Fund Advances

  1. Overview
  2. Fund Advance Request
  3. Fund Advance Process

  1. Overview

    The University provides fund advances to departments with pending award proposals where all indications are the proposal will be approved by the agency, but the award is being held by the agency for further administrative processes prior to approval. If there is a need to start the project prior to receiving the formal approval from the agency and the department will guarantee the funding if the award funding does not come through, the Sponsored Project Office (SPO) may approve a fund advance to allow the project to commence.

    If an advance fund number is set up, this same fund number can be used for the award once the agency approves and funds the award. This may minimize the number of cost transfers, purchase order and HRMS ( HR records and payroll) changes needed if the department will incur pre award costs which can be charged to the award one the award is approved by the agency.

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  2. Fund Advance Request

    Award fund advances are available under certain circumstances, prior to an award being approved by an agency. For further information on how to request Fund Advances, please refer to the SPO web site.

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  3. Fund Advance Process in Sponsored Project Office (SPO) and Extramural Funds Accounting (EFA) Office

    1. Fund advance requests are submitted by departments to, and authorized by, the Sponsored Projects Office (SPO) Research Administrator and by the Director of Sponsored Projects
    2. The authorized fund advance document is passed to the distribution unit in SPO. The unit enters minimal award data, creating a skeleton award record. The following information is always included:
      1. The proposal is linked, and shows status "funded";
      2. Pre-award approval date (the date spending can begin);
      3. Authorized amount (the amount of the fund advance).
      These fields can be seen on the SPO Notice of Award in the middle section under the heading "PRE-AWARD COSTS."
    3. The distribution unit (Weilyn Tat or designee) will distribute a SPO Notice of Award, via e-mail with attachments, along with a scan of the fund advance form to the Principal Investigator (PI) and the administering department. SPO will electronically transfer the same information to EFA using the Tracker System.
    4. The subject heading in the e-mail note will clearly state "FUND ADVANCE." (This means that individual research administrators in SPO no longer send the forms directly to EFA.)
    5. EFA will set up fund number and the budget entries
      1. For a budget where we know the specific categories, e.g. fund advance for $7,500, indirect overhead rate 50%
            Budget
        Supplies 5xxxx (1,500)
        Salaries 5xxxx (3,000)
        Benefits 53xxx (500)
        Indirect cost 57xxx (2,500)
        Fund advance 58200 7,500
      2. For a budget where we do not know specific budget categories, e.g. fund advance $7,500, indirect overhead rate 50%
            Budget
        Unallocated 58000 (5,000)
        Indirect cost 57xxx (2,500)
        Fund advance 58200 7,500
    6. EFA will e-mail dept. & cc Neil Maxwell (SPO) advising that the fund number has been set up. The e-mail will also contain for reference purposes the SPO award number.
    7. On receipt of the approved award the budget entries will be reversed out and the approved budget entered in accordance with the guidelines set out for entering a budget for a new award.
    8. After 3 months, if the award is not approved, the department must obtain an extension from SPO or the expenses incurred are charged to other fund sources provided by the department. EFA will monitor this step.

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