¶¶Òõ̽̽’s Cost policy has determined what is considered a typical direct cost and what is typical indirect costs.

Principal Investigators who believe circumstances of their federally funded project warrant an exemption that would allow direct charging a normally indirect cost item as direct must do the following:

Make the request using ¶¶Òõ̽̽Click - Request Award Modification activity.

  1. Login to .Ìý
  2. Click the Grants Tab, click Awards, Search for the applicable award (By PI Name is probably easiest).
  3. Click on the "Name" (title) to open the record.
  4. Click the left side menu item "Request Award Modification".
  5. Complete the SmartForm, and click Finish.

The request is sent to the assigned SPA Specialist who will complete the action.

For a more details refer to:

Approvals:

If approved, SPA will open the spending account code that is then used for posting the charge to the sponsored project in the accounting system (PeopleSoft).

Cost that Require the Direct Cost Justification Form

Below is a comprehensive list of accounts and their descriptions that currently requie a Direct Cost Justification Form be completed, delivered to SPA and approved in order to charge such cost directly to a federally funded project.

Direct Cost Justification
Require Direct Cost Justification Form
IC = Internal Charge		CostsÌý that Do NOT Require Direct Cost Justification Form
IC = Internal Charge
F6020 - Computer Supplies & ServicesF5000 - Administrative & Clerical Salaries
60005 - Computing Supplies1. Administrative or clerical services are integral or necessary to accomplish the scope of work being funded to the project or activity;
60201 - Computer Services External2. Individuals involved can be specifically identified with the project or activity;
60221 - Data Storage Services External3. Such costs are explicitly included in the budget proposed to the federal sponsor or have the prior written approval of the Federal awarding agency;
65042 - Non-Cap Software - General Purpose <$50004. Otherwise, federal grant's officer written approval is required.
65103 - Software Maintenance & LicenseF6021 - Computer Services, Devices & Sceintific Software
65104 - Software Services Contract65022 - Non-Cap Computer Hardware <$5000
80015 - IC Software65043 - Non-Cap Software - Scientific <$5000
80016 - IC Micro Comp Srvcs/Accsr80014 - IC Computing Hardware <$5000
80252 - IC Software Installation80047 - IC Computing Services (Vermont Advance Computer Core -VACC)Ìý
80253 - IC Software Svcs/Repair

F6510 – Equipment Maintenance

80255 - IC Hardware InstallationMaintenance agreementsÌý or service contracts on scientific/technical equipment which are used to specifically to advance the purpose of a sponsored agreement may be direct charged if either one of the two following allocation approaches are used:
• Actual usage of the related equipment is tracked e.g. a log and the usage information is the basis for allocation
• The PI can apply the proportional benefit rule without undue effort or cost to the applicable sponsored agreements
80256 - IC Hardware Maint & RepairÌý
F6002 - General Purpose Supplies & Services
60001 - Office SuppliesÌý
60002 - Paper SuppliesÌý
60009 - Other SuppliesÌý
60041 - Art SuppliesÌý
600814 - Clinical SuppliesÌý
60091 - Instructional SuppliesÌý
60092 - Instructional ServicesÌý
60103 - Copier SuppliesÌý
60121 - PostageÌý
60161 - BooksÌý
61201 - Accounting/Audit ServicesÌý
61235 - Patent & Copyright FeesÌý
63123 - Cust Spec SuppliesÌý
63125 - Cleaning SuppliesÌý
63127 - Vehicle Maint SuppliesÌý
63128 - Equipment Maint SuppliesÌý
65002 - Other Equip <$5000Ìý
65051 - Furniture <$5000Ìý
80019 - IC Microfilming ServicesÌý
80025 - IC Mail ProcessingÌý
80026 - IC Audio/Visual ServicesÌý
80033 - IC University PostageÌý
80215 - IC Office SuppliesÌý
80217 - IC Instruction SuppliesÌý
80218 - IC BooksÌý
80236 - IC Consulting SvcsÌý
80237 - IC Instruction SvcsÌý
80240 - IC Parking SvcsÌý
80248 - IC Davis Ctr SvcsÌý
F6006 - Memberships & SubscriptionsÌý
60163 - Periodicals/SubscriptionsÌý
60165 - Electronic Reference SourcesÌý
60169 - Other Information ResourcesÌý
60561 - Membership Fees and DuesÌý
60563 - Internet Membership & DuesÌý
F6007 - Work Order ServicesÌý
80101 - IC WO-WagesÌý
80102 - IC WO-BenefitsÌý
80103 - IC WO-MaterialsÌý
80104 - IC WO-Ext Repair & MaintÌý
80105 - IC WO-Equipment RentalÌý
80106 - IC WO-Ext ConsultingÌý
80107 - IC WO-Equipment $5000Ìý
80108 - IC WO-HZMAT DisposalÌý
80120 - IC PPD WO-WagesÌý
80121 - IC PPD WO-BenefitsÌý
80125 - IC PPD WO-MaterialsÌý
80130 - IC CUST WO-WagesÌý
80131 - IC CUST WO-BenefitsÌý
80135 - IC CUST WO-MaterialsÌý
F6301 - UtilitiesÌý
61001 - InsuranceÌý
61002 - General Liability InsuranceÌý
61006 - Vehicle InsuranceÌý
63001 - ElectricityÌý
63003 - Water & SewageÌý
63021 - No. 2 FuelÌý
63022 - No. 6 FuelÌý
63023 - Natural GasÌý
63024 - PropaneÌý
63025 - BioDeisel FuelÌý
63029 - Heat-ExternalÌý
63130 - Gasoline/OilÌý
80027 - IC - Heat PlantÌý
F6320 - Telephone & Telecom ServicesÌý
57895 - Cell Phone StipendÌý
60205 - Network ConsultingÌý
60209 - Non-¶¶Òõ̽̽ Internet SrvcÌý
63201 - Non-¶¶Òõ̽̽ Phone ServiceÌý
63205 - Telephone TollsÌý
80002 - IC Phone Lines/EquipÌý
80003 - IC Long DistanceÌý
80013 - IC Phone Work OrderÌý

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Costing Policy Website and Unlike Circumstances Guiding Principles

Please visit Cost Accountings website for more details about .

Allocating Costs to Projects

When allocating charges to a sponsored project, a well defined and consistently applied cost allocation methodology is necessary. The cost allocation method used must document the equitable distribution of charges to a project in proportion to the benefit received. There is no single best cost allocation method for documenting the distribution of charges. The allocation method used is administered and maintained at the PI, Department and Unit levels.

Responsibility

The Principal Investigator and Department administration who are responsibility to ensure that all costs are necessary reasonable, and allocable for the performance of the project or activity being supported by the federal award, subject to any special terms and conditions.

Administrative and Clerical Salaries

Administrative and Clerical Salary positions may be charged directly to a project funded with federal dollars, without completing the Direct Cost Justification Form, as long as the Admin/Clerical position meets ¶¶Òõ̽̽’s Cost Policy.

Charging Computers Directly

Direct charging of computing devices, costing less than $5,000 is allowable, without the need for a Direct Cost Justification Form, provided the computer or computer device is essential and primarily used to support the performance of the project.

Non-Federal Sponsored Agreements

Exemptions apply to federally funded awards. For non-Federal awards all costs that are reasonable, allocable and necessary for the performance of the project or activity being supported by the non-federal award may be direct charged, subject to any special terms and conditions.

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Updated 4/1/20