Fund Advance Conditions

Fund Advances may be recommended by SPO under any one of the following three conditions:

A. The request is for a new federal award in which 90 calendar day pre-award costs are allowable. The PI must provide SPO with documentation (from an appropriate sponsor representative) of (a) the sponsor’s intent is to fund the project, (b) the project start date, and (c) the anticipated funding level. Under this option the pre-award period is limited to 90 calendar days.

OR

B. An unrestricted fund (i.e., 19900 or non-restricted gift fund) and appropriate chart string is provided to clear any deficit that might result if the award is not issued at the end of the Fund Advance period. The PI and the authorized financial administrator of the fund/chart string must sign the Fund Advance form certifying this commitment. Note: It is the responsibility of the PI and the authorized financial administrator to ensure that the backup fund listed is truly unrestricted. Please contact Extramural Funds Accounting (EFA) for guidance if you are unsure about the status of any particular fund.

OR

C. The Chair/Director/or Dean of the PI’s Unit signs the form certifying that if the award is not issued by the end of the Fund Advance period the deficit will be cleared in accordance with the procedures specified in the Campus Policy on Deficit Resolution under “Consequences of Not Resolving the Deficit.”

• The effective start date of the project is tied to the date of final signature on the award agreement. In such cases spending cannot begin until the award or contract is fully signed.
• The University informed the sponsor at the time of proposal submission that the University reserved the right to negotiate the terms and conditions of any award that might result.
• There is indication (based on prior experience with the funding agency or information contained in the proposal guidelines) that actual award terms and conditions will conflict with University policy and a protracted negotiation period is likely.
• The award is a UCOP-funded project.

Specific Requirements

1. The initial Fund Advance period is limited to 90 calendar days. The PI may request two extensions of 45 calendar days each for a total of 180 calendar days. (Type A requests are limited to a maximum of 90 calendar days.)
2. The amount of the Fund Advance requested should be pro-rated in relationship to the funds awarded. (For example, 90 calendar days of funding should roughly equal 25% of the funds awarded over a 12 month project period.) The PI should attach a written justification for funding in excess of this prorated amount based on the scope of work.
3. Funds expended under the Fund Advance period may not be used to establish or support subawards or subcontracts.
4. The PI also may request supplementary funds when requesting a time extension or as a standalone request if more funds are needed during an active Fund Advance period. Requests for additional funding should be prorated in relationship to the funds awarded. The PI should attach a written justification for funding in excess of this prorated amount based on the scope of work.
5. Project activities during the Fund Advance period either should not involve the use of human subjects, vertebrate animals, and/or human stem cells, or the PI should attach documentation to SPO that all required regulatory/compliance issues related to the project have been satisfied/approved.
6. No financial conflicts of interest should exist for the PI (if under State law) or any other investigator (if under federal regulation), or such conflicts should have been approved by the campus Conflict of Interest Committee.

Instructions: Requesting a Fund Advance

The process for requesting a Fund Advance is as follows:

• Obtain the UCB Fund Advance Request Form from the SPO web site
• Determine which condition applies to the Fund Advance request (Type A, B, or C)
• Complete the form and obtain the signatures required. (Per signatures or electronic signature blocks are not acceptable.)
• Submit the form with all signatures and attachments as scanned PDF documents to SPO via the SPO Drop Box: spoawards@berkeley.edu.

Please Note: If project activities during the Fund Advance period involve research with human subjects, vertebrate animals, and/or human stem cells, the PI must provide documentation that they have complied with all necessary institutional or Federal requirements and obtained the following review/approvals:

• Human Subjects: Provide a copy of the CPHS approval letter indicating the approved Protocol Number and Approval Date. (When the award arrives, the protocol will need to be amended to add the funding source. CPHS then will issue an amended approval letter.)

• Vertebrate Animal Use: Attach a letter from the Animal Care and Use Committee (ACUC), stating that the specific proposal has been reviewed and approved by the ACUC. The letter must include the exact title of the project and the approval date.

