Once awarded, the Principal Investigator(s), Research and Sponsored Programs (RSP), and the Grants Accountant all have important roles and responsibilities to managing the sponsored agreement.
Principal Investigator(s)
Research & Sponsored Programs
Grants Accountant
Congratulations on the award! Once RSP receives the official award notification, RSP will notify the PI(s) and process the award documentation, including award agreement negotiations and obtaining necessary official University signatures to accept the award.
Upon receipt of the official, fully-executed award, RSP will authorize the creation of a cost center for the project. PIs will receive a copy of the authorization that outlines the responsible person(s) on the account, project title, funding source, project begin and end dates, and a breakdown of the budget by object code.
Grant Accountant, in Business Services, creates the award account and sends a snapshot of the newly created budget to the responsible person on the cost center. The cost center number should be referenced on all correspondence and requisitions related to the project.
It is critical to understand the compliance requirements for each sponsored project, as these can vary among awards depending on the funding agency (e.g. federal, state, private) and type of research/project and if it involved human or animal subjects.
Please see the Compliance page for more information.
If cost-sharing/match was preapproved through the Proposal Approval Form prior to submission to the funding agency/sponsor, the PI must work with RSP develop a tracking plan. Whether cash or in-kind cost share/match, proper records are required for financial reporting and audit purposes.
If your project doesn’t include cost share/match, proceed to step 5.
It is critical to understand how your award's spending parameters and consider strategies you will use to manage and monitor your project's implementation.
The PI(s) is fiscally responsible for spending project funds in accordance with the award agreement, as well as University/State purchasing policies. We recommend PI(s) reconcile award budget at least monthly.
The concepts of allowability, allocability, and reasonableness of costs address directly the legitimacy of a cost charged against a specific sponsored research award. Determination of allowability, allocability, and reasonableness of a given expense is based on specific guidelines of the funding agency and according to federal cost principles, 2 CFR Part 200, Subpart E - Cost Principles of Uniform Guidance.
Allowability, allocability, and reasonableness are defined and determined by the Office of Management and Budget (OMB) following the sponsor's requirements and/or College policy. Each financial transaction charged against a sponsored research award is evaluated against the following three concepts:
The Principal Investigator(s), Research and Sponsored Programs (RSP), and the Grants Accountant work together to ensure that all costs charged to the sponsored research award are allowable and allocable based on specific guidelines of the funding agency and according to federal cost principles.
Allowable costs (for all non-federal entities, other than for-profit entities and hospitals) are those costs consistent with the principles set out in 2 CFR 200, Subpart E, and those permitted by the funding agency’s authorizing legislation. The fact that a cost requested in a budget is awarded, does not ensure a determination of allowability.
Unallowable costs are costs that will not be supported by a funding agency or will not be reimbursed. If a cost cannot meet the criteria of allowability, allocability, and reasonableness, it is unallowable. A funding agency’s program announcement may identify costs which cannot be included in the budget, although they may qualify as direct costs according to Uniform Guidance. Funding agencies may also limit amount in certain budget categories.
Common Categories of Allowable and Unallowable Costs
| Allowable Examples | Unallowable Examples |
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Audit services Communications Conference grant costs Consulting services Equipment, maintenance and repair costs Project-related personnel Project-related travel Publication and dissemination Supplies and materials |
Advertising Alcoholic beverages Certain travel costs (e.g., flying first class) Entertainment costs Gifts, prizes, and awards Goods or services for personal use Fines, interest and penalties Fundraising costs Lobbying costs |
Consider how you will manage the implementation of your project:
It is expected that the Principal Investigator (PI) or their delegate will review the fiscal status of their sponsored project budget(s) regularly (at least monthly) and promptly correct expense transactions that are incorrectly recorded.
The University recognizes that a correction, also known as a cost transfer, from one account to another are occasionally necessary to correct bookkeeping or clerical errors in the original charges. If a need for a correction to or from a sponsored project budget arises, the PI must notify the University Grants Accountant in writing as soon as possible. Written notice should include details and justification for the correction request. The University Grants Accountant will review allowability of correction request for alignment with the terms of the sponsored award, then facilitate correction in consultation with the Office of Research and Sponsored Programs, where needed.
