Chapter 9 - Administering the Award

Administrative Requirements of Federal Awards

Every award from the federal government carries with it a set of administrative requirements. These requirements are either specifically stated on the award document or are incorporated by reference. The requirements of the award may be in:

• the federal statute that authorized the award, the appropriations act, Executive Orders, or in the case of contracts, the Federal Acquisition Regulations;
  
• special conditions attached to the award;
  
• Agency Specific Requirements (for FDP awards);
  
• general conditions for the type of award (FDP, PHS Expanded Authorities, PHS Non-Research Grants, NSF SBIR Awards or NSF Conference Awards, etc.).

Recipient Responsibilities

The recipient (the Principal Investigator and the Institution) of federal awards has the full responsibility for the conduct of the project or activity supported under the award and for adherence to the award conditions. Although the recipient is encouraged to seek the advice and opinion of the federal agency on special problems that may arise, such advice does not diminish the recipient’s responsibility for making sound scientific and administrative judgments and should not imply that the responsibility for operating decisions has shifted to the awarding agency.

The Principal Investigator is responsible for:

• carrying out the approved scope of work;
  
• submitting required technical reports in a timely manner;
  
• ensuring that expenditures charged to the award are allocable to that program;
  
• notifying SPS if a Significant Project Change is contemplated (for a definition, please refer to Approval of Post Award Changes). If necessary SPS will request prior approval from the federal agency; and
  
• acknowledging the federal support of the program in all publications relating to the project.

The institution--the University and the Research Foundation--is responsible for ensuring that:

• costs charged to a federal award are allowable, allocable, and reasonable;
  
• federal funds are not used to support lobbying of state or federal legislatures;
  
• U.S.-made products are purchased to the greatest extent practicable;
  
• U.S.-flag air and ocean carriers are used to transport personnel and property;
  
• federal funds are not used for human embryo research;
  
• a procurement policy acceptable to the federal government is used for all purchases;
• a conflict of interest policy acceptance to the federal government is in place and that all PIs engaged on the project have filed current financial disclosures;
• the institution meets the federal requirements for Non-Discrimination; and
  
• the institution implements an Affirmative Action Plan for hiring personnel.

However, recipients of federal funds are, in general, allowed a certain degree of latitude in making post-award programmatic changes and budget revisions in research and training grants. The amount of flexibility given to the recipient is dependent upon the type of federal award.

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Types of Federal Awards

Federal Demonstration Partnership (FDP) Awards FDP is a cooperative effort by ten federal agencies and over 90 universities and university consortia which has as its objective reducing the administrative burden associated with research grants and demonstrating the effectiveness of simplified and standardized grant terms and conditions.

The participating federal agencies have agreed to apply a standard set of basic terms and conditions to research grants which they issue. All of the participating agencies have supplemented the basic terms and conditions with agency-specific requirements in order to comply with regulations which control their agencies.

The basic terms and conditions recognize the Principal Investigator as the person best positioned to manage both programmatic and financial affairs of a research grant and give the Principal Investigator  authority to approve post-award changes.

Most research grants issued by the following federal agencies are included in FDP:

• Air Force Office of Scientific Research (AFOSR);
• Army Medical Research & Materiel Acquisition Activity;
• Army Research Office (ARO);
• Department of Agriculture (USDA);
• Department of Energy (DoE);
• Environmental Protection Agency (EPA);
• National Aeronautics and Space Administration (NASA);
• National Institutes of Health (NIH);
• National Science Foundation (NSF);
• Office of Naval Research (ONR);

The Federal Prior Approval and Notification Requirements Table summarizes the prior approval requirements for grants covered under the FDP regulations. The complete terms and conditions of the FDP may be found at the FDP web site.

NSF Awards All directly by the National Science Foundation are FDP awards. However, subawards from another institution funded by NSF will be FDP only if the prime institution is an FDP institution. If the Research Foundation receives a subcontract from a non-FDP institution, the terms and conditions applicable to the prime award will apply, generally the NSF Grant Policy Manual and the Grant General Conditions (GC1).

