The authority to use budgets for their intended purposes is inherently provided to the Project Director.  To assure an orderly process and reasonable controls, University purchasing guidelines and procedures should be followed.  The formal purchasing process consists of three distinct steps: a request for goods, an authorizing order, and, ultimately, a payment. 

These steps are interdependent and are supported by the use of distinct forms.   For most expenditures (generally those less than $500) either an Invoice, or a Business Office Disbursements Voucher is the only form needed to complete a transaction.  To purchase goods that cost $500 or more, a more formal purchasing procedure is required.  This procedure integrates purchasing, inventory and depreciation accounting, as well as providing a measure of control for major purchases.  The University Services Office can assist departments in locating goods and researching competitive pricing as needed.  A detailed description of University purchasing policies and procedures can be found at:  http://universityservices.wlu.edu/purchasing/index.htm

Cost overruns or deficits in grant/contract and campus program accounts are the responsibility of Washington and Lee. When submitting expenditures against projects, Project Directors are responsible for ensuring that the costs being charged are specific to the project charged and that the costs are allowable, reasonable and allocable. The following federal definitions provide you with general information concerning such costs. 

• Allowable and Unallowable Costs
  OMB A-21, Section J states the federal government definitions and examples of allowable and unallowable cost.  Examples of Allowable Costs include direct costs related to the specific scope and objective of the project, (i.e., personnel, communication costs, operating supplies and materials, travel, equipment and other project related costs).  Examples of Unallowable Costs include alcoholic beverages, bad debts, alumni activities, commencement and convocation costs, donations and contributions, entertainment costs, and lobbying costs.

• Reasonable Cost
  A cost may be considered reasonable if the nature of the goods or services acquired or applied, and the amount involved, reflect the actions a prudent person would have taken under the circumstances prevailing at the time the decision to incur the cost was made.  

• Allocable cost
  A cost is “allocable” to a particular cost objective (i.e., a specific function, project, sponsored agreement) if the goods or services involved are chargeable or assignable to such cost objective in accordance with relative benefits received or other equitable relationships.   

Faculty Salary

No one may be compensated for more than 100% of their time.  One exception is grant activities performed during the summer months: "determined for each faculty member at a rate not in excess of the base salary divided by the period to which the base salary relates." OMB Circular A-21, Section J, subpart 3 (d)(2)(a)

Purchasing Procedures

The Project Director is responsible for the purchase of all goods and services for the project and for ensuring that such purchases comply with procedures applicable to the grant.  This includes making certain that competitive purchasing procedures are followed. In all cases, purchases should be at reasonable prices and for bona fide purposes consistent with the needs of the project.  Moreover, the Project Director shall ensure that all purchases are within the budget established for the project.

Equipment

Frequently, equipment may only be purchased by a grant if it was included in the proposal.  Otherwise, the purchase of equipment requires special authorization by the grantor.  Accordingly, before purchasing equipment, the Project Director shall ensure that the proper authorization has been granted under the terms of the grant. 

Travel

The Project Director or his/her designee is responsible for arranging transportation, lodging, or other accommodations as required.  The Project Director is responsible for ensuring that travel arrangements are consistent with any restrictions of the grant as applicable.  State and federal grants generally contain specific provisions regarding travel including, for instance, restrictions on air travel.  

Upon completion of a Travel Expense Voucher, the University will reimburse travelers for all reasonable expenses.  In no case will reimbursement be for amounts in excess of actual expenditures.  All travelers are expected to be reasonable and prudent in the selection of accommodations, meals, and method of travel.  The following guidelines will generally apply:

        Transportation

Air coach or other intermediate class should be used in the interest of economy whenever available. Use of a personal vehicle will be reimbursed at the current rate in effect for the University - 30.0 cents/mile. Use of a University vehicle is allowable; the University will bill the applicable project at the customary rates for the use of the vehicle.  Use of a rental vehicle is allowable when such travel is more advantageous than the use of taxis or other means of transportation. Taxi and limousine service including reasonable tips are allowable if no other reasonable means of public transportation is available.  

Subsistence Expenses

Meals and tips will be reimbursed at actual cost.  Hotel expense will be reimbursed at actual cost provided it is reasonable for the given area.  Other necessary expenses shall be reimbursed provided they are properly explained (includes registration fees, parking fees, etc.) Travelers shall complete the University Travel Expense voucher (see Appendix D) in order to be reimbursed for the cost of travel.  This form shall be submitted to the Business Office within 10 days after return from the trip.  It requires the following information:  

• Dates of travel and expenses by day.  

• Invoices for lodging and ticket stubs for commercial transportation including rental cars.  

• Total miles driven per day, as applicable.  

• Receipts for any other expenses over $25.  Detailed explanations of items less than $25 if no receipt is provided.

Additional Costs

Telephone and Copier Use

It is University policy to allow research projects to use University copiers and telephones including making long-distance calls.  The University will not charge the project for such use provided it is nominal and not frequent or excessive.  Project Directors who require more extensive use of these services shall make arrangements with the Business Office to establish an account for billing purposes. 

Postage

It is University policy to allow research projects to use the University’s mail services for nominal routine correspondence without charge.  Projects requiring more extensive use of such services including large volume or bulk mailings will be charged directly.