TUC Sponsored Programs

Unallowable Costs

Definition

Unallowable Costs are all cost that have been spent on behalf of a project, but have been determined not to be allowable as part of the project. Reasons for being determined unallowable may be, but are not limited to:

  • Costs are not budgeted or exceed the budget
  • Costs have not been incurred within the project period
  • Costs are not reasonable
  • Costs are not part of or allocable to the project

Treatment of Unallowable Cost

Unallowable Costs Not Yet Allocated to the Project

Costs that have been determined as unallowable must be allocated to the project. It is the responsibility of the Principal Investigator to determine a different funding source the costs can be allocated to.

Unallowable Costs Already Allocated to the Project

Unallowable costs that have incorrectly been allocated to a project have to be immediately removed from the project. It is the responsibility of the Principal Investigator to determine a different funding source the costs can be allocated to. If it is not immediately possible to determine a different funding source, the unallowable costs will be written off to the Sponsored Programs Reserve. Afterwards, the Sponsored Programs Reserve will be reimbursed from a different funding source for the write-off.

Sponsored Programs Reserve

The purpose of the Sponsored Programs Reserve is to cover potentially unallowable costs and penalties resulting from sponsored programs. The Sponsored Programs Reserve is jointly administered by The University Corporation and the CSUN - Office of Research and Sponsored Programs. Any disbursement of $10,000 or more from the reserve requires the joint approval from both offices.

Write-Off Against the Reserve

Write-Off < $100: The Sponsored Programs Administrator will be able to write-off any amounts smaller than $100 to the Sponsored Programs Reserve.

Write-Off < $500: The Senior Sponsored Programs Administrator will be able to write-off any amounts smaller than $500 to the Sponsored Programs Reserve.

Write-Off < $5,000: The Director, Sponsored Programs will be able to write-off any amounts smaller than $5,000 to the Sponsored Programs Reserve.

Write-Off < $10,000: The Chief Financial Officer will be able to write-off any amounts smaller than $10,000 to the Sponsored Programs Reserve.

Write-Off > $10,000: The Executive Director together with the Associate Vice President Research will be able to write-off any amounts equal or larger than $10,000 to the Sponsored Programs Reserve.