3015.201—Use of consultants.
(b) Applicability.
This section applies only to the use of consultants whose fees are supported by a grant, subgrant, or cost-type contract.
(c) Basic policy—
(1) Prior approval.
Awarding agencies shall not require prior approval for the use of consultants.
(2) Exceptions.
(i)
In unusual cases, using a consultant may constitute a transfer of substantive programmatic work, which requires prior approval under discretionary grants.
(d) Use of an organization's own employees—
(1) Faculty members of education institutions.
Charges representing extra compensation (above base salary) paid by an educational institution to a salaried member of its faculty for consulting work are allowable only in unusual cases, and only if both of the following conditions exist:
(2) All other cases.
In all other cases, consulting fees paid in addition to salary by recipients or cost-type contractors to people who are also their employees may be supported by a grant, subgrant, or cost-type contract only in unusual cases, and only if all of the following three conditions exist:
(i)
The policies of the recipient or contractor permit such consulting fee payments to its own employees regardless of whether Federal grant funds are involved;
(iii)
It would be inappropriate or not feasible to compensate for the additional work by paying additional salary to the employee.
(3) Requirement for approval.
Consulting fees paid under this section must have a specific prior approval in writing from the Head of the recipient or contractor or from his or her designated representative. If the recipient or contractor is a government, the approval may be given by the Head (or a designated representative of the Head) of the government agency which is primarily responsible for administering or carrying out the project or program. If the designated representative is personally involved in the project or program under consideration, the approval may be given only by the Head. If the Head is personally involved in the project or program under consideration, prior approval from the awarding agency is required. Such prior approval must include a determination that the applicable requirements in paragraph (d) (1) or (2) of this section are present.
(e) Documentation standards.
(1)
Charges for consulting payments must be supported in the records of the recipient or cost-type contractor by an invoice from the consultant and a copy of the written report (if a report is appropriate) or other documented evidence of the work performed from the consultant.
(2)
If any of the following information is not shown on the invoice and/or report from the consultant, the information must be shown in a memorandum or other document prepared by the recipient or contractor for its files, or noted in handwriting on the consultant's invoice by the recipient or contractor. The memorandum, other document, or handwritten notation must be signed by an official of the recipient or contractor and show:
(ii)
The nature of the services provided (such as statistical analysis of data, participation on project advisory committee, or specified medical services to eligible beneficiaries);
(iii)
The relevance of the services to the project or program, if not apparent from the nature of the services; and
(A)
(If the fee was based on a rate per day or hours worked) the rate and the dates and/or hours worked;
(B)
(If the fee was based on a rate per unit of service provided, such as the number of patients examined by a physician) the rate, the number of units of service provided, and the beginning and ending dates of the overall period of service; or
(C)
(If the fee was determined on some other basis) the basis for determining the fee and the beginning and ending dates of the period in which services were provided.