Post Award Policies and Procedures

Grant Negotiation

    While the official notification of an award being made might be a letter provided to the PI/PD or to the appropriate vice president, this action might be preceded by a negotiating call from the grants office of the funding agency. The purpose of this call will be to discuss budget items, modifications in the scope of work, and/or to discuss a lower award than was requested. The institutional indirect rate cannot be negotiated by the PI/PD.

    When the PI/PD receives the negotiation call, they must contact the OGSP. The Director of Grants will review, in consultation with the appropriate vice president, the negotiation elements with the PI/PD to determine 1) if the goals and objectives of the project can be met with the negotiated budget, and 2) if there is additional institutional impact or commitment being requested by the funding agency. The Director of Grants will review with the PI/PD the required documentation to be sent back to the agency.

    Once the review is completed, the PI/PD will complete the revised budget and any other documentation required by the funding agency. The revised documents will then be reviewed by the OGSP, endorsed by the appropriate vice president, and will then be forwarded to the funding agency.

Notification of Grant Award

    Once the PI/PD has been officially notified of a grant award, he/she must notify the OGSP immediately. No work on the grant can be done until an account number is assigned and obtained through Accounting Services.

    The PI/PD should bring copies of the grant award and all documentation to the Director of Grants. Among the activities to be completed might be: 1) finalizing any negotiations with the funding agency, 2) obtaining signatures on the acceptance letter and returning it to the funding agent, and 3) providing copies of the acceptance letter and final proposal to Accounting Services. Once the PI/PD, department chair, and dean have been notified that the award acceptance process has been completed then the account number will be assigned and project activities may begin.

Starting up the Project

    The OGSP and Accounting Services are now ready to do their part in monitoring your project. Keep in mind that the award is to Western, and the institution holds ultimate responsibility for programmatic and budgetary compliance within the grant award conditions. Following are several general rules governing the expenditure of grant funds:

Allowable Expenditures

The same policies and procedures that apply to spending institutional monies apply to grant monies (e.g., state travel regulation, purchasing requirements, salary increase limitations, etc.).

Timeliness of Expenditures

Expenditures incurred outside of the stated award period will not be reimbursed. The PI/PD must work with Accounting Services to spend out or encumber funds before the end of the funding period.

Spending Across Budget Lines

Each agency has its own rules regarding flexibility within the four main budgetary categories (personnel, operating expenses, capital expenditures, and indirect costs). The guidelines of the funding agency supersede Western policy. The Director of Grants will advise you on the steps to be taken when a revision in your financial plan becomes necessary.

Expense Remittance and Reconciliation

The PI/PD is responsible for the completion and submission of all paperwork related to project expenditures. If the PI/PD has obtained a procurement card from Accounting Services, then they are responsible for completion of the monthly transaction log. If the PI/PD is using personal forms of payment for project equipment, then they must submit a remittance form and itemized receipts to Accounting Services for reimbursement. The OGSP and Accounting Services will maintain all of this documentation for audit purposes.

Project Fund Accounting

While some projects are able to request funds for administrative or clerical support, others are not. For the PI/PD without project funded clerical staff, the secretary in their department is essential to the efficient administration of the project budget. Departmental administrative assistants are often familiar with the forms and processes involved in spending funds. This departmental contribution of administrative clerical staff time is part of the institutional support that is implied by Western’s acceptance of a grant or contract.

Expending Funds

    Policies and procedures for grant fund expenditures are established to ensure smooth progress of your project. Key guidelines for general categories of personnel and non-personnel expenditures are described below.

Personnel Expenditures

The first step in paying grant employees is to determine the appropriate classification of pay. Several classifications and methods of payment are available. Please refer to your budget as approved by the funding agency and the Director of Grants for the classification of project staff. 

Travel Expenditures

If your grant allows for reimbursement of travel expenditures all applicable State and University travel regulations must be followed. All travel documents (i.e., itemized receipts for meals, lodging, or airfare) must be submitted with a remittance form or procurement log to Accounting Services for processing.

