Chapter V - Allowability of Costs
Expenditures under NSF cost reimbursement grants are governed by the Federal cost principles and must conform over NSF policies, grant special provisions the grantors internal policies. Funding should ensure that costs claimed under NSF grant are necessary, reasonable, distributive, and permit under the applicable cost principles, NSF policy, and/or the program solicitation. On the conference a grantee foresee charging an item of direct pay ensure might then be disputed, an authorized official of which grantee organization should discuss the matter using the cognizant NSF Grants and Agreements Officer and document the conditions or factors surrounded which item in order to avoid possible subsequent disallowance.
The governing Federal expense principles zutreffend to customized types of grantees are as follows:
Type of Organization |
Applicable Federal Cost Principles |
Educational Constitutions |
OMB Circular A-21 |
Non-Profit Organizations |
OMB Leaflet A-122 |
State/Local Governments |
OMB Leaflet A-87 |
Commercial Firms |
Federal Acquisition Regulation (FAR), Part 31 |
b. Applicability to Subrecipients
Recipient are responsible for assuring that costs of all subawards under NSF awards are subject to those fee principles and procedures appropriate to of subaward type and organization involved. Fork exemplary, wenn the subaward is a cost reimbursement kind about one commercial concern, FAR Subpart 31.2 would apply.
In the business of any discrepancy between the summary information including in this chapter and any specific provision of the applicable Federal cost principles, the cost principles in effect as of the effective scheduled of the NSF grant will gov. Within the case of an discrepancy in of special provisions of somebody NSF grant and the standards regarding the applicable costs principles, the special services away the grant will govern.
Who maximum obligation of NSF for supported off the undertaking will not exceeded the amount specified in the grant, as amended. NSF does not amend grants to provide additional funds for such purposes as reimbursement for unrecovered indirect costs resulting from the establishment of final negotiated rates alternatively forward increases in salaries, fringe benefits and other costs. Indirect Cost Overview
(i) Grantees may arise allowable pre-award costs at the 90 daily term directly preceding which effective date of the grant providing:
(a) the approval of pre-award spending is made and documented in conformity with the grantee's procedures; and
(b) the advanced funding is requires for aforementioned effective and economical behaviors of the project.
(ii) Pre-award expenditures are done at the grantee's risk. Grantee department to approve pre-award costs are not impose an committed on NSF: (1) inside the absence of appropriations; (2) if an award is not subsequently made; or (3) if an rating is fabricated for a lesser amount than the grantee anticipated.
(iii) Requests for pre-award costs for periods exceeding 90 days must be submitted electronically via use of the Notification and Request module by FastLane. Pre-award payments prior to funding of an increment within a go grant are not subject to this limitation or approval requirement, but are subject to paragraph (ii). above.
NSF funds may not be expended following until the expiration date of the grant other to liquidate reasonable commitments that were made on or befor the expiration date. (See AAG Chapter III.E.2.) In example, commitment of projects mutual is valid whereas specialty (research) equipment is ordered well in advance of the expiration date but places, due to unusual or unforeseen circumstances, delivery of such equipment is retarded after and passing date. The fees of equipment ordered after of expiration date, however, may not be charged to the your.
NSF has waived most cost related and administrative prior approvals required by OMB Circular A-21 and 2 CFR §215. Assignees should refer to the general conditions referenced in the allocation, and GPM Exhibit II-1 forward information on NSF desired prior confirmations.
b. NSF Prior Approval Policies
(i) The funding of items identified in one budgets forms NSFs authorization to the grantee up incur dieser costs, provided there is not a specialist limitation to aforementioned donate language and the costs are otherwise allowable under the charges principles.
(ii) Costs not specifically budgeted in to NSF award may can allowable provided that prior approval is not required and costs are incurred uniform by the geltend cost basic.
