds that are available for such purposes. Employees may not request duplicate reimbursements for these meals.

Meal Tips
Meal tips incurred by the traveler are included in the established meal subsistence allowances rates.

Meal tips are not separately reimbursable unless excess travel meals have been approved.

Excessive tips will not be reimbursed. A reasonable tip would be one that a prudent person would give if traveling or be conducting personal business and be expending personal funds.

Reports

Function available from the WRS Main Menu with SARS approval.

In Rpt2Web, you can access very useful reports such as:

  • Projects Overspent for 3 Consecutive Months – This report will let you see what projects are overspent for three consecutive months and begin to review and determine why. Maybe you need to remove costs, determine if additional funding will be forthcoming, ensure the necessary SDCs have been completed to stop salaries from hitting the project or ensure gas cylinder management has been contacted.
  • Closeout List for Projects Ending Three Months Out (currently June 2014) – This report will let you know what projects will be closing three months out. It will show you the available balance so you can determine if you need to work with the PI to request an NCE, remove costs, begin the necessary SDCs or simply be prepared to bring the projects to closure.
  • Active Fixed Price Projects Three Months Past End Date – This report alerts you to your fixed price projects that are still active three months after the end date and need to have the residual funds moved to a ledger seven account.
  • Active Fixed Price Projects Six Months Past End Date – This report alerts you to your fixed price projects that are still active six months after the end date and need to have the residual funds moved to a ledger seven account.
  • Active Projects 90 Days Past Budget Begin Date With No Expenditures Report – This report lets you see those projects that are 90 days past the budget begin to date with no expenditures showing. This is critical since most sponsors look at our “burn rate” and depending on the invoicing requirements, they could question our “burn rate.”  Also, after 90 days, you would hope the research has begun, and costs have begun to post to the project.

  • Please note in the contract the due date for annual progress reports and final technical reports.
  • Please send reminders to PIs concerning these due dates.
  • Failure to comply with annual/final technical reports not only affects future funding for the Department and College but the entire University.
  • Delinquent Status – You will be notified by the College research office that has been notified by SPARCS and the sponsor.
  • Email a copy of all technical reports submitted to Post-Award Officer Richard Duckworth as this will satisfy both the college and university file.