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Researcher's Handbook

Section 7

Award Administration

Acceptance of an Award and Release of Funds

Research & Graduate Programs' Award Administration Office accepts awards for grants and contracts on behalf of the University. The Notification of Acceptance (NOA) is the official award document that sets post-award activity into motion. The NOA document is generated by the Award Administration Office based on information contained in the grant or contract. Once an award is accepted, the NOA, a copy of the approved, itemized budget, and any other required documents are forwarded to one of the following units:

Before funds can be obligated or expended , the PI or his/her fiscal staff must complete a Budget Allotment Worksheet/Transfer (TR-20 form may be obtained here). In the case of IFAS or EIES, a different form is used (see below) but the end result is the same. The purpose of these forms is to "translate" the sponsor's budget into the University's budget format. They identify for the fiscal office the appropriate amounts that should initially be released within the University's four budget categories: Salaries, Operating Expense, Operating Capital Outlay, and Other Personal Services. Funds are released within the account as indicated on the allotment transfer forms. Send completed forms as soon as the award acceptance document is received.

Administrative Responsibilities

Administration of the award is a team effort consisting of the Principal Investigator (PI) and his/her departmental grant/contract administrator, the Office of Research, and the University's appropriate fiscal office (Contracts & Grants, EIES, or IFAS). The PI and the University jointly bear the responsibility for proper administration according to the policies and guidelines pertinent to the particular project. The Award Administration office assists in the clarification of regulations.

  1. Responsibilities of the Principal Investigator

    The principal investigator (PI) is responsible for project implementation, assembling the necessary staff, expending the funds, and conducting the project as described in the proposal and agreed to by means of the award notification.

    The PI must direct the work so that it will be completed within the budget period and with the funds authorized; otherwise, a request for supplemental funds or a no-cost time extension must be initiated. Although there is similarity among the regulations of major funding agencies, researchers should familiarize themselves thoroughly with the regulations applicable to their specific project.

    The PI may authorize changes when they are in compliance with the agency's cost principles, as well as the State of Florida's fiscal regulations, and if the goods or services are directly related to the sponsored project. Salaries and wages may be authorized by the investigator only if they are in accordance with Cost Accounting Standards.

    Principal investigators have first line responsibility for managing expenditures within the fiscal regulations and amounts specified by the sponsor. While the accounting units on campus are responsible for billing the sponsor per the funding terms, the principal investigator must carefully analyze the monthly departmental ledger (DL) and voucher registers (which are used to develop those billings) to see that all items presented are correct and that appropriate funds (cash and budget authority) are available. The investigator also has the responsibility of initiating or coordinating appropriate adjustments as each situation dictates.

  2. Responsibilities of the Award Administration Office

    The Office of Research's Award Administration Office provides information on compliance with guidelines and policies for numerous funding agencies, including:

    1. Rules and regulations of Corporate Agreements

    2. Federal Acquisition Register (FAR) Clauses

    3. Office of Management and Budget (OMB) Circulars

    4. Federal Demonstration Partnership (FDP) and Expanded Authority

    The Award Administration Office assures that funding conforms to the terms and conditions of each specific contract or grant. This office provides assistance with compliance throughout the life of the project, including addressing questions on rebudgeting, no-cost extensions, carryover of funds, closeout requirements, etc.

  3. Responsibilities of the University Fiscal Offices

    The fiscal offices at the University of Florida utilize the State Automated Management Accounting System (SAMAS), which is a uniform accounting system that includes basic controls as well as accounting reports that assist faculty and their staff in managing grants and contracts. The University accounting system is under the jurisdiction of the Division of Finance & Accounting.

    Questions or inquiries concerning accounting should be addressed to the Office of Contracts & Grants (302 Tigert, 392-1235), the EIES Contracts & Grants Accounting Office (545 Weil, 392-6626) or the IFAS Contracts & Grants Accounting Office (2029 McCarty, 392-1735). Check with your particular accounting office for the services they provide. In general, your accounting office may help with:

    1. Establishing accounts and releasing initial budget amounts

    2. Budget transactions such as category conversions

    3. Cash management such as draw down on Letters of Credit

    4. Invoicing agencies to collect funds

    5. Submission of required financial reports

    6. Monitoring and advice on Cost Accounting Standards

    7. Approval of purchase requisitions, change orders, travel authorizations, etc.

    8. Approval of cost transfers before they are sent to Payroll

    9. Depositing checks

    10. Fiscal aspects of project closeout

    Keep in mind that requisitions for equipment, travel or supplies submitted near the end of the project period will most likely be disapproved.

