NACUBO Classification

Effective Date:

April 20, 2021

Function:

Sponsored Programs/Award Establishment

Contact:

Sponsored Programs/ RFCOSponsoredPrograms@rfsuny.org

Basis for Procedure

The NACUBO classifications provide a functional classification for expenses and are critical for reporting of Sponsored Program, unrestricted and other activity as well as used in the calculation of the Facilities and Administrative (F&A) rates. It is important that the NACUBO classification at the project and task levels are accurate based on how the campus anticipates spending the allocation. Expenditures are generally reported based on the NACUBO classification at the project. The classifications should be compliant with Uniform Guidance, 2 CFR part 200.

Procedure Summary

This document is to serve as a guide for determining the correct NACUBO Classification for Award Set-up for Sponsored Program Activities. See Appendix A below for crosswalk from NACUBO to F&A rates.

Procedure

Most Common Functions for Sponsored Programs:

Function

General Description

Organized Research

These are activities or functions organized to produce research and achieve specific research goals or developing training programs that are not course and curriculum development. This activity includes externally funded research or research funded from unrestricted funds that is accounted for and budgeted separately

 

Per Uniform Guidance: Sponsored research means all research and development activities that are sponsored by Federal and non-Federal agencies and organizations. This term includes activities involving the training of individuals in research techniques (commonly called research training) where such activities utilize the same facilities as other research and development activities and where such activities are not included in the Instruction function.

 

Training of individuals in research techniques.

 

CAUTION: Awards titled "Fellowship" or "Research Training" by the sponsor may not fit the definition of Research Training. Often an award issued to a faculty member or researcher is Organized Research (see Below)

 

Organized Research Types and Description

Research: Basic/Applied

According to 32 CFR 272.3, Basic research is systematic study directed toward greater knowledge or understanding of the fundamental aspects of phenomena and of observable facts without specific applications towards processes or products in mind. Applied research is designed to answer specific questions aimed at solving practical problems.

 

Examples: Basic-NIH R01, R03, R21; SBIR/STTR Phase I, K99/R00, other research grants/contracts; Applied- NIH R01, R21, SBIR, STTR, Phase II, NIH Career Development Awards (K awards)

 

Research Development

Systematic use of knowledge or understanding gained from research directed toward production of useful materials, devices, systems, or methods, including design & development of prototypes & processes. 

 

Examples: SBIR, STTR, Phase III (can include Phase II if FOA specifies for development stage), lab study and testing agreements that involve data analysis

 

Clinical Trials

A human subjects research study, the primary purpose of which is to assess the safety and/or efficacy in humans of a drug, device, diagnostic, treatment, preventive measure, or similar intervention through testing of the intervention on patients in a clinical setting.

 

Examples: Exploratory Clinical Trials, Oncology Groups, Multi-Site Trials.

 

Fellowship: Research Undergraduate/Graduate/Professional

Fellowships focused on training in research techniques, where the individual is a trainee and is not a permanent employee of a University. Stipends and/or Tuition are the primary budgeted expenditures. 

 

Examples: NIH, HRSA, AHA Individual Fellowships (F series), CDC Public Health Fellowship Opportunities

 

Research Training

Activities involving training of individuals in research techniques where training is in the same facility as other research & development. 

 

Example: NIH Research Training Grants (T series), SOME NIH R03 Awards for Dissertations with 8% IDC, NSF-IGERT (Research Training awards from NSF)

Public Service

Public Service projects are those projects that are designed to directly benefit a segment of the public and whose main aim is to enrich, educate, or improve the health or general well-being of people within that segment and not to measure the effectiveness of the project itself.  A project whose main aim is to measure the effectiveness of a project designed to benefit a group of people would be considered Organized Research.

 

Examples include conferences, general advisory services, consultation, broadcasting services, and non-instructional/testing services provided to sectors of the community

Educational Support

These are activities or functions that provide support for educational and training programs generally within the institution.

Academic Support

Academic Support includes activities that support services for the primary functions of instruction, research, and public service. This classification should be used to support academic administration and separately budgeted course and curriculum development. Includes the preservation, display or retention of educational materials and media, and services provided to the primary academic mission such as media and audio-visual services, curriculum development, and academic support. It includes: the retention, preservation, and exhibition of historical materials, art objects, and scientific displays - for example, museums and galleries; the provision of services that directly assist the academic functions of the institution, such as demonstration schools associated with a department, school, or college which provide a mechanism through which students can gain practical experience; media such as audiovisual services and technology such as academic computing support; separately budgeted support for academic personnel development (including professional conferences), course and curriculum development, and formal academic counseling activities.

