{"id":2201,"date":"2022-08-03T09:32:53","date_gmt":"2022-08-03T13:32:53","guid":{"rendered":"https:\/\/research.ncsu.edu\/administration\/?page_id=2201"},"modified":"2023-10-12T10:07:45","modified_gmt":"2023-10-12T14:07:45","slug":"pre-award-spending","status":"publish","type":"page","link":"https:\/\/research.ncsu.edu\/administration\/compliance\/fiscal-compliance\/pre-award-spending\/","title":{"rendered":"Pre-Award Spending"},"content":{"rendered":"\n\n\n\n\n<h2 class=\"wp-block-heading\">Overview<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Pre-Award accounts can sometimes be established before the fully executed award arrives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are some important facts to keep in mind:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pre-award spending under these accounts can be risky.<\/li>\n\n\n\n<li>If the pre-award account is established but the award is not granted, any pre-award expenditures become the responsibility of the PI\u2019s department or college.<\/li>\n\n\n\n<li>If the official award date is later than expected, some pre-award expenditures may be deemed unallowable. For example, if the pre-award account is effective June 1st, but the final start date is actually July 1st, the June expenditures are not allowed.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Pre-Award Guidance<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Some standard federal awards contain a clause allowing 90-day pre-award costs, but other awards not containing this assurance should be \u201chandled with care.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the award meets the following criteria, the risk is minimized:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The award is imminent.<\/li>\n\n\n\n<li>The PI or College Research Office has something in writing from the sponsor that the award is forthcoming.<\/li>\n\n\n\n<li>The pre-award spending is necessary for the effective and economical conduct of the project for reasons such as:\n<ul class=\"wp-block-list\">\n<li>Payroll deadline is approaching<\/li>\n\n\n\n<li>Need to order specialized equipment and supplies<\/li>\n\n\n\n<li>Pricing quote for required equipment is expiring<\/li>\n\n\n\n<li>The nature of the research is time sensitive \u2013 e.g., plant growing season<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><a><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Considerations when requesting a Pre-Award Account<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What is our prior experience with the sponsor? Have we worked with them previously?<\/li>\n\n\n\n<li>Do we have a relatively good chance of finding mutually agreeable terms?<\/li>\n\n\n\n<li>What non-standard terms are present within the agreement being negotiated?<\/li>\n\n\n\n<li>Does the agreement require the use of foreign currency?<\/li>\n\n\n\n<li>Is the period of performance sufficient to ensure negotiations are completed and invoices generated as required by the agreement?<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Pre-Award Risk Assessment<\/h3>\n\n\n<div class=\"wp-block-ncst-accordion ncst-accordion\"><div class=\"accordion\" id=\"ncst-accordion-0\"><div class=\"wp-block-ncst-accordion-item ncst-accordion-item panel\"><a class=\"accordion-item__header collapsed\" href=\"#ncst-accordion-item-0-0\" id=\"ncst-accordion-item-heading-0\" data-toggle=\"collapse\" data-target=\"#ncst-accordion-item-0-0\" aria-controls=\"ncst-accordion-item-0-0\" rel=\"noopener noreferrer\"><span class=\"accordion-item__expansion-indicator\"><span class=\"ncst-plus-minus-toggle\"><\/span><\/span><h2 class=\"accordion-item__label h5\">Pre-Award Not Allowed without Granted Exception<\/h2><\/a><div class=\"collapse panel-collapse accordion-item__content-container \" id=\"ncst-accordion-item-0-0\" aria-labelledby=\"ncst-accordion-item-heading-0\" data-parent=\"#ncst-accordion-0\"><div class=\"accordion-item__content\">\n<p class=\"wp-block-paragraph\">No Pre-Award Allowed without exceptions approved by Director of Sponsored Programs, Director of Research Compliance<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Agreements that explicitly disallow pre-award costs or require pre-authorization for pre-award costs, if no written authorization is provided.&nbsp;<\/li>\n\n\n\n<li>Listed <a href=\"https:\/\/research.ncsu.edu\/administration\/policies-and-guidance\/covered-individuals-and-senior-personnel\/\">investigators<\/a> do not have an up-to-date <a href=\"https:\/\/research.ncsu.edu\/administration\/compliance\/research-compliance\/coi\/coi-procedures-and-guidance\/\">COI disclosure <\/a>on file.