Participant Support Costs

Some agencies include a budgeting category called participant support costs. This category is normally used only for conference proposals or training proposals and not used in research proposals for general travel to conferences or to bring collaborators together to meet and discuss the project, unless specifically allowed by agency written instructions.

Funds provided for participant support may not be used by grantees for other categories of expense without the specific prior written approval of the sponsoring agency. Therefore, UF will establish a separate project to separately account for participant support costs.

The National Science Foundation (NSF) does not allow participant support costs to be included in the calculation of F & A costs. This is an NSF rule and not a general rule for all participant support costs. Check your sponsor's guidelines before excluding participant support cost from indirect calaculations.

If you receive Participant Support Costs from the NSF the following rules apply:

  1. Participant support costs are direct costs for items such as stipends or subsistence allowances, travel allowances and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with meetings, conferences, symposia or training projects.

  2. Funds provided for participant support may not be used by grantees for other categories of expense without the specific prior written approval of the cognizant NSF Program Officer. Therefore, awardee organizations must account for participant support costs separately.

  3. Participant support allowances may not be paid to trainees who are receiving compensation, either directly or indirectly, from other Federal government sources while participating in the project. A non-NSF Federal employee may receive participant support allowances from grant funds provided there is no duplication of funding of items and provided no single item of participant cost is divided between his/her parent agency and NSF grant funds.

Payments to Research Participants

The Directive and Procedure relating to payments made to research participants has been released and is located at the following website:

http://fa.ufl.edu/uco/handbook/handbook.asp?doc=1.4.13.4

Below are the important highlights:

  1. Introduction

    This directive is intended to provide guidance and direction for payments to research participants in research studies approved by the Institutional Review Board (IRB) conducted at the University of Florida, in accordance with applicable Federal regulations and University research guidelines. This directive also applies to all gift cards issued to research participants, whether the cards are purchased by the University or are supplied directly by the sponsoring agency.

  2. Participant Documentation

    A participant support payment form (See forms on Finance and Accounting website) should be completed. This form will also be used for petty cash or gift card reconciliation and sponsoring agency documentation. Determine whether participant is a University of Florida employee or a nonresident alien before allowing participation.

  3. University of Florida Employee Participant

    If the participant is a University of Florida employee and not a nonresident alien, payment will be through the University payroll system as additional pay. Taxes will be withheld and the research participant payment(s) will be included on IRS Form W-2, Wage and Tax Statement, to be issued at the end of the year.

  4. Nonresident Alien Participant

    If the participant is a nonresident alien, whether they are already a University of Florida employee or not, payment will be through the University payroll system as additional pay. Taxes will be withheld and an IRS Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, will be issued at the end of the year. Contact University Tax Services since multiple tax forms will need to be completed, including obtaining a tax identification number for a non-employee.

  5. Research Participants Other than Employees and Nonresident Aliens

    There are 3 options for payment to these research participants:

    1. Issue an accounts payable check to the research participant after obtaining the required information to establish the participant as a vendor. An IRS Form 1099-MISC, Miscellaneous Income, will be issued at the end of the year if payments total $600 or more.
    2. Pay the research participant in cash (limited to $50 per payout) from a petty cash fund. Information on petty cash funds can be found in the section of directives and procedures entitled Cash, Collections, Receivables, and Investments.
    3. Issue the research participant a gift card. Gift cards are defined as any cash alternative including gas vouchers, traveler's checks, debit cards and gift certificates. The purchase or use of gift cards to use for this purpose requires additional documentation. If the gift cards are purchased using a restricted grant source of funds (funds 201 and 209), the granting agency must give approval. If another source of funds is used, the Dean, Director, or Department Head must justify and approve the use of gift cards for payment to research participants.

      A UF Purchasing Card may not be used to acquire the gift cards; purchases may only be made with a voucher.

