Research and Cost Accounting Blog

We have received several inquiries regarding the correct expenditure type to use when paying for undergraduate fellowships.  This situation will be most prevalent on Research Experiences for Undergraduate (REU) projects, but can also arise for other types of projects.  These payments are processed through Payables and should use expenditure type ODC: Teacher / Trainee Allowance.

Please note that graduate fellowships are still processed through Payroll.  Information on graduate fellowship payments can be found on the GPS website: https://graduate.rice.edu/fellows-to-payroll.

Many of you have received emails from OnBase regarding old subaward invoices.  These emails are caused by a glitch in the system. The IT department has been notified and is working to solve the problem. Please disregard these emails.

Below are the changes happening with the Encumbrance calculation revamp:

• Encumbrance costs will be relieved when actuals are posted. They used to be relieved based on calendar days. The change addresses the issue of payroll costs being posted before the end of the pay period, which caused the remaining balance to be understated as both actuals and encumbrances were posted for the same pay period.

• The new encumbrance calculation now supports automatic calculation of fringe based on the assignment category. This eliminates the need to maintain a fringe line for all assignments. The Labor Distribution Administrator will be required to create a fringe rule only when the fringe costs do not follow the salaries and wages costing.

• The hourly employee pay period amount will now be correct. It was overstated.

• F&A on Tuition remission costs for the MTDC burden schedule projects will stop being calculated.

• The award overview page will stop duplicating projects with encumbrance costs.

• Added the LD comment field to the labor distribution details

Rice University remains committed to research, scientific discovery and creative works. In light of changing external funding priorities, a long-term sustainability approach is necessary to deliver on our strategic plan and increased impact. As a result, we are pleased to announce that we are launching a Bridge Funding Program for faculty whose federally sponsored research support has been unexpectedly terminated or reduced.

https://rice.infoready4.com/#freeformCompetitionDetail/1975820

While both sponsored projects and fee-for-service activities involve external funding to the University in exchange for work performed by University personnel, they differ significantly in purpose, scope, and administrative requirements. Proper classification is essential for ensuring compliance with University policy and sponsor expectations.

If you are uncertain about how to classify a specific proposal, project, or agreement, please contact RchAcctg@Rice.edu for guidance and final determination.

Sponsored Projects

Sponsored projects are scholarly activities that directly support Rice University’s mission in research, teaching, and public service. These agreements—typically structured as grants, contracts, or cooperative agreements—require substantive intellectual input from Rice personnel and are subject to sponsor terms and conditions.

Sponsored projects must be processed through the Office of Sponsored Projects (OSP) and submitted via Cayuse.

Common characteristics of sponsored projects include:

1. The project requires significant intellectual or scholarly contribution by Rice personnel.
2. A formal proposal or award agreement is submitted and typically requires institutional approval or endorsement.
3. The budget is itemized and may include sponsor-imposed restrictions on spending or rebudgeting.
4. Cost-sharing or matching funds may be required.
5. There is a specified level of effort or commitment from project personnel.
6. Financial, technical, or progress reports—and sometimes audits—are required by the sponsor.
7. The agreement outlines ownership or disposition of tangible or intangible property, such as data or inventions.
8. Any unspent funds may need to be returned to the sponsor at the project’s end.
9. The agreement includes terms for compliance with federal, state, or institutional policies (e.g., human subjects, export control, conflict of interest).

Fee-for-Service Activities

Fee-for-service activities involve providing routine, defined services using established methods or procedures, often under the direction or specifications of the external entity. These activities do not involve research, scholarly inquiry, or significant intellectual contribution and are not expected to generate new knowledge or result in publications.

Fee-for-service activities typically have these characteristics:

1. The work involves routine, repetitive, or standardized services.
2. Rice personnel provide minimal intellectual or scholarly input.
3. No new intellectual property or research findings are expected to result from the work.
4. There is no scientific uncertainty or hypothesis being tested—the deliverables are clearly defined.
5. Data collected is provided without interpretation, and there is no expectation for publication or analysis by Rice personnel.

This guidance is intended to assist faculty and staff in appropriately classifying externally funded activities and ensuring that proper administrative and compliance protocols are followed. For case-by-case questions or complex situations, please reach out to RchAcctg@Rice.edu.