 

Exceptions are Department or College level advising or counseling services, which would be coded as Student Services.

Organized Activities

These are activities or functions that are budgeted and accounted for that provide support to specific objectives not related to another classification related to the institution’s missions of instruction, research and public service. This classification should be used if it meets the descriptions below or if no other classification is applicable

 

Organized Activities Types and Description

IPA/Employee Assignment

Intergovernmental Personnel Act (IPA) agreements and other employee assignments where work is conducted on-site at another entity and the employee is reimbursed for the salary and associated expenses. IPA agreements established to support organized research should be classified as Organized Research.

 

Note: Many campuses have a separate F&A rate for IPA agreements.

 

Examples: IPA Agreements with VA or other federal agencies.

 

Testing/Lab-Study

Testing/Lab Study is a type of Organized Activity. It generally involves repetitive, quantitative, non-experimental measurements under physically controlled conditions for which the data produced are expected to be within a pre-determined range of values or of reproducibility. Certain conditions apply, check with your Office of Sponsored Programs.

 

Equipment

Tangible non-expendable personal property having a useful life of more than one year, and an acquisition cost of $5,000 or more per unit.

 

Examples: NSF MRI awards, NIH S10 awards

Fellowships

These are activities or functions that provide fellowships. This category includes students awards that are recorded as expense instead of reduction to Tuition & Fees, as in the case of Discounts & Allowances. Includes tuition & fee waivers, grants-in-aid, and trainee stipends. These are activities or functions that provide support for educational and training programs generally within the institution. Fellowships provided to support research or for research training should be classified as Organized Research (see above).

 

See the list of values documents for NACUBO definitions generally used for unrestricted and other activity that generally is not a sponsored project.

Definitions

See general descriptions above for the definitions of the most widely used NACBUO Codes funding codes developed by The National Association of College and University Business Officers (NACUBO) which is a membership organization representing more than 1,900 colleges and universities that establishes accounting and financial guidelines.

Related Information

Appendix A is a crosswalk between NACUBO classification and F & A rates.

The Oracle List of Values document that includes all NACUBO codes in the list of values in Oracle can be found at the following link, NACUBO Codes.

Forms

None

Change History

Date

Summary of Change

April 20, 2021

Definitions revised to reflect current NACUBO and Uniform Guidance Standards and for clarity for the end user.

2011

Copyright added.

February 2008

Added "Libraries" to "Other Campus and Sponsored Program Support".

June 28, 2004

Renamed "General Institutional Services" to "General Institutional Support".

February 26, 2004

New Document

Appendix A

This schedule provides a crosswalk from the NACUBO classification assigned to an award to the F&A rate that should be used based on the campus federally approved rate agreement. Rate type applies to campuses that use the long-form F&A proposal. Campuses that use the short-form F&A proposal use the same rate for all programs depending on the on-campus, off-campus classification.

Function

Rate Type

Organized Research

Research

Instruction, Training and Departmental Research

Instruction

Educational Support

Instruction

Academic Support

Instruction

Student Services

Instruction

Public Service

Other Sponsored Activities

Organized Activities

Other Sponsored Activities

Fellowships

Instruction

Scholarships

Instruction

Alterations and Renovations

Other Sponsored Activities

Sponsored Funds Administration

See note 1

General Administration

See note 1

Departmental Administration

See note 1

General Institutional Services

See note 1

Libraries

Other Sponsored Activities

Institutional and Departmental Support

Instruction

Maintenance and Operations

Other Sponsored Activities

Scholarship Development Costs

Instruction

Student Services

Instruction

Student Financial Aid

See note 1

Prizes and Awards

See note 1

Intercollegiate Athletics

See note 1

Residence Halls

See note 1

Other Auxiliary

See note 1

Food Service

See note 1

Hospitals and Clinics

Other Sponsored Activities

Nursing Home Operations

Other Sponsored Activities

Note 1

Function is generally not used for sponsored programs. When the classification is appropriate for a sponsored program either the Instruction or Other Sponsored Activity rate should be used depending on the nature of the program.

 

 

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