It can be difficult to demonstrate how expenditures near the end of an award directly benefited the project with limited time remaining in the award. All purchases incurred within the last 90 days of the award will receive extra scrutiny and be reviewed for the following:
The item/service was received during the approved project period; and
Demonstration of how the item/service directly benefited the project during the award period, given that it was purchased close to the award’s authorized end date. Providing benefits means having a reasonable amount of use during the project period and allocating accordingly. See SPA Budgeting to determine different cost allocation models.
End of Award Equipment Expenditures
In addition to the above, it is recommended that equipment expenditures (items >$5,000 with a useful life of more than 1 year) near the end of the award period will be reviewed to determine:
If the equipment was included in the original budget proposal, documentation explaining how the equipment benefited the project given the limited amount of time remaining.
If the equipment was not included in the original budget proposal, that sponsor approval was obtained as required and that the justification explains how the equipment benefited the project.
If the equipment will not be used exclusively on the award, document how the cost was allocated to other funding sources.
If applicable, document why the purchase was necessary when the proposal indicated that the project had access to necessary equipment and/or facilities.