Non-Travel Expenditures

The PI/PD may purchase the supplies specified in the project budget through personal methods of payment or with a Western procurement card. If purchasing supplies with personal funds, the PI/PD must submit an itemized receipt with a completed remittance form. If the grant has an operating budget for non-travel expenditures of at least $2,000 the PI/PD may choose to obtain a procurement card. The procurement card is administered through Accounting Services and the Procurement Card Policies and Procedures handbook provides guidance on appropriate use.

Account Reporting

    All billings and financial reporting will be handled through Accounting Services. As a result, the PI/PD will not be handling the funds. These funds will be automatically deposited into the assigned account number established for the particular grant or contract. In the event that the PI/PD should be the receiver of an award check from the funding agency it is their responsibility to get the check to Accounting Services as quickly and safely as possible.

    Accounting Services will need the PI/PD to provide them with detailed information for financial reporting purposes. It is the responsibility of the PI/PD to maintain good record keeping. If the accounting duties for the project are substantial and the funding agency has provided for clerical support, a grant accountant is employed to manage the fiscal responsibilities of the grant. In this instance, it is the responsibility of the grant accountant to handle all billings, financial reporting, and reconciliation.

Modification of Grant

    Sometimes it is necessary to modify a grant in regard to either the proposed activities or adjustments to the budget. While each agency has its own rules regarding flexibility within the four main budgetary categories (personnel, operating expenses, capital expenditures, and indirect costs), modifications or amendments to a previously approved proposal often require the authorization of the funding agency and the appropriate vice president. It is the responsibility of the PI/PD to ascribe to the requirements of the funding agency when making modifications. In this regard, the guidelines of the funding agency may supersede Western policy. While some budget changes may not require a formal proposal amendment, it is necessary to notify the funding agency before making changes in key personnel or scope of work. The Director of Grants will advise the PI/PD on the steps to be taken when a revision in your financial plan becomes necessary.

    The PI/PD must bring to the attention of their department, their dean, and/or the OGSP any circumstances that may delay satisfactory and timely completion of the project. Depending upon the funding agency, it may be necessary for the PI/PD to apply for a “no cost” extension in order to complete program activities.

Close Out of Grant

    The responsibility of grant administration does not end for the PI/PD when the project activities have ceased. All grants will require some type of report to the funding agency at the end of the grant period. While the Federal government usually requires final reports within 90 days of the end of the funding period, the PI/PD should read the award notification carefully so that all reporting expectations of the funding agency can be fulfilled in a timely manner.

    The final report usually provides a summary of project accomplishments. This document should provide research findings, intervention outcomes, and/or the evaluation of project implementation. In addition to providing the components that were explicitly outlined in the funded proposal (i.e., analytic and evaluation plans) the final report should also highlight any unexpected findings or unusual occurrences that impacted the project or hindered progress. It should be noted in this section if the project provided for academic presentations, journal publications, the leveraging of further funding, or supported student activities. Final reporting must be completed in accordance with the guidelines of the funding agency.

    All expenses for your grant account must be incurred by the grant ending date. Expenditures incurred outside of the stated award period will not be reimbursed. It is the responsibility of the PI/PD to be aware of the grant start and end dates such that no expenses are recorded after the grant ending date. The PI/PD must work with Accounting Services to spend out or encumber funds before the end of the funding period. While all items ordered must be received by the grant closing date, actual payments for the goods or services may not be made until a later date.

    Once the grant has been closed out and all reports sent to the funding agency, records must be kept from three to five years, depending on the funding agency. This means that these records must be available to the funding agency if that agency decides to audit the grant. Project records will be archived by the PI/PD, Accounting Services, and the OGSP. While the PI/PD and Accounting Services will maintain records for the amount of time required by the funding agency, the OGSP will archive electronic copies of all proposals and reports indefinitely.

©Copyright 2007 Missouri Western State University

Questions or Comments: kroberts6@missouriwestern.edu

Last Updated: 02/25/2008