COMMONLY USED GRANT TERMS
IN POST AWARD PROCESSES
AWARD INSTRUMENT
AWARD PERIOD FAR - Federal Acquisition Regulations
CFDA FEDERAL FUNDS AUTHORIZED
CFDA and Executive Order 12372 FEDERAL SHARE
CLOSEOUT FIXED AMOUNT AWARD
COGNIZANT AGENCY GRANT
CONTRACT GRANTEE
COOPERATIVE AGREEMENT INDIRECT COST RATES
COST REIMBURSEMENT IN-KIND CONTRIBUTION
COST SHARING INTANGIBLE PROPERTY
DEBARMENT LOBBYING
DIRECT COSTS MATCHING
DISALLOWED COSTS MISCONDUCT
EQUIPMENT (Federal Definition)
EXEMPT PROPERTY OBLIGATIONS
EXPANDED AUTHORITIES
EXPENDITURES
FACILITIES AND ADMINISTRATION COSTS
FEDERAL FUNDS AUTHORIZED
FEDERAL SHARE
FIXED AMOUNT AWARD
FUNDING PERIOD
GRANT
GRANTEE
INDIRECT COSTS RATES
IN-KIND CONTRIBUTION
INTANGIBLE PROPERTY
LOBBYING
MATCHING
MISCONDUCT
NO COST TIME EXTENSION
OBLIGATIONS
OMB-CIRCULAR A-21
OMB CIRCULAR A-110
OMB CIRCULAR A-133
PERFORMANCE REPORT
PERSONNEL ACTIVITY REPORTS
PRINCIPAL INVESTIGATOR
PROJECT DIRECTOR
PRIOR APPROVAL
PROGRAM INCOME
PROGRAM SPECIFIC AUDIT
PROJECT COSTS
PROJECT PERIOD
PROJECT REPORT
RATE BASIS
RECORDS
RETENTION
SUB-AWARDS
SUBRECIPIENT
SUSPENSION
TERMINATION
THIRD PARTY IN-KIND CONTRIBUTIONS
UNLIQUIDATED OBLIGATIONS
UNOBLIGATED BALANCE
UNRECOVERED F&A COSTS
AWARD INSTRUMENT - The award instrument generally comprises of a combination of one of more of the following:
a. Award letter/Notification of
Grant Award (including any amendments and/or special provisions)
b. The approved budget
c. The proposal
d. The conditions applicable to the award
e. Signed contract
AWARD PERIOD - The dates established in the award document during which grant and/or contract support begins and ends. All project costs must be incurred (encumbered) within this period. Some awards may stipulate that all funds must be expended by the award end date. In instances where funds may be encumbered, there is generally a period of 45 to 90 days after the award end date that all obligations against the project must be liquidated.
CFDA – Catalogue of Federal Domestic Assistance – Listing of all federal programs by title and number. Audits require that the University identify all federal awards received and expended and the federal program under which they were received. The CFDA program number is listed in program announcements and award documents.
CFDA and Executive Order 12372/” Intergovernmental Review of Federal Programs” – Allows for state and local government input into federal funding decisions.
CLOSE-OUT - All administrative and fiscal actions and work have been completed on a grant/contract.
COGNIZANT AGENCY
Audit Cognizance - The federal agency that provides oversight on federal expenditures and audits for the university. Federal agency assigned to the university is the U.S. Department of Education and its cognizance is based on highest level of Federal award dollars expended within a fiscal year.
F&A Cognizance - There are two F&A cognizant agencies: ONR (Office of Naval Research) and DHHS (Department of Health and Human Services) SIUE’s cognizant F&A agency is DHHS.
CONTRACT - Acquisition of property or service for a direct benefit or use of the government or when the government determines that procurement contract is appropriate.
COOPERATIVE AGREEMENT - Transfer of funds to a recipient to accomplish a public purpose. Substantial involvement in the conduct and performance of work between the government and the recipient is anticipated
COST REIMBURSEMENT – A type of award where payment is recovered for actual project costs posted to the grant account.
COST SHARING - The sharing of project costs by the institution. Cost sharing is normally on grants and not on contracts. Cost share should be proportionate and should not only be indirect cost. Academic year time and effort,
cash and indirect costs are allowable methods of cost sharing. Cost sharing should be verifiable and must not include funds from other federally sponsored programs.
