Often a Project Director (PD) or Principal Investigator (PI) wishes to begin a project prior to the award date but rather than requesting a speedtype in advance of the award, expenses are placed on an existing speedtype. This practice significantly increases the number of salary and expense transfers if work begins prior to the formal award notice and/or contract execution. This policy is to assure that costs incurred between beginning the work and formal notification of award or in advance of the award date do not require transfers but are posted originally to the correct speedtype.

Prior to authorizing work and associated expenditures on an anticipated sponsored program the Principal Investigator or Project Director’s supervisor must request that the Office of the Executive Vice President for Research and Innovation (EVPRI) establish a chartfield with associated speedtype.

This policy does not apply to agencies that prohibit pre-award spending. Pre-award spending on federal awards that do allow pre-award spending will be limited to 90 days prior to the actual start date of the award. Neither does this policy change the requirement that no subjects may be enrolled in clinical trials prior to Institutional Review Board (IRB) approval or, if a sponsored clinical trial, a signed agreement. Pre-award expenditures must meet the same guidelines of allowability, allocability and reasonableness as described in 2 CFR 200.
 
University of Louisville Pre-Award Guarantee Guidelines — Office of Sponsored Programs Administration

Office of the EVPRI – Office of Sponsored Programs Administration (OSPA– Grants Division)

The request can guarantee funding in one of three ways: 

• For a certain type of expenditure(s), for instance salary and fringe benefits only.
• For a specified dollar amount in any category of the proposed expenditures.
• For the entire proposed project budget.

The request for a pre-award speedtype must be sent from the PI/PD and their chair/unit head to OSPA. The request must identify an unrestricted funding source to cover any expenses to be placed on the pre-award Chartfield/speedtype. The request must be consistent with the Proposal Clearance Form (PCF) or Multi Institutional Research Application (MIRA) and provide a budget for expenses to be charged during the pre-award period.
 
When the official award is generated, funds from the award will be used to cover these authorized expenses.
 
If the University does not receive the award, the responsible college/school/department must move all charges to other, non-sponsored funding sources. If not removed by the department in a timely manner all charges will be moved by OSPA – finance division.

Deans, Directors, and Department Heads
 
Approval of establishing the pre-award Chartfield/speedtype and provision of an unrestricted funding source to guarantee pre-award spending.
 
Institutional Officials
 
OSPA representative is responsible for the establishment of new Chartfield/speedtypes.
 
VIOLATIONS OF THIS POLICY

Transfer of expenditures may not be authorized by the OSPA if no request for pre-award spending has been requested and approved prior to the date of expenditure.