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Useful Expenditures Types

Caltech currently has 309 active expenditure types Fortunately,119 are for use by Finance only, 16 are

for recharge centers, and 4 are for burden expenditures,

But, that still leaves 170 to choose from….

For a complete listing go to:https://fiji.caltech.edu:9013/pls/CNTR/CITWA_EXP.MAIN.PKG.startup

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Expenditure Types

Expenditure Type # of hits in FY2004Supplies - Allocable 363,699 Travel - Domestic Allocable 41,149 Travel - Foreign 9,109 Supplies - Unallocable 8,981 Entertainment* 5,207 Telephone Expense 4,734 Equipment - Caltech 4,386 Mtgs and Conf Exp - Allocable 3,498 Equipment Maintenance 3,344 Subcontracts- Over 25k 1,864

Top 10 Expenditure Types

* Entertainment should never be charged to a sponsored award

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Expenditure Types -Supplies

Expenditure type Expenditure definition Usage Chargeable to a sponsored agreement?

Supplies - Allocable "Supplies that are allocable under applicable cost principles"

Supplies that are necessary for the overall operation of the Institute

Yes, if the costs directly benefit the research

Supplies - Unallocable "Supplies that are not allocable under applicable cost principles"

Examples: Flowers, gifts, donuts, departmental lunches (non-business related)

Never

• Allocable or unallocable? Is this the type of cost that the Federal Government should be paying for either directly (direct charge to an award) or indirectly (recovered through the F&A rate)?

• Caltech includes costs categorized as ‘supplies allocable’ in the pool of overhead costs that we, partially, recover from Federal agencies: we exclude costs categorized as ‘supplies unallocable’ from that pool of overhead costs

• If in doubt use the front page of the newspaper test...

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Expenditure Types -Equipment

Expenditure type Expenditure definition Usage Chargeable to a sponsored agreement?

Equipment- Caltech Equipment where title is retained by the Institute and is to be carried as an asset under the Institute's capitalization policy

Use the “Equipment - Caltech” expenditure type if:Caltech will have title to the asset, AND Unit cost is $5,000 or more (including freight and tax), AND Item has a useful life of 2 years or more, AND Item is a stand alone asset

Yes, if the project directly benefits from the equipment and an allocable cost for that award

Equipment - Gov't Equipment where title is retained by the government and tracked by the Institute

•Use the “Equipment - Govt” expenditure type if:–The Government retains title to assets over $5,000, AND the additional equipment criteria are met OR–The Government retains title to items under $5,000, AND the additional equipment criteria are met (typica

Yes, if the project directly benefits from the equipment and an allowable cost for that award and the government will retain title

Equipment - Other Equipment where title is retained by others (excluding the government) and tracked by the Institute

–Use the “Equipment – Other Owned” expenditure type if:The non-federal sponsoring agency retains title to assets over $5,000, AND the additional equipment criteria are met OR –The non-federal sponsoring agency retains title to items under $5,000, AND the

Yes, if the project directly benefits from the equipment and an allowable cost for that award and the sponsor will retain title

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Expenditure Types -Determining Title

Sources of Information:Oracle: https://fiji.caltech.edu:9013/pls/CNTRL/CITWA_POTA_PKG.startup Type in award number Double click on ‘award detail’ Scroll down to equipment

Award summaryOffice of Sponsored Research

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Expenditure Types

Expenditure type Expenditure definition Usage Chargeable to a sponsored agreement?

Equipment Maintenance Service and material costs incurred to maintain equipment (other than computers) - Subject to IDC

Any equipment maintenance, whether one time or for a maintenance agreement. Note that Overhead is applied

Yes, if direct benefit and allowable under terms of the award

Computer Software Computer costs associated with various packages, programs, routines and symbolic languages that control the functioning of the system (excluding hardware and maintenance costs)

Equipment expenditure types should not be used for software. Software is not considered capital and overhead will be applicable

Yes, if direct benefit and allowable under terms of the award

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Expenditure TypesTravel

Expenditure type Expenditure definition Usage Chargeable to a sponsored agreement?

Travel - Domestic Allocable "Travel costs incurred for an individual on official Institute business within the United States that are allocable under applicable cost principles"

Must be allowable in accordance with Caltech's travel policy. Normally, only the cost of economy travel should be charged as allocable.

Yes, if allowable

Travel - Domestic Unallowable

"Costs incurred to take a trip or journey within the United States that are not allocable under applicable cost principles"

Example: difference in cost between a first class upgrade and economy fare

No

Travel - Foreign "Travel costs incurred for an individual on official Institute business outside the United States"

Must be allowable in accordance with Caltech's travel policy. Normaly, only the cost of economy travel should be charged as allocable.

Yes, if allowable and prior approval obtained if necessary

Travel - Foreign Unallowable "Travel costs incurred for an individual on official Institute business outside the United States that are not allocable under applicable cost principles"

Example difference in cost between a first class upgrade and economy fare

No

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Expenditure TypesMeetings & Conferences

Expenditure type Expenditure definition Usage Chargeable to a sponsored agreement?

Mtgs and Conf Exp-Allocable "Costs incurred to attend meetings and conferences that are allocable under the applicable cost principles"

Costs of meetings and conferences, when the primary purpose is the dissemination of technical information, are allowable. This includes costs of meals, transportation, rental of facilities, and other items incidental to such meetings or conferences.

Yes, if the award directly benefits and the cost is allocable under the terms of that award

Mtgs and Conf Exp-Unallowable

"Costs incurred to attend meetings and conferences that are not allocable under the applicable cost principles"

Examples might include attendance at a civic or community organization

No

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Expenditure TypesParticipant Support Costs

Expenditure type Expenditure definition

Mtgs - Participant Support (Materials & Supplies) Direct costs for registration or conference fees associated with meetings, conferences, symposia or training projects that are paid to, or on behalf of, participants or trainees who are not employees of the Institute

Travel - Participant Support Direct costs for stipends, subsistence allowances and travel allowances associated with meetings, conferences, symposia or training projects that are paid to, or on behalf of, participants or trainees who are not employees of the Institute

Stipend Participant Support Stipends paid under NSF grants that provide for participant support costs

Stipend Participant Support UG Use only for stipends paid to undergraduate students on NSF- REU awards

• Why is it important to use the correct expenditure type? Because participant support costs are overhead free

• Administrative costs such as room rental, copying, postage, and clerical services do not qualify as Participant Support costs.

• To rebudget funds from participant support cost category to another category requires Program Officer approval