Using your STAR ID and password, log into Minnesota State the online accounting application to access your project budget. The Accounting Application offers an interactive platform for reviewing and monitoring your projects budgets. Once logged in to the Accounting Application home page there is a useful link to Accounting Documentation and Training Materials.
Common reports used for monitoring your budgets (cost center):
| Report Name and # |
Budget Balance Available Report AC0513CP |
Transaction List Report AC0531CP |
| Data within Report |
Report summarizes the status of the cost center. The columns on this report include: Original Budget: Represents the starting point of the budget at the beginning of the fiscal year. It is for reference only and will not change during the year. Current Budget: Represents the current budget allotment. This value may change as budget amounts are increased or decreased, or as amounts are moved between line items. Encumbrance: Represents budget earmarked for open purchase orders. These amounts have been deducted from the budget balance available. Current Month Activity: Summarizes expenses charged to the cost center during the current month. Year-to-Date Activity: Summarizes expenses charged to the cost center during the current fiscal year. The year-to-date amounts include current month activity. Budget Balance Available*: Current budget less encumbrances less year-to-date activity. A positive amount generally indicates budget available to spend. A negative amount generally indicates budget overspent. A budget transfer should be submitted to clear up any negatives in the budget balance available column. |
This report includes details of all transactions for a designated date range sorted by object code. Each transaction is assigned a Serial Number. The transaction types are: CB Current Budget transactions will affect the amounts in the Current Budget column seen either online or on the Budget Balance Available report. CP Cash Receipt entries represent receipts deposited to the cost center. EN Encumbrance entries occur when purchase orders are generated. Encumbrances have the effect of encumbering or setting aside funds for open purchase orders. JC Journal Voucher entries can represent charges at an on-campus service center. JG These Journal Entries are used for on-campus service centers and for other internal charges such as student payroll. PR Payroll Vouchers are entries to post payroll transactions, including business and travel expense reimbursements. PV Payment Vouchers represent payment transactions, such as checks written to vendors. |
| Accessing the Report |
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*Due to processing time, Purchasing/Travel Card transactions may take up to 4 weeks to post to your account.
External sponsors expect that costs are charged appropriately at the time incurred and that significant adjustments should not be required if adequate financial management practices and policies exist.
Procedures for hiring and purchasing are the same for all University expenditures, including sponsored projects. Please refer to the facilitating expenditure page for details on how to process expenses associated with your sponsored project.
A correction or cost transfer is an after-the-fact reallocation of costs associated with a transaction between two university accounts, at least one of which is a sponsored project. External sponsors expect that costs are charged appropriately at the time incurred and that significant cost transfers should not be required if adequate financial management practices and policies exist.
To comply with cost allowability and allocability requirements of 2 CFR 200, Section E, it is necessary to explain and justify cost transfers of charges onto federal awards from other federal accounts, non-federal accounts or University accounts. Timeliness and completeness of the explanation of transfer are important factors in supporting allowability and allocability in accordance with federal cost principles.
Timeliness
Cost transfers that represent corrections of errors should be completed as soon as an error is discovered, and within three months of when the error is discovered, and no later than six months after the original expense is posted to an award.
Cost Transfer Procedure
A cost transfer requires thorough documentation to support the transaction. In addition, the transfer must be timely, complete, and comply with allowability, allocability, and reasonableness requirements. Principal Investigator, or delegate, submits the following information in writing to the University Grants Accountant for review and consideration:
Reviewing Authority
The University Grants Accountant will review appropriateness and facilitate the correction/cost transfer, consulting with the Office of Research and Sponsored Programs where needed. Approved corrections or cost transfers are processed as soon as identified (typically within a business day or two of identification) and concluded within the appropriate fiscal year.
Occasionally modifications are required to complete the project that was proposed and awarded by the sponsor. It is imperative to communicate with the office of Research and Sponsored Programs (RSP) as soon as award changes are considered. Principal Investigator(s) must use the Post-Award Modification Request Form to officially request modifications for active, funded projects. RSP is responsible for negotiating and documenting modifications with the sponsor.