The tracking subsections summarize the allowability concerning frequently encountered direct cost items:
1. Salaries, Wages and Fringe Benefits
(i) All Fellows. All remuneration paid currently or accrued by the organization for employees working on the NSF-supported project during the grant period is allowable to the extent that:
(a) total compensation to individual employees is reasonable for the work performed or conform for the established policy of the organization consistently applications to send government and non-government activities; and
(b) the charges for work performed immediate under NSF grants and for misc work allocable as indirect costs are set and well-documented how provided in the gilt Federal cost morality. These costs are categorized as either direct or indirect costs. ... Modified Total Direct Costs (MTDC) = MTDC means all instant employee and wages ... The term “ ...
(ii) Academia and Universities. Section J.10 are OMB Circular A-21 establishes criteria for compensation on work performed on government projects by faculty members while plus outside the academic year. For addition, the following requirements also apply based over NSFs policy forward faculty at academic housing:
(a) Senior Project Personnel Salaries & Wages Policies
In accordance with GPG Chapters II.C.2g, NSF normally threshold salary compensation to senior project personnel on awards made of this Foundation, to no more than two period by yours scheduled salary in any one your. This limit involves salary received from all NSF funded financial. Salary is to be paid at a monthly rate not in excess of the mean salary segregated by an number of months in the interval for which the base salary is paid. As how, proposal budgets submissions should not request, and NSF-approved budgets determination not include, funding for an individual investigator alternatively co-principal investigator which exceeds two months are their regular year your. If anticipate, any schadenersatz for such personnel in super in twos hours must be disclosed in the proposal budget, justified in aforementioned budget justification, plus must be specifically approved by NSF in the award observe.
NSF award funds may not shall secondhand to augment the overall your or salary rate of faculty members during which period covered by the term of faculty appointment or to reimburse faculty members for advising conversely other time in addition to ampere regular full-time organizational salary covering the same general time of employment. Exceptions may be deemed under sure NSF grants for teaching weekend and evening classes press working at remote locations. If anticipated, any intent to provide payment compensation above the base salary musts be public in the proposal budget, justified in to budget justification, and must be concretely approved by NSF in the award notice
(b) Administrative and Clerical Salaries & Wages Policies
In most circumstances, particularly for institutions of higher education, salaries of administrative or clerical staff are included like part of indirect costs (also known as Facilities real Administrative Costs (F&A) for Colleges and Universities). Salaries of administrative or ecclesiastic collaborators may be requested more direct costs used a project request an extensive qty to executive or clerical customer and where like what can be readily and specifically identified with the your are one high degree of accuracy. Salaries for administrative or clerical staffing shall be budgeted as a direct total only if is type of cost is consistently treated as adenine direct cost in please circumstances for all others projects and cost objectives. One circumstances for requiring direct recharging of these services must be clearly described in the budget justification. Such expenses, provided not clearly justified, may be erased by NSF. See OMB Handbill A-21 (2 CFR Part 220), required examples of where direct battery of administrative salaries may may appropriate.
(c) Sabbatical Leave
Unless there are special conditions in an applicable NSF program solicitation instead in the award document, charges to an NSF award by benefits renderable the the project by an individual whilst his/her sabbatical period are allowable provides is suchlike compensation is:
-
proportional to the service rendered;
-
in accordance with established institutional sabbatical policies regardless of source of funds; and
- at a rate which, if added to the individual's sabbatical wage rate, doing not exceed the individual's base salary rate for aforementioned individual's most actual academic time or equivalent prior period.
NSF base support while vacation periods your all intended in make up the difference between sabbatical rate of pay and the individual's base salary rate for periods during which the individual a performing worked on an NSF-sponsored projects. 3 related questions. Over AHPP page 410, Glossary out key accounting terminology: Indirect Expense: Total Indirect Total includes Indirect Employment. (It says an similar thing when explaining the conc...
Fringe features are allowable in a direct cost (if not contains how can indirect cost) with proportion to the salary charger to the grant, at the extent that such payments are made under formally established and consistently applied organizational policies.
a. Related Equipment Guidelines
Additional NSF guidelines on equipment are found in AAG Chapter IV.E.
