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Principal Investigators Guide


Purchasing

Please see website for complete information on the following: www.du.edu/purchasing.

Expenses & Reimbursements

The Direct Pay Request is used by all departments to process payment for expenditures that are not required to be processed on a standard purchase order or field order. The types of expenditures to be processed on a standard direct pay request are:

  • Travel and Conference (registration fees, transportation, lodging, meals, etc.)
  • Reimbursement of petty cash funds
  • Membership Dues (allowable in civic, business, technical and professional organizations)
  • Subscriptions
  • Advertising (generally not an allowable cost on a research fund)
  • Honorarium Payments / Speaker Fees
  • Entertainment (generally not an allowable cost on a research fund)
  • Program materials under $300 (must be part of the research fund approved contract)
  • Business Meals (The IRS considers business meals as entertainment. All receipts for a business meal must include who was present, purpose of meal, date of meal and why the meeting could not have taken place at a non-meal time)
  • Donations and Contributions (generally not an allowable cost on a research fund)

Adequate documentation for the expense such as invoices, original receipts or registration forms should be attached to the voucher.

The ORSP accounting staff will review all direct pay requests to insure that the expense is allowable and in compliance with the terms and conditions of the grant/contract. If approved, requests are forwarded to accounts payable for payment.

DU Purchasing Card

This may be used for purchases up to $2000.

See www.du.edu/purchasing/policy/index.html for purchasing for restrictions and more information.

Equipment

Commitments to match funds from external sponsors for the purpose of purchasing equipment may be made by the Department Chair, the Dean, the Vice Provost for Research, or a university employee who has fiscal responsibility for university non-restricted funds. Such commitments are considered cost-sharing. Authorization from these individuals is required prior to proposing any commitments, and these individuals will need to consider such commitments in their budget planning processes.

Equipment Procedures

  • When a proposal is prepared, the PI shall work with ORSP to identify cost-shared expenses.
  • If a match for equipment is required, the PI shall obtain commitments from the Department Chair, Dean and/or Vice Provost for Research. Commitments shall be indicated.
  • On the ORSP Proposal Review & Approval (PRA) Form by noting the amount, fund/or, expected fiscal year of expense and signature.
  • Upon award of grant, ORSP shall communicate to the PI and Department Administrator the amount that is reserved for match and the fiscal year. The PI/Department Administrator shall confirm expected purchase(s) by indicating the DU purchase order number(s) and returning to ORSP.
  • The equipment shall be purchased from grant funds and departmental funds, for the costshared portion (which will need to be transferred to the appropriate FOAPs.)
  • The department shall submit invoice(s) and copy of financial transactions that have been paid to ORSP for reimbursement to their department fund/org.
  • ORSP makes expense transfers to the appropriate FOAP, including cost-share Activity Code.

Allowable / Unallowable Costs

All grant/contract expenditures must be based on the cost principles outlined in the Office of Management Budget Circular A-21 guidelines. Allowable costs can be charged to the grant fund, however, unallowable costs must be charged to the department. Following is a list of unallowable costs listed in OMB Circular A-21:

  • Advertising and Public Relations Costs
  • Alcohol
  • Alumni Activities
  • Bad Debt
  • Commencement and Convocation Costs
  • Contingency Provisions
  • Defense and prosecution of criminal and civil proceedings, claims, appeals and patent infringement
  • Donations and Contributions
  • Entertainment Costs
  • Fines and Penalties
  • Fund Raising and Investment Costs
  • Goods or Services for Personal Use
  • Housing and Personal Living Expenses
  • Idle Facilities and Idle Capacity
  • Interest
  • Lobbying
  • Losses on Other Sponsored Agreements or Contracts
  • Pre-agreement Costs unless allowed by Sponsor
  • Selling and Marketing
  • Student Activity Costs