Using Sponsored Funds

Purchases using sponsored funds must be made in accordance with  A-21 Guidelines, Cost Principles for Educational Institutions. The A-21 guidelines require Sponsored Programs to review transactions meeting certain criteria to determine if they are allowable. The purpose of these federal guidelines is to verify that all expenses charged to a research project have a "direct benefit" and should be charged as "direct costs" to the project. To ensure compliance, all activity affecting a sponsored project/grant should meet the terms and conditions of the grant or contract.

Guidelines must be followed when procuring goods and services with research funds. These research funds include any chartfield combination with either:

  • Fund 20000 = sponsored federal
  • Fund 25000 = sponsored non-federal

Transactions with fund code 20000 or 25000 and meeting the criteria below are reviewed by Sponsored Programs prior to the approval of the purchase.

  • All equipment (defined as individual items costing $5,000 or greater and having a useful life of two years or more) NOTE: For a list of account codes and purchasing category codes to be used for equipment, see the Financial Operations equipment page
  • Other capital expenditures — renovations, alterations, land, buildings, construction costs
  • International travel
  • Rental, lease, or maintenance agreements covering a period after the ending date of a project/grant
  • Conference expenses
  • All single transactions in excess of $10,000

Please see Sponsored Programs for contact and other information.

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