After the grant application has been successfully submitted, the sponsor will determine whether an award will be made. If an award is made, the sponsor will send a notice of award which is the legal binding document that serves as notification of the award of the grant. The notice of award normally contains all the terms and conditions of the grant, any limitations on use of funds, the amount of support provided, and the obligations of the agreement.
The notice of award will be sent to the Principal Investigator (PI). It is the PI's responsibility to send a copy of the grant to the Post Award Grants Administrator and the Grants Accountant. If a grant award needs signatures from an authorized college official then forward the paperwork to the Grants Accountant to obtain signatures (Do not go directly to the VP for Finance). Also, no purchases or work is allowed to start on the grant until a Banner fund has been established by the Grants Accountant. If there are any new positions (temp, student, graduate assistants...) on the grant, no work can begin until position numbers have been established through HR and the Budget office. If work is started on a grant without a fund or position number established then the PI is at risk of losing the grant funding and having to find alternate funding sources.
If an award has not been made, the sponsor will issue a notification that the grant has been declined for funding. Typically, federal sponsors issue summary statements or review information to provide clarification on why the proposal was declined.
The Principal Investigator is responsible for managing the expenditures on the grant. It is the Principal Investigator's responsibility to send any questions concerning the proper spending of funds to the Post Award Grant Administrator and/or to the sponsor prior to making an expenditure that might be questionable or may trigger an audit.
All costs expended on government grants should be allowable, allocable, reasonable, and consistent in accordance with the Office of Management and Budget (OMB) 2 CFR, Part 220. This Circular establishes principles for determining costs applicable to grants, contracts, and other agreements with educational institutions.
A cost is allocable (1) if it is incurred solely to advance the work under the sponsored agreement; (2) if it benefits both the sponsored agreement and other work of the institution or (3) if it is necessary to the overall operation of the institution and is deemed to be assignable in part to sponsored projects.
A cost is allowable if it is: reasonable; can be given consistent treatment through application of those generally accepted accounting principles appropriate to the circumstances; and conforms to any limitations or exclusions set forth in the federal cost principles and institutional policies (see Grants- Allowable Costs).
A cost may be considered reasonable if goods or services acquired is deemed necessary for the performance of the sponsored agreement. And a prudent person would purchase the item at that price given the circumstances.
There should be consistency in allocating costs incurred for the same purpose.
The Post Award Grants Administrator is available for consultation if the Principal Investigator has a question about the appropriateness of a transaction.
See full Grants- Spending Authority.
Invoicing for any services or goods are processed by the Grants Accountant. If you need to submit an invoice to secure payment, contact the Grants Accountant who will provide this service on your behalf.
The Post Award Grants Administrator monitors the reporting requirements and is responsible for providing the Principal Investigator with a yellow sheet at the start of the grant period with the grant reporting due dates.
See full Grants- Principal Investigator Reporting Requirements policy
There are generally two types of reports that are requested by the sponsor to ensure the proper management of the award:
Financial Report – A financial report is normally required at set intervals during the project period to show the expenditures and financial standing of the grant. It is the Grants Accountant's and Post Award Grants Administrator's responsibility to develop the financial report.
The Principal Investigator should maintain a folder for each grant that is secured. Each folder should contain the following documentation:
- a copy of the grant proposal;
- the notice of award from the sponsor;
- receipts for all purchases made against the grant;
- credit card statements with purchases made on the grant;
- purchase orders and invoices for the grant; and
- progress and financial reports submitted to the sponsor.
The close out of a grant normally occurs when the grant has expired and the Principal Investigator has decided that all work on the grant has been completed and will not extend the grant for another project period. The process requires that the institution provide the sponsor with documentation that all the work and administrative requirements have been met under the terms of the grant award. The notice of award should give instructions on the types of forms and/or reports that need to be completed to close out the grant.
See the full policy on Grants- Close Out Procedures.
This Circular sets forth standards for obtaining consistency and uniformity among Federal agencies in the administration of federal grants.