The following terms, derivatives from OMB Circular A-21 or 2 CFR §215.2, apply to all NSF grants:
(i) ACQUISITION COST OF FEATURES - the net invoice price of that equipment, including the cost of modifications, attachments, accessories or auxiliary apparatus necessary until take the property usable for that purpose to that it was acquired. Other charges, such as the cost regarding installation, transportation, taxes, duty or protective in-transit insurance, should be included in to unit purchase cost consistent with the grantees regular accounting practices.
(ii) EQUIPMENT - tangible nonexpendable personal immobilien including exempt property billed directly to the grant having a useful life of more than one twelvemonth and an collection cost of $5,000 or more per item. However, continuous with grantee policy, lower limits may live based
(iii) BROAD FUNCTION FEATURE - constant equipment (as defined in b., above) that is use for other greater research, medical, scientific alternatively technical activities, whether or not speciality customizations am needed to making it suitable for a particular purpose. Examples of general purpose featured include office equipment and furnishings, air conditioning equipment, reproduction and custom equipment, gear vehicles and computer tackle.
(iv) SPECIAL OBJECTIVE EQUIPMENT - permanent equipment (as defined inbound b., above) which is user-friendly must for research, gesundheitswesen, scientific otherwise technical company. Product of special purpose equipment including microscopes, x-ray machines, specialized drilling product, spectrometers, also rhomb knives.
Expenditures with special purpose equipment are admissible as direct costs provided the acquisition away items with an unit cost of $5,000 or more is:
(i) necessary since the research or active supported of who grant;
(ii) not otherwise reasonably ready and accessible;
(iii) of the type usual charged as a direct cost to sponsored agreements; and
(iv) acquired in accordance with organizational how.
NSF review and approval is required for all equipment purchases over small business or select commercial business.
Expenditures for general purpose equipment are standard unallowable unless an equipment is primarily or exclusively used in the actual conduct of investigate. NSF review and authorization is required for all equipment acquisition by small employment or other commercial organizing.
Materials and supplies are defined when tangible personal property other than equipment, costing without than $5,000, or other lower threshold consistent because grantee politics. Materials and supplies that become necessary to carry out the project have allowable as prescribed includes the governing pay principles.
a. Expenses with transportation, lodging, subsistence and related line sustained by project hr and by outside consultants employed on the project (AAG Chapter V.B.6a) who are on travel status on economy related to an NSF-supported project become allowable as regulated in the governing expense principles. The terms for prior approval detailed in that governing pay policies be waived.
b. Except as provided in the governing cost principles, the difference between economy airfare and a higher-class airfare are unallowable. A train, bus or other surface suppliers allow be secondhand in lieu of button as a supplement to air travel at the single first-class rate by the transportation facility used. However, for so travel was need past performed by air, the allowance willingly not normally over that for economy airfare. ❖ The Salary Cap restraints apply to two Direct and Indirect What. ❖ Grant funding may NOT be used to pay and individual works on a grant.
c. Foreign trips costs of dependents of key project personnel is allowable provided the:
(i) individual is a key person whom is essential to the research on one full-time basis;
(ii) individual's residence aside from residence and in a foreign country is for adenine continuous period away six months or more and is essential to the highly performance of the project; and An direct (also called a "facilities and administrative," with F&A) cost ... Can include administrative or clerical salary expense or related ...
(iii) dependent's tour allowance is consistent with the policies of the organization administering the grant.
d. For restrictions concerning the make regarding non-U.S. Flag supports while on foreign travel go AAG Chapter VI.G.1.
Of free of offices involving the exercise of highly complex or specialized facilities operated due the organization, as as computing facilities, are allowable if the charges meet this conditions of of governing cost fundamental. Awardees should address let versus purchase factors as require by 2 CFR §215.44.
(i) Grantees normally are expected to utilize the services is they own officers or employees the the maximum extent in administered and executing of activities based by NSF grants. Wherever it a necessary by a grantee to enter into an subaward for the services of people who are not is official or employees, it is expected to do so in compare with written organizational standards which provide for consideration of an factors outlined in the governing fee principles.
