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ORA Home
/ ORA Offices /
Sponsored Research /
Award Initiation & PTA Setup
/ Pre-Award Spending
Pre-Award Spending
Spending in advance of the award start date is called pre-award spending or pre-award costs. These are allowed when a sponsor authorizes pre-award spending in writing.
Most government grant sponsors allow pre-award costs within the 90 days prior to the start of the award. Other sponsors limit or do not allow pre-award costs. Be sure to check the terms and conditions of your particular award for restrictions for Pre-award spending.
If you have authority to spend prior to the start date, you must open an early PTA.
Authorization does not place any obligation on the sponsor to fund the pre-award costs if the project is not funded, and does not guarantee that the award will be funded or accepted.
Pre-award expenditures are made at the PI’s own risk. If the award does not materialize or the start date of the project is delayed the award will not cover the expenses incurred and the Principal Investigator will most likely have to pay for the expenses from his or her unrestricted funds.
If using human or animal subjects, IRB and IACUC approval must be received before early PTA’s can be opened.
Early Accounts (PTA’S)
While waiting for an award to arrive at Stanford or once you have approval for pre-award costs you can request OSR to open an early PTA.
Use the Early PTA Request Form. It requires a department and guarantee PTA in case the expected funds do not materialize.
Once Stanford receives the award, transfer of expenses will not be necessary.
Don’t use another award to fund project expenses even if you intend to move it later. The expenses would be considered both unallowable and unallocable.
Don’t charge project expenses to an unrestricted PTA while waiting for an award to materialize. Complete an “Early PTA Form”
Read:
Early PTA’s: a Good Business Practice
When the award funds arrive, they will automatically go into the project PTA, and transfers of expenses will not be necessary; this is a significant advantage over placing these costs somewhere else and transferring them later.
Department Guarantee Award
The "early PTA" form asks for a department guarantee Award, in case the expected funds do not materialize. If the funds are NOT forthcoming, then those costs will be charged to the guarantee Award, which most likely will be from the PI’s unrestricted funds!
On an existing award, to extend the PTA close date or open a new PTA, depending on specific circumstances, you would complete the “Extended PTA” form.
OSR will open PTAs for the entire period of performance for grant awards from: NIH, NSF, AF, ARO, ONR, NASA (Langley, Lewis & Marshall); an extended PTA will not be necessary for these sponsors
Impact: Reduction of administrative effort
Risk: Overdrafts will result if anticipated funding is not received
Action for Research Administrator: Monitor receipt of funding
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