  6. Cash or Gift Card Payments of more than $600 in a Calendar Year

    If payments to any participant receiving cash or gift cards total $600 or more in a calendar year, it is the responsibility of the department to provide the necessary information to Purchasing and Disbursement Services by January 15th of the following year so that an IRS Form 1099-MISC, Miscellaneous Income, can be generated. Best practice is to obtain IRS Form W-9, Request for Taxpayer Identification Number and Certification, initially from each participant for compliance to IRS Form 1099 information reporting.

  7. Internal Control Over Gift Cards

    It is the responsibility of the department to maintain the same level of internal control over gift cards purchased to pay research participants as required over a petty cash fund. This includes storing the gift cards in a secure place; providing segregation of duties so that the employee processing the voucher to procure the gift cards is not the employee who has custody or assigns the gift cards; maintaining a log of gift card recipients; and providing high level (Dean or designee) oversight of the gift card process.

Time and Effort Reporting

Under federal regulations OMB Circular A-21, Section J(8), the University is obligated to document and maintain detailed records of time and effort spent by faculty and staff on activities such as instruction, organized research, departmental research, extension, public service, administration, and so forth. Each academic term, departments electronically report non-academic and academic activity. These reports are used to verify the allowableness of charges to contracts or grants and become part of the basis used to develop the University's indirect cost proposal.

Documentation of time and effort activity is required on all contracts and grants regardless of the source of funding and on all other activities that would have an impact on indirect costs. The University must be ready to provide sufficient detail concerning these activities to allow a reviewer to determine whether the work performed benefited sponsored projects. Faculty are reminded to take these reporting duties very seriously.

For information about the University's Faculty, Professional and Non-Academic Effort Reporting System go to:

Faculty, Professional and Non-Academic Effort Reporting System Users Manual

Finance and Accounting Directives and Procedures

Subcontracting at the Time of Award Administration

What Happens at the Time of Award?

When the University of Florida accepts an award from an agency that includes a subrecipient, the appropriate research administration office (DSR's Award Administration, OER, or IFAS) will contact the Principal Investigator and/or appropriate Department Administrator to begin the preparation of a subcontract (also know as a subaward) regardless of the dollar amount.

In order to begin preparing a subcontract, at a minimum the following information is needed:

Subcontractor's Funds will be Encumbered

All three units (DSR/C&G, IFAS and OER/EIES) will encumber the Subcontractor's funds. Encumbering the Subcontractor's funds sets aside an amount to cover our obligation to pay our Subcontractors.

Subcontract Template and Terms

The University makes use of three template subcontracts, as follows;

In addition, DSR, where needed, will construct and approve custom subcontracts to meet requirements of any unique programs we may engage in. All University of Florida subcontracts flow down applicable prime award terms and conditions, as well as any other applicable federal, state and University policies, procedures and regulations.

Principal Investigator's Approval

After preparing the subcontract, DSR, OER and IFAS will transmit the document to the project's Principal Investigator for review and approval, after which the appropriate office will release the subcontract to the Subcontractor for review and acceptance.

UF and Subcontractor's Authorized Officials must Sign

Both the University of Florida's Authorized Official (DSR) and the Subcontractor's Authorized Official must sign these agreements.

Distribution of Fully Signed Subcontract

The fully signed subcontract is distributed as follows:

Imaging of Subcontract Documents for use by C&G Accounting Main

Each research administration office (DSR, IFAS, OER) will image their subcontract documents into the correct folder of GPA Sponsored Research Imaging System. C&G Main will review the subcontract worklist to retrieve their copy the subcontract issued by DSR as well as all subcontracts for the purpose of monitoring A-133 reports.

Modifications to Subcontracts

Most subcontract modifications are initiated when the University of Florida receives an increment of funding from our Sponsor. A good example of incremental funding is when UF receives Year 2 funding from the National Science Foundation. For this example the subcontract would be modified to add additional funds, add additional time, and adjust the scope of work accordingly.

When DSR is modifying the subcontract we follow generally the same procedures as if it were a new subcontract being issued.

When a Subcontractor was Not Part of the Original Plan

Normally, participation of a subcontractor (subrecipient) has been fully disclosed and budgeted for in the University of Florida's proposal submitted to the funding agency (sponsor). However when a subcontractor was not identified in the UF proposal, prior to entering into a subcontract arrangement, approval from DSR, and when applicable, the prime funding agency will be required.