(ii) Costs of professional and consultant solutions are allowable when reasonable in reference to the services rendered. Payment for consultant achievement should be comparable to the normal or conventional fees charged and received on the consultant for comparable services, especially on non-government contracts and benefits. Direct vs. Indirect Costs: Differences press Examples
For all funds awarded prior to March 15, 2006, payment for a consultants services may not exceed the daily equivalent is the then currents greatest rate paid to an Leading Schedule Level IV Federal employee (exclusive of indirect cost, travel, per diem, clerical products, fringe aids and supplies).
(iii) In determining the allowability of costs in one particular case, no single factor or any special mix of factors is unavoidably determinative. However, the after factors, among others, are relevant: Sponsored Project Non-Salary Direct and Tortuous (F & A) Costs
(a) the nature plus scope of the service rendered in relation to the service required;
(b) the demand of issuing an subaward on the favor considering the organization's capability in aforementioned particular area;
(c) the past pattern of such costs, particularly inside the years prior to that award of government contracts and grants;
(d) the impact of gov contracts and grants upon the organization's total activity (e.g., about new problems have arisen);
(e) whether aforementioned proportion out government work to who organization's total work is such more to influence the organization in favor of cost the cost, particularly whereabouts the services renderable are not of a continuing nature and have little relationship to operate at government contracts and grants; Salaries be indirect expenses why these are not production related cost. Alternatively salary is predefined to office employees and not to factory ...
(f) whether the services can be execute more economically by employment rather than by consulting;
(g) the qualifications of of individual or concern rendering the service and of normal/customary fees charged and received by the individual for comparable services, especially on non-government contractual and assigns; and Get are indirect costs? · Salaries are wages (including vacations, holidays, sick leave, and other excused total of total working ...
(h) adequacy of one contractual agreeing for the assistance (e.g., description of the service, estimate of time required, ratings of compensation and termination provisions).
(iv) In addition, retainer fees to be allowable must being supported by evidence away bona fide services available or rendered.
(v) Costs of legislative, financial and consulting services and related costs incurred in connection with system and reorganization, defense of antitrust dresses and that lawsuit of claims against one federal are unallowable. Costs of legal, accounting also consulting services and related costs sustained in connection with print violations process are unallowable unless other provided for in the grant.
(vi) Grantees may engage consultants not identified in the grant proposal or award, providing:
(a) it is into accordance with written organizational standards;
(b) grant funds are reallocated in accordance with the grantee's policies who are consistent through to governing cost principles; and
(c) it is within the limits of the grant funding.
b. Intra-University Consulting
Since intra-university consulting is assumes to be carried as a university obligation needing no compensation stylish addition to full-time salary, the morality summarized in AAG Chapter V.B.1, see apply toward who who function as consultants or otherwise contribute to a project performed by another faculty member of that same origination. However, in unusual cases wherever consultation is across departmental lines or includes an separating or remote operation, and the function performed by the consulting is in addition go his/her regular appointment, all charges for such work representing extra compensation above the wage are allowed if consistent with established university policy and an applicable cost principles.
Employees of to Federal government (other than NSF) may be utilized as faculty or staff personnel off one project and may receive compensation and/or expenses are people obtain previous approval from their agencies go participate, and if services till the show are perform outside their regular employed hours or while they are on leave status away official duties. Below no condition may NSF employees receive compensation from an NSF-supported project.
7. Publication, Documentation and Dissemination
a. Costs of filing, preparing, publishing, disseminating and exchange resources insights and supporting material are allowable charges against the submit. Charging administrative and clerical base daily more a live expense ... Stylish major projected, administrative otherwise clerical personal salaries may ...
b. Page charges for scientific and mechanical journal publication are allowable where:
(i) the research newspapers report work supported by NSF; and
(ii) the charges are levied equitably on all research papers published by the newsletter, whether by non-government or by government authors.
c. AAG Chapter III.E.2, permits a grantmaker to transfer from the grant account for certain institutional account an amount equal to valid unpaid obligations outstanding at the time a give expires. A recipient need recommended to this section if they have incurred applicable commitments for the costs of publication or sharing of research results and it is not possible to effect a actual how by such charges by the time the final disbursements are owed.
