Spending Your Award

Prairie View A&M University (PVAMU) agrees to abide by the terms and conditions of an award upon acceptance of the project.  It is the responsibility of the Principal Investigator (PI) and the Project Administrator (PA) to ensure the policies of the university as well as the regulations of the sponsor are followed. All expenditures must be monitored to ensure compliance with such policies.

The Office of Management and Budget (OMB) outlines uniform administrative requirements, cost principles and audit requirement for federal award for educational institutions.  2 CFR, Part 200 defines the major functions of an institution, a sponsored agreement (grant, contract, etc.), allocation, and Facilities and administrative costs (F&A). It also provides basic considerations of the composition of total costs and factors affecting allowability of cost. Allowable factors are reasonableness, allocability, consistency of treatment, and conformity to limitations or exclusions.

See OSP guidelines regarding Allow-ability, Allocability and Reasonableness of Costs.

The Office of Sponsored Programs (OSP) will review all expenditure requests to help ensure allowable purchases are reasonable and allowable to the objectives of the project.  PVAMU follows the federal administrative requirement, 2 CFR Part 215 (formerly known as OMB Circular A-110), and cost principles, 2 CFR, Part 220 (formerly known as OMB Circular A-21).  All expenditure requests including requisitions, disbursement request, request for travel, and consultant contracts on sponsored projects must be forwarded to the OSP by the PI and/or appropriate designated staff.

The PI is responsible for managing the budget and expending it in accordance with sponsor and university regulations on allowable, allocable, and attributable expenses related to the project, as indicated in the approved budget.  The PI must be familiar with and comply with both the sponsor’s guidelines and the University’s guidelines for fiscal management of sponsored projects.

General guidelines for expending sponsored program funds are as follows:

  • Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles.
  • Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amounts of costs
  • Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the non-Federal entity.
  • Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost.
  • Be determined in accordance with generally accepted accounting principles (GAAP)
  • Not be included as a cost or used to meet cost sharing or matching requirements of any other federally-financed program in either the current or prior period.
  • Be adequately documented

In short, expenses can only be recorded on sponsored projects if they are:

  1. Reasonable – Reflecting conscientious and prudent financial decision making.
  2. Allocable – Bearing a direct relationship to the activities of the program, not to the general needs of the department or university
  3. Consistently Treated – Expenses for similar purposes must be treated the same way (throughout the university) under like circumstances and not exceeding normal limits of similar charges that are not grant supported.
  4. Allowable – The expense must be allowable or not specifically excluded as specified by government regulations or by the contract/grant/cooperative agreement requirements. Costs must adhere to sponsor-stated restrictions, recognizing and respecting any restrictions on use of funds stipulated by the sponsor.

If an expense cannot meet the above criteria, it is NOT eligible for inclusion on the project regardless of it’s purpose.