Relevant Policies
Policy for the Submission and Administration of Sponsored Projects https://policy.rice.edu/301

Signature and Approval Authority
https://policy.rice.edu/810

We often get inquiries from departments about how to fill out the Award Setup Form, particularly with selecting the correct Field of Study (FOS), THECB Category, and Special Interest (SI).  While the form does provide some guidance on these sections, it isn’t easily accessible until the Adobe workflow has been started.  To assist, we’ve provided links to documents that explain what options are available for sections 5, 6, and 7 of the form.  Please note that two of these documents are in Box and will require Rice credentials to access.

HERD Fields of Study (FOS):
https://rice.app.box.com/file/1140270835436

THECB Categories:
https://rice.app.box.com/file/1140277639377

Special Interest (SI):
https://rice.box.com/shared/static/gs2tgke4vjq6h58mnot73es9jhnt8pc4.pdf

Creating a service request through iO’s HR/Finance Help Desk means you need information or support quickly. In order for RCA to route your request to the staff member who can help, we are updating the ticketing categories for RCA effective Monday, April 6, 2025. 

Need a quick way to access the right category? 

1.  Select the file folder icon to at the right of the category menu to access the “view in hierarchy” menu.
2.  Select the Category Name: Research and Cost Accounting (RCA).
3.  Select the specific drop-down category and item, then select OK at the top right of the screen.

Please remember to include the iO Award/Project number, invoice number, or other reference information in the Summary field.

We frequently get questions and requests involving the various roles that are used in the Project Portfolio Management (PPM) system.  Below are the current roles, where they are applicable, and their purpose.

Please note that role changes should be requested via the Help Desk ticket system.  Requests to add roles for personnel not in the Award Org should be approved by the Department Administrator.

Try as we might to stay within the budget provided by the sponsor, sometimes it simply costs more to complete the scope of work, and the award ends up being overspent.  When this happens, you might be tempted to move expenses off the award in order to bring it back within budget.  However, please keep in mind that any expenses associated with the SOW should remain where they are, even if it causes a negative balance.  When this happens, RCA will create a Deficit project and move the direct portion of the overage to the new project, using expenditure type ODC: Excess Costs.  The department will need to process a balance transfer in order to fund the expenses on the Deficit project.

Information on balance transfers can be found here: https://rchcostacctng.blogs.rice.edu/2021/08/18/balance-transfers-in-io/

Information on the correct Fund Types and Fund Sources for these balance transfers can be found here: https://rchcostacctng.blogs.rice.edu/2025/01/29/update-to-frequently-used-fund-types-and-fund-sources/

As research administrators, you play a vital role in ensuring the smooth management of sponsored projects at Rice University. When a faculty member decides to leave the institution, it is crucial to notify both Research and Cost Accounting (RCA) and the Office of Sponsored Projects (OSP) as soon as possible. This early communication allows us to properly manage the relinquishment, closure, or transfer of awards, ensuring compliance with sponsor and university requirements.

Why Early Notification Matters:

• Award Transfers or Relinquishments – Some awards may need to be transferred to the faculty member’s new institution or officially relinquished to the sponsor. This process takes time and requires coordination.
• Final Invoicing & Financial Reporting – RCA must ensure all allowable expenses are recorded, final invoices are submitted, and financial reports are completed in accordance with sponsor deadlines.
• Effort Certification & Payroll Adjustments – Proper documentation and certification of faculty effort must be finalized before departure to ensure compliance with federal and institutional guidelines.

How You Can Help: If you become aware that a faculty member is planning to leave Rice, please promptly notify both RCA and OSP. This proactive approach allows us to:

• Assess the status of existing awards and determine next steps
• Coordinate with sponsors on award relinquishment or transfer requirements
• Ensure timely and accurate financial reconciliation and reporting
• Address any outstanding compliance matters, including effort certification

Your partnership is invaluable in maintaining the integrity of Rice’s research enterprise. By working together, we can ensure a seamless transition for departing faculty and uphold our commitment to responsible research administration.

If you have any questions or need guidance on this process, please reach out to RCA and OSP. We appreciate your diligence and cooperation!