Accelerated Spending occurs when a sponsored project PTA has an overdraft of >25% of the next year’s funding. The Department/Division regularly monitors and reviews the rate of expenditures on sponsored project PTAs with the PI to minimize accelerated or delayed spending. The Research Financial Compliance Manager (RFCM) in the Research Management Group (RMG) monitors accelerated spending on active sponsored projects on a quarterly basis. When accelerated or overspending occurs, the department develops a financial management plan to ensure the grant stays within budget and to minimize the financial risks to the project. If accelerated spending continues, the PI and Department must cover any overdrafts on the sponsored project PTAs. If the project PI initiates a task for another investigator in a different department/division, any overdrafts must be covered by the investigator/task owner and/or task owning org.
|Works with the DFA/Research Administrator (RA) to develop a financial management plan to stabilize the grant/contract when accelerated spending occurs.||
The Research Administrator (RA) identifies sponsored PTAs that are in a state of accelerated spending or overdraft during the course of monthly and quarterly expenditure review.
The DFA/ RA works with the PI to develop a financial management plan to stabilize the grant/contract when accelerated spending occurs.
The DFA/ RA advises the Department Chair on the status of the Department’s grants and contracts and solicits the Chair’s support for the resolution of problems, as needed.
On a quarterly basis, the RFCM identifies sponsored PTAs that have accelerated spending.
RFCM and RMG Director determine whether a financial management plan and/or a guarantee PTA needs to be provided.
In those cases where a financial management plan is needed, the RMG Director sends a memo to the Department DFA (with a cc to the Senior Associate Dean of Finance and Administration and the Director of Post Award Operations at OSR) requesting he/she provide a financial management plan that outlines how the PTA spending pattern will be brought back in line with the award budget.
The RMG Director reviews and approves the financial management plan.
The RFCM monitors accelerated spending on sponsored projects according to the management plan.
When delayed spending occurs, departments must review sponsored project PTAs that show a surplus/uncommitted balance of the lesser of $75,000 or 50% of total costs awarded for the year and are within 90 days of the budget period end date.
The PI may consider requesting a No-Cost Extension when there is a large remaining balance and additional time is needed to complete the project :
Stanford Internal Resources
BI 150 Report – this report is available to all Research Administrators with BI authority. DFAs/Division Managers should run this report at least quarterly for their department/divisions. You will find the report in the BI “Catalog” (bi.stanford.edu):
- Shared Folders > Finance > Fin – Research Administration > 150 - Sponsored Overdrafts
- No Cost Extension Form for Grants and Industrial Contracts (NCX) (Rev. 07/22/2011)
- No Cost Extension for Contracts OSR Request Form
Stanford Internal Policies
- RPH 3.2 Management of Project Expenditures - Overdrafts
- RPH 3.2 Management of Project Expenditure - Monitoring of Funds within Sponsor Funding Limitations
- RPH 15.3 Cost Sharing Policy – Overdrafts