Award Setup

Pre-Award Spending

Permission to grant pre-award spending authority will be granted on a case-by-case basis. In all cases there must be:

• Sufficient indication (in writing) from the Grantor that the award is forthcoming.
• An approved Authorization to Budget (ATB).
• Pre-Award Spending Account Request Form

 After receipt of the information (bulleted above), the sponsored account will be established. Spending will appropriately be charged to the account.

Requests for Pre-Award Spending that are made after the NOA is received are not encouraged but may still be approved if substantial justification of all charges incurred prior to the project start date is provided.  Please note that if pre-award spending is granted, expenses not charged to the study account will be subject to AU’s cost transfer policy. This means that the charges can only be incurred and transferred up to 60 days prior to the start date of the grant. In these instances, the appropriate paperwork must include: 

• Notice of Award
• Substantial justification as to why charges incurred prior to the official start date of the account is needed prior to the start of the project.
• Completed Cost Transfer Form

To request that expenses be allowed to post to a sponsored project prior to receipt of funds from the sponsor, an Authorization to Budget may be requested. This can only be done when the investigator needs to commence or continue work and the department is able to cover the expense should the project not receive extramural funding.

The Following are examples of appropriate circumstances:

• When we have a fully executed, performance based contract that has not received a payment
• Non-competing renewals where there is sufficient indication that the next year of the award is forthcoming.
• For long-standing agreements (State, HRSA, GCC, etc) where the final contract/amendment for the new year has not been received.
• Sub-contracts when the prime awardee has received the Notice of Award and the sub-contract is forthcoming.
• Documentation required: Fully executed contract (e.g. industry sponsored clinical studies) and/or written assurance from sponsor that an award will be made but is delayed.
• Terms of the Authorization to Budget: For performance-based contracts, the budget can be set up for the shorter of:
  period requested by the department or budget period. For all other situations, the budget will be established for 120 days. Extensions may be considered on a case by case basis. Please contact your pre-award grant and contract officer 30 days prior to the expiration date of the ATB.
• Authorization to Budget Amount: For performance based contracts, the amount will be determined by the approving department and may not exceed the total contract value. For all other contracts, the budget requested should not exceed an amount equal to the annual budget prorated for the maximum time period of the ATB. (Example: ATB established for 120 days, total direct cost annual budget is $75,000. Maximum ATB direct cost amount requested should not exceed $25,000.)