Sponsored Programs Definitions

Acquisition Cost means the (total) cost of the asset including the cost to ready the asset for its intended use. For example, acquisition cost for equipment means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Acquisition costs for software include those development costs capitalized in accordance with generally accepted accounting principles (GAAP). Ancillary charges such as taxes, duty, protective in transit insurance, freight, and installation may be included in or excluded from the acquisition cost in accordance with the recipient's or subrecipient's regular accounting practices.

Advance Payment means a payment that is made to a subrecipient up-front before expenses have been incurred. Advance payment funds may be used for properly allocable, allowable, and reasonable costs.

Allocation means charging a cost, or a group of costs, to the funding sources that receives the benefit of the goods or services purchased. For costs benefitting a single project, the expense(s) should be allocated and directly charged to that project. Uniform Guidance Subpart E §200.405 (d), Allocable Costs, stipulates that it is necessary to substantiate the proportional benefit of costs when costs benefit two or more projects.

“If a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost must be allocated to the projects based on the proportional benefit.” These costs should be simply apportioned to reflect the easily determined proportional benefit.

“If a cost benefits two or more projects or activities in proportions that cannot be determined because of the interrelationship of the work involved, then … the costs may be allocated or transferred to benefited projects on any reasonable documented basis.” When costs that benefit two or more projects or activities in proportions that are not easily determined, an allocation is necessary.

Allocation Methodology establishes a reasonable basis for apportioning or transferring costs in proportional benefit to two or more projects or activities.

There are three basic components of an allocation:

The percent of the cost charged to each project or activity
The method or reasoning used to derive that percentage
Accompanying documents and, where applicable approvals

Allocation methodologies meet all of the following criteria:

Provide a reasonable linkage between the cost(s) incurred and the benefit to each individual project or activity
Are identified prior to the allocation of expenses to sponsored projects or activities
Are documented with sufficient detail that a person unfamiliar with grants management would understand
Allow for the consistent treatment of costs that meet the criteria of the allocation methodology
Are reviewed periodically and adjusted as needed

Assistance Listings refer to the publicly available listing of Federal assistance programs managed and administered by the General Services Administration (GSA) at SAM.gov.

Budget means the financial plan for an award that the sponsor approves during the award process or in subsequent amendments to the award. It may include mandatory cost share.

Budget Justification provides additional detail for expenses within each budget category and articulates the need for the items/expenses listed. The information provided in the budget justification may be the definitive criteria used by sponsor review panels and administrative officials when determining the amount of funding to be awarded.

Note: The quantification of unfunded effort (e.g., "The PI will donate 5% effort...") in the proposal narrative, budget, or budget justification is considered Voluntary Committed Cost Sharing. This is a legal commitment which must be tracked and reported to the sponsor. Consider quantifying effort only for the requested salary support.

Budget Period means the time interval from the start date of a funded portion of an award to the end date of that funded portion, during which recipients and subrecipients are authorized to incur financial obligations of the funds awarded, including any funds carried forward or other revisions pursuant to § 200.308.

Capital Assets means a tangible or intangible assets used in operations having a useful life of more than one year and values of $5,000 or more which are capitalized in accordance with GAAP. Contact Grant Accounting Office with questions.

Closeout means the process by which the institution determines that all applicable administrative actions and all required work of the award have been completed. All reports (financial, performance, and other reports required by the award) no later than 120 calendar days (or as indicated by the sponsor) after the conclusion of the period of performance.

Computing Devices means machines that acquire, store, analyze, process, and publish data and other information electronically, including accessories (or “peripherals”) for printing, transmitting and receiving, or storing electronic information. See also the definitions of supplies and information technology systems in this section.

Continuation Funding means the second or subsequent budget period within an identified period of performance.

Cost Sharing means the portion of project costs not paid by sponsor. This term includes matching, which refers to required levels of cost share that must be provided.

Disallowed/Unallowable Cost means charge(s) to an award that the sponsor determines to be unallowable in accordance with applicable statutes, regulations, or the terms and conditions of the award.

Documentation means cost documentation needed to show allowability, reasonableness, and allocability to the award through detailed, clear, and complete financial records. Key documents include invoices, receipts, payroll and timesheets for personnel, and detailed travel logs with approvals. Records must be traceable to your general ledger, have dates within the grant period, and demonstrate the costs are necessary and listed in the approved budget.

Equipment means tangible property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost of $5,000 or greater.

Financial Obligations means orders placed for property and services, contracts and subawards made, payroll commitments, and similar transactions that require payment under the award that will result in expenditures.

