Office of Research and Project Administration

SPONSORED PROGRAMS COMPLIANCE

Contingent Accounts

Science doesn't always wait for the arrival of money. If you have received word that an award is forthcoming but the funding is delayed, you may need to open a "contingent account."

For example, if you have a graduate student who is already working on the forthcoming research award, and you need to support him on a Research Assistantship, you may open the project account before the formal award arrives. To do this, you need to complete a request form.

The "contingent account" form asks for a alternate department unrestricted account, in case the expected funds do not materialize.

When the funds arrive, they will automatically go into the project account, and no transfers will be necessary - a significant advantage over placing these costs somewhere else and transferring them later. If the funds are NOT forthcoming, then those costs will be charged to the alternate department account.

Some sponsors prohibit ANY preaward costs, while others limit such costs to a specified amount of time. For example, costs that are incurred more than 90 days before the start date of a project may be identified as unallowable. Be sure to check the terms and conditions of your particular award for these types of restrictions if you are considering a "contingent" account."