Compliance Requirements: Approvals Required from Federal Funding Agencies

The PI of a federally-sponsored project is required to report deviations from budget and program plans, and request prior approvals directly from federal awarding agencies for any of the following program- or budget- related reasons. The PI must contact ORSP to discuss any of the following issues, if they arise, before contacting the federal agency: 

• change in the scope or the objective of the project or program 

• change in the PI 

• absence for more than three months or a 25 percent reduction in time devoted to the project by the approved PI 

• additional federal funding 

• transfer of funds allotted for training expense (direct payments to trainees—stipends, tuition, fees) to other categories of expense 

• sub-award transfers, or subcontracting out of a substantive programmatic portion of work, unless described in the application and funded in the approved award. 

• foreign travel 

• Foreign travel requires pre-approval by the sponsor. The federal government defines foreign travel as any travel outside the United States, territories, and possessions, and Canada. Other sponsors may specifically define foreign travel in the contractual documents. 

Insures that salaries and fringe benefits charged to sponsored projects are accurate and reflect the current contract, state guidelines, and Payroll and Human Resources policies.  

Insures the distribution of salaries and wages reflects the value of the percentage of effort reported.  

Kean University uses an after-the-fact reporting system to certify that salaries charged or costs shared to sponsored awards are reasonable and consistent with the work performed.  

Reporting is accomplished through completion and submission of the online " Effort Certification” by all covered employees and by completion and submission of the “Effort Certification Summary” form (ECS) by all PI/PDs. ORSP Post-Award sends an email reminder to all covered employee. Employees have 15  days to certify their effort and submit online. After receipt and review of the forms, ORSP compiles the ECS form and sends it to all PI/PDs. The PI/PDs have 15 days to complete and submit the form.  

Failure to comply with the OMB Uniform Guidance effort reporting requirements can result in financial penalties and expenditure disallowances and jeopardize all Federal and State awards, including student aid. It is therefore incumbent on the University and individual certifiers to maintain and document how individuals spend their time on sponsored research. To protect Kean University and ensure compliance with Federal regulations, any covered employee who fails to fulfill their effort reporting responsibilities will be subject to the following until corrective measures are completed: 

• May not submit a grant proposal application for a sponsored project, including sub- awards.  

• May not be a PI, co-PI, PD, or co-PD of a sponsored project.  

• May not work as a covered employee on a sponsored project 

This pyramid represents the hierarchical order of authority for interpreting federal regulations related to sponsored awards at Kean University. The top of the pyramid represents the most authoritative source — the Award itself — and the base represents more general federal policies such as the Uniform Guidance (2 CFR 200). 

Because Kean University is a New Jersey state agency, University policies such as Grant and Administrative Policy Statements also apply, along with New Jersey state public laws. 

How to Use the Precedence Pyramid 

To determine which policy or regulation applies to a specific situation: 

1. Start with the Award Terms – Review your award document first for guidance. 

2. If the award document (grant or contract) does not explicitly address or provide guidance on a specific issue, move downward step-by-step through: 

• Program Announcements 

• Research Terms and Conditions (RTCs) 

• Sponsor-Specific Terms and Conditions 

• Federal Regulations (Uniform Guidance) 

3. Also consider Kean’s internal policies and relevant New Jersey laws as applicable. 

Practical Examples 

1. Carryforward of Unused Funds 

An Award is ending, and funds remain unspent. A new budget period under the same Award is expected. 

• The Uniform Guidance says prior approval is needed to carry forward funds. 

• The Sponsor’s terms waive this requirement. 

• But the Award itself specifically requires prior approval. 

• Conclusion: The Award’s terms govern—you must request approval to carry funds forward. 

2. Travel Expense Policy 

A PI traveling across states for research wants to rent a car with GPS included. 

• The Uniform Guidance states that if an institution has its own travel policy, that policy applies. 

• If it doesn’t, federal policy must be followed. 

• Conclusion: At Kean, you should follow the University’s travel reimbursement policy. GPS may be allowable if consistent with institutional rules and justified as necessary for the project.