Code Unallowable Costs

Before You Begin

Before you begin this procedure, become familiar with the policies related to this topic.

A cost may be unallowable as both a direct and indirect charge to a sponsored project. However, they may be appropriately charged on other non-sponsored funds in accordance with applicable University policies. These costs must be coded as unallowable in Banner when charged to "non-sponsored" funds so that they can be eliminated from the indirect cost rate calculation.

Begin

1. Code Unallowable Non-Personnel Expenditures

Establish and use a separate program code which rolls-up under a NACUBO function of xx99 - unallowable:

1099 - Instruction
1199 - Organized Research
1299 - Public Service
1399 - Academic Support
1599 - Institutional Support
1699 - Operations and Maintenance

For example, an instructional unit may elect to establish a program code with a NACUBO function of 1099 to charge the salaries and related expenses of its development or alumni relations staff as well as other unallowable costs.

To request a new program code, refer to the Banner Fund, Program, Index Code Request Form.

2. Code Unallowable Personnel Expenditures

For the Urbana-Champaign campus:

Academic (faculty, academic professionals, and graduate students) personnel - Expenditures are classified through the Activity Reporting System which identifies unallowable effort for public relations, organized fund raising, alumni relations, and other unallowable activities. This information is captured for all academic employees and is required to be updated by department personnel before the close of the academic year. If the individual's duties formally include some percentage appointment for one or more unallowable activities, that effort should be reported in the "Alum Dev" category of the Activity Reporting System. Note, however, that the time of unit heads, deans, and directors is not coded in the unallowable activity category unless fund raising is an individual's sole responsibility.

Staff (civil service, academic hourly, and student hourly) personnel - Expenditures in support of unallowable activities must be handled as follows:

1. Individuals whose entire effort is in support of one or more unallowable activities must be charged to a program code (which rolls-up under a NACUBO function of xx99 - unallowable) that is established for the purpose of segregating unallowable costs. Examples of unallowable activities are: investment management, risk management, fundraising, and alumni activities.
2. For individuals whose efforts support both allowable and unallowable activities, the unallowable portion must be charged to an unallowable program code (which rolls-up under a NACUBO function of xx99 - unallowable).

For the Chicago and Springfield campuses:

Expenditures for academic and staff personnel in support of unallowable activities must be handled as follows:

1. Individuals whose entire effort is in support of one or more unallowable activities must be charged to a program code (which rolls-up under a NACUBO function of xx99 - unallowable) that is established for the purpose of segregating unallowable costs. Examples of unallowable activities are: investment management, risk management, fundraising, and alumni activities.
2. For individuals whose efforts support both allowable and unallowable activities, the unallowable portion must be charged to an unallowable program code (which rolls-up under a NACUBO function of xx99 - unallowable).

Forms Used in this Procedure

Banner Fund, Program, Index Code Request Form

Last Updated: June 1, 2016 | Approved: Senior Associate Vice President for Business and Finance - June 2016