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Scope

Describes the allowable periods for incurring authorized costs on a sponsored award.

Reason for Policy

This policy provides guidance to ensure costs for sponsored awards are incurred only during the authorized period of availability.

Policy Statement

Sponsored awards are established to cover a certain period of time between the effective date and the expiration date.  Once the award is made the effective date will not change.  However, some sponsors allow pre-award costs within 90 days of the award’s start date.  Costs incurred before this 90-day period may require sponsor approval.  See Policy 27001 – Establishing an Award for additional details related to pre-award spending.  Pre-award costs on sponsored awards must be incurred within the time frame allowed by the sponsor.  Expenditures must be incurred, allowable and allocable by the end date of the award.  In addition to pre-awards, sponsored awards could have other conditions that may extend the length of the award including:

• Continuation Projects - if the Principal Investigator (PI) is expecting to receive additional funding and time extension from the sponsoring agency for the same project, expenditures may still be posted to the project after the awarded end date.  If for any reason, the additional funding is not received on time, the department is responsible for covering the expenditures which would not be reimbursable by the Sponsor. 
• Competitive Renewal Projects - awarded by the Sponsor for additional funding to support new or additional activities not identified in the original proposal or award.  Generally, renewal awards will have a different award number and will require a new award and project ChartField. 
• No-Cost Time Extensions

Only allowable costs incurred during a specified funding period and any pre-award costs authorized by the sponsor are appropriate to post to a sponsored award. 

Construction Projects
Construction Management offices record detailed transactions for grant-funded construction projects in the Å·ÃÀ¿Ú±¬ÊÓƵ financial system using a construction ProjectID.  Transfers of expenditures from construction projects to the sponsored award must be completed monthly by Construction Management. Sponsored Programs Office (SPO) management must review and approve the monthly transfers to ensure expenditures were made within the period of availability.

Prior to the End of the Award
The SPO will provide notification to departments that an agreement is ending 60 days prior to the end date and 30 days prior to the award end date.

The PI should complete a review of each sponsored award at least quarterly to ensure that allowable charges are incurred within the period of availability and must make timely transfers of unallowable expenditures or those outside the period of availability to an unrestricted funding source in accordance with Policy 27016 – Award Closeout.

Definitions

Continuation Projects - the receipt of anticipated funds and/or time periods for a previously award project that does not require competition with other applicants.  A single ProjectID is used for all years of a multi-year continuation project unless the sponsor requires each year to be accounted for separately.

Renewal Projects - a renewal of a project that allows for the expiration of the project and a proposal for continued support, subject to competitive review, that results in a new award.

No-Cost Time Extensions - when approved, the period of availability is extended through the same period as the extension.

Accountabilities

Sponsored Programs Office (SPO):

• Provide departmental notification that an agreement is ending 60 days and 30 days prior to the award end date
• Monitor construction transfers to ensure expenditures were within the period of availability

Principle Investigator (PI):

• Control spending within the period of availability
• Review expenditures at least quarterly to ensure expenses are within the period of availability

• Make timely requests for time extensions, continuations, and renewals

Department Fiscal Staff:

• Transfer expenditures outside the period of availability to unrestricted funding sources

Additional Details

Forms

Related Information

History

Reviewed and revised April 19, 2021 and clarifications were made to Continuation Projects, Renewal Projects and the time period for PI's to review expenditures.

Formerly Accounting Policy Manual 60.52 – Period of Availability (revised 2/24/2009)

Procedure