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Requests for Advanced AccountsSPA-11-017

Scope

This policy applies to all Indiana University faculty and staff involved in the fiscal operations and administration of grants and contracts or otherwise with the authority to incur expenses under grants and contracts.

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Policy Statement

Office of Research Administration (ORA) highly encourages Principal Investigators and IU units to request an Advanced Account when there is a need to incur expenses for a sponsored award in advance of an anticipated award being received. If avoidable, project expenditures should not be incurred on other university accounts and then later transferred once the award is received. Advanced accounts for anticipated awards may be requested at any time by the primary PI or the unit fiscal officer and delegates. No further approvals are required. ORA will normally provide the advanced account in two working days or less.

Principal Investigators and their respective fiscal officers are responsible for initiation, review, and approval of expenditures that are consistent with sponsor requirements. The associated IU unit will be responsible for covering all expenditures incurred in the event that the award is not received or expenditures are deemed to be unallowable.

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Reason for Policy

This policy provides guidance to ensure best practices in the fiscal management of grants and contracts at Indiana University.

Generally work is begun and expenses are incurred on a grant or contract after the receipt and acceptance of a notice of grant award or executed contract. Occasionally, however, the award is delayed beyond the start of the project. In such cases, it may be necessary and appropriate to incur expenses prior to the receipt of such award or contract.

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Procedures

Advanced Account requests should be initiated by the PI or Fiscal Officer and delegates during the final stages of the proposal process, during the final award negotiations, or before the arrival of the next project period of funding in a multi-year project. Upon receiving the request, ORA will review to ensure that any research risks (e.g. IACUC approval) have been addressed and provide an advanced account to the PI and unit – typically within 2 working days. Advanced accounts will be established for periods of 90 days. The PI, fiscal officer, or fiscal officer delegate will need to submit an additional request to ORA in order to extend the advanced account beyond the initial 90 day period.

Advanced Account requests may be submitted from the ORA website (www.researchadmin.iu.edu).

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Definitions

Advanced Account: A sponsored program account that is established to cover expenditures prior to the award from the funding agency being fully executed.

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Sanctions

Failure to request an advanced account may result in disapproval of cost transfers for expenditures made prior to the full execution of an award.

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History

Replaces: 
  •  Policy SPA-11-017 “Underwriting Grants and Contracts” dated 2-01-2011
  • Policy III: 40 “Policies Related to Contract and Grant Administration: Underwriting Projects.”
  • Important Notice 95-8 “Underwrite Update”

Previous Versions:

Tracked Changes:

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