Post-Award Management FAQs

Once an official award is received by the agency, Pre-Award Services will  work with the PI to ensure all required information is provided including the final budget. Once all of this is received, it will be provided to Post-Award Management to set up a grant index within three business days.

Upon award notification, Pre-Award Services staff will review the sponsoring agency award budget against the internal sign-off of budget. If fringe rates have changed since the time of award the new rates will apply and the PI will need to adjust the budget accordingly.

Once the PI returns the current updated budget to Pre-Award Services, a request to create a new index number will be provided to Post-Award Management to be generated within three business days.

An award letter and/or a final executed award agreement from the agency approving the project. The award documents must contain:

1. Start and end date of the award performance period
2. Total funding amount of the project
3. Terms and condition of the award

If the award is not yet finalized, in addition to the above information, the PI must submit an advance account request form and a letter from the sponsor with language indicating that they are authorizing NJIT to start incurring expenses.

The PI will received an e-mail notification from grant accountant in the Post-Award management team containing details of the awarding/sponsoring agency, index number, project dates, and additional information as necessary. This email will indicate the index is ready and available for use.

Please see the Post-Award Management Team Contact List.

If the award is not yet finalized, the PI must submit an advance account request form and a letter from the sponsor with the following:

1. Starting date of project
2. Total amount of the project
3. NJIT budget for pre-award, as required on the advance request form
4. Language that they are authorizing NJIT to start incurring expenses

Once the advance request form is approved by the Office of Research and Finance, it will be provided to Post-Award for index setup within three business days.

Financial obligations are when funds are committed for a specific use and are documented and defined in writing. Examples include a purchase order, an employee contract, a signed contract or other agreement, outstanding invoices, or other commitments to expend the funds.

Grant funds may not be obligated prior to the starting date of the grant or after the ending date of the grant.

The Principal Investigator and departmental support can access the Grant Budget Summary, actual expenses details, expense backup documents, and commitments on the specific award in Banner Self Service. For training and information on how to access, please visit Finance Website-Banner Finance Resources.

Expenditures on an award must be incurred within the performance period of the grant or contract. Any expenditures prior to the start date require sponsor approval and any expenditures after the end date require a no cost extension from the sponsor prior to expenses being incurred.

The award agreement provides the terms and conditions of the award. All eligible expenses would have been listed in the budget narrative submitted with the proposal, the final approved budget, and must be allocable to the objectives of the program. Depending upon the type of expenses, prior written approval from the sponsor may be necessary before the purchase can be initiated.

Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Examples of direct costs include your grant salary and benefits, subcontracts, equipment, travel, and the cost of materials and supplies used to implement the project.

Indirect costs are charged to the project based on a percentage that is approved by the sponsor or was approved by the federal government. They represent an estimate of the university’s overhead on providing research facilities and administrative support. This percentage is calculated on direct costs and automatically charged to the project. 

Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect (F&A) costs.

Carry forward of funds from budget year to budget year varies depending on the terms of the award and sponsor regulations. The award agreement would provide requirements on whether carry over approval of funds is needed or it is automatic.

If approval for carryover of funds is required, the PI must work with Pre-Award Services to obtain official notice of sponsor approval

A cost (expense) transfer – is an after-the-fact movement of costs (labor and non-labor) from a sponsored or non-sponsored award to another sponsored award.  This is completed when expenses need to be reallocated retroactively from one index to another whereby one or both of these is a sponsored award.

Cost transfers may be necessary to (a) distribute clearing account expenses; (b) correct salary distribution estimates; or (c) correct clerical, bookkeeping, or data entry errors.

Examples of unallowable cost transfers are:

•    To cover cost overruns or deficit balances in other non-grant or grant funds
•    To utilize unexpended funds of a sponsored award
•    To use for cost management strategy
•    Used any other reason of convenience

A cost transfer form must be completed and the following information must be provided:

1. the index and account number for which you are requesting the charges be transferred to/from
2. ledger detail and support for the date and description of the original charge
3. an explanation of why the transfer is being requested is required.

Generally, explanations for cost transfers should address why the expense was originally charged to an account or line item, why the charge needs to be transferred to/from the grant account, and if the charge is being transferred, whether the charge is allowable and allocable based on the terms and conditions of your award.

In addition, further justification/explanations are needed for transactions greater than 90 days.  Any adjustments done greater than 90 days, give the perception that grants aren’t being monitored regularly and are an audit flag. These instances require additional documentation, clear explanations and corrective actions to prevent future errors.

Grants should be reviewed monthly or at least quarterly to identify if any adjustments are needed.

The principal investigator must make sure that the charges being transferred are appropriate and allowable expenditures on the grant or contract according to the terms of the award. If so, the PI must complete a cost transfer request form.

The post-ward unit will then review and process the cost transfer if they are eligible with regards to the terms of the award. Post-Award Management has full authority to request more information or to reject the recording of a cost to a grant fund if there is inadequate evidence to support the allowability of the cost. In this case, the cost must be recorded to a departmental or University fund.

Examples of unallowable cost transfers are:

•    To cover cost overruns or deficit balances in other non-grant or grant funds
•    To utilize unexpended funds of a sponsored award
•    To use for cost management strategy
•    Used any other reason of convenience

Federal regulations govern the amount of time that cost transfers are allowed to be made. In order to comply with these regulations, NJIT policy is that all cost transfers must be made within 90 days of discovering any errors.

•    Justification/explanation are needed for transactions greater than 90 days.  Any adjustments done greater than 90 days, give the perception that grants aren’t being monitored regularly and are an audit flag.

