Faculty & Staff

Pre-award expenditures are those costs incurred prior to the signing of an award or extension to an award. Pre-award expenditures may be convenient but they are generally discouraged.

All pre-award costs are incurred at some risk to the University, as the awarding agency is under no obligation to reimburse such costs if the grant or contract is not approved. If the grant or contract is awarded, the funding agency will only reimburse the University’s pre-award costs if there is written authorization on their side to do so.

If the funding agency indicates that pre-award expenditures will be approved, these costs must be incurred within the timeframe allowed by the agency. For example, many USG agencies approve pre-award expenditures incurred during the 90 days preceding the award's effective date.

The University uses advance accounts to handle pre-award expenditures. For details on what authorization is required and how to establish an advance account, see the University’s Sponsored Project Handbook.