UNMC Request Form for Major Projects & Other Exceptions

WBS #

Advance Account Request Form

IntroductionFederal regulations require that costs be charged to sponsored projects appropriately. Advance Accounts allow pre-award costs to be charged to sponsored project accounts and minimize the need for cost transfers.

InstructionsIf you are requesting an account be set up in advance, submit this form to Sponsored Programs Administration. See pages 2-3 for additional information.

Principal Investigator:

Title of Project:

Sponsor:

Account Information

Anticipated award date:

Requested start date for advance account:

Estimated pre-award spending amount:

Cost element group (see page 4):1 WFEDERAL2 WNOAID3 WNOEQ-AID4 WNOEQUIP5 WNOFORTRAV6 WNOTRAVEL7 WSANDW8 52XXXX9 53XXXX10 52OPDETAIL11 54TOTAL12 55XXXX13 WAIDComparative Medicine (animal charges)

Alternate cost center:(31-, 32-, 33-, or 37-; not 34-, 35-, or 36-)

Documentation: Attach, as appropriate:

Explanationof why the costs are necessary for the conduct of the project

Assurancethat the costs are allowable

It is appropriate to begin to charge expenses to the sponsored project. Agreed:

Principal InvestigatorDate

Department Chair/Unit DirectorDate

Dean of the College or DesigneeDate

Sponsored Programs AdministrationDate

Purpose

UNMC has authorized the use of Advance Accounts prior to the complete set-up of a sponsored project in order to ensure the proper accounting of project-related expenses. The department spends in deficit until the complete set-up of the sponsored project.

An Advance Account might be appropriate if:

• The sponsor allows pre-award spending
• The sponsor has notified UNMC of funding, and an award document is forthcoming
• UNMC is negotiating the terms and conditions of an award

Roles and Responsibilities

Key players include the Principal Investigator (PI), Sponsored Programs Administration (SPAdmin), and Sponsored Programs Accounting (SPAcctng).

1. Evaluate the benefits and risks of establishing an advance account

PIs should carefully consider whether to establish an advance account. If no award is made or charges to the account are disallowed by the sponsor, the department will be required to cover the costs. The PI must provide an alternate cost center, to which costs will be transferred if no award is made or the charges are disallowed. An alternative cost center must be a non-sponsored project account: 31-, 32-, 33-, or 37-; not 34-, 35-, or 36-.

Considerations

• How likely is the award?
• SPAdmin will seek confirmation from the sponsor
• Will the start date of the award match the start date proposed in the application?
• SPAdmin will seek confirmation from the sponsor
• Does the sponsor allow pre-award spending?
• SPAdmin will review the sponsor’s guidelines
• Does the award agreement state that the project cannot begin before the agreement is fully executed?
• SPAdmin will review the draft award agreement, if available
• In the case of sub-awards, how do the prime recipient’s policies compare to the funding agency’s policies?
• For example, does the prime recipient back-date agreements?

1. Ensure that the criteria for establishing an advance account are met

• The proposal and associated internal forms are fully processed through SPAdmin
• The PI has a reasonable assurance from the sponsor that an award will be made
• The department accepts the financial responsibility for any charges if no award is made or the charges are disallowed

1. Determine allowable expenses

The anticipated expenses:

• Are necessary to conduct the project
• Are included in the proposed budget
• Conform to UNMC and sponsor policies
• Are incurred within the appropriate timeframe
• Are allocable; that is, the sponsored project which pays the expense benefits from it
• Are reasonable; that is, the cost reflects what a "prudent person" would pay

1. Request an Advance Account

The Principal Investigator (or designee):

• Completes the form
• Attaches supporting documentation
• Obtains signatures
• Routes to Sponsored Programs Administration

1. Process the request

Sponsored Programs Administration:

• Evaluates the request
• Approves or disapproves the request
• Assigns the WBS number
• Routes the form to SPAcctng

Sponsored Programs Accounting:

• Establishes the WBS number in SAP

1. Monitor the Advance Account

Expenditures

• The PI (or designee) and SPAcctng review financial reports to ensure expenditures meet the allowability criteria above
• If spending appears to be excessive, spending authority may be stopped or charges may be moved to the alternate cost center

Duration

• An Advance Account open for longer than 90 days may indicate a problem with the award
• The PI (or designee) and SPAdmin maintain contact with sponsor to ensure an award is forthcoming
• When appropriate, SPAdmin may extend the Advance Account

1. Reconcile the Advance Account

• When the award is issued, the WBS number
• For competing (new or renewal) federal letter of credit (34-): Changes from a 37- to a 34-
• Department transfers the charges from the 37- to the 34-
• For a non-competing (continuation) federal letter of credit (34-): Remains the same
• For federal non-letter of credit (35-): Remains the same
• For non-federal (36-): Remains the same
• If no award is made or charges to the account are disallowed by the sponsor
• SPAcctng terminates the Advance Account upon notification from SPAdmin
• Department transfers the charges from the Advance Account to the alternate cost center

Cost Element Groups

University of Nebraska Medical Center – Sponsored Programs Administration – Advance Account Request FormPage 1 of 4