The spending of funds awarded by the federal government to East Stroudsburg University is governed by 2 CFR §200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2CFR200), published by the Office of Management and Budget (OMB). Costs charged directly to a federal award must be Determined to be Allowable, Reasonable, and Allocable:
- Allowable under both the provisions of federal regulations and the sponsor's terms and conditions. They must conform to all limitations or exclusions set forth in these principles or in the sponsored agreements as to types or amounts of cost items.
- Allocable, the expense can be associated to a project with a high degree of accuracy.
- Reasonable, the cost does not exceed that which would be incurred by a prudent person in a similar circumstance.
- Charged consistently as a direct expense as opposed to an indirect cost
Charges must also be consistently charged as a direct cost as opposed to an indirect cost. An expense is a direct cost if that expense can be identified specifically with a particular sponsored project or other activity with a high degree of accuracy. Indirect costs, sometimes referred to as facilities and administrative (F&A), are costs that benefit many activities, such as building operations and maintenance, administrative personnel, IT expenses, depreciation, etc. Indirect costs are recovered through the Federally Negotiated Indirect Rate.
Costs incurred for the same purpose in like circumstances must be treated consistently, as either direct expenses or indirect costs.
In order to comply with all federal regulations and the sponsor's terms and conditions, ongoing monthly Budget and Expenditure Monitoring of the sponsored projects is performed by the Principal Investigator (PI) as well as the Grant and Compliance Accountant. A PI on a sponsored project can request read-only access to the accounting system and/or Business Intelligence to monitor the sponsored project through various reports. Additionally the PI can request copies of the reports.
To request read-only access to the accounting system, Business intelligence, or to request copies of the reports, email the Grant and Compliance Accountant.