| Fiscal Administration | |
| Fiscal management of grants, contracts, and other funding agreements is the responsibility of the principal investigator (PI) or project director (PD) and the administering department or organized research unit (ORU). The Sponsored Projects Office can provide liaison services with funding agencies. | |
| The Award | |
The
award document is the funding agency’s official obligation of funds for
a project. Many awards cover a multi-year project period made up of several
shorter (usually 12-month) budget periods. Funds often are awarded in budget
period installments. Contract and grant terminology also includes common
designations for a series of awards:
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| Expenditures | |
| The office of record for expenditures is Financial Operations. Upon receiving a fully signed and executed award from the Sponsored Projects Office, Financial and Business Services establishes an account and fund number for the project, and the administering department or ORU charges all costs to this number under the direction of the PI or PD. The budget for expending funds is allocated to sub-budget categories based on amounts in the proposal budget agreed to by the University and the funding agency. Detailed information about the system of account codes is available in the UC Accounting Manual. | |
| Fund Advance/Pre-Award Costs | |
| If the award document is delayed but the agency’s decision to fund can be confirmed, the PI or PD may ask the Sponsored Projects Office to approve an advance expenditure authorization (“fund advance”). A fund advance directs Financial and Business Services to set up an account before the award document arrives and allows pre-award costs to be incurred before the start date. Some federal agencies routinely allow up to 90 days of pre-award costs. The request form for an advance is available on SPO’s Web site. | |
| Cost Sharing and Matching | |
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Some funding agencies require the grantee institution to demonstrate its financial commitment to the project, or the commitment of other funding sources, by sharing the project costs. Cost sharing funds may come from an outside source in the form of cash contributions, volunteer services, or donated property; from the University’s own funds (e.g., personnel effort without salary recovery); or from shared resources or facilities. If the award is federal, only acceptable non-federal costs qualify as cost sharing. Matching funds, if required by the funding agency, are raised from non-federal outside sources to increase the level of support provided by the funding agency. Such funds must be identified by the donor or funding source for use as matching funds. |
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| Rebudgeting Award Funds | |
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Rebudgeting, or changing the way award funds are spent, may require prior approval by the funding agency. Approval to rebudget, if required, must be requested of the agency in writing with the countersignature of the Sponsored Projects Office. Federal agencies participating in the Federal Demonstration Partnership (FDP) allow rebudgeting among most funding categories without prior approval. The award document and Sponsored Projects Office staff can help interpret whether agency permission is needed to rebudget. Special care must be taken when rebudgeting amounts into or out of the equipment category, as that category bears no indirect costs in many agreements. |
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| Carrying Forward Unobligated Funds | |
| Some funding agencies allow unobligated funds from one budget period to be carried forward into the next budget period. Often, the PI or PD must ask the funding agency’s permission; however, federal agencies participating in FDP allow grantees to carry balances forward without prior approval. | |
| No-Cost Extensions | |
| If the project is not completed and awarded funds remain unspent towards the end of a project period, many funding agencies will allow the PI or PD to request more time to complete the work while spending remaining funds. A no-cost extension is an extension of the project period without additional funding. Often a no-cost extension must be requested of the funding agency in writing, with SPO countersignature, well before the existing project period end date. FDP agencies allow the institution to approve a single no-cost extension without prior approval but still require written notification. | |
| Closeouts and Cost Transfers | |
| Financial Operations prepares monthly and final expenditure reports that must be reconciled by the administering department or ORU. After-the-fact cost transfers must be properly documented. Financial and Operations provides guidance on reconciling accounts and transferring costs. Most funding agencies require a final financial report from Financial Operationss within 90 days of project termination. | |
| Federal Demonstration Project | |
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The University of California participates along with many other universities nationwide in the Federal Demonstration Partnership (FDP), which allows grantee institutions flexibility in managing awards funded by selected federal agencies. In general, the “expanded authorities” of FDP allow the grantee institution to decide independently to:
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