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Anticipation funds should be requested when there is a delay in award execution, but a high degree of certainty that the project will be funded. The unit may begin spending when all regulatory and compliance requirements have been met. Using anticipation funds is a best practice to minimize the number of cost transfers onto an award. The academic unit that owns the anticipation fund is responsible for covering the costs if the anticipated grant or contract is not awarded.

Requesting an Anticipation fund

In order to request an anticipation fund, use the online Anticipation Request (GC70) form.

First time users

When you attempt to log into the system, you will be prompted to fill out a request for access. Once this request has been approved and processed, you will be able to use the same link to log in and begin working on the request.

Start Date

The start date on the anticipation fund request should be the expected project start date of the pending award. The end date should be 90 days after the expected start date. The anticipation fund will expire after 90 days; if the award hasn’t been fully executed at that point, you will need to request an extension from the assigned grant specialist. Please keep in mind that if the proposal is not funded or the award has a conflicting effective date, all unallowable charges must be promptly transferred to an unrestricted departmental fund.

Transition from Anticipation into Awarded fund

The anticipation fund will become the “permanent” fund when the award is fully executed by the Office of Sponsored Programs (OSP). Once the award budget is entered in Banner, the grant specialist will send a Notice of Banner Codes Assignment to the business manager.

 

preAward

Most federal agencies allow pre-award costs up to 90 days prior to the formal starting date of a grant, provided that incurring these costs is necessary to conduct the project. Some agencies do not allow costs to be incurred before the project start date regardless of when the formal notification of award is received. Before requesting an anticipation fund, units are responsible for knowing whether pre-award costs are permitted by the sponsoring agency, or if prior approval is needed.

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Sponsored Programs is responsible for processing subaward agreements and amendments that are issued by the university to collaborating entities (subrecipients). These subrecipients will perform a portion of the research required under a prime award to the university.

Procedure

Ensure the agreement should truly have the subrecipient designation. Use the Subrecipient/Subcontractor vs Vendor/Consultant guide to assist with determining the proper designation.

For a new subaward, determine the original funding source and use one of the following templates:

For subaward amendments use the amendment template that corresponds to the original agreement type (e.g. federally funded subject to UG, federally funded subject to FAR, or non-federal).

Once processed, the document(s) will be assigned to a subaward specialist for review before sending to the subrecipient and routing for execution.

Tips

  • To save time in the subaward issuance process, begin gathering as much information as early as possible.
  • Do NOT send the agreements or amendments to the subrecipient for signature prior to submitting to Sponsored Programs. They need to be reviewed by Sponsored Programs prior to execution by either party.
  • Accuracy is vitally important to these legally binding agreements. Any errors in the information provided, especially in the financial sections, will severely delay the processing and execution of the subaward.
  • Prior to submitting a new subaward request to Sponsored Programs, confirm that the subrecipient was included in the original submission to the sponsor. If not, work with the prime sponsor and Sponsored Programs to get the approval before requesting subaward issuance.
  • When submitting a new subaward request to Sponsored Programs, ensure that the SOW, budget, and budget justification are included.
  • Setting up a timeline for subaward management can help prevent time crises in subaward issuance and potential stoppages in project workflow.
  • If a subrecipient is not performing work as expected, inform Sponsored Programs as soon as possible.
  • For Public Health Services and Non-PHS Organizations using PHS requirements, a subrecipient FCOI certification form will need to be completed and submitted to the Office of Conflict of Interest before work can begin on your subaward.
  • Please submit editable forms via OSPWeb whenever possible.
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Anticipation Funds

Subrecipients

The University of Illinois System may issue a subaward to a subrecipient for the purpose of performing a portion of the scope of work under an award for a sponsored project. In issuing a subaward, the system assumes responsibility for the oversight of programmatic and financial activities of the subrecipient throughout the life of the subaward, including but not limited to the determination of subrecipient versus contractor, assessing subrecipient’s capacity to perform, and subrecipient’s compliance with award terms. The Principal Investigator shall be responsible for confirming the subrecipient performs the awarded scope of work and all costs are reasonable and in accordance with the terms of the award.

As a recipient of an award, the system must comply with the requirements outlined in 2 CFR § 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards that require the system  to manage and monitor each subaward to reasonably ensure that costs are allowable, awards are used for authorized purposes, and performance goals are achieved. Subawards must also be administered in compliance with applicable laws, regulations, and the provisions of the grant or contract agreement.

Subrecipient/Subcontractor vs Vendor/Consultant