SPONSORED PROGRAMS QUESTIONABLE OBJECT CODE LISTING

What is it?
It is a listing of questionable transactions that have posted to sponsored program accounts on funds 500-654, and 680-684. The listing is generated monthly and is sorted by department.
The object codes that have been identified as questionable are listed in Appendix A of this document. These object codes were determined to be questionable by the Cost Accounting Standards (CAS) Committee, which also developed the Guidelines for Budgeting, Allocating and Charging Costs to Sponsored Programs.
The questionable object codes identify costs which normally should be treated as Facilities and Administrative Costs (indirect costs) and paid for by non-federal funds. In situations where unlike circumstances have been documented in accordance with University guidelines, these costs may be charged as a direct cost to the sponsored program account(s) which received the benefit. Information on University guidelines may be found in the Guidelines for Budgeting, Allocating and Charging Costs to Sponsored Programs at the following address:

http://www.purdue.edu/costing/BPM/CAS_Guidelines/guide.htm

 
Object codes for costs that normally require prior sponsor approval have also been identified as questionable. Some examples of these are capital equipment and foreign travel.


Where can you find this listing?
The listing can be found in PageCenter at the following address:
https://pagecenter.itap.purdue.edu/
Within PageCenter the listing is located at Mailbox: FINANCEG, Application: FINSNSTV, Pageset: SPSQSTNBLOBJ. PageCenter contains the current month's listing plus six previous month's listings in Archive.


Expectations for Listing
It is the expectation that Business Managers will review the listings monthly for the departments they have responsibility for. It is not intended that every transaction be reviewed in detail but is to be used as a management tool. The listing provides the opportunity to evaluate potentially unallowable charges. It also provides information for Business Managers to work with their staffs to ensure proper assignment of object codes, identify training opportunities; familiarization with sponsored program accounts within their departments and early detection of potential problems.


Practical Uses
Proper assignment of object codes
Example: 5-5698 "OTHER PERS SERVICES" shows up on the questionable transaction listing frequently due to a recharge center activity in the department. Reassign recharge expense object code to 5-4230 "SCIENTIFIC RCHG CNTR BILL" which more appropriately describes the expense.

Training opportunities with the staff
Example: 5-5304 "POSTAGE" shows up on the listing. This type of cost is normally treated as Facilities and Administrative Cost (formally called indirect cost). Postage charges, including Federal Express or UPS charges, directly incurred for the benefit of sponsored projects may be charged as direct costs where a clear cost-benefit relationship can be demonstrated, or when circumstances have been documented as described under Clerical and/ or Administrative costs in the Cost Allocation Guidelines for Charges to Sponsored Programs. These guidelines may be found at:
http://www.purdue.edu/costing/BPM/CAS_Guidelines/costindx.htm

Familiarization with sponsored program accounts within the department
Example: 5-4108 "GASOLINE" shows up on a 590 fund on the listing. This is used for a departmental vehicle that is checked out for fieldwork on a United States Department of Agriculture (USDA) grant, which is researching the effects of blight on field corn. Backup documentation is available which shows the amount of gasoline used for this project.

Early detection of potential problems
Example: 8-6207 "COMPUTER HARDWARE" shows up on the list when capital computer equipment is encumbered. Allows opportunity to verify that prior sponsor approval was obtained if required. If required prior approval was not obtained, provides time to get approval prior to the actual purchase of the computer equipment. Reduces potential financial liability to the department for unallowable costs if approval was required by the sponsor but not obtained.