In some instances, formal notices of award may not be expected/received until
after the effective date of the agreement. If initiation of a project should
not be delayed until receipt of the formal award notice, OGC will activate a
fund in the accounting system under the following conditions:
1. The PI must process a “Financial Guarantee” advance fund request through RAMSeS. Contact the Office of Sponsored Programs (OSP) for additional information about the RAMSeS process.
2. The administrative department/center and school must approve the request.
3. The PI/Department/School is assuming liability for costs incurred, from non-sponsored funds, in the event the award is not finalized for any reason.
For those projects where there is an anticipated delay in the award process, OGC recommends that the PI request an advance fund set-up through the “Financial Guarantee” process. Establishment of an advance fund will allow the PI to appropriately book expenditures for the project and minimize delay in the project start-up. Advance fund set-up will also minimize potential compliance timing issues and disallowed costs for some financial transactions.
All financial transactions to sponsored projects must be processed in a timely
fashion. Some types of transactions such as cost transfers, payroll, salary
redistributions, and effort reporting must be processed within very specific
timeframes. Late receipt of an award or late fund set-up does not provide an
exception to the deadline or timeline compliance requirements. OGC will deny/disallow
costs not processed within the established timelines.
Costs associated with a sponsored project activity should not be “parked” on another university fund in anticipation of transfer to the award fund upon receipt. Such cost transfers may be denied/disallowed. If costs are being incurred on behalf of the project, an advance fund should be established and the costs should be appropriately booked to the award fund.
Costs should never be “parked” on a sponsored project fund in anticipation of a new award fund. Such parking of costs on a sponsored projects fund is an audit finding and is not allowed. Any expenditure booked to a sponsored project fund should only be for costs directly associated with “that” award and that budget period; not for another fund/award/activity.
If expenditures are needed, for any reason, prior to full receipt of the award, an advance fund should be established or the costs should be incurred on a non-sponsored fund; never on a sponsored project fund.
Contact your OSP representative for additional information about the Financial
Guarantee process. The OSP staff assignment listing is located on the OSP website
Contact your OGC representative if you have questions about pre-award costs for your award. The OGC staff assignment listing is located on the OGC website http://www.ecu.edu/grants