Charges for licenses to use Classified Controlled Substances in Animal Research

Financial Operations and DRDA believe that generally these charges should be allowable provided the PI can show direct benefit to the sponsored project(s) against which they are charged.

If the license is required to conduct a activity described in the sponsored project, the fee is chargeable to that sponsored project because that project will receive a DIRECT BENEFIT from the University securing the license. If the resulting benefit will be to multiple sponsored and non-sponsored projects the charge to the individual sponsored projects must be prorated accordingly.

Reimbursement Note: The employee can provide personal checks to avoid delays in obtaining University cut checks. The department should then reimburse the employee for these expenses. The reimbursement should be done on a non-PO voucher and processed through the Accounts Payable Office. This will be considered a reimbursement of business expenses and not as taxable income.

Additional Comments:

There is no requirement that these expenses be charged to sponsored projects. It is the responsibility of the faculty member to identify the appropriate funding sources.
If the license request is denied by the State, the charges cannot be covered by the sponsored project (since there we couldn't show direct benefit to the project). It is expected that the unit will cover the charges from an alternative source and the expense be removed from the sponsored project if it was placed there.
If the license expenses are covered by a sponsored project and the applicant employee leaves the University within 12 months of the start of service to that project, the fee expenses must be transferred from the sponsored project account to a discretionary account identified by the Principal Investigator of the sponsored project. Additional charges to the same accounts to obtain a license for a different employee who assumes the duties under that project would not be allowable.

See also: Use of Controlled Substances in Research (UCUCA)

Last reviewed: July 17, 2009

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