Fixed Amount Award means an agreement where the sponsor agrees to a set amount to complete a specific scope of work, project, or set of deliverables. Payments are tied to meeting specific performance milestones or completing defined deliverables.

General Purpose Equipment means equipment that is not limited to research, medical, scientific, or other technical activities. Examples include office equipment and furnishings, modular offices, telephone networks, information technology equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles.

Improper Payment means a payment that should not have been made or that was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements. The term improper payment includes: any payment to an ineligible recipient; any payment for an ineligible good or service; any duplicate payment; any payment for a good or service not received, except for those payments where authorized by law; any payment that is not authorized by law; and any payment that does not account for credit for applicable discounts.

Indirect Cost means those costs incurred for a common or joint purpose benefitting more than one cost objective and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved. It may be necessary to establish multiple pools of indirect costs to facilitate equitable distribution of indirect expenses to the cost objectives served. Indirect cost pools must be distributed to benefitted cost objectives on basis that will produce an equitable result in consideration of relative benefits derived. For Institutions of Higher Education (IHE), the term facilities and administrative (F&A) cost is often used to refer to indirect costs.

Information Technology Systems means computing devices, ancillary equipment, software, firmware, and related procedures, services (including support services), and resources.

Internal Control means processes designed and implemented by the institution to provide reasonable assurance regarding the achievement of objectives in the following categories:

(1) Effectiveness and efficiency of operations;

(2) Reliability of reporting for internal and external use; and

(3) Compliance with applicable laws and regulations.

Modified Total Direct Cost (MTDC) means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each subaward in excess of $25,000.

Notice of Funding Opportunity (NOFO) means a formal announcement of the availability of funding from a federal agency. The notice of funding opportunity provides information on the award, such as who is eligible to apply, the evaluation criteria for selecting a recipient or subrecipient, the required components of an application, and how to submit the application. The notice of funding opportunity is any paper or electronic issuance that an agency uses to announce a funding opportunity, whether it is called a “program announcement,” “notice of funding availability,” “broad agency announcement,” “research announcement,” “solicitation,” or some other term.

Participant generally means an individual participating in or attending program activities under a federal award, such as trainings or conferences, but who is not responsible for implementation of the award. Individuals committing effort to the development or delivery of program activities under a federal award (such as consultants, project personnel, or staff members of a recipient or subrecipient) are not participants. Examples of participants may include community members participating in a community outreach program, members of the public whose perspectives or input are sought as part of a program, students, or conference attendees.

Participant Support costs means direct costs that support participants and their involvement in an award, such as stipends, subsistence allowances, travel allowances, registration fees, and per diem paid directly to or on behalf of participants.

Pass-through Entity means an institution that provides a subaward to a subrecipient (including lower tier subrecipients) to carry out part of a federal program. The authority of the pass-through entity under this part flows through the subaward agreement between the pass-through entity and subrecipient.

Period of Performance means the time interval between the start and end date of the award, which may include one or more budget periods. Identification of the period of performance in the award does not commit the sponsor to fund the award beyond the currently approved budget period.

Prior Approval means the written approval obtained in advance by an authorized official of the sponsor or pass-through entity of certain costs or programmatic decisions.

Program Income means gross income earned by the recipient or subrecipient that is directly generated by a supported activity or earned as a result of a federal award during the period of performance except as provided in § 200.307(c). Program income includes but is not limited to income from fees for services performed, the use or rental of property acquired under Federal awards, the sale of commodities or items fabricated under a Federal award, license fees, and royalties on patents and copyrights, and principal and interest on loans made with Federal award funds.

Renewal Award means a Federal award for which the start date is contiguous with, or closely follows, the end of the expiring Federal award. The start date of a renewal award begins a new and distinct period of performance.

Subaward means an award provided by a pass-through entity to a subrecipient for the subrecipient to contribute to the goals and objectives of the project by carrying out part of a Federal award received by the pass-through entity.

Subrecipient means an entity that receives a subaward from the institution to carry out part of a Federal award with a specific scope of work. The term subrecipient does not include a beneficiary or participant. A subrecipient may also be a recipient of other Federal awards directly from a Federal agency.

Termination means the action a sponsor takes to discontinue an award, in whole or in part, at any time before the planned end date of the period of performance.

Third-Party In-Kind Contributions means the value of non-cash contributions (meaning, property or services) that:

(1) Benefit a project or program funded by a Federal award; and

(2) Are contributed by non-Federal third parties, without charge, to a recipient or subrecipient under a Federal award.

Voluntary Committed Cost Sharing means cost sharing specifically pledged voluntarily in the proposal's budget or Budget Justification on the part of the recipient or subrecipient, which becomes a binding requirement of the Federal award. See § 200.306.