Sponsored Project Fiscal Compliance Overview

If you are responsible for the financial management of sponsored project funds, find out about campus fiscal policy related to these funds.

Compliance

To comply with sponsored project rules and regulations, you must understand the rules and regulations of fiscal compliance. The following pages make these rules more understandable and easier to apply:

• Fiscal Policies and Guidelines
• Fiscal Responsibilities
• Cost Accounting Standards
• Allowable and Unallowable Costs
• Direct and Indirect (F&A) Costs
• Different Purposes and Circumstances
• Charging Administrative and Clerical Costs as Direct
• Examples of Major Projects
• Step Through the Direct and Indirect Cost Decision

2 CFR Part 200 Uniform Guidance

Anyone authorizing the expenditure of federal funds needs to have a working understanding of the underlying cost principles set forth in 2 CFR Part 200. These principles govern costs that may be charged either directly or indirectly to the government by educational institutions. UCSD generally applies these same cost principles to non-federal funding as well, although in some cases non-federal sponsors define allowable and unallowable costs differently than federal sponsors.

Awarding agencies

Each awarding agency has the right to establish its own terms and conditions for its awards. Specific award terms and conditions take precedence over the provisions of 2 CFR Part 200. For example, although travel is not defined as unallowable in 2 CFR Part 200, your particular award may designate travel, or more likely foreign travel, as unallowable. In that case, you may not charge foreign travel to that project.

Consistency

Costs must be classified in a consistent manner. Costs incurred for similar purposes and in like circumstance are to be consistently classified as either direct or indirect. Costs within a department and among departments, under similar circumstance, are to be treated the same.

For a complete guide on fiscal compliance for contracts and grants, see Contract and Grant Fiscal Compliance Fundamentals.