About this Policy
Period of Availability
Policy Number: 27015
Dec 12, 2017
Jan 01, 1970
UM System Controller’s Office
UM System Controller
Campus Sponsored Programs Office
- Reason for Policy
- Policy Statement
- Related Information
Describes the allowable periods for incurring authorized costs on a sponsored award.
This policy provides guidance to ensure costs for sponsored awards are incurred only during the authorized period of availability.
Sponsored awards are established to cover a certain period of time between the effective date and the expiration date. Once the award is made the effective date will not change. However, most sponsors all pre-award costs within 90 days of the award’s start date. Costs incurred before this 90-day period may require sponsor approval. See Policy 27001 – Establishing an Award for additional details related to pre-award spending. Invoices received after the period of availability for allowable and allocable costs incurred and encumbered during the period of availability may be charged to the award. Pre-award costs on sponsored awards must be incurred within the timeframe allowed by the sponsor. In addition to pre-awards, sponsored awards could have other conditions that extend the length of the award including:
- Continuation Projects- a Principal Investigator (PI), with departmental commitment of funds, may elect to continue a project pending delayed receipt of sponsor approval due to difficulties associated with discontinuing and re-starting an award when funding is delayed. The department is responsible for expenditures not covered by the sponsor if the funding is not awarded or awarded at a lower- than-anticipated level.
- Renewal Projects - a new ChartField is established for renewal projects, indicating the new period of availability. The same ChartFields are used when the sponsor extends the funding period and provides additional funds to the existing award. The financial system should be changed to reflect the extended period of availability.
- No-Cost Time Extensions
Only allowable costs incurred during a specified funding period and any pre-award costs authorized by the sponsor are appropriate to post to a sponsored award.
Construction Management offices record detailed transactions for grant-funded construction projects in the University financial system using a construction ProjectID. Transfers of expenditures from construction projects to the sponsored award must be completed monthly by Construction Management. Sponsored Programs Office (SPO) management must review and approve the monthly transfers to ensure expenditures were made within the period of availability.
Prior to the End of the Award
The SPO will provide notification to departments that an agreement is ending 60 days prior to the end date and 30 days prior to the award end date.
The PI should complete a monthly review of each sponsored award to ensure that allowable charges are incurred within the period of availability and must make timely transfers of unallowable expenditures or those outside the period of availability to an unrestricted funding source in accordance with Policy 27016 – Award Closeout.
Continuation Projects - an award that typically spans for a period of time of multiple years, but annual funding is based on satisfactory progress and the availability of funds. A single ProjectID is used for all years of a multi-year continuation project unless the sponsor requires each year to be accounted for separately.
Renewal Projects - a renewal of a project that allows for the expiration of the project and a proposal for continued support, subject to competitive review, that results in a new award.
No-Cost Time Extensions - when approved, the period of availability is extended through the same period as the extension.
Sponsored Programs Office (SPO):
- Provide departmental notification that an agreement is ending 60 days and 30 days prior to the award end date
- Monitor construction transfers to ensure expenditures were within the period of availability
Principle Investigator (PI):
- Control spending within the period of availability
- Review expenditures timely to ensure expenses are within the period of availability
Make timely requests for time extensions, continuations, and renewals
Department Fiscal Staff:
- Transfer expenditures outside the period of availability to unrestricted funding sources
Formerly Accounting Policy Manual 60.52 – Period of Availability (revised 2/24/2009)