16.2.2 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 system and 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 that rolls-up under a NACUBO function of xx99—unallowable:
1099-Instruction
1199-Organized Research
1299-Public Service
1399-Academic Support
1599-Institute 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 UIUC:
Academic personnel (faculty, academic professionals, and graduate students)
Expenditures are classified through the Activity Reporting System that identifies unallowable effort for public relations, organized fundraising, alumni relations, and other unallowable activities. This information is captured for all academic employees and is required to be updated by unit business office 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 fundraising is an individual’s sole responsibility.
Staff Personnel (civil service, academic hourly, and student hourly)
Expenditures in support of unallowable activities must be handled as follows:
- 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.
- 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 UIC and UIS:
Expenditures for academic and staff personnel in support of unallowable activities must be handled as follows:
- 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.
- 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
First Published: June 2016 | Last Updated: March 2024 | Last Reviewed: March 2024