Complete the Post-Award Modification Request Form and submit to RSP early enough to allow time for administrative processing and to secure sponsor approval in advance of the request change and the award end date.
Once the cognizant Program Officer has been consulted and all internal approvals are secured, RSP will submit the request to the sponsor for approval. If approved by the sponsor, a notification of approval or an amendment will be issued to St. Cloud State University.
The following are the most common types of award modifications; please see each section for specific Principal Investigator(s) action steps.
A no-cost extension extends the project period beyond the original project end date and involves no additional funding. If you anticipate not being able to complete your research by the end date of your award, an extension may be allowable if the following conditions are met:
Note: Remaining budget balance alone is not justification for an extension.
PI Action Steps:
Once received, a modification request is reviewed by Research and Sponsored Programs. Further information will be collected from the PI, and PI’s department and dean/supervisor as needed. Research and Sponsored Programs submits the modification request to the funding agency. Once approval is documented, modification specifics will be shared with Grants Accountant in Business Office to ensure the University’s official award file remains current.
After a grant or contract has been awarded, the PI may determine that the approved budget allocations are not consistent with actual project needs and may request the formal reallocation of funds from one spending category to another to complete the project requirements and implementation. Funding agencies will often consider budget revision requests.
PI Action Steps:
Once received, a budget revision request is reviewed by Research and Sponsored Programs. Further information will be collected from the PI, and PI’s department and dean/supervisor as needed. Research and Sponsored Programs determines if the budget revision request requires a formal award modification, and if required, a formal budget revision request will be submitted to the funding agency. Once approval is documented, modification specifics will be shared with Grants Accountant in Business Office to ensure the University’s official award file remains current.
The approval of the project has been based on the participation or qualifications of the Principal Investigator(s) and other key personnel. Thus, the sponsor requires notification whenever there will be a significant change in the level of participation by the PI(s)/key personnel. The sponsor has the option to either approve or disapprove of any personnel changes on an award.
Examples of circumstances of when PI/key personnel changes are needed:
PI Action Steps:
Once received, a modification request is reviewed by Research and Sponsored Programs. Further information will be collected from the PI, and PI’s department and dean/supervisor as needed. Research and Sponsored Programs submits the modification request to the funding agency. Once approval is documented, modification specifics will be shared with Grants Accountant in Business Office to ensure the University’s official award file remains current.
Funding agencies reasonably expect that the Principal Investigator (PI) will be present when a funded project is implemented to manage the award and ensure that objectives and timelines are fulfilled. If the PI is retaining their affiliation with St. Cloud State but will be disengaged for 90 days or more (e.g., sabbatical, leave of absence, etc.), the sponsor's guidelines about reporting and managing the absence will be followed. Generally options include:
PI Action Steps:
Once received, a modification request is reviewed by Research and Sponsored Programs. Further information will be collected from the PI, and PI’s department and dean/supervisor as needed. Research and Sponsored Programs submits the modification request to the funding agency. Once approval is documented, modification specifics will be shared with Grants Accountant in Business Office to ensure the University’s official award file remains current.
There are a variety of alternate reasons for award modifications
Some examples include, but are not limited to:
PI Action Steps:
Once received, a modification request is reviewed by Research and Sponsored Programs. Further information will be collected from the PI, and PI’s department and dean/supervisor as needed. Research and Sponsored Programs submits the modification request to the funding agency. Once approval is documented, modification specifics will be shared with Grants Accountant in Business Office to ensure the University’s official award file remains current.
The PI(s) is responsible for the completion and submission of required reports in a timely manner. On-time reporting is extremely important as funding agencies can withhold payment if project reports are delinquent. Late or unfilled reports can also affect future funding success.
In coordination with PI(s), the Grants Accountant prepares and sends financial reports/invoices to funding agency/sponsor for reimbursement of expenses incurred. If a narrative explanation of spending is requested by the funding source, the PI is responsible for preparing this information.