<\/li>\n\n\n\n<li>Projects likely to involve <a href=\"https:\/\/research.ncsu.edu\/administration\/compliance\/research-compliance\/export-controls\/accepting-publication-restrictions-in-research\/\">controlled research<\/a>:\n<ul class=\"wp-block-list\">\n<li>Department of Defense Contracts (or Prime Contracts) which include or anticipate inclusion of DFARS 252.204-7000 and\/or 252.204-7012.<\/li>\n\n\n\n<li>Any request for proposal (RFP) or agreement with language restricting publication.&nbsp;<\/li>\n\n\n\n<li>Projects where the scope of work contains export controlled information or technology that needs to be properly protected. (e.g. reference to inputs involving technology subject to the EAR or the ITAR or references to a ECCN or ITAR category)<\/li>\n\n\n\n<li>&nbsp;Projects requiring management through the SURE environment. (E.g. references to NIST SP 800-171 compliance)<\/li>\n\n\n\n<li>Any request for proposal (RFP) or agreement with language suggesting the work will involve classified information. (e.g. reference to NISPOM or inclusion of a DD254,&nbsp; DOD Contract Security Classification Specification)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-ncst-accordion-item ncst-accordion-item panel\"><a class=\"accordion-item__header collapsed\" href=\"#ncst-accordion-item-0-1\" id=\"ncst-accordion-item-heading-1\" data-toggle=\"collapse\" data-target=\"#ncst-accordion-item-0-1\" aria-controls=\"ncst-accordion-item-0-1\" rel=\"noopener noreferrer\"><span class=\"accordion-item__expansion-indicator\"><span class=\"ncst-plus-minus-toggle\"><\/span><\/span><h2 class=\"accordion-item__label h5\">High Risk Pre-Award<\/h2><\/a><div class=\"collapse panel-collapse accordion-item__content-container \" id=\"ncst-accordion-item-0-1\" aria-labelledby=\"ncst-accordion-item-heading-1\" data-parent=\"#ncst-accordion-0\"><div class=\"accordion-item__content\">\n<ul class=\"wp-block-list\">\n<li>U.S. Federal Contracts (or Prime Contracts). These contracts are typically issued with the performance period beginning concurrent with the effective date and subject to the FAR without pre-award provisions.<\/li>\n\n\n\n<li>Agreements which indicate that effective date\/performance period will be effective as of the date of last signature<strong>.<\/strong><\/li>\n\n\n\n<li>Agreements containing a term stating that the university unequivocally accepts all terms offered if it begins work on the project before the agreement is signed.<\/li>\n\n\n\n<li>Department of Defense projects involving either <a href=\"https:\/\/research.ncsu.edu\/administration\/compliance\/research-compliance\/irb\/\">Human Subject Research<\/a> (IRB requirement) or <a href=\"https:\/\/research.ncsu.edu\/administration\/compliance\/research-compliance\/iacuc\/\">Animal Subject Research<\/a> (IACUC).&nbsp; To mitigate the financial risk, Consult with the IRB or IACUC prior to submitting the request.<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n<\/div><\/div>\n\n\n\n\n<p class=\"wp-block-paragraph\">Please contact <a href=\"mailto:sps@ncsu.edu\">sps@ncsu.edu<\/a> if you would like a subject matter expert in SPARCS&nbsp; to complete an informal risk assessment of the project and\/or an anticipated agreement\u2019s terms prior to submitting a pre-award request.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overview Pre-Award accounts can sometimes be established before the fully executed award arrives. Here are some important facts to keep in mind: Pre-Award Guidance Some standard federal awards contain a&hellip;<\/p>\n","protected":false},"author":16,"featured_media":0,"parent":53,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"source":"","ncst_custom_author":"","ncst_show_custom_author":false,"ncst_dynamicHeaderBlockName":"ncst\/default-header","ncst_dynamicHeaderData":"{}","ncst_content_audit_freq":"","ncst_content_audit_date":"","ncst_content_audit_display":false,"ncst_backToTopFlag":"","footnotes":""},"tags":[],"class_list":["post-2201","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pre-Award Spending - Research Administration and Compliance<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/research.ncsu.edu\/administration\/compliance\/fiscal-compliance\/pre-award-spending\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pre-Award Spending - Research Administration and Compliance\" \/>\n<meta property=\"og:description\" content=\"Overview Pre-Award accounts can sometimes be established before the fully executed award arrives. 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