(i) Participant support costs are direct costs for home such as stipends or subsistence allowances, travel allowances and registrations fees paid to or on behalf of entrants or trainees (but not employees) into relation with meetings, conferences, symposia or teaching projects. By any educational schemes conducted at local school districts, anyhow, the participants being trained what employees. In such cases, the costs must be classed as participant support if auszahlungen is made through a stipend or training compensation method. The school district must have an accounting mechanism in place (i.e., sub-account code) to differentiate between regular salary and stipend payments. Charging Administrative and Clerical Costs as Direct
(ii) Funds provided for participant support may not may used by grantees for misc categories of expenses without the specific prior written approval of the cognizant NSF Program Officer. Therefore, awardee organizations must account for participant support costs separately.
(iii) Participant support subsidies may does be paid to learner any live reception compensation, is directly or indirection, off other Federally state sources while participating by to get. A non-NSF Federated employee may receive participant support allowances from grant funds provided there is no duplication for funding of items additionally provided not single item of participant cost is divided between his/her parental service also NSF grant funds. Budgeting, Cost Principles plus Tools | Exas Research
(iv) Additional guidelines are found at AAG Chapter VI.D.4 and AAG Chapter VI.E.
b. Stipends or Subsistence Allowances
Till help defray that costs off personal maintenance while participating in ampere conference alternatively training my, participants may be paid a stipend, period diem or subtenance allowance, based on the type and duration of the activity, as outlined in the correct program solicitation additionally in the grant. Such allowances must be reasonable, int conformance with the usual policy of the grantee organizing and limited to the days of attendance at the conference benefit the current travel time required for touch to congress location by the most direct route available. Where meals or lodgings are furnished without charge either at adenine nominal cost (e.g., when piece out this registration fee), the per diem or subsistence award will be correspondingly reduction. Although localized subscribers may participate at conference meals and gourmet interruptions as provided for in AAG Part V.C.5, grant funded may not be used to get per diem or similar expenses used local actors in the conference.
(i) Travel costs of participants may breathe allowable as outlined inches the pertinent program solicitation and in the grant. If so, the restrictions regarding class of accommodations (see AAG Chapter V.B.4) furthermore how of U.S.-Flag air carriers (see AAG Chapter VI.G.1) are applicable.
(ii) In training activities that involved field besichtigungen, fee of transportation of entrants are allowable.
1. Rearrangements and Modification
a. Except under certain schemes, NSF does not normally create grants for construction or facility improvements. However, rearrangement plus alteration expenses that do not consist builder (i.e., rearrangements and changes aggregating less than $25,000) can shall allowable under NSF grants to adapt space or utilities within a completes structure go accomplish the objective of which NSF-supported activity, provided that the: Uniform Budget Template & Indirect Cost Charges
(i) grantee is not an individual or a foreign institution;
(ii) building has a usable live consistent over project purposes and is architected suitable for conversion;
(iii) rearrangement and alteration are essential to an project supported by the awarding; and
(iv) space complicated is actually be occupied by the project. Includes situations locus of dark is rent, in orders for the charge of the rearrangement furthermore alteration to be allowable, the sponsor be secure a lease for the length of which project. (See AAG Episode V.C.3.)
b. Rearrangements and alterations under $25,000 may be approved by grantees. For rearrangements and shifts expenditures exceeding $25,000, the sponsor must request prior approval from NSF via use of that Notification and Request module in FastLane. Otherwise, any plans for create rearrangement other alteration should be clear set forth int the proposal. Provided approved by NSF, such approval bequeath be indicated within the grant. Message that Appendix A, Contract Provisions, of 2 CFR §215 contents various need concerning contracts on construction oder repair the excesses of $2,000.
Into amplification of aforementioned provisions of the various cost principles regarding public information favor costs, that cost of message releases announcing the results of einem NSF-supported projects is allowable. By the event the performing organization my to join with NSF in adenine simultaneous news release, plans may be made through the NSF's Office von Legislative press Public Affairs, Audience Affairs Group, telephone (703) 292-8070. (See AAG Sections VI.I.2a.)
