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X-Coding Guidelines

X-CODING

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GUIDELINE FNG05

Expenditures Guidelines for Costs Not Allowable Under OMB Circular A-21

Outlines the procedures to be followed in excluding expenses which are not allowable under federal costing guidelines. When we x-code an expense, we are excluding that expense from the University’s overhead calculation

Some accounts are unallowable in their entirety (100% x-coded) because of their function. Development, Alumni Relations, Palmer Museum and the Center for the Performing Arts are examples of accounts that are 100% x-coded.

When do I need to X-code?

  1. ONLY X-CODE ON GENERAL FUNDS (10010)
  2. X-coding occurs in the FANS window… “X Excluding Amount__________”
  3. Even if charge has been resolved, it can still be x-coded through the ICAG screen

Guide on X-coding for general funds (PDF).

FEDERAL COSTING GUIDELINES (A-21) STATES THAT THE FOLLOWING FUNCTIONS ARE UNALLOWABLE AND MUST BE X-CODED

Alumni Activities/Alumni Relations
Commencement and Convocations

Fundraising and Development
Lobbying
Selling and Marketing of products or services

Advertising/Marketing/Public Relations—this includes brochures and advertising related to recruitment of students.

Student Activities/Student Services—such as Intramural activities, student clubs, student publications, payments to ASA (Associated Student Activities) in support of student activities.

Student recruitment and retention costs – this includes the costs for the recruitment of graduate assistants, fellows and post-doctoral fellows.

Note:
Admissions and student recruitment/retention activities, such as advising or counseling that are available to the entire student population are allowable. However, recruitment or retention activities focused toward a special segment of the student population, such as minorities, women or athletes, are unallowable and should be x-coded.

CERTAIN OBJECT CODES SHOULD BE EXAMINED CLOSELY FOR UNALLOWABLE COSTS THAT MUST BE X-CODED.

The following costs are unallowable and must be X-coded:

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Employee-Only Group Meeting Expense or Group Meals

If only University employees are in attendance at a group meal or group meeting, the expenditure MUST be x-coded, even if the business purpose of the meeting would normally be allowable. This also includes professional development group meals.

  • 324 Meeting Expenses—Professional Development
  • 325 Group Meals—Professional Development
  • 329 Group Meetings
  • 332 Group Meals
  • 393 Professional Services (Caterers)
Alumni Activities/Alumni Relations

Expenses related to Alumni MUST be x-coded. In Arts and Architecture, most of these activities occur at the College level via Joyce Hoffman’s Office. However, departments may provide travel, lodging and meals to Alumni guests. This includes Alumni Fellows and Distinguished Alumni who travel to campus.

  • 336 In State Travel
  • 337 Out of State Travel
Development/Fundraising

Expenses related to Development and Fundraising MUST be x-coded. In Arts and Architecture, most of these activities occur at the College level via Rob Motherbaugh’s Office. However, departments may participate by providing travel for department heads or donors.

  • 336 In State Travel
  • 337 Out of State Travel
Newsletters

Newsletters fall into a couple of the unallowable functions. Newsletters are often mailed to Alumni, Donors and friends of the department. Therefore, the costs of Newsletters, including design, printing and mailing MUST be x-coded.

  • 322 Postage (Newsletters)
  • Promotional Printing (Newsletters)
  • Professional Services (Newsletters)
Advertising Costs

The only advertising that is OK is help wanted ads (faculty searches, etc). All other advertising MUST be x-coded.

  • 447 Advertising
CLOSE ALL

CERTAIN OBJECT CODES SHOULD BE EXAMINED CLOSELY FOR UNALLOWABLE COSTS THAT MUST BE X-CODED.

The following costs are unallowable and must be X-coded (con):

Memberships

Individual memberships MUST be x-coded. Note that Individual memberships require approval by the Dean and the Financial Officer. Also, Institutional memberships may include Lobbying as a portion of the membership fee. Check the invoice to determine if Lobbying is included. If there is any Lobbying, x-code the portion of the membership that is related to Lobbying.

  • 454 Memberships
Employee Awards and Recognition Activities

Costs of Employee Awards and all expenditures related to Reward and Recognition Activity MUST be x-coded. Remember that only those Reward and Recognition activities that are part of an official program are permitted. In A & A, these activities generally take place at the College level.

  • 309 Misc Supplies
  • 329 Group Meetings
  • 332 Group Meals
  • 393 Professional Services (Caterers)

447 ADVERTISING

Advertising Guideline

X-code = YES if:

  1. Ads for Student recruitment
  2. Costs for the recruitment of graduate assistants/fellows and post-doctoral fellows are considered student recruitment and are not allowable.

Reference is FNG05: UNALLOWABLE COSTS NOT ADDRESSED BY FUNCTION OR OBJECT CODE.

The following are costs that are unallowable, but are not addressed specifically by a function or object code. The specific section in OMB Circular A-21is referenced:

J.37 – Recruiting Costs
“Costs of help wanted advertising, operating costs of an employment office necessary to secure and maintain an adequate staff, costs of operating an aptitude and educational testing program, travel costs of employees while engaged in recruiting personnel, travel costs of applicants for interviews for prospective employment, and relocation costs incurred incident to recruitment of new employees, are allowable to the extent that such costs are incurred pursuant to the well managed recruiting program.”

NOTE:
Costs for the recruitment of graduate assistants/fellows and post-doctoral fellows are considered student recruitment and are not allowable.

X-code = NO if:
Ads for Faculty Searches are OKJob ads/searches for Faculty and Staff are OK—NO x-coding required.

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