Many funding agencies specify how grant funds should be managed. Grant personnel need to be familiar with the parameters and restrictions of handling awarded funds. Sponsors usually dictate how funds can be spent, if funds can be transferred among budget categories, or carried over into subsequent budget periods.
Allowable expenditures are determined by both sponsor regulations and TWU regulations and are:
Allocable – linked to your program goals and benefit your project directly.
Reasonable – reflects the actions that a prudent person would take under prevailing circumstances.
Consistent – like costs in like circumstances are treated the same.
Budget transfers occur when funds are moved between budget categories.
- Budget transfers may not be allowed or may require prior approval from the sponsor.
- Grant guidelines usually dictate the amount that can be transferred among budget categories.
- Budget transfers on grants require ORSP approval and should be the exception rather than standard practice.
Carry-over: Grantees may need to carry forward unobligated funds from one budget period into the next. Some sponsors require simple notification of the intent to roll over funds, some require prior approval, some designate maximum amounts that can be rolled over, and some agencies require that any unused funds be returned at the end of a budget period.
Cost transfers are internal financial transactions that move posted expenditures from one sponsored project account to another sponsored project account to correct an error or make an adjustment. Cost transfers should be made as promptly after the discovery of the error as possible. The transfer must be certified by the PI and supported by documentation that fully explains how the error occurred. All cost transfers must be allowable on the grant account to which funds are transferred, and be in accordance with funding agency guidelines and University policies. Cost transfers have increasingly become a compliance concern for funding agencies. For information on the policy regarding cost transfers involving sponsored projects, click here.
No-cost Extensions are additional periods of time given by the sponsor to a grantee for the completion of work on a project. An extension allows previously allocated funds to be spent after the original expiration date. Most funding agencies require prior approval of no-cost extensions.