UCR Policies and Procedures

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For Guidance, see UC Contract & Grant Manual:  http://www.ucop.edu/research-policy-analysis-coordination/resources-tools/contract-and-grant-manual/index.html

Campus Policy Number: 200-46

Federal Contract and Grant Administration - Policies & Procedures for Compliance with Federal Policies

Policy Owner: Accounting Office
Effective Date: 2/1/83



    All purchase requisitions for equipment must be initiated 120 days prior to the effective termination date of the contract or grant. Exceptions will be granted only when specific written approval by the appropriate agency administrator is obtained. Purchase requisitions for equipment must include the following statements:


    1. Certification of need and use for the project.



    2. The requested equipment is provided for in a line item in the agency approved budget, or appropriate approval has been obtained.



    3. Certification that no like equipment is available on campus for use by the project which could be used without seriously inconveniencing the researcher. Certification for items under S10,000 will be the responsibility of the department chair. For items above $10,000, an equipment search will be conducted by the Equipment Manager/Materiel Manager.


      The search will be initiated upon either verbal or written request from the principal investigator. If the Equipment Manager advises that like equipment is available, the investigator must determine whether or not the equipment can be shared.

      In particular cases of specific items below $10,000, where use might be of a limited nature, a campus-wide search will be made at the request of the principal investigator.


    4. Whether requested equipment will or will not be available for shared use by other researchers on campus.


      Any requests for exceptions to these procedures will be handled on a case-by-case basis by the Materiel Management Department and referred to the Research Office for approval. All requests must be in writing and attached to the purchase requisition. If general purpose equipment (office equipment, calculators, air conditioners, reproduction equipment, data processing equipment, etc.) is requested, it is mandatory that prior approval be obtained from the granting agency.

      Procurement requests for supplies will not be processed routinely by the Materiel Management Department in the final 30 days of the effective contract or grant period. In the case of anticipated continuation of grants or contracts, properly signed pre-award approvals will be required before a purchase order will be processed.


    Federal auditors take the view that the initial decision to charge expenses to account and fund was based on consideration of allowability and appropriateness under the terms of the contract or grant and can be assumed to be correct.

    Any transfer of expense, to or from a contract or grant, must be initiated within 120 days of the original charge, be properly allocable to the project, be fully explained and certified by the principal investigator or other program official, and be reviewed and approved by the Accounting Office. (See policy number 200-50, Expenditure Cost Transfers.)

    In case of disagreement, appeals may be made to the Vice Chancellor--Administration for a final decision.

    Principal investigators should be aware that:


    1. Transfers of expense solely for the purpose of using unexpended balances are not acceptable, or transfers from one account/fund to another account/fund to relieve over-expenditures or to use available balances are not acceptable.



    2. It is generally improper to charge all expenses to one account/fund for subsequent redistribution. This may be done only if distribution of the charges is not feasible as the charges are incurred. A statement documenting the need and approved in advance will be required in such cases. The time limit of 120 days applies to all cost transfers, including payroll. Payroll transfers affecting substantial costs must be fully documented and supported by a Personnel Action Form (PAF).



    3. Vacation Leave


      • (a) Costs must be allocable to the project. For employees transferring between grants, vacation accrual for employee must be transferred to a new contract or grant by use of a UPAY646 form. (See policy number 200-98 vacation transfers.)
      • (b) Records of vacation accruals and vacation leave must be maintained. Every effort should be made to have employees take vacation leave during the term of the contract or grant.


    Basic substantiation of salary and wage costs charged directly to contracts and grants is the responsibility of the University payroll system and the department. Department chairs or equivalent academic officials are responsible for making monthly after-the-fact reviews of salary and wage charges (see policy number 200-48 and certifying to the accuracy of the charges by signing the Personnel Activity Report (PAR).

    Time and effort must agree with payroll distribution. Daily attendance reports for all staff employees and job time cards for all hourly rated personnel must be maintained.

    Summer Employment of Faculty on Contract and Grant Funds


    1. Under University regulations, 9-month faculty members may be appointed on extramural funds to an appropriate research title during the summer recess and may earn up to 3/9 of annual salary based on a 57 day summer period.



    2. Faculty summer employment under contracts and grants is not to be construed as informal "additional compensation" for effort devoted to research projects during the academic year.



    3. Payment is made only for those days when work is actually performed.



    4. A faculty member on summer resarch salary is expected to be in residence on campus except insofar as the research effort requires absence. If research activity requires absence from the campus, prior written notice must be on file with the department chair or or director of the unit administering the grant or contract to which summer salary is charged. This notice should include the following information:


      • (a) Inclusive dates of absence.
      • (b) Location and whether reachable by phone/mail, etc.
      • (c) Reason/purpose for off-campus location. It is especially important that a full explanation be provided especially if the location off campus is not obviously related to the type of research performed under the supporting contract or grant.


    5. Prior to executing certifications of effort on Personnel Activity Report forms (PAR), department chairs and directors should assure themselves that the requirements of this policy have been satisfied.


    Academic Year Employment of Faculty, Etc.

    Ending dates of contracts and grants will seldom coincide with the academic quarters. When a contract or grant on which a faculty member is being paid a monthly rate expires other than at the end of the quarter, it will be necessary to calculate the faculty member's salary on a daily rate basis in order to assure that the contract or grant has been appropriately charged.



    1. External (non-University of California). Consultant Agreements must be prepared in accordance with the policy set forth in the Policy and Procedures Manual, No. 750-27, and must be approved prior to the date the consultant performs the service.



    2. Internal (University of California employee). Consultants must be appointed and their fees computed as set forth in the Academic Personnel Manual, Section 664.


      The consulting costs must be documented to demonstrate the services are needed, to evidence a proper selection process, to justify that the fee is appropriate and that required agency approvals were obtained.


    Approval for pre-contract/grant expenditures for a maximum of two months will be given upon certification by the Research Office that a firm commitment has been made by an agency and that the unit responsible for the grant will cover the expenses incurred if the contract is not awarded. A dollar limitation for expenditures will be indicated on the request and required signatures obtained before submitting the request to The Vice Chancellor for final approval.

    In the event the contract or grant has not been received by the time the pre-contract/grant funds have been expended, the Accounting Office will not accept any further charges. If the principal investigator exceeds the authorized amount, all over-expenditures will be recharged to the appropriate department/account. In the absence of an authorized pre-contract/grant expenditure or extension of pre-contract/grant expenditure, there will be no exception to this policy.

    Extension of pre-contract/grant expenditures may be granted for emergency purposes only.