The use of funds is restricted by the terms of the grant or award and may also be restricted by federal regulations and requirements. There is limited budget flexibility. Results of the project are reported to the client according to the terms of the agreement. The University structures a work plan for the activity and determines all necessary expenditures. Unused funds are not returnable to the Client.
Cost is based on a rate structure that can include administrative costs, indirect costs and profit.
The customer does not fund equipment purchase costs. Technical progress reports or detailed financial reports are required. Results of the project are reported to the sponsor according to the terms of the agreement. Time frame is specified. Terms of the award generally require special oversight including audit provisions.