Pending Awards for Sponsored Accounts

Effective date: June 23, 1998
 Sponsored Projects Administration (SPA)
 No. 04-40-001.130


I. Purpose

II. Responsibility

III. Definition

IV. Considerations

V. Procedure


Related information

SPA Policies

Cost Transfers Policy No. 04-40-003

Direct and Indirect Charging of Costs Policy No. 04-40-001

Overdrafts Policy No. 04-40-005

SPA Procedures

Overdrafts Procedure No. 04-40-005.100

Federal & Agency Policies

Federal Office of Management & Budget Circular A-21 - Cost Principles for Educational Institutions

Federal Office of Management & Budget Circular A-110 - Uniform Administrative Requirements

Grant Policy Statement of NIH and NSF Agency guidelines

Questions regarding this document should be directed to James Trotter, Director, Sponsored Projects Administration at 494-3211.


I. Purpose

To establish a process or mechanism for Principal Investigators who need to incur costs to recruit personnel and acquire equipment for expected sponsored projects. These preaward expenditures are permissible if appropriately documented, approved and in accordance with University and sponsor policies & procedures, including that the principal investigator and or department will assume responsibility for the costs if funding is not awarded.

In order to facilitate the flow of costs to the correct project in a timely manner, minimize cost transfers, increase the accuracy of effort certification, and to allow PI's to hire personnel in a timely manner, pending awards may be established for projects where OHSU has not yet received the official award document from the awarding agency.


II. Responsibilities

Principal Investigator. Initiate the request; provide appropriate documentation of expected award; assure that residual balances will be absorbed; and approve all costs charged to the project including the certifying of effort.

Unit Administrators. Prepares the documents for pending award request; ensure request is complete and that the nonsponsored account for residual balances is current; and appropriate approvals obtained.

Deans/Department Heads/Chairs. Provide local oversight by establishing effective departmental processes and controls; communicate and enforce these standards; and co-signs requests indicating that the department will absorb any residual balance if the preawarded project is not funded.

Sponsored Projects Administration. Develop and maintain procedure; approve request; establish sponsored account number; and periodically review status of pending awards. Notify departments of pending awards not awarded in excess of 90 days and coordinate the write-off of residual balances to department unrestricted account(s).


III. Definition

A pending award is an account setup with the anticipation of funding within a reasonable timeframe (90 days). It allows costs to be charged to an OHSU sponsored project account prior to receiving the award document (Notice of Grant Award) authorizing the sponsor to reimburse OHSU for allowable expenditures incurred on the project.


IV. Considerations

Costs may be incurred prior to the start date of the award provided the following criteria are met:

The costs incurred are considered necessary for the conduct of the project.

The costs are allowable and allocable under the potential award.

Written prior approval is obtained when required by the agency. Contact grant accountant for specific agency requirements.

Preaward costs should not be incurred on existing sponsored accounts.




This type of award is automatically setup by Sponsored Projects Administration (SPA) in the general ledger system with notification to the department of its obligation to update feeder systems and payroll with the new account number. It is the second or subsequent (noncompeting) award within a project.

The noncompeting application is to be submitted by the PI to the Preaward Office of Research Services within 60 days prior to the expiration of the budget period for the award. Research Services forwards the application to the sponsor and notifies SPA and the department when approved by the sponsor.

Federal awards allow preaward spending of 90 days prior to the effective date of the noncompeting award. Accelerated spending of amounts in excess of 25% may not be transferred without explanation to, and authorization of, the awarding agency.



This type of pending award requires an IPAS form to initiate the setup. This process enables SPA to set-up an account when it is reasonably sure that the grant/contract will be awarded.

The request must contain the following (for NIH awards, the IPAS form may be used):

prior OHSU account number (if applicable)

prior agency award number (if applicable)

awarding agency and contact

project and budget dates



amount expected

nonsponsored account number to be charged authorizing SPA to charge if award is not made

signed by PI

signed by department head/chair or dean

signed by supervisor of SPA


Once the completed request is received in SPA, an account can usually be established within two days. SPA will generate an aging pending awards list for follow up by Preaward.


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