Definitions

The process of assigning a cost, or a group of costs, to one or more cost objective, in reasonable and realistic proportion to the benefit provided or other equitable relationship. A cost objective may be a major function of the institution, a particular service or project, a sponsored agreement, or a F&A cost activity, as described in Section F. The process may entail assigning a cost(s) directly to a final cost objective or through one or more intermediate cost objectives.  

A budget identifies the type of costs and estimated amounts needed to complete the project. The budget must be approved by the funding agency and OU. This budget will be the basis for authorizing any expenditure on the project and the basis for seeking payment from the funding agency.

The length of time the award is active. Every award should have specified beginning and ending dates. All expenditures must be incurred or encumbered during this period. If expenditures fall outside this period, they cannot be reimbursed or used as cost sharing. In some cases, the sponsor may approve pre-award costs.

A contract is generally an agreement to provide a product or service that is of direct benefit to the awarding agency. Contracts provide for payments to the University, which cover allowable project costs or payment of a fixed price for satisfactory completion of the project.

A cooperative agreement is like a grant except that the federal government will be closely involved in the activity that is being funded, perhaps bringing government personnel to campus to work on the project.

The sponsor will reimburse the University for any actual, approved project costs, within whatever variances the funding agency allows.

Refers to costs of the program that the funding agency does not pay. It may be a Match, In-Kind Cost Sharing, or Unrecovered F&A (Indirect Costs). These costs are generally borne by the University or non-federal source.

Tangible, non-expendable personal property having a useful life of more than 1 year and an acquisition cost of $5,000 (Oklahoma) or more per unit. Equipment may be a single item, a constructed item (i.e., fabricated) or several components that produce one unit. Threshold of $5,000 includes shipping.

Costs that are incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity. F&A costs are synonymous with "indirect" costs.

Payments for this type of contract are based on satisfactory performance. Payment is set and cannot be adjusted because of how much it costs to meet the terms of the agreement, whether more or less than the contracted amount.

Contribution from a private, non-governmental source, made without expectation of any product or service of a tangible or intangible nature in return.

A grant is an agreement to accomplish something for the public good in exchange for money, property or services. Most federal agencies use a grant document for research awards to universities.

MTDC is the basis used to determine appropriate F&A return. It consists of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). MTDC excludes equipment, capital expenditures, charges for patient care, student tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000. 

Programs and projects financed by Federal and non-Federal agencies and organizations that involve the performance of work other than instruction and organized research. Examples of such programs and projects are health service projects, and community service programs. However, when any of these activities are undertaken by the institution without outside support, they may be classified as other institutional activities.

This is income earned by the University that is directly generated by a supported activity or earned as a result of the contract or grant.

All research and development activities that are sponsored by Federal and non-Federal agencies and organizations . This term includes activities involving the training of individuals in research techniques (commonly called research training) where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function.

Any compensation paid during the summer period to a faculty member in excess of his or her academic-year salary. The summer period is defined to be the period outside Institutional Base Salary of the academic year appointment.

Direct costs plus F&A (indirect costs). This includes the granting agency's share, the University share, and in some cases, it may include a third party share.

All research and development activities that are separately budgeted and accounted for by the institution under an internal application of institutional funds. University research, for purposes of this document, shall be combined with sponsored research under the function of organized research.