Invoicing and Payment

Subcontractors should submit invoices to the appropriate Fiscal Office as specified in the subcontract documents. The respective Fiscal Office is responsible for verifying accuracy and obtaining the Principal Investigator's approval prior to making payments.

Close-Out

Subcontractors must submit their final invoice, final technical report and other close out reports, if any, per the terms of the subcontract to UF. The Principal Investigator must verify that all deliverables and technical reports have been received prior to making final payment. Once final payment is made the subcontract is considered closed.

For Subcontracting at the Time of Proposal Processing click here.

Cost Sharing

An award may require that the University share in the cost of a project. Cost sharing may be made from any non-federal source, including non-federal grants and contracts. The contribution may be in the form of direct or indirect costs, but only cost items which are generally allowable may be included in the contribution. In order to identify specific cost elements that will be used to meet cost sharing commitments, the Contracts & Grants Accounting office requires principal investigators under its jurisdiction to explain the details in a cost sharing letter. That form letter is sent by C&G to the researcher after an award is received by the Office of Research's Award Administration Office. (Note: Faculty in EIES and IFAS should contact their own fiscal office as those units have their own cost sharing procedures.) A completed and signed copy of this letter must be returned to C&G to signify acceptance by the PI of this responsibility. No funds will be released until this form is received by C&G.

Contributions in the form of salaries or Other Personal Services (OPS) and their corresponding fringe benefits are documented via UF's activity reporting system. Contributions of capital and expense items may be documented by submitting copies of the vendor's invoices for those items with a certification typed on the face of the invoice as follows: "This is certified as a cost sharing contribution to (project number)." Cost sharing documentation is subject to the same audit requirements as costs directly charged to the award.

At the end of each academic term, a cost sharing report that summarizes the cost sharing transactions from inception of the project up to the end of the academic term covered by the report. It is imperative that the investigator initiate the action required to meet the cost sharing requirement.

Federal Demonstration Partnership

In 1986, the University of Florida along with nine other Florida research universities and five major federal R&D agencies -- National Institutes of Health, National Science Foundation, Department of Energy, Department of Agriculture and the Office of Naval Research -- joined forces to test and evaluate a grant mechanism utilizing a standardized and simplified set of terms and conditions. This first phase was called the Florida Demonstration Project (FDP).

The Florida Demonstration Project proved that the most appropriate decision making level is as close to the level of Principal Investigator as possible while maintaining, at the institutional and governmental level, adequate controls for the stewardship of federal funds. Universities and federal agencies demonstrated that by reducing the administrative burden of paperwork, researchers are able to spend more time in the laboratory and are more productive in their research.

In Phase III (since June 1996) the FDP was renamed. It is now called the Federal Demonstration Partnership, and consists of 11 federal agencies, 65 universities and 5 professional organizations. While the FDP's current focus is on demonstrations that combine electronic research administration (ERA) with increased productivity, it continues to work on other methods which might further reduce the administrative burdens associated with federally sponsored grants.

The central features of the General Terms and Conditions are:

The FDP form, DSR/FDP-1, should be used when institutional prior approval is required. Further information and forms are available from Award Administration (207 Grinter, 392-5991) or the Office of Research web site at http://research.ufl.edu/research/formstable.html).

Residual and Miscellaneous Donors Projects

The University of Florida has authorized DSR to accept miscellaneous donor funds on behalf of faculty for research, training and other specific purposes. These funds are distinguished from ''sponsored research'' support by the following characteristics:

These are cash based projects established in fund 212 and do not require any rebudgeting.

In addition, residual balances resulting from fixed price agreements are transferred to these projects and maybe used in support of the PI's research program.

Prior Approval for Post-Award Changes

When researchers consider rebudgeting or other post-award changes and are uncertain about the allowableness of such changes -- particularly when such items are not mentioned in the regulations, cost principles or other policy documents -- they are strongly encouraged to consult in advance with the designated Grants Management Officer and the Office of Research's Award Administration Office. Some of the most common post-award changes that require agency prior approval are:

For more information, please contact DSR's Director or Assistant Director (392-1582), or the appropriate fiscal office.

For more information, please contact DSR's Director or Assistant Director (392-1582), or the appropriate fiscal office.

