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  1. Whom do I contact?
  2. What financial principles do I need to know?
  3. What auditing or monitoring occurs?

1.  Whom do I contact?

Contact your departmental or research administrator in your hiring department. This individual will serve as your primary contact for financial information and guidance, sponsored project proposal preparation, and post-award management issues. 

2.  What financial principles do I need to know?

According to the UI Policy Manual (Section V, Chapter 5.3.b), as the project director, you are responsible for the sponsored project’s overall programmatic and fiscal direction. In this role, you decide how best to allocate available financial resources to successfully carry out project activities while adhering to all university, governmental, and sponsor policies and regulations.  

You must also ensure that all costs charged directly to a sponsored project are:  

Allowable 

A cost is allowable if it is eligible under the terms and conditions of the agreement. These may vary by funding agency, but major categories of allowable expenses typically include project scientific personnel, supplies, equipment, patient care costs, and related travel expenses.  

Expenses that may not be allowable include administrative salaries, local phone charges, or general-use office supplies. 

Allocable 

A cost is allocable if it can be charged to a project based on the proportional benefit to that project. For example, you may allocate a percentage of salary in proportion to the percentage of effort devoted to the project. It is not appropriate to use funds from one project for items used on another project. 

Reasonable 

A cost is reasonable if the nature of the goods or services and the amount reflect what a prudent person would do under similar circumstances at the time the decision to incur the cost was made. 

Costs for alcoholic beverages, entertainment, fundraising, and lobbying activities are unallowable. 

3.  What auditing or monitoring occurs?

The university is audited on a regular basis. The three main types of audits are: 

Single (A-133) audit 

As required by 2 CFR Part 200, Subpart F, the university must undergo an annual single audit. The scope includes a review of the university's annual financial report, internal controls, and compliance requirements.  

The Grant Accounting Office (GAO) coordinates this audit. The GAO may contact you to request information about a specific cost or other financial issue. 

Project-specific audits 

Any sponsoring agency—federal or private—may require an audit of the awards it provides. Sponsoring agencies often request information by notifying the university authorizing official (vice president for research), but they may also contact you directly. If a sponsor contacts you, notify your departmental or research administrator, who will contact the appropriate central office. 

Internal audits 

The UI Office of Internal Audit regularly monitors university departments and programs for compliance with university, governmental, and, when applicable, sponsor regulations.  

The Grant Accounting Office monitors expenditures for allowability and effort and cost-sharing commitments. You may be contacted to provide justification for specific charges.