Grant Administration

Award Management

How to Expend Project Budget

Various expenditures on sponsored research projects have special rules and regulations which the principal investigator must follow. Allowable costs are outlined in the award agreement. If a question arises regarding whether an expenditure is allowable on an account, the PI should contact OGC for explanation and/or clarification. Unauthorized expenditures or unapproved changes in the budget can result in penalties against the institution and the possible loss of further research funds for the PI.

Project cash transactions should be processed by the faculty/department financial administrator or by a financial monitor employed for the project and will be subject to the controls established by the Comptroller's Office.

Administration of certain budget line items are addressed here:

1. Personnel Salaries (Staff and faculty members, summer salaries, Research Assistants and Graduate Research Assistants)
2. Consultants and Consulting Fees
3. Subcontracts
4. Travel
5. Supplies and Equipment

1. Personnel Salaries

Appointments of all personnel to funded research projects are subject to the Human Resources Department at AUB. Payment of AUB personnel on projects is effected through the University Payroll system. A research project should be charged with the portion of each employee's salary equal to the portion of time or effort devoted to the project.

1a. Salaries of Staff and Faculty Members: A research project should be charged with a portion of each employee's salary equal to the portion of time or effort devoted directly to the project. For a faculty member with a nine-month appointment, one month of effort is one-ninth of his academic year salary. Salary increases can be charged to the project if they are accounted for in the proposed budget.

It is important to note that project funds are not used to supplement the PI or any other university staff salaries.

1b. Summer Salaries: Most funding agencies will provide summer months compensation of PIs with 9-month contracts at their regular University monthly rate when included in as part of the project budget proposal.

1c. Research Assistants (RAs): RAs are on academic appointment and they can be appointed on a part-time or full-time basis, for more information on this please see the Research Assistantships Policy under AUB's Policies and Procedures.

1d. Graduate Research Assistants (GRAs): GRAs should be full time students. GRAs stipend and tuition support are compensated from internally or externally supported grants. GRAs may not work more than 20 hours per week in this capacity and are not allowed to work outside the University. They will not be entitled to receive other financial aid as long as the GRA is in force. Salaries/stipends for Graduate Research Assistants (i.e., graduate students) should not be budgeted to include employee benefit costs. For more details, see the policy on Graduate Assistantships and Graduate Research Assistantships under AUB's Policies and Procedures.

2. Consultants and Consulting Fees

It is often necessary to draw on the expertise and services of individuals who are not University employees in the performance of specific tasks of a sponsored funded project. Such services may include consultancies, preparation of working papers or presentation for a workshop and other activities which are important for the implementation of a project. It is important that payments for such services be documented in the accounting system, thus fees for consultants may be charged on a grant in accordance with the terms of the specific grant or contract and the University policy on consultants (consultant's fees must be included in proposed budget).

AUB employees may not be consultants on sponsored projects except in certain specific
circumstances as specified in the university Policy on Consultation for Sponsored Research
Projects, and only if approved by the Dean and the Provost at the proposal stage.

Consultants may be individuals or firms, may provide identical services to others as part of their primary business, provide expertise important to the project, and are given specific tasks and responsibilities to perform. OGC is responsible for the preparation of consultancy agreements upon receiving a written memo approved by the Dean and specifying the amount to be paid and the task(s) to be accomplished by the consultant. It is important for the PI to follow the procedures outlined for consultancy agreements in the "Financial Procedures Applicable to Sponsored Research".

3. Subcontracts

When the University is awarded a project in which a portion of the scope of work is to be carried out by another institution or organization or company; such subcontracting is usually planned for and is included in the submitted proposal and the award document should document the subcontractor's scope of work and estimated budget. Upon the request of the principal investigator, OGC will prepare, negotiate and execute the subcontract in coordination and participation of the principle investigator.

If the need to subcontract arises after the award is made sponsor approval must be received before any subcontracting action can be initiated. When a subcontract is completed, delivery of all final reports must be accomplished.

4. Travel

Travel requests for sponsored projects are processed in accordance with the University Travel Procedures.
Travel requests and reimbursements for sponsored projects are processed through the Auxiliary Service Department at the University and in accordance with University Travel Policies and Procedures. Personal side-trips cannot be charged to a sponsored project account. Each request for travel should state the relationship of the trip to sponsored project.

5. Supplies and Equipment

The purchase of supplies and equipment is often a part of an award budget if their purchase is necessary for the performance of the project. Some funding agencies may require prior written approval before equipment is purchased while others give the university the authority for such a decision. It is the responsibility of the principal investigator to check the award conditions pertaining to the purchase of equipment and supplies and he/she must adhere to the grant conditions.

Ordering equipment from overseas must be done early on in the project and at least three months before the end date of the award agreement to allow ample time for the payment and thus meet the final reporting requirements of the sponsor agency.
Supplies and equipment can be ordered from the University stores or external suppliers through the purchasing department. Please refer to the "Financial Procedures Applicable to Sponsored Research".