This procedure contains the following sections:

Introduction
Prepare the budget
Justify expenses
Track and charge expenses
Monitor expenses
Introduction
All costs must be charged in a timely manner and must be:


Allocable: The cost must have a direct benefit and be directly attributable to the project or activity being performed.

"If a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the costs should be allocated to the projects based on proportional benefit. If a cost benefits two or more projects or activities in proportions that cannot be determined because of the interrelationship of the work involved, ...the costs may be located or transferred to benefited projects on any reasonable basis..." (OMB Circular A-21, Section C.4.d(3)).

Allowable: Costs must be allowed by University policy, sponsor policies, the project's Notice of Contract/Grant Award and, for federally-sponsored projects, OMB Circular A-21.

Reasonable and necessary for the performance of the project.
Any expense that does not meet all of these criteria cannot be charged to the sponsored account