Policies, Procedures and Guidance

GIM 09 – Advance Budget Numbers

Contents

Effective: July 01, 2021

Purpose

This policy sets out the parameters and requirements for expending funds in support of a sponsored award prior to award acceptance and temporary budget extensions.

Background

Some awards may include pre-award spending authority. This can be either allowed for in the sponsor regulations or with written authorization from the sponsor’s authorized representative. When award issuance or negotiations are underway and a Principal Investigator (PI) may wish to incur costs, it is recommended to track those costs in a budget number associated with the award.

The University provides a mechanism by which a Principal Investigator can set up an advance budget number or request a temporary budget extension on a currently funded award. This ensures that costs are allocated to the correct funding source at the time of expenditure. It also reduces risks associated with later transfer of expenditures.

University Policy

All costs in support of an award must be in compliance with GIM 23 including costs incurred prior to the acceptance of an award. Disallowed costs must be transferred to a non-award funding source.

By initiating an advance spending mechanism, the Advance Preparer is agreeing that:

• The Advance Preparer has authority to initiate the needed action, including providing a non-award funding source. Such authority should be documented within the department as required by GIM 2.
• The Advance Preparer is acting on behalf of the PI to make required assurances with respect to both fiscal and non-fiscal compliance
• An award is anticipated or currently being processed.
• The request is consistent with the sponsor’s policy and award terms and conditions
• The information provided in the request is complete, accurate, and related to the anticipated award.

The PI will be responsible for any pre-award costs that are subsequently not allowed by the sponsor as well as any amounts incurred on the advance budget number but not funded by the sponsor. The alternative department budget number provided at time of the advance spending request will be charged.

Non-Fiscal Compliance Requirements

All advance spending, including temporary budget extensions, must have required approvals including, but not limited to:

• Institutional Review Board (IRB ) approval or Exempt Status Determination if human subjects research costs to support the project will be incurred in advance.
• Institutional Animal Care and Use Committee (IACUC) approval if animal use research costs to support the project will be incurred in advance.
• Significant Financial Interest (SFI) disclosures must be made and reviewed for the subject eGC1.

Monitoring

Costs incurred in advance of an award must be monitored by the PI, or their designee, to ensure compliance with GIM 23.

Timeframe

Advance spending beyond one year is subject to review by Grant and Contract Accounting (GCA) except in cases where the project is an industry sponsored clinical trial. For industry sponsored clinical trials, advance spending beyond 18 months is subject to review by GCA.

Procedures and Guidance

At any time after the proposal containing the anticipated costs is formally submitted to the sponsor and OSP has approved the eGC1, the PI or delegate may initiate the process to obtain:

• a new advance budget number,
• a renewal advance budget number or
• to temporarily extend an existing award in anticipation of sponsor approval.

Responsibilities

Principal Investigator/Delegate

• Completes a request for advance spending
• Provides assurances regarding fiscal and non-fiscal compliance
• Obtains concurrence/approval when required
• Responsible for monitoring all advance spending costs
• Responsible for all costs incurred prior to acceptance of the award that are subsequently not allowed by the sponsor as well as any amounts incurred not funded by the sponsor

Chair and/or Dean

• Concurs on advance spending if required
• Ensures that the department, school or college follows the University deficit resolution policy

Office of Sponsored Programs

• Maintains advance spending policy in coordination with Grant and Contract Accounting (GCA)
• Reviews budget extension requests and submits to GCA

Grant and Contract Accounting

• Reviews and processes advance spending requests in the University’s systems
• Conducts additional reviews for requests that exceed the designated timeframe

Other Related Resources

 

Subject	Document
Acceptance of Sponsored Program Awards and Fiscal Compliance on Sponsored Program Accounts (Budget Numbers)	GIM 2
Significant Financial Interest Disclosure Policy	GIM 10
Activities Involving Human Subjects, Including Clinical Research	GIM 20
Sponsored Program Costing Policy	GIM 23
Use of Experimental Animals: Regulations	GIM 27
GCA: Advance Budget Setup and Extension	Advance Budget Setup and Extension
OSP: Temporary Budget Extension	Temporary Budget Extensions
SAGE: Advance Overview	Advance Overview

Contacts

Subject	Contact	Email
Advance Budget Request Process	Grant and Contract Accounting	gcahelp@uw.edu
Temporary Budget Extensions	Office of Sponsored Programs	osp@uw.edu

Content Creator

Responsible University Office
Grant and Contract Accounting / Office of Sponsored Programs

Change Notes

Details on changes to this GIM are available from the Office of Sponsored Programs, osp@uw.edu