Expense Allocation Agreement

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The Funds and the Union intend to reaffirm the agreements and procedures they have put in place to spread administrative and other costs. With respect to cost allocation, IP, which works with research administrators, must ensure that costs are reasonable and that costs for more than one project have appropriate documentation. The allocation method must be proportionate and relate to the costs charged. The documentation should indicate that the allocation method reflects the IP`s judgment and that each project benefits in the percentages or amounts indicated. General Assembly 3.2.3 (Administrative Guide) states that documentation must be written and updated frequently enough to ensure accuracy. The assignment method must be documented in the project file or in online bookings. Criterion (1) indicates the best approach to justify the costs of a sponsored agreement. Some types of costs incurred under a specific research agreement can easily be clearly identified. For example, authorized equipment, animal fees or chemicals purchased exclusively for a project. These costs should be paid regularly and within a reasonable time. Although there are no clear IRS guidelines for what is appropriate, a 501 (c) (4) should reimburse 501 (c) (3), usually within 30 to 60 days, for all advanced costs such as wages or rent. The flow of 501 (c) (4) to 501 (c) (3) does not involve significant legal risk, but a 501 (c) (3) could jeopardize its exempt status if it subsidizes or pays the expenses of 501 (c) (4). It was exclusively for preliminary work under the sponsored agreement.

The key to an effective allocation method is to spread costs based on the benefits received. For example, should chemical levies be allocated on the basis of comparative wages? Agreement to award between 501 (c) (3) and 501 (c) (4) organizations. To answer this question, IP and the research director must determine whether there was a direct link between a person`s content and the amount of chemicals used by that person. In this case, there is no relationship; Therefore, the allocation should not be based on that relationship. All costs attributable to an agreement sponsored under the standards set out in this circular should not be transferred to other sponsored agreements to remedy defects caused by overruns or other considerations of the Fund, in order to avoid restrictions imposed by law or by the terms of the sponsored contract or for other reasons of convenience. Costs should not be calculated based on the availability of funds. The availability of appropriations for the payment of expenses or their inclusion in a budget is not evidence of the accountability of these expenditures. If z.B. a IP (Principal Investigator) wants to charge an expense to a project, the IP (research administrator) can help the IP decide whether it is used for a single project or for many projects and can therefore calculate it accordingly. If expenses are used for more than one project, you determine how much of the expenses are useful for each project and calculate it accordingly.

The allocation of expenditure between what has been proposed and budgeted will almost always be considered insufficient. The monthly cost of supplies/consumables for the maintenance of a laboratory computer system is $1000. The computer system is used exclusively for projects A and B. The computer operating system keeps a log of users and their time on the system.