•    These instances require additional documentation, clear explanations and corrective actions to prevent future errors.

Given that a timely review of monthly grant payroll reports is expected, labor transfers should occur infrequently and must include detailed documentation as to why the transfer is required. Written justification and PI approval for the labor transfer for sponsored awards is required and must be provided on the cost transfer form upon request from the grant accountant.

Once this transfer is approved by Post-Award Management, the PI will need to work with the labor redistribution initiator in their college to process the labor redistribution. Please see Labor Redistribution-Finance Site for more information.

The PI must confirm from the award agreement what are the re-budgeting conditions and/or restrictions on the award.

Some budget transfers will require additional levels of approval if they have the following impact and PI must obtain chair and dean approval if they are requesting:

•    Transfer of academic year release time to summer salary or to any other category.
•    Reduction in student support (stipend and/or tuition)
•    Reduction in F&A (Indirect/overhead costs charges)

Sponsor agency approval may be required for the following examples and will only be transferred when said approval is documented:

•    Changes in scope or objective of the project
•    Changes in indirect costs
•    Changes in PI and/or PI and other key personnel percentage effort (25% increases or decreases)
•    Absence of PI for a significant length of time (usually in excess of 3 months)
•    Changes in student support (stipend and/or tuition)
•    Exceeds allowable limit threshold for re-budgeting
•    Changes to equipment
•    Changes to subcontracts

Prior approval matrix across multiple federal agencies: Budget Change Approval Matrix

For a copy of the form and submission of budget revisions requests, please contact your assigned grant accountant under Post-Award Management Team Contact List.

Note: If sponsor approval is required, the budget transfer will not be completed until NJIT receives official approval and authorization from the agency prior to the occurrence of the significant change.

Faculty members and certain instructional staff working on sponsored research projects during the summer months are eligible for summer salary.

Employees with a twelve month appointment, some instructional staff and part time employees are normally ineligible for summer research salary.

Faculty members and certain Instructional staff working on sponsored research projects during the summer months are eligible to earn up to 1/3rd of their academic year salary based on their nine month academic contract.

There may be some limitations on this based on additional requirements on the sponsor award and agency regulations.

The summer research period starts the day after the academic year-end graduation date. The total number of summer work hours can be no more than 420, consisting of 12 work weeks at 35 hours per week (70 hours or two weeks equals a pay period).

The senior vice provost for research will send out a summer salary memo in  April with details on the summer pay periods, deadlines for summer PAF submissions, and requirements.

No. Summer salary is earned and paid over the same period as the summer research is performed. Effort expended during the academic year does not qualify for summer salary.

Effort reporting is required in accordance with eCFR 200.430 Compensation-Personal Services.

•    The processes and system in place allow for reasonable approximations of the activity actually performed;
•    The system must recognize the principle of after-the fact confirmation or determination so that costs distributed represent actual costs.
•    Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities (for IHE, this is determined by the IHE's definition of IBS)
•    Salaries and wages of employees used in meeting cost sharing or matching requirements on Federal awards must be supported in the same manner as salaries and wages claimed for reimbursement from Federal awards.

Effort reports are distributed three times a year – once each semester – spring/summer/fall. The senior vice provost will send out notification when the effort reports are available for review and certification.

The anticipated Effort Report deadlines will be approximately:

Spring – Early July (Due to fiscal year end processes and recast deadlines)
Summer – September 24
Fall – March 31

Yes, the traveler’s approver, within his or her school, division, or department must authorize all official business travel.

Please see the finance website for more information on travel.

Travelers are expected to make their own travel arrangements by planning ahead, explore multiple transportation and lodging options, and complete their arrangements in the most cost effective manner as far in advance as possible. You can also use Anthony Travel.

Please see the finance website for more information on travel.

The university will reimburse coach class tickets aboard a regularly scheduled commercial carrier. Travelers must use a US Flag Carrier if paying on research funds. The university complies with the Fly America Act.

Please see Finance Website for more information on Travel.

The University will reimburse for rental car when there is a business justification or there is no other means of comparable transportation (e.g. taxis, limousines, etc.).

Please see Finance Website for more information on travel.

The university will reimburse travelers who use private automobiles on university business at the State’s mileage reimbursement rate in effect at the time of travel.

The University will reimburse travelers for meals in travel status under the following options:

This per diem must be prorated if any meals are provided at a conference, by the hotel or by any other source, or if a traveler begins or ends his/her travel after the start or prior to the end of the business day.

Please see the Finance Website for more information on travel.

University regulations apply to all grant or contract meal and food purchases unless there is a restriction or guidance from the sponsor.

Generally, meal and food purchases are not an allowable expense on grant funds. In those cases in which meal and/or food purchases are an integral part of the grant purpose, the need for such costs should be specifically identified in the proposal and explicitly provided for in the budget.

Entertainment expenses are not allowable on grant/contract funding.

Travelers must submit their Travel Expenses forms and all supporting documents within 45 days after their return to the university. Both the approver and the next higher-level approver must approve Travel Expenses Forms submitted beyond the 45-day time period.

Travel Expense Forms submitted beyond one year after the date(s) of travel will only be reimbursed with a vice president’s approval.

Please see the Finance Website for more information on travel.

The traveler’s supervisor, PI, index/fund responsible person or their designee who does not report to the traveler must approve the reimbursement. Any travel paid for by grant funds will also route to the appropriate grant accountant for review and approval.