I. General Comments

The following definitions and procedures apply to all UCAR entities. They also summarize Participant Support Costs, as defined in OMB A-122 (Cost Principles for Non-Profit Organizations) and as implemented within UCAR's Cost Accounting System.

II. Definitions

Participant Support Costs (PSC): Participant support costs as defined by OMB A-122 (Sec. 34) and adapted by UCAR (see italicized clauses) are "direct costs for items such as stipends, honoraria, or subsistence allowances, travel allowances and registration fees paid to, or on behalf of, participants, trainees, or speakers, (but not employees) in connection with meetings, conferences, symposia, or training projects. These costs are allowable with the prior approval of the awarding agency." As a clarifying note, in order for non-employee travel to qualify as PSC, the sole purpose of the trip must be to participate in a meeting, conference, symposia, or training project/workshop. See specific examples presented on the next page.

Employee: Any person (regular staff, scientific visitor, casual employee, etc.) who receives wages from UCAR. (See also UCAR Policy & Procedure Manual Glossary).

Direct Cost: A cost that can be identified specifically with a particular final cost objective.

Indirect Cost: A cost which cannot be identified specifically with a particular final cost objective. A cost that benefits more than one final cost objective, and must be allocated equitably to each benefitting cost objective.

Modified Total Direct Cost (MTDC):

Total cost less the following:

1. Cost of equipment purchases.
2. Participant Support Costs.
3. Amounts in excess of $25,000 of annual expenditures per account key on a purchase order or sub-contract.
4. Facility chargebacks that include overhead.

III. Special Requirements

PSC expenditures are not subject to overhead or fee.

IV. Procedures

A. Budgeting

Division budgets and proposals beginning for FY 1995 funding should be prepared incorporating the definition of PSC. PSC are excluded from the MTDC base, used for the application of indirect costs.

B. Processing Travel Authorizations

The Travel Authorization form has a box in the upper right corner to designate "Participant Cost" yes or no. Please circle "yes" when the travel or associated travel costs qualify. If this box is not checked, the travel is processed as normal, and overhead is applied. If an error is made but discovered prior to submitting a travel voucher, please indicate at the top of the voucher in bold red letters "Participant Support Travel". An error discovered after the travel is posted and closed will need to be corrected through a journal entry. Please ensure that the Travel Voucher is consistent with the Travel Authorization for PSC.

C. Non-Travel PSC:

Check requests for conference registration fees or honoraria, must also be labeled PSC (in red letters please). The PSC designation must come from the requestor for the respective division or program, and will be verified by the Finance Office.

D. Encumbrances/Expenditures:

As funds are encumbered, and as expenditures are incurred, costs will be classified with PSC object codes. When the indirect costs are applied, PSC object codes are excluded from the base.

E. Reports:

Reports should also be reviewed by administrators to confirm that PSC has been appropriately classified when processed through the Finance Office.

V. Specific Examples

A. Qualify as PSC:

1. Travel by a non-employee to advisory and other panel meetings - All non-employee related PSC qualify, and should be flagged PSC.
2. Visitors - Non-employee UCAR/NCAR visitors using Visitor Authorizations, receiving cost of living subsistence allowances (meals, lodging, etc.) for attendance at a meeting, conference, symposia, or training project do qualify for this PSC function during their visit.
3. Speakers - Non-employee travel for the sole purpose of attending a meeting/workshop/symposia. This may include the role of attending as a guest speaker, and does qualify as PSC.

B. Do Not Qualify as PSC:

1. Multi-Purpose Travel - A trip for the purpose of performing research associated with attendance at a meeting or conference is a multi-purpose trip. By definition, non-employee travel must be for the sole purpose of attending a meeting/workshop/symposia/ to qualify as PSC. Therefore, this trip does not qualify.
2. Visitors - Costs of travel to and from a home institution for non-employee visitors to do research or perform their assigned task at UCAR such as postdoc, graduate research assistance, or other scientific visitor, does not qualify for PSC.
3. Consultant Travel - Consultants, by definition, are being paid to perform a service for UCAR, not to attend meetings or symposiums, therefore, their travel and associated costs do not qualify as PSC.
4. Material Costs - Material costs of a qualified PSC function, such as books, audio visual aids, manuals, conference refreshments, etc., do not qualify as PSC.