I. Procedural Statement
This document is intended to serve as formal guidance for CU 麻豆影院 regarding the use of funds from sponsored projects for relocation costs in like circumstances. The university is committed to ensuring costs incurred in support of sponsored research are allowable, reasonable, and allocable to a particular sponsored award, as defined by U.S. Office of Management and Budget鈥檚 Uniform Guidance (); are in compliance with sponsor requirements; and are administered consistently across the campus for all sponsored research. Procedural statements support the CU 麻豆影院 Cost Principles Policy by providing definitions and processes for meeting those standards.
II. Defintions
Relocation costs are defined in the U.S. Office of Management and Budget鈥檚 Uniform Guidance, as:
Relocation costs are costs incident to the permanent change of duty assignment (for an indefinite period or for a stated period of not less than 12 months) of an existing employee, or upon recruitment of a new employee.
Eligible employees are current employees with a 100% full-time equivalent appointment or new hires who will be in a 100% full-time equivalent appointment.
III. Procedures
A. Federal Awards
Under the guidelines imposed by the Uniform Guidance, relocation expenses may be considered allowable direct charges under certain circumstances, subject to limitations.
CU 麻豆影院 considers relocation costs for new hires or existing employees to be allowable on sponsored projects if the position is essential and allocable to the performance of the award. Eligibility is limited to research faculty, research associates, and post docs.
A position is considered essential under the following conditions:
Relocation costs are allowable on sponsored projects, provided that all聽the following conditions apply, and are subject to limitations outlined below:
Limitations on Allowability
- 聽For new hires, the relocation costs to be covered should be listed in the offer聽letter. If the cost is significantly higher than what the department historically聽has provided, the 聽(section II.E of APS 4015 - Propriety of Expenses)聽should be used, and additional justification聽provided. Allowable relocation costs for current employees or new hires are聽limited to the items listed below:
- 聽If the newly hired employee resigns within 12 months after hire for reasons聽within his or her control, all associated relocation costs must be removed聽from the federal award and charged to a departmental account. If the聽employee is terminated by the unit within 12 months, relocation costs can still聽be charged to the sponsored project.聽
- 聽If an existing employee, or a new hire, is being moved to an overseas聽location, and both of the following conditions apply, the cost will be聽considered a travel cost in accordance with , and聽departments should follow the university's travel policy (link available in聽Section D.)
Unallowable Costs
B. Non-Federal Awards
Section of the Uniform Guidance requires that we apply our policies and procedures uniformly to both federally-financed and other activities of the university. Therefore, CU 麻豆影院鈥檚 Cost Principles Policy, and related procedural statements, are also applicable to non-federal awards. The basic criteria for relocation costs are similar for non-federal sponsored projects, but it is also important to be familiar with the particular requirements or restrictions of each non-federal sponsor. When allowed by the non-federal sponsor, a written justification for the inclusion of relocation costs should be provided in order to explain why these are necessary to fulfill the research objective of the project, and to ensure that the cost directly benefits the project being charged, even when the non-federal sponsor may follow more flexible spending guidelines.
C. Process
At Proposal
The relocation cost should be identified in the proposal budget justification if possible, and justified as to why it is necessary and allocable to the performance of the award. Inclusion in the budget justification is intended to enable the sponsor to review and concur with the need for the cost. Written justification and/or approval are meant to prevent questions regarding the allowability of costs in the event of an audit.
After an Award is Funded
Not every cost can be anticipated at the time of proposal preparation. In the event that an unbudgeted relocation cost is required after an award is funded, the department can work directly with the assigned grant accountant to ensure that this cost is properly documented (including any eligible charges paid by a new employee that would be reimbursed by CU 麻豆影院 with sponsored project funds). The documentation must be retained by the department and available upon request. The purpose and benefit of charging the relocation costs to the specific project should be fully described in the justification, and retained for future reference, should the expenditure be questioned at a later date.