DEBARMENT - The ineligibility of a grantee to receive funds from the federal government, indefinitely or for a
specified period of time.
DIRECT COSTS - Costs that are clearly identified as directly related to the support of a specific research or sponsored project. Direct costs can be assigned directly to a sponsored activity with relative ease and a high degree of accuracy.
DISALLOWED COSTS – Expenses determined unallowable in accordance with cost principals or terms and conditions of an award.
EQUIPMENT – Tangible non-expendable personal property including exempt property with a cost of $5,000 (federal) or $500 (state) and a useful life of greater than one year.
EXEMPT PROPERTY – Tangible personal property acquired in whole or part by federal agency funds.
EXPANDED AUTHORITIES – Authority granted to the recipient of federal funds (university via ORP) for certain financial and administrative actions on grants and contracts without seeking prior agency approval.
EXPENDITURES – Charges made either on a cost or accrual basis.
FACILITIES AND ADMINISTRATION COSTS/INDIRECT COST - Costs not clearly identified and cannot be clearly accounted for on an individual project. Indirect costs are incurred for common or joint objectives. The government has renamed indirect costs to F&A costs and it is comprised of two components:
1. Facility Related Components -building use charges; equipment depreciation; operations
and maintenance expense and library.
2. Administrative Components - general administration, departmental administration, sponsored project administration and student administration and services.
Three types of F&A Rates:
Provisional - rate is estimated and is used until actual rate is determined
Predetermined - Rate is established for a period-no carry forward provision.(Note: this is usually S&W)
Fixed - Rate is established for a period. Recovery adjustments are made during the next negotiation
FEDERAL FUNDS AUTHORIZED – Total grants dollars obligated by the Government
FEDERAL SHARE – Amount or percent of cost paid by the federal agency for grant expenditures
FIXED AMOUNT AWARD - An award, which has a predetermined amount without regard to the actual costs of the project.
FUNDING PERIOD – Period of time funding is available.
GRANT - Is a transfer to a recipient of either money, property, services or anything of value to accomplish a public purpose. A grant can also be described as a legal instrument that provides financial assistance in the form of money or property to a recipient. No substantial involvement should be anticipated between the government and the recipient during the performance of activity.
GRANTEE - The agency/institution to which a grant is awarded and which is accountable for the use of the funds.
INDIRECT COST RATES : (see Facilities and Administration Costs).
IN-KIND CONTRIBUTION - Non cash contributions provided by a third party. This may be in the form of property, equipment and the value of goods and services that benefit and can be identified directly with the project.
INTANGIBLE PROPERTY – Copyrights, patents, lease agreements, trademarks.
LOBBYING – Lobbying activities are considered to be any oral, written or electronic communication with executive or legislative officials with regard to legislation, federal rule, regulation, policy, federal programs (e.g. contracts, grants, loans, etc.). The University is required to provide certification to the federal government that no lobbying is conducted utilizing federal funds and also to disclose any lobbying activities
MATCHING - Generally is one-third to one-half of total project costs. Requires major institution commitment to the sponsored project. Cash is generally the allowable method.
MISCONDUCT – Falsification, fabrication, plagiarism or other practices that seriously deviate from those that are commonly accepted within the scientific community for proposing, conducting, reviewing or reporting research and results from activities sponsored by federal funds.
NO COST TIME EXTENSION - Many funding agencies allow a one time extension of the expiration date of the award up to one year. A request for the extension should be submitted in writing to the Director of Research & Projects noting supporting reasons for the extension and revised expiration date.
OBLIGATIONS – Orders placed, goods and services received that require payments.
OMB Circular A-21 – Cost Principles for Institutions of Higher Education – Government regulations that establishes the principles for determining costs applicable to grants, contracts and other agreements for educational institutions.
OMB Circular A-110 – Grants and Other Agreements with Institutions of Higher Education – Government regulations that establishes the uniform administrative requirements of grants and contracts at institutions of higher education.
OMB Circular A-133 – Audits of States, Local Governments and Non Profit Organizations – Government regulations on the audit that cover the financial and compliance requirements on federal and federal flow through grants and contracts received by the university.
