Pre-Award Cost

Sometimes it is necessary to have a fund and project established prior to the execution of the final award documentation. These guidelines outline the requirements for establishing an account that will be used for pre-award costs. It is appropriate to charge pre-award costs to a non-sponsored account and transfer them later. The following criteria apply:

• The request should contain a description of the sponsor assurance.
• The anticipated award amount.
• The projected start date of the award.
• The department must accept the financial risk in the event an award is not forthcoming, the start date is changed by the sponsor or an acceptable agreement can not be negotiated.

Grants & Contracts Accounting (G&C) reviews and approves the request and sets up the fund and project.