1. Sponsored Programs at Penn
Establishing The Project Environment

2. Communication & Support
Consistent and open communication with the PI concerning
Consistent and open communication with the PI
Special Terms and Conditions / Restrictions
Prior Approvals for costs not in original budget:
Travel
Subcontracts
Monitoring Subcontracts
Extensions / Continuations
Technical and Progress Reports
Non-Competing Continuations
Invention and Patent Reports

3. Payroll Identify personnel that are to be paid on award
Review proposal and award documents
Confirm distribution amounts and effort levels
Be mindful that distribution stop date should match the fund end date
Salary encumbrances calculate through the current budget end date or distribution stop date
Be aware of any effort or salary cap limitations on award

4. Procurement and Purchases
BEN Buys Commodity Matrix
Helps to identify purchasing method:
PDA (non-PO)
Purchase Order
P-Card
Competitive Bids
Required on purchases over $5,000 unless vendor is a Penn Contract Supplier or a part of the Penn Marketplace
PI or PI Delegate Approval for all purchases
All purchases should be allowable, allocable, and reasonable
Should verify budget availability before purchasing
Buy American on federal awards when possible

5. Cost Sharing
The specific portion of the project or program costs that is not funded by the sponsor:
Mandatory: costs which are either required by the terms of the award that the University must contribute toward the project
Voluntary Uncommitted: cost associated with a project and not funded by the sponsor, nor identified in the proposal or in any other communication to the sponsor as a commitment of the University
In Kind / Matching: requirement of some sponsored projects that grant funds be matched in some proportion with non-sponsored project funds. Can come in the form of actual cash or “in-kind” contributions
Tracking Cost Share:
A separate five fund will be established to charge cost sharing expenses
It is the responsibility of the department to complete revenue journals to offset the costs of the cost share
Same allowability rules that exist for the sponsored funded portion of the award apply to the cost sharing component

6. Program Income
Gross income earned that is directly generated or earned as a result of sponsored activity, such as:
Revenue from sale of tissues samples harvested from project
Tickets to conference or symposium funded with sponsor awarded dollars
Methods of Program Income
Additive – income is added to sponsor commitment
Deductive – income used to reduce sponsor commitment
Matching – income used to finance portion of departmental commitment
Tracking Program Income
Program income earned from external entities must be deposited in Object Code 4620
Program income earned from fees, good, and services done for another University department should be recorded under Object Code 5347
If the anticipated program income is over $5K then a separate five fund should be set up to track program income expenses

7. Equipment
Tangible, nonexpendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit
If equipment is purchased across funding sources and the itemized cost per fund is less than $5,000 for each fund it should still be charged using an equipment object code
Must be necessary for project purposed and utilized during the award period
Not to be purchased at the end of the awarded period
Be sure to follow sponsor’s equipment disposition guidelines – title can either be held by Penn or the sponsor
In most cases with NIH grant funding the title will stay with Penn
Contracts (both Federal and Non-Federal) have project specific terms and conditions. Be sure to review your NOA thoroughly for equipment dispositions guidelines

8. Computers and Peripheralsff
Computers and Peripherals
Machines used to acquire, store, analyze, process, and publish date and other information electronically, including accessories for printing, transmitting, and receiving, or storing electronic information
Computing device is considered a supply if the acquisition cost is less than $5K, regardless of the useful life length
According to the UG, computing devices can be charged as a direct cost if considered essential and allocable, but not solely dedicated to the project. Essential and allocable are determined by reviewing the following:
Device included in original proposal with justification
Device is necessary for the performance of the projects
Project will be negatively impacted by not purchasing the device
Cost is reasonable and directly beneficial to the project

9. ff
Consultants
Evaluate if the person will be acting as a consultant, employee, or subcontractor using the C-12 Independent Contractor Determination & Certification Form
Document the work and role of the consultant to ensure that work s/he is completed is charged to the correct award
Be sure that a copy of the consultant agreement is on file
Review sponsor guidelines to ensure if prior approval is needed or if there is a cap on what consultant rates will be reimbursed by the sponsor

10. ff
Service centers
A department or functional unit within a department which performs specific service for a fee, such as:
Machine Shop
Cell Sorting Facilities
Animal Care
Service Center rates are reviewed and adjusted on an annual basis based off of profits or losses from the previous fiscal year
Charge grant funding sources periodically with a mass journal across all ORGs and Funds
PI and BA should review service center charges regularly to ensure that the correct account number is being charged and if the services are still be utilized by the project