Award Management

9.7 Other Financial Management Issues

9.7.1 Overspent Projects

The Principal Investigator (PI) - and any designated Project Executives (PEs) - are responsible for ensuring that sponsored project funds are managed responsibly and expended within the approved budget.

The PI, PEs (if applicable), and the cognizant department(s) are financially responsible for covering all project cost overruns, regardless of cause. This includes situations such as:

anticipated award continuations or preliminary funding that are not received; 

• sponsor insolvency or bankruptcy;
• sponsor non-payment or delayed payment; or 
• expenditures incurred in excess of the authorized budget.

Cost overruns must be resolved promptly in coordination with Grants and Contracts Accounting (GCA) to support timely project closeout and financial reconciliation. 

Misuse or mismanagement of sponsored funds - particularly federal funds - may be addressed under applicable University policies, including the University of Utah Code of Faculty Rights and Responsibilities, and may result in disciplinary or corrective action.

Any costs ultimately disallowed by auditors and sustained by the sponsor are the responsibility of the PI and/or the cognizant department, except in rare circumstances where an exception is approved by the President upon recommendation of the appropriate Vice President.

9.7.2 Underspent Projects

Underspending a sponsored project may result in the return of unexpended funds to the sponsor and may raise concerns regarding project planning or execution. To minimize such outcomes, investigators should engage in:

• thoughtful proposal and budget planning;
• regular review and monitoring of expenditures;
• ongoing communication with sponsors, as appropriate; and
• timely adjustments to work plans or budgets, consistent with sponsor and University requirements.

Effective financial oversight throughout the project period supports the successful completion of sponsored work and demonstrates sound stewardship of sponsor funds.

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1. Post-Award Administration
   1. Role of PI in Post-Award Administration
   2. Role of PI in Subrecipient Monitoring
2. Financial Management
   1. Financial Management Reports
3. Summary of Revenue & Expenses
4. Detail Transactions Report
   1. Open Encumbrances Report
   2. Balance Sheet
5. Post-Award Changes & Approvals
   1. Changes Requiring Prior Approval
      1. Re-budgeting
      2. Additional Compensation
      3. Changes in Objectives or Scope
      4. Absence or Change of Key Personnel
      5. Foreign Travel
      6. New-Subcontracts/Sub-Agreements
      7. No-Cost Extensions
      8. Carry Forward
      9. Relocation or Transfer
6. Effort Reporting
7. Other Financial Management Issues
   1. Overspent Projects
   2. Underspent Projects
8. Reporting Responsibility
   1. Interim Progress Reports
   2. Project Close-Out
      1. Final Technical Report and Other Deliverables
      2. Final Financial Report
      3. Final Inventory Report and Title to Property
      4. Patent and Invention Report
   3. Late Reports or Non-Reporting
      1. Government Agency Policies
      2. University Policies
9. Records Retention
   1. University Ownership and Responsibilities
   2. Principal Investigators Responsibilities
   3. Duration of Retention of Data
   4. Access to Records
   5. Transfer of Data or Records When a Researcher Leaves the University