Underwrites

What: An underwrite (or advance account) is an account that is set up at the department’s request in advance of receiving a fully signed award document. The department is required to provide a departmental account that will guarantee all expenses in case the award is not received at Indiana University. Underwrite requests are initiated by the school or unit in the final stages of the proposal process, during the final award negotiations, or before the arrival of the next project period of funding in a multi-year project. The typical underwrite period is 3 months, but may be extended by the underwriting school or unit. Unless there is an issue with research risks, C&G will respond to your underwrite request and provide an account number within 24 hours.

Why: An underwrite is used when an award is delayed and the department wants to charge expenses to the proper account up front instead of using a department account and then transferring charges when the award is received. Auditors continue to give cost transfers close scrutiny. By setting up an underwritten account the department and the Office of Grants Administration can ensure the proper fiscal management of the expenditures.

How: Authorization by the account fiscal officer (or delegate) of the underwriting account is required. Each school or unit sets the routing and approval requirements for its underwriting process.

There are several ways to request an underwritten account number:

Submit from the underwrite link on the Grants Administration webpage at http://www.ovpra.indiana.edu/cg/home.asp

Fax a request to Grants Administration at (812) 855-7494

Send the request by campus mail to Grants Administration, Poplars Room 434

The following information should be contained in your request:

IU proposal number

project director name

requestor's name

requestor's phone number

underwriting account number (must be an unrestricted, non-C&G account)

F&A Rate if known

underwrite Effective Date

study number(s) if research risks are involved

school or unit approval (if required)

departmental contact (name and phone number) to call when the underwritten account number has been established (optional)

NOTE: After the proposal is awarded, all expenditures during the underwrite period must comply with the award conditions, the award budget, and the agency restrictions. Expenditures must occur within the award project period (or pre-award expenditure period granted by the agency) in order to remain on the account. Disallowed charges will be the responsibility of the department.

Agency Specific:

NIH: Auto underwrites are initiated by Grants Administration for non-competing NIH accounts with future funding that have a proposal on file for the next budget period.

References:

Important Notice 95-8
http://www.ovpra.indiana.edu/cg/imp_notice/95-8.asp

C&G e-mail underwrite form
http://www.ovpra.indiana.edu/cg/Underwrite request form outlook.msg

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509 E. 3rd Street
Bloomington, IN 47401
Phone: (812) 855-0516

Last updated: February 3, 2009
Copyright 2006, The Trustees of Indiana University