Back to Top
Skip to Content
Home :: Policies :: Budget Activity Monitoring

Budget Activity Monitoring

Responsible Department
Grants & Contracts Administration
Effective Date
10/07/2019
  1. .

    Policy Purpose

    The purpose of this policy is to articulate the framework for costs that may be charged to awards and budget activity monitoring for Principal Investigators and Grants and Contracts Administration to accurately reconcile all chart strings and plan for future spending at the University of North Georgia (the “University”).

  2. .

    Definitions

    It is important that all University grant awards be reconciled to ensure that they accurately include authorized transactions as stated by the approved budget. Grants and Contracts Administration will ensure that costs are measured against three concepts: allowable, allocable, and reasonable costs.

    1. Allocable Cost is a cost that is assignable to support the work of a specific sponsored award. A cost is allocable if it meets the following criteria:

      1. The cost is incurred for a specific award;

      2. The cost benefits both the award and other work of the nonfederal entity and can be distributed in shares that may be approximated using reasonable methods; and

      3. The cost is necessary to the overall operation of the nonfederal entity and is assignable in part to the Federal award in accordance with the principles of 2 CFR 200, Subpart E.

    2. Allowable Cost is a cost that meets the criteria for authorized expenditures specified in the cost principles. A cost is allowable to a project if the cost is:

      1. Reasonable;

      2. Allocable to the specific project;

      3. Treated consistently in similar circumstances;

      4. The net of all applicable credits;

      5. Not included as a cost or used to meet the cost sharing requirements of another federal award;

      6. Sufficiently documented;

      7. Authorized under federal, state, and local laws and regulations; and

      8. Conforms to any limitations of the cost principles or the sponsored agreement.

    3. Reasonable Cost is a cost considered reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. Factors to consider when determining reasonableness are as follows:

      1. Is the cost necessary?

      2. What are the restrictions and requirements?

      3. How does the cost compare with fair market value?

      4. Did the individuals act with caution?

      5. Did the cost involve deviations from reputable practices?
  3. .

    Policy Statement

    1. All costs charged to an award must meet the requirements for (i) an allowable cost, (ii) an allocable cost, and (iii) a reasonable cost.

    2. Budget reconciliation must be completed monthly, within 45 days of month-end.  For sponsored agreements, a final reconciliation must be completed with 45 days of the budget end date.

    3. A no-cost extension may be requested by the PI when all three of the following conditions are met.

      1. The end of the project period is approaching;

      2. There is a programmatic need to continue the research or project; and

      3. There are sufficient funds remaining to cover the extended effort.

    4. Terms of the sponsored project award may stipulate that any unspent grant funds must be returned to the sponsor.  Grants and Contracts Administration will prepare a final reconciliation, in consultation with the PI.  The Grants and Contracts Accountant must be responsible for processing any unused funds and returning them to the sponsor.

    5. The PI must not overspends his/her budget. Grants and Contracts Administration must investigate the reasons for the overage if it occurs.  All overspending must be resolved by identifying alternative sources of funds that will be used to cover the overage.

    6. Grants and Contracts Administration must be responsible for ensuring that effective internal controls processes are in place for initiating, reviewing, and approving costs charged to an award.
  4. .

    Support Information

    The monthly budget reconciliation policy complies with the provision of the federal Office of Management and Budget’s regulations, including 2 CFR 200.403-405, and other relevant sponsor requirements.

  5. .

    Procedures

    Operating procedure implementation and oversight is the responsibility of Grants and Contracts Administration, a department of the Office of Research and Engagement.  Procedures must comply with and reference this policy.

UNG follows Section 508 Standards and WCAG 2.0 for web accessibility. If you require the content on this web page in another format, please contact the ADA Coordinator.


Back to Top