Compliance
Grant & Contract Glossary
Telecommunication Costs to Grant, Contract & Gift
-
Included on this page:
As a general rule, basic telephone services such as telephone
installation, instrument, and line costs are charged to state funds. Long
distance and toll calls are allocated to the budget number receiving
direct benefit. When a major portion of the basic telephone cost is
associated with instruction and public service, funding is provided in the
departmental operating budget (ie., 06-XXXX and 07-XXXX, etc.). When the
major usage is associated with sponsored grant and contract activity,
funding is provided in the departmental Base ICR budget (74-XXXX).
When increasing levels of research activity result in the need for
additional telephone service, funding is often provided from
departmental RSA budgets (75-XXXX) or Discretionary (64-XXXX) and
unrestricted Gift budgets (63-XXXX and 65-XXXX). Since UW schools and
colleges vary in their method of funding telecommunication costs, all
departmental inquiries should be referred to the appropriate
administrator within the management unit.
The following guideline has been developed to assist Telecommunications
in properly allocating telephone installation, instrument, and line costs
associated with gifts, grants, and contracts.
Telephone costs may be allocated to discretionary and gift
budgets since donors have given the UW considerable discretion in the use
of these funds. These direct costs charges do not result in a
duplication of costs since no indirect cost is assessed to gift funds.
Since telephone service costs are difficult to identify exclusively with
one grant or contract, they are charged to state funded budgets and
recovered through indirect cost. Harborview Medical Center (HMC) is
considered on-campus for allocating telecommunications costs.
Occasionally, a grant or contract will require expensive telephone
equipment and/or telephone lines for data transmission, and will budget
these costs in an on-campus project. For on-campus grants including
Harborview, the Primate Center, and multiple location awards, the service
must be used exclusively for the project. For Federal awards,
unlike circumstances also must exist in order for these
telecommunication
services to be charged directly to a grant or contract budget. By
definition, unlike circumstances exist when costs are:
- above the normal level for services or items required for a
project
- for technical expertise or items not otherwise needed by the
department
If unlike circumstances exist, the cost:
- must be included in the proposal and
- the unlike circumstances justified to the sponsor
If the need to charge telecommunications expenses directly to the grant is
not identified until after the award is funded:
- NIH, NSF & ONR awards: Documentation of the unlike
circumstances must be maintained in the department's grant file.
- All other Federal Sponsors:
- Prepare a written request to charge these types of expenses,
along with a justification of unlike circumstances
- Obtain concurrence from Office of Sponsored Programs
- Submit the above to the sponsor
These costs will be subject to indirect cost at the rate specified in the
award.
Telephone installation, instrument, and
line costs are normally budgeted and charged to grant and contract
projects conducted exclusively off-campus.
The Applied Physics Laboratory is considered off
campus for allocating telecommunications costs. Telephone installation,
instrument, and line costs are charged directly to APL grants and
contracts. The Office of Management Accounting and Analysis computes a
special APL
indirect cost rate which provides for direct charging of basic telephone
services.
The Regional Medical Library (RML) is considered
off-campus for allocating telecommunications costs. RML has a special
indirect cost rate which allows telephone installation, instrument, and
line costs to be charged directly to RML grants and contracts.
All activity in the Regional Primate
Center grant is accounted for in one budget number even though research
is conducted in the Primate Center facility on-campus and in the Primate
Field Station at Medical Lake, Washington. The UW facility is considered
on-campus, so telephone installation, instrument, and line costs are
charged to state funded budgets in accordance with item 2 of this
guideline. Similar telephone costs at the off-campus Medical Lake
facility are charged directly to the Primate Center grant. Management
Accounting and Analysis computes a special Primate Center indirect cost
rate which allows the on and off campus treatment of telephone expenses.
Where a project supported by a single grant or contract is conducted at two or
more physical locations, provision must be made for identifying costs at each
location. If separate budget numbers are established to identify project
costs by location, the on-off campus data element in the Budget Number Index
is used to determine the allowability of telephone installation, instrument
and line costs. When a single budget number is used, and salaries are used to
determine location in accordance with Grants Information Memorandum (GIM 13 Attachment B), the
entire project is considered on-campus and similar telephone costs must
be charged to state funded budgets.
The location code in the on-off campus data element determines the
allowability of telephone installation, instrument, and line costs on
grant and contract budgets. The fact that the UW does not receive full
indirect cost recovery (i.e., 8% TDC for DHHS training grants) is not
considered since we must ensure consistent treatment of costs in
accordance with OMB Circular A-21.
Compliance
Grant & Contract Glossary
