BS5001 - Allowable Expenses

A.  Project Staff for sponsored projects will follow the cost guidelines set forth by the funder, including (for federal awards) those set forth in 2 CFR Part 200. All expenses charged against a grant must comply with funder regulations. The Director of Sponsored Projects Accounting will review and approve requisitions and purchasing card charges to grant accounts in order to ensure compliance with applicable funder rules.

B.  All costs charged to sponsored projects must be allowable, allocable, reasonable, and necessary for the project that is receiving the benefit of the goods or services purchased. The cost must also comply with all funder rules and regulations. For federal funds, see 2 CFR Part 200.400-475. The Director of Grants and Contracts will review all awards upon receipt and determine whether a cost allocation plan should be established in compliance with 200.405.

C.  Supporting documentation must be maintained by project staff and should include a description and quantity of items or services being purchased, a per unit cost, and the grant index and account code to be charged. Itemized receipts are required for any transaction utilizing a purchasing card. Costs are allocable to a sponsored project if the goods or services involved can be directly charged to the grant index based on the benefit provided to the sponsored project.

Documentation for time billed:

College employees whose work time is fully or partially funded through sponsored projects must document their time in accordance with the following procedure.

The Project Staff of an externally funded sponsored project, along with their supervisor, shall be responsible for ensuring that time spent working on that project is appropriately charged to the grant and documented, as follows:

A. Salaried employees 

A salaried employee who is paid regularly from an externally funded sponsored project is required to have a Personnel Action Notice filed with the Payroll Department, which authorizes employment and documents their payroll allocation to the sponsored project and College activities. (Form P-12 is used for Regular Employees). The Notice lists the grant or College index, account code, and the allocation percentages to be used for payroll costs. In addition, each salaried employee paid regularly from a federally sponsored project is required to complete their Employee Time and Effort Semi-Annual Certification Report, which is used to document the reasonableness of the salaries and fringe benefits charged to a grant index on an “after-the-fact” basis.  If a salaried employee works on grant activities on an irregular or “as-needed” basis, the employee must complete a Grant Activity Timesheet for each month during which work is performed on the grant, document their hours and activities, and then certify the form (signature and date). In addition, their supervisor must also approve the form (signature and date) and submit it to the Special Funds Accountant, who will transfer payroll costs to the sponsored program index on an actual cost basis. No Time & Effort Report is required as the timesheet is certified by the employee and their supervisor.

B. Hourly employees
An hourly employee who is paid either fully or partially from an externally funded sponsored project is required to enter, certify and submit their hours via DMACC’s electronic payroll timesheet system according to DMACC’s published payroll schedule. All timesheets are then reviewed and approved by their supervisor and submitted to Payroll. Payroll costs are then charged to sponsored project and College accounts on an actual basis. No Time & Effort Report is required, as the timesheet is certified in the electronic payroll system by the employee and their supervisor.

Purchasing:
A. Project Staff must comply with 2CFR Part 200 and DMACC’s competitive bid policies for all sponsored project purchases. See specifically 2CFR 200.317-327. For purchases using federal grant dollars, this includes adhering to rules on the Simplified Acquisition Threshold (see 2CFR 200.320)

B.  Purchases made with grant funds must adhere to DMACC institutional procedures, and purchases made with federal grant funds must also adhere to federal regulations, regardless of amount. A competitive analysis for all purchases greater than the Micro-purchase threshold ($10,000 as of October 1, 2018) must be placed in the official sponsored project file. Purchases under the Micro-purchase threshold may also require justification if the benefit to the sponsored project is not easily understood by a reasonable person. The office of Grants and Contracts will provide a form to assist with documentation of price comparisons, as needed.

C. All purchases made with federal funds will comply with the Buy American Act and other federal rules at the time the purchase is made.

D.  Under federal guidelines, costs for materials and supplies necessary to carry out a federal award are allowable. All purchases must be made in time to maximize the benefit of the materials and supplies to the project. At the end of a grant’s period of performance, the value of any unused supplies must not exceed $5,000.

Travel:

A. Project Staff are required to follow the DMACC procedures related to travel. All travel requests must conform with the approved project budget and narrative in order to be charged to the grant index.

B. Travel costs must comply with funder policies, which may be more restrictive than DMACC policies. An agenda detailing the purpose of the travel is required. Also, the traveler must choose whether to claim per diem or actual costs for the entire trip. Maximum per diem, hotel expenses, and miscellaneous charges will be determined based on the funding source. For travel with federal funds, maximum federal per diem rates must be observed - refer to website https://www.gsa.gov/travel/plan-book/per-diem-rates. An exception for exceeding lodging per diem rates can be made in the case of a conference negotiated group rate at the hotel where an event is being held. If a traveler is requesting reimbursement for actual costs, itemized receipts are required for all travel-related expenses charged to sponsored projects.  Travel supported by federal funds must adhere to the Fly America Act.  Travel costs, other than registration and airfare, cannot normally be prepaid, especially across fiscal years.

Food:  Many funders have tight restrictions on food purchased with grant funds that are not travel-related. Please consult with the Grants and Contracts office prior to incurring and food costs that are not itemized in the project’s approved budget. Documentation for food expenses must include itemized receipts, an agenda for the meeting/event, and sign-in sheets documenting attendance.the project’s approved budget. Documentation for food expenses must include itemized receipts, an agenda for the meeting/event, and sign-in sheets documenting attendance.

Gift Card Purchases:  Gift cards and other items that have a cash value require specific documentation in order to be charged to a grants index. Please contact grants@dmacc.edu for instructions.

Cell Phones:  costs incurred for a DMACC owned cell phone may be allocated to a grant index if the following conditions are met:

1)  The employee qualifies for a DMACC owned cell phone according to procedure BS 5309

2)  The grant budget approved by the funder contains a line item for the cost of the cell phone.

Cell phone stipends cannot be charged to a grant index.

Relevant Policy: BS 731, 715

BS 5300, BS 5301, BS 5302, BS 5303, BS 5308, BS 5309, BS 5810, BS 5812

References:
Federal per diem rates: http://www.gsa.gov/portal/category/21287

2CFR, Section 200.474
http://www.ecfr.gov/cgi-bin/texidx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl

Legal Reference:
Federal per diem rates: http://www.gsa.gov/portal/category/21287

2CFR, Section 200.474
http://www.ecfr.gov/cgi-bin/texidx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl