Finance

ECE Finance

The ECE Finance team partners with faculty, researchers, and students across the full award lifecycle, from developing proposals to managing funds and closing out projects. We help with proposal budget development and routing, pos-award management, department purchases and more.

Fulfillment Times

Pre-Award: Proposal Development Support

We help develop accurate, compliant, and competitive proposals and coordinate with SPO to meet all requirements for timely submission.

Faculty need to have the following before submitting:

• Final scope and budget
• Budget justification
• COI forms submitted
• Attachments uploaded
• Subrecipient docs
• Chair and CAO approvals

Fulfillment: 10-20 business days depending on how many subawards.

Post-Award: Financial Reporting & Compliance

Financial reports are provided to all active faculty monthly, within ten business days after the ledger closes. Included in the report: current month expenses by category, year-to-date spending, budget balance and unusual or flagged items requiring attention.

It is recommended to meet with your Project Manager at least quarterly — ideally monthly, to prevent overspending, identify and correct inaccurate charges, ensure compliance with award terms, plan for upcoming expenses and address issues before they become problems.

Cost Transfers

All cost transfer requests must be submitted within 120 days of the original transaction date. This is a strict campus policy to maintain compliance with federal regulations. After 120 days approval is not guaranteed. 

Request a Cost Transfer — Email your Project Manager with:

• Employee name
• Original and destination account numbers
• Pay period
• Detailed justification explaining why the charge should be moved

Payroll Funding Changes

To request a change in any employee's future payroll, request changes at least two weeks before the pay period and submit the following to your Project Manager:

• Employee name
• Current funding source
• Requested new funding source
• Effective date
• Justification (if changing from previously approved funding)

Invoicing & Billing

All invoices for sponsored projects are prepared and submitted by Contracts & Grants Accounting (CGA) analysts assigned to your award. Find your CGA Analyst in the directory by searching your project number, they can help answer any questions you may have about invoicing or billing.

Invoice Process

Your CGA prepares invoices according to sponsor requirements. They may request backup documentation if required by the sponsor before submitting invoices. Payments are tracked and applied to your account. If your award requires milestone reports for invoicing, it is the PI's responsibility to submit reports to both the sponsor and the CGA analyst.

Gifts and Endowments

Reduced Sales Tax for Research Equipment

UC Davis offers a reduced sales tax rate on equipment purchased for research through June 30, 2030. The exemption reduces the current sales tax rate by 3.9375%, resulting in an effective rate of 3.3125% for research equipment delivered to campus.

If your purchase qualifies, you'll need to fill out the Partial Sales and Use Tax Exemption for Equipment Eligibility Checklist and submit with your OPP Request.

Equipment Fabrications

A fabrication is inventorial equipment physically constructed by a University activity (not simple assembly) with an acquisition cost of $5,000 or more that is expected to be used by the University upon completion. It must have a normal life expectancy of more than one year.

Subaward Management

Subaward Process Overview

The subaward process begins during the proposal stage and continues through award execution.

Summer Salary

In early May, ECE Finance sends the summer salary request form to faculty. Faculty must complete forms in May and provide:

• Amount of summer salary requested
• Account/chartstring to be charged
• Months of summer work (up to 3 months maximum)
• Project justification (must be allowable under grant terms)

Maximum Summer Salary: Summer salary cannot exceed 3 summer months total. This includes the combined total of research-based (from grants), teaching and additional administrative duties.

Course Buyouts

A course buyout (teaching release) allows faculty to reduce their teaching load by using eligible external funds to cover the instructional cost, providing additional time for research or other approved professional activities.

Submit your written request to the ECE Department Chair including:

• Course(s) proposed for buyout and term(s)
• Funding source(s) and chartstring(s)
• Justification (research activities necessitating release)
• Plan for instructional coverage
• Record of previous buyouts or releases (if applicable)

After submitting, the Department Chair evaluates and sends to the College of Engineering Dean's Office. Submit requests at least 6 months before the term for which buyout is requested.

Negotiated Salary Program (NSP)

The Negotiated Salary Program allows eligible ladder-rank faculty to augment their university-funded base salary with external, non-state funds. Faculty can receive an additional salary component of up to 30% of base salary supported entirely by eligible external funds. 

Deadlines are strict. Late applications cannot be processed for that fiscal year. Review the timeline on the Academic Affairs website.

Academic Salary Cost Recovery (ASCR)

Academic Salary Cost Recovery (ASCR) allows faculty to recover a portion of their academic year salary from sponsored research awards when grant-funded effort creates cost savings. When you charge effort to a sponsored award during the academic year, this may reduce instructional or other departmental salary costs, creating savings that can be redistributed according to an approved plan.

The ASCR Process Overview

Revenue Agreement Guide

A revenue agreement is a formal contract that outlines how income generated from university-related activities will be distributed among participating parties. In an academic context, these agreements typically govern revenue sharing between the university, departments, individual faculty members, and sometimes external partners.

Common Scenarios Requiring Revenue Agreements at UC Davis:

• Intellectual Property Licensing
• Sponsored Research with Revenue Components
• Service Agreements
• Continuing Education Programs
• Research Service Centers
• Technology Transfer

Key Verified Policies at UC Davis

• Patent Revenue Distribution: The University pays inventors 35% of net royalties per invention
• Disclosure Obligation: Faculty must promptly disclose ALL inventions conceived while employed by the university
• UC Patent Policy: The University owns inventions made using university resources and facilities

Graduate Student Researcher (GSR) Appointments

ECE processes GSR appointments four times per year for each quarter, including summer.

Process: ECE Finance will send an email to faculty requesting GSR appointments. Faculty must complete the GSR spreadsheet to have a GSR letter generated for the student to sign and the appointment to be processed. 

The department strongly discourages retroactive GSR appointments, as they are sometimes rejected by Graduate Studies. Plan ahead and submit appointments before the quarter begins.

Award Modifications & Closeout

If you need additional time beyond your award end date:

• Check sponsor policy (some require 60-90 days advance notice)
• Contact your PM early (at least 90 days before award end date)
• Provide justification
• Verify sufficient funds remain

Frequently Asked Questions

• How early should I contact ECE Finance about a proposal?
• As soon as you see a solicitation — we can help with budget and compliance early.
• Who submits what to the sponsor?
• CGA submits financial reports; PIs submit technical reports. Proposals may be submitted by SPO/RA/PI (depending on submission requirements).
• Who is my Project Manager?
• Your PM is assigned based on your projects and will be your primary contact for post-award support. PM Assignment
• Can ECE Finance help me write the science for my proposal?
• No, faculty are responsible for technical content. We help with budget development and compliance.
• What if my proposal deadline is in 5 days?
• Contact us immediately. We cannot guarantee routing if minimum lead times aren't met, but we'll work with you to explore options.

Financial Management

• What is the 120-day rule for payroll cost transfers?
• Corrections must occur within 120 days of posting; later changes need justification.
• What if I need to spend money urgently?
• Contact your PM immediately. For true emergencies, we can expedite approvals, but advance planning is always better.
• How do I check my grant balance?
• Review your monthly report or contact your assigned post-award analyst.
• Can I move money between budget categories?
• It depends on your award terms. Some sponsors allow flexibility; others require prior approval. Check with your PM before making significant reallocations.
• What happens if I overspend my budget?
• Overspending is a serious compliance issue. The PI is responsible for covering overages from other sources. Regular account reviews help prevent this.
• Why do I need to review my accounts monthly?
• To catch errors early, prevent overspending, and ensure compliance. Catching problems early makes them much easier to fix.
• What happens if I don't submit my effort report on time?
• Your accounts may be placed on hold, preventing new spending. Chronic late submissions can trigger audits and affect future funding.

Proposals & Budgets

• Do I need to include indirect costs on my budget?
• Usually yes, unless the sponsor specifically caps or excludes F&A. Check the program announcement and consult your PM.
• Do I need to submit my proposal in Cayuse?
• All full proposals must be submitted through SPO. University policy requires that proposals in any other form — letters of intent (LOIs), preliminary proposals (pre-proposals), white papers, supplemental requests, etc. — be submitted to the Sponsored Programs Office for review and approval prior to being submitted to a sponsor when the sponsor requires:
  
  A budget
  Agreement to terms and conditions (at proposal phase)
  Institutional approval, endorsement or signature
  
  This requirement is broadly defined in UCOP policy UC-RG-12-0014.
• Can I budget for capitalized equipment in my budget?

• The equipment must meet the definition of capitalized equipment:

  Non-expendable (having a normal life expectancy of one year or more)

  Tangible (can be appraised for value)

  Free standing (complete in itself, does not lose its identity when affixed to or installed in other property)

  Has an acquisition cost of $5,000 or higher (in Aggie Enterprise, a pre-tax amount of $4670 or higher). This value includes start-up installation and freight costs as well. Equipment Management

Personnel & Salary

• Can I buy out a course while in NSP?
• No — NSP and buyouts cannot overlap.
• What if my GSR doesn't accept the appointment offer?
• You can submit a revised request with a different student, or request cancellation of the appointment.
• Can I pay myself summer salary from multiple grants?
• Yes, if each grant allows summer salary and you don't exceed 3 summer months total. Your PM can help allocate percentages appropriately.