Rebudgeting

In general, any deviation from the sponsor-approved budget, which was the basis for the original budget release on an account, requires an Allotment Worksheet/Transfer (form FA-CG-K-BW 441). For changes under $500 the form should be sent to C&G for processing. Budget category changes of $500 or more require approval by DSR. In some instances, the awarding agency's approval is required; this action is initiated by the PI and co-signed by DSR before being sent onto C&G. When moving funds to a new category not previously established and institutional approval is required, the FDP form, DSR/FDP-1, should be used.

In November 1997 the University expanded the Managing Your UF Money online system to include certain research accounts. This allows designated individuals in each academic unit the ability to make changes to the budget directly without having to send in an Allotment Worksheet/Transfer form. The types of accounts currently identified as "unrestricted" include overhead accounts, royalty return accounts, miscellaneous donors accounts, and those funds specifically identified by the sponsor as being unrestricted.

Overexpenditure

Principal investigators have first line responsibility for managing expenditures within the fiscal regulations and amounts specified by the sponsor. If an error occurs which results in an audit disallowance, corrective action will be determined on a case by case basis by Research & Graduate Programs with the help, knowledge, and assistance of the principal investigator and the appropriate contracts & grants accounting office.

Any error indicating over expenditure of funds, whether it be by audit disallowance or otherwise, will be met with current or future returned overhead funds or other unrestricted funds. Refunds to sponsors as a result of an error or audit disallowance should be signed by the principal investigator like any other expenditure of funds.

Cost Transfers

Cost transfer is a process whereby an expenditure for salary or OPS improperly assessed to a sponsored project account is transferred to the correct account. It is the responsibility of the principal investigator to make sure transfers are made promptly after the error is discovered, and within 120 days of the error or 45 days after the end of the budget period, whichever date first occurs, unless close-out requirements necessitate a shorter period of time. EIES and IFAS faculty should contact their research accounting office; all other UF faculty should contact the Office of Contracts & Grants (302 Tigert, 392-1235).

Retroactive cost transfers represent one of the most common areas for audit disallowance. Federal regulations (OMB Circular A-21) define improper cost transfers as, "Any costs allocable to a particular research agreement under the standards provided in this circular may not be shifted to other research agreements in order to meet deficiencies caused by overruns or other fund considerations, to avoid restrictions imposed by law or by terms of the research agreement, or for other reasons of inconvenience."

For complete Guidance on cost transfers please see Contracts and Grants Accounting Guidelines on Cost Transfers.

No-Cost Extensions

A no-cost extension is when additional time beyond the awards expiration date is required to complete the original scope of work funded by the sponsor. We have two paths choose from; Extensions that may be approved by DSR, and second , extension that only the Sponsor can approve. Below describes the process for each.

If you have questions about you grant and which process to follow please contact DSR's Award Administration Office at 392-5991 or email Dee Dee Teel at vd2t@ufl.edu.

Examples of grants and agreements where DSR can approve extensions:

Email your Extension Request:

For those awards where the Division of Sponsored Research (DSR) has the ability to approve a no cost extension, the Principal Investigators may submit their no cost extension requests directly to DSR via e-mail.

For IFAS and Engineering awards extension requests should be submitted to their respective Sponsored Research Office (SPO or OER) who will then collect of DSR's approval.

This e-mail process can replace the paper FDP Form or memo equivalent.

DSR does not require the Department Chair's and Dean's endorsement on such extension requests.

General Guidelines:

DSR at the request of the Principal Investigator may extend the final budget period of a project one time for a period not to exceed (12) twelve months beyond the original expiration date, as long as there will be no change in the project's originally approved scope or objectives, and at least one of the following applies:

Submit Email Request To:

No cost extension requests can be submitted to ufawards@research.ufl.edu.

If you are working with a Senior Grants Specialist you may e-mail them directly. E-mail addresses for DSR staff can be obtained from the DSR web page.

Procedures and Required Information

  1. The Principal Investigator (PI) must transmit the request. Please include title, college and department, telephone number, fax number and e-mail address.