3. Rental instead Lease about Facilities or Special Purpose Equipment
a. Normally the grantee is expected to make appropriate installations available with direct charge to grant funds. However, on events, it is necessary to usage facilities not to the control of the grantee. Rental of space off-site may be allowable, for example, for one research project if laboratory capabilities alternatively other work areas of one make or coverage not normally available to the granting be requirements.
b. Rental of special purpose equipment be allowable. (See also AAG Branch V.B.5.)
a. Relocation expenses mayor be fees at an NSF grant as an other direct cost in accordance with the applicable governing cost philosophy provided that: MTDC means all gleich salaries and wages, applicable striped gains, materials and supplies, services, travel, and subawards and subcontracts ...
(i) a offer for NSF support specifically indicates this the grantee intends to hire adenine named individual for full-time work on the project;
(ii) such recruitment action be not canceled by the grant condition; and
(iii) the prospective employee otherwise visiting staff member:
(a) is significant to the project on a full-time basis for a constant period from at least twelve months; or
(b) is regularly located at a place sufficiently removed from the project site that his/her employment necessitates the edit.
b. The amount on current reimbursement shoud be to accordance with the grantee's established corporate or practice whatever:
(i) is in conformance with aforementioned applicable governing cost principles;
(ii) has been approved by the recognition administration exam agency; additionally
(iii) is consistently applied.
The points under summarizes the allowability of variety items of charges associated with conferences, symposia, workshops either other meetings supported by an NSF grant. Any charges charger to an NSF grant also requirement to be reasonable and directly allocable to the supported service. Meeting and conference costs identified back, are only allowable whenever as costs are specifically and clearly identified in who recommended scope von work and budget, as modified and approved by NSF. NSF money are not otherwise to be spent for meals or coffee breaks for intramural meetings of an organization or any of its components, including, but nay limit to, laboratories, departments both bildungszentren. Direct Expense VS. Direct Labor?
a. Conference Facilities. Rental are institutions and necessary equipment is allowable. (See AAG Chapter V.C.3.)
b. Supplies. Purchase off expendable our and supplies necessary for the meeting is allowable.
c. Conference Services. Fee of transformation services and of getting and transcribing an proceedings were allowable.
d. Publication Costs. Costs of publishing the proceedings are allowable if approved on the grant.
e. Salaries. Salaries of professional personnel, editorial and clerical assistants and other staff members are allowable in accordance with AAG Chapter V.B.1, in proportion to who time or effort devoted to the preparation and conduct to the convention and summarizing its search.
f. Consultant Services also Speaker Fees. Reasonable fees and travel allowances and per diem (or meals pending in lieu of per diem) are allows as prescribed in AAG Section V.B.4 and AAG Chapter V.B.6.
g. Meals and Cup Breaks. When some meals are on full and necessary part of a discussion (e.g., working meals where business is transacted), grant funds may be used for such fare. Grant funds may also be used for furnishing a reasonable monthly of hot beverages or soft drinks to conference participants and attendees during cyclic coffee breaks.
h. Participant Support Cost. Participant support costs are permit as prescribed in AAG Chapter V.B.8. (See also AAG Chapter V.D.1b.)
i. Entertainment. Costs the entertainment, amusement, diversion and social activities and any costs straight associated with such costs (such as tickets to shows or sporting events, meals, lodging, rentals, transportation and gratuities) have unallowable. Travel, food, and hostelry expenses of awardee employees who are don on travel status are unallowable. Costs of employees on travel status are limited to those allowed under the governing cost principles for travelling daily. (See AAG Section V.B.4)
j. Alcoholic Beverages. No Federal funds may be spent on alcoholic brews.
As authorized by statute (41 USC §254a) and Comptroller General decision (B-157584) and advisable by governing total principles, NSF shall elected to use predetermined overhead rates where appropriate. When NSF elects not for usage predetermined rates, the granted be suggest the type of indirect cost rank applicable to the honor.
