Advance/Late Spending
Pre-award costs are expenses you spend before the official start date of a grant, to begin the project on time. These costs are only allowed if they would have been allowed after the award begins and if the sponsor gives written approval.
If the full award does not come through, or if the sponsor refuses to pay for any pre-award spending, then the PI’s department or school must cover those costs.
Federal rules (Uniform Guidance §200.308(d)(1)) allow institutions to approve expenses up to 90 days before the award start date, or earlier with federal approval. However, any pre-award spending is done at the institution’s own risk. The sponsor does not have to reimburse these costs if:
- the award is not issued,
- the award ends early, or
- the award amount is lower than expected.
NIH states clearly that spending money before the award is made does not obligate NIH to fund the project or increase the budget if the award comes in lower than anticipated.