  2. In the cc line of the e-mail PI's should copy the appropriate department administrator.

  3. In the subject line of the e-mail you should include the following:

    No Cost Extension Request for UF Project Number

  4. In the body of the e-mail please provide the following information:

    1. Sponsor

    2. Sponsor Award Number

    3. Current Expiration Date

    4. Length of Extension

    5. Scientific/Programmatic Justification explaining the need for the extension of time.

      This narrative should be written as if you were writing your Program Officer requesting an extension. In the case of Federal grants, DSR forwards this narrative section (as provide by the PI) to the awarding agency.

    6. If subprojects or subcontracts have been issued under the prime project and require an extension please indicate and provide the necessary information and justification similar to above.

  5. All e-mail requests and actions taken will be available in the DSR grant file for future reference. For those grants that are extended DSR issues a NOA extending the UF Project and subprojects as appropriate.

Your Assistance is needed to meet Deadlines:

When extending a federal grant DSR must provide written notification of such extension to the federal sponsor's Grant Officer. This notification includes the supporting reasons for the justification, and must be received by the agency at least (10) ten days prior to the original expiration date of the award.

If this notification deadline is missed, DSR may not exercise its ability to extend the grant, without the sponsor's approval.

DSR would appreciate extension requests be submitted 30-days prior to the grant's current expiration date. This allows plenty of time to meet our deadlines.

For those Awards that require Sponsor Approval:

The Principal Investigator should craft a letter to the sponsor which provides a Scientific/Programmatic Justification for the need of additional time and should give an overview of the remaining budget and how the funds will be used during the extension period.

Letters should be sent well in advance of the project ending date as some agencies require such requests be made 30 days prior to the project end date. These requests should be an in many cases are required to be countersigned by a DSR Authorized official before being sent to the sponsor.

In addition, it is understand we have a variety of sponsors and some sponsor are less formal than others. In these cases DSR will accept other reasonable and appropriate documentation from sponsor personnel that acknowledges they concur with the extension.

Upon the sponsor's approval DSR issues a NOA extending the UF Project and subprojects as appropriate.

Advance Budget Authorizations

There are two types of special advances available to investigators through the Office of Research's Division of Sponsored Research:

  1. Pre-Award Costs:

    Federal grants that will be awarded under the Federal Demonstration Partnership (FDP) or Expanded Authority Terms and Conditions allow pre-award spending within the 90 day period immediately preceding the grants effective date. Any period greater than 90-days would require the Federal agencies prior approval.

    To request the Office of Research's approval for pre-award spending, an Investigator must submit a completed FDP Request Form: http://research.ufl.edu/research/pdf/federal_demonstration_partnership.pdf to the Office of Research's Division of Sponsored Research. A letter may be used as long as it contains the required information.

    The request for pre-award costs must include a narrative explaining why the grant needs to begin early, a pre-award budget, the pre-award start date, and a guarantee statement that the department, center or college will cover all expended funds if for any reason the award is not made to the University. The FDP Request Form or letter must be signed by the Principal Investigator, Department Chair or Center Director, and College Dean if College funds are being used as the guarantee.

    Pre-award costs are only approved when it is made clear that pre-award spending is necessary for the effective and economical conduct of the project.

    Request for pre-award cost should be made prior to the receipt of the grant, it is the exception to approve pre-award costs after the grant has been received.

  2. Temporary Release of Funds:

    Investigators often experience difficulties in starting or continuing personnel appointments when an award is assured but the arrival of the award documentation is delayed. The Office of Research normally approves a Temporary Release for no more that 3-months and up to 25% of the anticipated 12-month award amount.

    To request a Temporary Release or Temporary Extension to an account an Investigator must submit a letter to the Office of Research's Division of Sponsored Research. The request must include a start date, a budget to be released (unless its a temp extension), and a guarantee statement that the department, center or college will cover all expended funds if for any reason the award is not made to the University. The Temporary request must be signed by the Principal Investigator, Department Chair or Center Director, and College Dean if College funds are being used as the guarantee.

    Investigators should include as an attachment to the request any relative correspondence they may have from the awarding agency indicating an award is going to be made to the University.

    A third type of special advance is available through Contracts & Grants Accounting:

  3. Expense Advances

    As allowed under FL Statue 1004.22 (12) DSR is authorized to advance funds to any principal investigator who, under the contract or grant terms, will be performing a portion of his or her research at a site that is remote from the University. Funds shall be advanced only to employees who have executed a proper power of attorney with the University to ensure the proper collection of such advanced funds, if it becomes necessary. A remote site is defined to mean so far removed from the University as to render normal purchasing and payroll functions ineffective.