PHS Non-Research Awards The Public Health Service (including the National Institutes of Health) has a standard set of regulations that covers all of its non-research grants. A summary of the prior approval requirements for these awards is also included in The Federal Prior Approval and Notification Requirements Table. The full text of the regulations may be found in Chapter 8, "Postaward Administration" of the PHS Grants Policy Statement.

PHS Expanded Authorities The PHS (including NIH) has waived approval of certain actions which had previously required awarding office prior approval. These expanded authorities are applicable to all PHS research grants not covered by FDP or unless indicated otherwise of the Notice of Grant Award. A summary of the prior approvals for awards covered under Expanded Authorities is included in The Federal Prior Approval and Notification Requirements Table. The full text of the regulations may be found in Chapter 8, “Postaward Administration” of the PHS Grants Policy Statement.

USDE Awards Guidelines for awards granted by the U.S. Department of Education are found in Education Department General Administrative Regulations (EDGAR).

Other Federal Awards and Subcontracted Awards Subcontracts on federal awards to non-FDP institutions will not carry the FDP regulations, rather they will carry the regulations that apply to the prime recipient. Typically subcontracts from for-profit organizations that are the prime recipient on a federal award will contain terms and conditions or reference FAR clauses that are not acceptable to the University or the Research Foundation. In cases like this the cognizant Grant and Contract Administrator will negotiate acceptable terms and conditions.

Also, for any federal award, federal agencies are free to impose terms and conditions that are more restrictive than FDP, or the other general terms and conditions that may apply to that type of award.

Questions about the post-award regulations that may apply to an award should be directed to the cognizant Grant and Contract Administrator at SPS.

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Approval of Post-Award Changes

For a summary of prior approval requirements, please refer to the
Federal Prior Approval and Notification Table

To request approval of a post award change, please use
Federal Grant Change Request Form

or
Budget Change Request Form

It is not uncommon for months, or even years, to pass between the time when a Principal Investigator plans a particular activity or expenditure and the time when that activity or expenditure takes place. In the intervening time, conditions may change such that the originally planned activity or expenditure will not advance the objectives of the sponsored program as well as an alternate activity or expenditure. For example, techniques or equipment may be available in the second year of a project which were not available when the proposal was written. Similarly, previously private collections of resource material may be opened for use by scholars. Sponsors recognize that such changing conditions are likely and have established procedures for changing the Principal Investigator, the awardee institution, the performance site, the objectives or scope, or the budget of sponsored programs after awards have been made.

Unfortunately, there is no single list of post-award changes which require approval. While there are a few changes which almost universally require approval, almost every sponsor has a unique set, and there is considerable variation in the changes which sponsors allow awardee institutions to approve. Some of the post-award areas which generally require prior approval are:

1. Combining Several Projects into One Account (Relatedness). On federal awards, when salaries and/or other activities are being supported by two or more grants, grantees may request approval to charge costs to either the project for which the costs are originally approved or to another project, provided:

   • the projects are scientifically and technically related and under the direction of the same Principal Investigator;
     
   • there is no change in the scope of the individual grants involved;
     
   • relating the projects will not be detrimental to the conduct of work approved under each individual award; and
     
   • relating the projects will not be used to circumvent the terms and conditions of an individual award.

2. Significant Project Changes. The following list is not all-inclusive. In the event of uncertainty as to whether a particular change is significant enough to require approval, the question should be referred to the cognizant Grant and Contract Administrator.

   1. Change of Scope or Objective. Changes in scope, direction, type of service delivery or training, or other areas that constitute a significant change from the objectives or purposes of the project. Examples include, but are not limited to:

      • subcontracts not in the approved budget;
        
      • significant change in the use of human subjects, whether first-time use or substantial change in planned use;
        
      • change in key personnel whose expertise is critical to the project;
        
      • patient care costs where the need has not previously been approved;
        
      • transferring funds out of patient care;
      • transferring funds out of participant support costs

   2. Significant rebudgeting. When the cumulative amount of transfers among direct cost categories for the current budget period exceeds 25 percent of the total amount awarded, or $250,000, whichever is less, or another limit set by the sponsor.

