Policy
Departments are only permitted to spend up to the authorized award amount as stipulated in the grant or contract during the award period. Departments exceeding the authorized spending amount will be liable for all excess spending amounts. Failure to comply with the terms of the grant or contract may result in the grant or contract being temporarily terminated and the project closed.
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Procedure
Grant and contract available balances are reviewed on a monthly basis. The authorized award amount may not be exceeded at any time during the budget period.
- Grants and contracts that have multiple year funding may be budgeted in different ways depending on the award document.
- If the agency commits funding for the entire project period, the grant budget will be entered for the entire authorized amount of the award.
- If the agency commits funding incrementally, the grant budget will be entered for that increment’s authorized amount only.
- It is never appropriate to spend increments before they are awarded by the agency or before the start date of the budget period.
- Some agencies have expanded authority, which allows OSU to approve pre-award cost 90 days before the award or budget period start date.
- If the agency allows pre-award costs, the Principal Investigator must complete an OPAS form requesting approval to spend before the start date. The department head must sign the form guaranteeing that the costs will be cost shared by the department if the award or increment does not arrive.
- If a grant or contract has a negative available balance greater than $1000 at any time during the project period, the department will be responsible for contacting the agency to obtain written verification that more funding is being committed.
- If additional funding is going to be committed within 90 days of the start of the next budget period, the procedures above for pre-award costs will apply.
- If additional funding is going to be committed more than 90 days in the future, prior approval to spend the increment must be obtained from the agency. Failure to obtain written commitment from the sponsor will result in temporary termination of the grant fund. See GCG 209-06: Temporary Terminations Policy.
- If the sponsor does not provide written verification for a commitment of additional funds, the project will be closed to further activity and the closeout process will begin. Any over expenditure of project costs will be charged to the department as a cost overrun. See GCG 209-03: Grant and Contract Overrun Policy.
The Office of Post Award Administration accountant will send out an over expenditure email when it is determined that the index is overspent. This email notice includes the clause that any over expenditure remaining at project closeout will be charged as a cost overrun.
To view the notification that is sent, please go to the Business Affairs website and look in the drop down menu under "Forms". Then click on "Notice of Over expenditure".
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