    The expense advance is to pay for incidental labor and research materials and services. It does not cover travel expenses to and from the university. The expense advance should not be confused with a travel advance.

    The procedures for an expense advance are as follows:

    1. The Principal Investigator prepares a Payment Authorization form (FACT 305) for the amount required along with a completed Agreement to account for and/or repay the University for the advance and a Power of Attorney.

    2. The documents are sent to the respective accounting office for verification of information and allowableness to incur expenses in accordance with the award terms and conditions.

    3. If acceptable, the accounting office approves the invoice and processes it for payment. Copies of the Agreement and Power of Attorney must be attached. Originals of these documents, however, are retained by C&G. A copy of the traveler's request for travel must have already been approved as appropriate.

    4. The traveler receives the check and sends a receipted copy of the agreement to the accounting office.

    5. As soon as the traveler returns from his/her trip, a financial accounting of the advance must be rendered to C&G or the appropriate accounting office. Any unexpended funds on an unaccounted balance must be returned with the summary of expenditures. The accounting office verifies acceptability of the documentation and allowability of expenditures and prepares the appropriate accounting entry.

    6. All expense advance funds are subject to periodic, unannounced audit by the Office of Inspector General.

    7. Full accountability must be made before the Power of Attorney expires, or a new Power of Attorney must be executed.

Program Income

Program income is the gross income earned by the University that is directly generated by a supported activity or earned as a result of an award. Grantees are accountable for this type of income; the terms of the grant may specify how such income may be spent. In most cases, program income is maintained in an account separate from the funds already committed by the sponsor.

Examples of program income include:

  • Fees earned from services performed under the grant, such as those resulting from laboratory drug testing;

  • Rental or usage fees, such as those earned from fees charged for the use of computer equipment purchased with grant funds;

  • Third party patient reimbursement for hospital or other medical services, such as insurance payments for patients, where such reimbursement occurs because of the grant-supported activity;

  • Funds generated by the sale of commodities, such as tissue cultures, cell lines, or research animals; and

  • Patent or copyright royalties.

Change of Principal Investigator or Co-Investigator

Awards are made to institutions, rather than to individuals. A PI may leave the University either permanently or for a sabbatical, but research under the grant or contract may continue to be conducted at the University of Florida. If a department wishes to retain an award under new leadership, such change must be prepared well in advance.

When there is a change of PI or Co-PI, the Department chairperson in conjunction with the original PI should notify the sponsor in writing of the upcoming change. The letter should explain the situation, introduce the new PI, highlight his or her special qualifications which assure continuance of the research as originally approved, and attach their curriculum vitae. A new DSR-1 Form should be sent along with this letter to the Office of Research. This document will be countersigned by the Office of Research and forwarded to the agency. Depending on the project period and the date of proposed change of PI, the agency may issue a new award letter or merely confirm its agreement in writing.

Change of Grantee Institution

With the exception of training grants, researchers who decide to leave the University of Florida may be allowed to transfer their research grant to their new institution. Faculty should notify the agency of their relocation plans and request proper forms and instructions to effect the transfer. The documentation must be routed through the Office of Research for endorsement. Due to the wide variation in procedures among sponsors, faculty are encouraged to check with Award Administration with regard to specific guidelines (207 Grinter, 392-5991).

A faculty member who accepts an appointment with another university may wish to transfer research equipment purchased with sponsored project funds. (Note: Research equipment that was purchased with state funds may not be transferred.). A list should be prepared indicating the type of equipment, property identification number, date of purchase, acquisition cost, and account number to which it was charged. This list should be submitted to the University Property Services. Property Services will check the listing against its records, and if correct, will process the transfer. Any questions will be settled by a phone call from Property Services to the researcher. Approval will be required by the department or center, University Property Services, and the Office of Research.

Absence of the Principal Investigator

When a project will continue without any active direction from the principal investigator for more than 90 consecutive days, the sponsoring agency must be notified and give permission to change the PI. Please check with Award Administration (207 Grinter, 392-5991) for individual agency regulations.