Payroll expenditures and orders for goods and services will be allowed on the account up to the expiration date of the backstop. If the award document has not arrived before the expiration date of the backstop, it is a good idea for the principal investigator to check with the sponsor about the status of the award and make arrangements with the department head to extend the date of the backstop, if appropriate. The budget will be loaded to the account after the award document is fully-executed. Backstopping is not available for gift accounts, indirect cost accounts, or overrun accounts. Preaward Costs Preaward costs are those costs that a principal investigator may incur before the effective date of the project.
Most sponsors require their approval before charging preaward costs to the project.
A provision for preaward costs in the terms of the contract is the most acceptable documentation of sponsor approval. A letter from the contracting officer or grant officer approving preaward costs is also acceptable. The terms of the FDP allow the University to incur costs up to 90 days before the effective date of the project. The costs to be incurred must be necessary for the conduct of the project and must be allowable under the potential award. The principal investigator assumes responsibility for covering the obligations and expenditures in the event that the award does not come through.