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Direct Costs on Externally Sponsored Agreements Policy

West Virginia University Policy
Division of Administration and Finance


WVU-CO-6

DIRECT COSTS ON EXTERNALLY SPONSORED AGREEMENTS POLICY

PURPOSE

The purpose of this policy is to inform University departments of their responsibility to insure that all costs charged to externally funded agreements are allowable, reasonable, and directly allocable to that agreement.

SCOPE

This policy applies to all University departments, including those on the regional campuses.

POLICY

All costs charged to externally sponsored agreements (grants, contracts, and cooperative agreements) must be allowable, reasonable, and directly allocable to that agreement.

It is a departmental responsibility to insure that any expenditure that is applied directly to an externally sponsored agreement is:

  • Allowable under the terms and conditions detailed in the agreement document or authorized within the auspices of the extended authorities of the sponsoring agency.
  • Specifically detailed in the agreement document or directly allocable to the individual agreement. Charges that cannot be directly attributed to the work being performed cannot be charged to the sponsored agreement.
  • Clearly required by and in accordance with the sponsored agreement objectives.
  • Incurred within the authorized period of the sponsored agreement.
  • In accordance with the current budget for the sponsored agreement.

Charges determined to be unallowable, unreasonable, or unallowable will be moved to another departmental account.

PROCEDURE

Procedure development rests with the Assistant Controller of Sponsored Research and Cost Accounting of the Controller’s Office.

RESPONSIBILITY FOR IMPLEMENTATION

All employees are charged with providing full support to this policy. It is the responsibility of the Dean or Director to implement and maintain this policy within their college, department, or unit. The Controller’s Office, at 293-4002 or P.O. Box 6001, is available to answer questions or provide additional information regarding this policy.

RESPONSIBILITY FOR INTERPRETATION

The responsibility for interpretation of this policy rests with the Controller, West Virginia University.

Effective Date: September 10, 1998
Approved By: Scott C. Kelley, Vice President