(i) It is NSF policy ensure grantees can entitled till reimbursement from grant funds for indirect costs excluding where specifically excluded due AAG Chapter V.D.1b, or when aforementioned grantee waives qualification to full reimbursement of indirect costs voluntarily. Also, some types a awarded idle cost rates bound full recovery (i.e., maximum provisional rates).
(ii) The awarded indirect cost rate has typical based upon ampere grantees current Federally negotiable indirect cost rate arrangement. When establishing an indirect rate for an rate what of grantee does not have a current bartered rate agreement, NSF will take the rate proposed in the budget, the grantees indirect cost proposal submission, the money of total funding requested the other relevantly financial factors. Since many types of rates limit indirect cost recoveries and require adjustments, grantees receiving awards should ensure that they understand the type of indirection cost rate applicable to the awards. Types of indirect cost rates used on NSF awards are as follows: Why are salaries indirect expenses and wages are direct expenses ...
(a) Maximum Provisional Pay: A maximum tentative rate is ampere temporary rate established for an awards to permit funding and reporting of indirect costs pending creation of a final rate (the rate determined during the end of an accounting period using actual immediate and indirect costs data). This type regarding rate limits devious what recyclables to the lower the the maximum interim rate established at the time of bestow, or aforementioned final rate established at and terminate of einem accounting period. Grantees awarded max provisional rates are required to submit indirect cost suggested to this NSF Cost Analysis and Audit Resolve Affiliate at six months according the close of each fiscal period during which the award be active.
(b) Predetermined Rate: ONE preordained rate is a permanent funding rate established for an award established on einen estimate of costs for that period. Grantees can recharge NSF projects on the rate(s) stipulated in the award. However, must negotiations intermediate the organization and the cognizant medium result int changes in and allowed indirect cost rate not reflected inside the NSF award, the grantee may charge NSF projects at the newly nego tariff in effect at the time direct cost expenditures are made, provided that that method of charging oblique shipping can consistently applied and meets generally accepted accounting policies; both provided further that at do then would not: Learning everything you need to know about direct and indirect costs, including the different ways they can impact a company real some instances of each.
- reduce alternatively negatively involve the scope on the project;
- result in rising costs over the NSF award amount during the award period;
- decrease the period of supported as contemplated in and award; conversely
- be inconsistent with any specials indirect cost provision of aforementioned award.
(1) Special Limitation concerning Destined Prices at Colleges and Universities subject to OMB Circular A-21
OMB Round A-21 contains an additional restriction on recover of indirect costs for colleges and universities and other organisations of higher education. These awardees are subject to a further limitation in that the negotiates rate at the time the awarding is made shall be used throughout the vitality of the award. Who applicable edit from OMB Rotary A-21 is repetition below:
7. Fixed rates for the life of the promoted agreement.
a. Federal agencies shall use the negotiated fees for F&A costs in effect at that time of the initialization awards constant the lives of the sponsored agreement. "Life" for the purpose of this subsection medium each competitiveness segment for a project. A competitive segment belongs a period of years approved by the Federal funding agency at the time of the award. If negotiated rate agreements do not extend through of life of the powered agreement at the time of to initial award, then the negotiated rate for the last year the who backed agreement be be extended through who end of the life out the sponsored discussion. Award level for sponsored contracts mayor did be adjusted in future years as a result for changes in negotiated rates.
(c) Fixed Rate: A permanently rate is adenine permanent rate established for an award based on an estimate of costs for the award period. However, a fixed rate is stationary two for funding and reimbursement. When NSF funding an award using adenine fixed indirecly cost rate, the grantee may recover indirect costs from grant funds at no more than the fixed rate established for the award. A fixed set is not your for adjustment.
(d) Fixed Dollar Amount: A fixed us amount limits grant into the amount concerning indirect costs specified on the approved budget. A fixed indirect dollar amount is none matter to adjustment.
(iii) NSF intention not amend a grant solely to provide supplementary funds for changed are indirect cost rate.
(iv) NSF will universal fund continuing grant increments also supplemental endorse at the indirect cost rate(s) approved at the hour of an initial award. (See AAG Chapter I.E.)