   3. Change of Grantee Institution. If the Principal Investigator is planning to move to another institution, the sponsor will exercise its prerogative to determine whether to continue funding the existing project(s) at the new institution.

   4. Change in Principal Investigator. Prior approval is required before a temporary or permanent Principal Investigator is appointed to replace an absent or departed Principal Investigator. For federal awards, if the Principal Investigator is absent from the project for a period of 3 months or more, a substitute Principal Investigator must be proposed and must be approved by the federal agency. The request for approval of a substitute Principal Investigator should include a justification for the change, the curriculum vitae of the individual proposed, and any budgetary changes resulting from the proposed change.

   5. Subcontracts not in the approved budget. Transferring to third party, by contracting or any other means, the actual performance of substantive programmatic work, that was not in the approved budget and work plan.

3. Pre-award Costs. Costs incurred within 90 days of the projected award start date may not require prior sponsor approval. Costs incurred prior to 90 days before the anticipated award start date generally require sponsor approval.

4. No Cost Extensions. Extending the final budget period of a project beyond the original expiration date. For many federal awards the Principal Investigator may extend the term date of the project a single time for up to one year provided any one of the following applies:

   • additional time is required to assure adequate completion of the project. (The fact that funds remain at the expiration date of the grant is not in itself sufficient justification for an extension without additional funds.);
     
   • continuity of grant support is required while a competing continuation application is under review; or
     
   • the extension is necessary to permit an orderly phaseout of a project that will not receive continued support.

   Extensions of more than one year beyond the original term date, or additional extensions will require sponsor approval.

5. Deviation from the Special Terms and Conditions on the Grant Award. Undertaking any activities disapproved or restricted as a condition of the award.

6. Program Income. In federal awards, the use of alternatives other than the Deduction Alternative for disposition of program income.

7. Carryover of Unobligated Funds from one budget period to another within an approved project period of non-FDP awards. For carry-overs in excess of twenty-five percent of the award the Principal Investigator will be required to submit a written justification to SPS.

8. Indemnification Against Third Parties. In federal awards, the government is obligated to indemnify the recipient only to the extent expressly provided in the award.

9. Expenditures that deviate from the approved budget. The sponsor may have a limit under which changes do not require approval, however, the following actions generally require prior approval:

   1. Transfer of Funds:
      

      • between direct and indirect costs;
        
      • from trainee and participant support costs, stipends, tuition and fees;
        
      • between construction and non-construction costs.
        
      • from patient care costs; and
        
      • from salary due to the receipt of an Research Career/Scientist Development Award or other career development award.

       

   2. Expenditures for:
      

      • equipment not in the approved budget;
        
      • patient care costs, where the need has not previously been approved;
        
      • publication and printing over $25,000 for a single publication when not included in the originally approved budget;
        
      • foreign travel in non-FDP awards, whether or not in the approved budget;
        
      • alterations and renovations over $50,000;
        
      • audiovisual materials exceeding $25,000 for a single audiovisual project; and
        
      • capital expenditures for land or buildings.

       

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Requesting Prior Approval

Despite the complexity, there are two constants which apply to post-award changes:

• if approval is required, the approval must obtained before the Principal Investigator takes any action which would obligate him or her complete the change, and

• requests for approval of changes must be made in writing, and approval must be received in writing.

If approval by the sponsor is required, the request should be addressed to the grants management officer or the administrative contracting officer named in the award document. Requests for prior approval are not ordinarily sent to the sponsor's program officer. The cognizant Grant and Contract Administrator can provide the details of the process for the particular sponsor and the type of change requested.

Requests to the sponsor for prior approval of a post-award change should include:

• the sponsor's award number;
  
• the RF or UBFS account number;
  
• the exact nature of the requested change, including specific budget categories affected if the requested change is budgetary;
  
• the benefit to the project which will result from the change;
  
• any significant effect which the requested change might have on the scope or direction of the project; and
  
• any other information specifically requested by the sponsor.

Requests for sponsor approval of post-award changes must be endorsed by the cognizant Grant and Contract Administrator.

Principal Investigators may find it convenient to make requests for approval using the Federal Grant Change Request form or the Budget Change Request form.

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