A formal contract is an agreement between the university (signed by the Sponsored Projects Office (SPO)) and a funding organization or subaward recipient. The agreement documents the terms and conditions of the award and is essential for its financial administration as it defines allowable costs, overhead rates, payment terms, etc.
When a contract is signed, SPO sends a Phoebe Award Summary email to the Principal Investigator named on the award. Spending on the award may begin once the budget is set up in the Berkeley Financial System (BFS).