Sponsored Projects Accounting
Financial Reporting & Award Closeout
Financial closeout is a shared responsibility involving the principal investigator (PI), departmental support staff, Accounting and Financial Reporting (AFR), and the Office of Post Award Management (OPM). It is AFR’s responsibility to submit financial reports that accurately reflect the use of sponsored funds as recorded in the institution’s financial system and in compliance with sponsor terms and conditions. Specifically, federal awards must be completed in accordance with Office of Management and Budget (OMB) uniform administrative requirements. The Sponsored Programs Accounting Procedure outlines the process.
Use of Federal Funds
Cost Allowability for Federal Awards and Service Centers Charging Federal Awards
Uniform Guidance (2 C.F.R. Part 200.420 – 469) outlines specific considerations for selected items of cost. Costs listed below require special consideration when charging sponsored awards or service centers that will charge sponsored awards.
- 200.421 – Advertising and Public Relations
- 200.422 – Advisory Councils
- 200.423 – Alcoholic Beverages
- 200.424 – Alumni/ae Activities
- 200.425 – Audit Services
- 200.426 – Bad Debts
- 200.429 – Commencement and Convocation costs
- 200.431 – Fringe Benefits – Automobiles for personal use/Tuition benefits for family members other than employees
- 200.432 – Conferences
- 200.433 – Contingency provisions
- 200.434 – Contributions and Donations
- 200.435 – Defense and prosecution proceedings, claims, appeals, and patent infringements
- 200.438 – Entertainment Costs (Meals, social events, show or sporting event tickets, etc.)
- 200.439 – Equipment and Other Capital Expenditures
- 200.441 – Fines, Penalties, Damages and Other Settlements
- 200.442 – Fund Raising and Investment Management Costs
- 200.445 – Goods and Services for Personal Use (Housing allowance, living expenses, etc.)
- 200.446 – Idle Facilities and Idle Capacity Costs
- 200.449 – Interest Costs
- 200.450 – Lobbying Costs
- 200.454 – Memberships, Subscriptions and Professional Activity Costs
- 200.455 – Organization Costs (Incorporation fees, consultants, attorneys, etc.)
- 200.467 – Selling and Marketing Costs
- 200.469 – Student Activity Costs (Intramural activities, student publications, clubs, etc.)
DS-2 Fact Sheet
The federal government requires institutions that receive more than $50 million in federal awards to disclose their cost accounting practices for the measurement, assignment and allocation of costs in a disclosure statement known as the DS-2. The disclosure statement allows the federal government to gain a better understanding of University fiscal practices to ensure appropriate levels of effectiveness and accountability. The UT Dallas Office of Budget and Finance produces the disclosure statement as prescribed by the federal government.
The disclosure statement currently in effect has been approved by the University’s cognizant federal agency, the Department of Health and Human Services.
DS-2 Components
Summary
The following is a summary of key UT Dallas practices discussed within the disclosure statement. These practices ensure UT Dallas’ compliance with the uniform administrative requirement and cost principles described within the Uniform Guidance (2 C.F.R. Part 200).
- All proposals submitted under the UT Dallas name must be reviewed by the Office of Sponsored Projects (OSP) and approved by a UT Dallas official with the authority to obligate the University in a contractual relationship.
- Proposal budgets must be developed using cost categories and rates that are consistent with the University’s accounting standards.
- Specific items of cost must be consistently budgeted in similar circumstances as either direct or indirect cost.
- Salaries and benefits for administrative and clerical positions within academic units should be charged to the respective departmental cost centers and not sponsored program cost centers.
- General office supplies, such as postage and communication service costs should be charged to the respective departmental cost centers and not to sponsored program cost centers.
- Total direct costs to complete sponsored programs must be recorded in either the sponsored or cost sharing cost centers, which have been specifically established for the particular sponsored program.
- Costs that are considered “unallowable” by the federal government must be identified and accounted for separately within the University’s financial records.
- The University shall consistently use the same accounting period for purposes of estimation, accumulation, and reporting of costs. This period will be the University’s fiscal year which is September 1 through August 31.
- Service Center charges shall be based on rates, which have been developed, based on the actual cost of service and which have been reviewed and adjusted on an annual basis.