Advance Accounts Policy

Purpose

Advance Spending (also called pre-award spending or advance accounts) allows Principal Investigators (PIs) to begin or continue sponsored activities prior to the official receipt or final execution of the award. This helps avoid project delays while ensuring costs are properly tracked and compliant with fiscal and non-fiscal sponsor requirements. With advance spending, the university assumes financial risk if the award is not ultimately received or any costs are deemed to be unallowable.

Policy

Advance spending is permitted with appropriate institutional approvals. Advance spending is solely for allowable costs incurred within the anticipated project period as allowed by the sponsor. Costs that are not reimbursed or are deemed unallowable will be treated consistently with university policy for unallowable costs.

Definitions

Advance Account

An advance account allows the PI to access their grant account number to initiate project spending before their award is fully processed.

Pre-Award Spending

Pre-award spending refers to allowable project costs incurred up to 90 days before the official start date of the award, when permitted by the sponsor. Many federal agencies allow pre-award spending up to 90 days without sponsor approval.

Intended Audience

• Senior Administration – Vice Provosts, Associate Deans
• Directors, Department Chairs, Division Heads
• Faculty and Staff
• Departmental/Divisional Business Administrators
• Finance Personnel
• Sponsored Programs Administration Personnel

Related University Policies and Procedures

• Identification and Treatment of Unallowable Costs on Sponsored Awards
• Purchasing Goods and Services for Sponsored Programs