PERSONNEL ACTIVITY REPORTS : Federally sponsored programs require that personnel activity reports reflecting time and effort on organized research, instruction and departmental research and departmental admin.
be maintained and certified. These reports reflect the percentage of time of personnel devoted to the federally sponsored program as well as the percentage of time devoted to academic and departmental activities. The principal investigator/project director along with personnel sign and certify these reports.
PRINCIPAL INVESTIGATOR/PROJECT DIRECTOR : the person who is designated by the university and approved by the funding agency, who will be responsible for the scientific or technical direction of the project. The term Principal Investigator is used in research projects and the term Project Director are used in training, education and other projects.
PRIOR APPROVAL – Written authorization evidencing prior consent
PROGRAM INCOME – Income generated or earned as a result of the award
PROGRAM SPECIFIC AUDIT: When an agency determines that an audit of the project funded is required, an independent auditor must be contracted to review and prepare a financial and compliance audit of the project. The cost of this type of audit should be paid by the funding agency and must be included in the project budget. ORP will prepare the necessary documents to contract with and secure the independent auditor. The cost of the audit should not exceed two percent (2%) of the total direct costs of the project.
PROJECT COSTS – Allowable costs in accordance with Federal Cost Principles
PROJECT PERIOD – Period when award begins and ends.
PROJECT REPORT/PERFORMANCE REPORT – The principal investigator’s/project director’s written narrative report to the funding agency on the status and performance of the project funded. This type of report is generally required during the middle of the project period. A final project/performance report will be required anywhere from 45 to 90 days after the project period ends.
RATE BASIS - There are three types of rate basis:
Total Direct Costs (TDC) - All direct costs associated with the project or research.
Modified Total Direct Costs (MTDC) - All direct costs associated with project or research less:
o Equipment - over $5,000.00
o Each Subcontract in excess of $25,000
o Capital expenditures
o Charges for patient care
o Tuition remission
o Rental costs of off-site facilities
o Scholarships and Fellowships
Salaries & Wages (S&W) - This rate is based on Salaries and Wages
RECORDS - Financial records, supporting documents, statistical records, and all other records pertinent to an award. All other records include all records that were produced in connection with the grant – laboratory records and primary data. Access to records must be made available to sponsor at their discretion.
RETENTION – All data (as defined under “Records”) should be maintained as follows:
Federal Requirements– for three years from the date of submission of final expenditure/program reports*.
State Requirements– for five years from the date of submission of final expenditure/program reports.
*As a State of Illinois Institution, all records must be maintained for the five year period.
SUB-AWARDS - Types of Sub-Awards:
o Subcontract/Subgrant/Subagreement - A written agreement with a third party for the
acquiring of property or services or the conduct of a defined statement of work under an award.
o Consortium Agreement - A collaborative agreement with/between two or more parties.
o Consulting Agreement - A subcontract for services that are either urgent, temporary or highly
technical and cannot be provided by existing university staff. Consultants are independent contractors.
o Purchase Order - An agreement issued to enter into a legally binding commitment with an outside vendor for the acquiring of goods and/or services. The University Purchasing Dept. is responsible for purchasing, securing and negotiating goods or services.
SUBRECIPIENT - The agency/institution to which a sub grant (sub award) is awarded and which is accountable
to the grantee (or primary recipient of the award) for the use of the funds provided.
SUSPENSION - The suspension of a grant is a temporary cancellation of sponsorship. A suspension occurs
when the recipient has not complied with certain terms and conditions of the grant. Pending corrective action by the grant recipient, the sponsor removes all authority from the grantee and no funds may be incurred or expended against the grant. Suspension also causes the organization and/or individual (project director, etc.) to be
ineligible to receive further assistance and benefits from the funding source pending investigation and legal proceedings. This action leads to debarment of the grantee.
TERMINATION – Cancellation of sponsorship in whole or part prior to completion date.
THIRD PARTY IN KIND CONTRIBUTIONS – Value of non-cash contributions by non-federal third parties
UNLIQUIDATED OBLIGATIONS – Commitments made and not yet paid.
UNOBLIGATED BALANCE – Funds not committed
UNRECOVERED F&A COSTS – Difference in the awarded amount and what could have been awarded according to approved F&A cost rate.
