| Subject: | Underwrite Update | No. 95-8 |
| Date: June 9, 1995 |
(Note: This Important Notice is being sent to Account Managers, Chairpersons, Deans and Chancellors. Please forward to others who have a need to know.)
What: An underwrite is a Contract and Grant account that is temporarily backed by a department commitment to cover expenses until the award is received from the funding agency.
Why: Often a proposal for funding is approved and a project period begins before the official award document is received. In order to begin work, appoint personnel and order equipment, the project director may request that a school or unit underwrite the proposal by underwriting a C&G account. The typical underwrite period is 3 to 6 months and may be extended by the underwriting school or unit. Expenses are charged to the C&G account and are transferred to the underwriting account only if the proposal is not awarded.
When: Underwrite requests are initiated by a 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 funding in a multi-year project.
Who: Authorization by the account manager (or delegate) of the underwriting account is required. Each school or unit sets the routing and approval requirements for its underwriting process.
Where: There are several ways to communicate underwrite requests. E-mail underwrite requests to cgadmin@indiana.edu. This department e-mail account is monitored throughout the business day. Fax requests to 812-855-7494 or mail them to C&G, Poplars 430, Bloomington.
How: Send the following information to C&G
Please refer to the Underwrite Request on the next page as a guide.
Restriction: After the proposal is awarded, all expenditures in the underwrite period must comply with the award conditions and budget, agency guidelines and regulations. Expenditures must occur within the award project period (or pre-award expenditure period granted by the agency) in order to be charged to the project. Any disallowed charges are the responsibility of the department.
NIH Underwrites
In support of continuing NIH projects, Research and the University Graduate School (RUGS) has agreed to automatically underwrite all NIH non-competing renewals delayed in the federal award process. At mid-month C&G will identify and underwrite all non-competing NIH accounts with future funding and a proposal on file for the next budget period. Underwritten accounts for qualifying NIH projects will be valid up to $30,000.00 and expire after two months. RUGS will monitor the underwritten accounts and reevaluate the underwrite when it expires after the two month period.
To: Contract & Grant Administration, 430 Poplars, Bloomington cgadmin@indiana.edu or Fax 812-855-7494 From: ________________________________ Name, Title, Department Subj.: Underwrite for Contract and Grant Account Date: Underwrite Information I.U. Proposal # ____________ Underwriting Account # ___________ (General Fund Account) Underwrite Budget: Budget as submitted to Agency: Yes _____ No ______ If yes, attach copy of budget. If no, complete the budget below. Add/delete categories as needed. Academic Salaries __________ Professional Salaries __________ Clerical/Technical Staff Salaries __________ Hourly Salaries __________ Benefits __________ Supplies and Expenses __________ Travel __________ Equipment __________ Other ______________ __________ ______________ __________ TOTAL __________ Underwrite period: Underwrite Effective Date __________ Underwrite Expiration Date __________ Underwrite Authorization Account Manager of underwriting account _____________________ Date _____________ Suggested Approval Hierarchy (Established by each organization) Department Approval _____________________ Organization Approval ____________________ Call ___________________ at ____________ as soon as account is active. (Department Contact Person or Account Manager)
cc: Sponsored Research Services in Bloomington or Research and Sponsored Programs in Indianapolis