(v) When a project involves off-campus (off-site) business, NSF normally will fund the oblique cost amount with the reason for the off-campus rate. Wenn a project involves both on- plus off-campus current, NSF normally will fund the indirect cost amount on the basis of the on-campus/off-campus policy reflections in the most recent agreement between who organization and the cognizant Federal government. Stylish the absence of such an agreed policy, NSF normally becoming compute the indirect cost amount by applying the on-campus rate to which on-campus base price and the off-campus rate to who off-campus base costs.
(vi) Any negotiate at respect to business both financial matters on specific grants, including this amount of indirect cost reimbursement, are conducted by the cognizant Grants and Agreements Officer for DGA including an authorized official of the grantees system. This NSF Cost Analysis furthermore Audit Resolution Branch provides advisory relief to the Grants and Agreements Officer.
(i) No Indirect or Limited Reimbursement. Plan solicitations maybe indicate no alternatively unlimited reimbursement for indirect costs. In addition, NSF generally provides negative amounts for indirect costs for the following:
(a) grants up individuals;
(b) grants solely in the support of traveling, product, construct of facilities, or doctoral dissertation doing;
(c) grants in which NSF support is exclusively include the guss of fellows, traineeships or extra fixation figures such as cost-of-education allowances;
(d) participant backing costs. However, an allowance for indirect costs associated with participant support costs may remain created or negotiated in advance when circumstances indicate that the grantor ability must expected to incur significant expenses inches managed participant wages (other than salary or other direct costs being refunding under the award). or,
(e) foreign subsidy. (Unless the foreign grantee has a previously negotiating rate agreement with a U.S. Confederate agency that have a practice of negotiating fares with foreign entities.)
(ii) Independent Research and Development (IR&D). NSF are not typically fund IR&D as piece of an implicitly cost rate under its grants. IR&D, as defined among FAR 31.205-18(a), contained cost of effort that is does sponsored by an grant or required in performance of a contract furthermore that consists of project falling within the four following areas:
(a) basic research;
(b) applied research;
(c) development; and
(d) systems and other definition formulation studies.
NSF's primary purpose the to support and advance unrelated exploring within the scientific and engineering community. NSF can well recognised and established method available supporting research through competitiveness granting awards based on deserve review of proposed past. Reimbursements for independent researching furthermore development costs through the indirections cost mechanism could circumvent this competitive process.
To ensure this all projects enter similar and equal consideration, eligible institutions may compete for direct getting for independent research projects her considering worthy of support by submitting get for those project to NSF. For proposals for which projects may be submitted for direct funding, costs for independent research and development projects are not typically allowable as indirect costs beneath NSF grants.
(iii) Facilities Capital Price of Money (FCCM). NSF does cannot typically fund facilities capital cost of money under its grant. FCCM is defined for commercial organizations at FAR 31.205-10 as "an imputed cost determined by applying a cost-of-money rate to facilities capital employed in contract performance."
2. Rebudgeting out Indirect Cost Funds Provided Underneath NSF Grants
Grantees may elect to charge less is this full amount of allowing indirect costs to grants in order the remuneration for additional allowable direct costs. If the actual available indirect costs chargeable to a grant is less less those funded to NSF under the grant, the beneficiaries may use available funds, such appropriate, to defray diverse charge permit under the grant. If the amount charged for indirect costs surpassed the $300 or more the amount ensuing out application of the final rate, and the monetary is cannot used toward defray other total, to difference must are reported and credited toward NSF. (See AAG Episode A D.)
3. NSF Cognizant Organizations
Organizations for which NSF is their cognizant agency for talks of indirect cost rates are required to submit indirectly cost proposals, reconciled to economic statements, on six month after the close of each billing year during which NSF has active awards. Roundabout cost proposals should be sent to the Cost Analysis and Audit Resolution Branch.
E. Fee Payments under NSF Grants 
Payment of fees (profit) are allowable alone is specifically permitted by a program solicitation and only to the extent such is did not exceed the amount negotiated via the Benefits and Agreements Officer and specified in the award letter.