• Human Stem Cells: Attach a letter from the SCRO, stating the PI’s protocol number as well as which procedures and cell lines are approved. For CIRM funding attach a SCRO confirmation letter specific to the project.

• Conflict of Interest: Provide a copy of the COI Committee approval letter for this project.

Frequently Asked Questions

What is a Fund Advance?
Why should I request a Fund Advance?
When is a Fund Advance inappropriate/unnecessary?
How will I know if the Fund Advance Request has been recommended?
What happens if the sponsor has not issued the award by the end of the Fund Advance period and more time and/or more funds are needed?
What happens if the award is never received, or less funding is received than expected?
Who do I contact if I have questions about filling out the UCB Fund Advance Request Form?

What is a Fund Advance?

When a new award is imminent or a competitive phase of an existing award is pending it is sometimes necessary to start work on the project before the sponsor issues an agreement. In such cases the appropriate solution is to request a Fund Advance from Berkeley’s Sponsored Projects Office (SPO).

Why should I request a Fund Advance?

It is never appropriate to charge a pending project’s costs to another sponsored project and to transfer these costs after the pending project’s fund has been established. Such a cost transfer can result in penalties and other sanctions applied to the University that could affect Berkeley’s research enterprise. OMB Circular A-21, Section (C) (4) (b), states:
“Any costs allocable to a particular sponsored agreement under the standards provided in this Circular may not be shifted to other sponsored agreements in order to meet deficiencies caused by overruns or other fund considerations, to avoid restrictions imposed by law or by terms of the sponsored agreement, or for other reasons of convenience.”
A Fund Advance is always preferable to a cost transfer because the Fund Advance can be charged for any necessary project costs until the official award is received and processed. The fund number for the Fund Advance then becomes the permanent fund number for the project, and a cost transfer is not necessary.

When is a Fund Advance inappropriate/unnecessary?

A Fund Advance is not appropriate when:

• The effective start date of the project is tied to the date of final signature on the award agreement. In such cases spending cannot begin until the award or contract is fully signed.
• The University informed the sponsor at the time of proposal submission that the University reserved the right to negotiate the terms and conditions of any award that might result.
• There is indication (based on prior experience with the funding agency or information contained in the proposal guidelines) that award terms and conditions will conflict with University policy and a protracted negotiation period is likely.
• The award is a UCOP-funded project.

Also, a Fund Advance is not necessary in between project periods when the terms of the original award commit the sponsor to future years of support for specific funding amounts without the need for additional agency approval.

How will I know if the Fund Advance Request has been recommended?

After SPO issues a Notice of Award, EFA will confirm that the budget for the Fund Advance has been established via email to the PI/Department/ORU.

What happens if the sponsor has not issued the award by the end of the Fund Advance period and more time and/or more funds are needed?

If the sponsor has not issued the award by the end of the initial Fund Advance period (maximum 90 calendar days) or additional funds are needed beyond the amount already requested, a Fund Advance request should be submitted to SPO requesting more time and/or funds. Please note: As with the initial request, if project activities involving human subjects, vertebrate animals, or human stem cells will occur during the proposed extension period, the PI must provide documentation of institutional approval for these activities before an extension of the Fund Advance will be granted. Type A Fund Advances are limited to 90 calendar days.

What happens if the award is never received, or less funding is received than expected?

If an award is not received, the Department/ORU should transfer the expenses incurred during the Fund Advance period to the back-up fund (if provided when the Fund Advance was established) or to another appropriate fund source. If the fund is not cleared by the Department/ORU in this manner the deficit will be resolved according to the Campus Policy on Deficit Resolution under “Consequences of Not Resolving the Deficit”: http://campuspol.chance.berkeley.edu/policies/deficitresolution.pdf

Who do I contact if I have questions about filling out the UCB Fund Advance Request Form?

If you have any additional questions regarding how to fill out the UCB Fund Advance Request Form please, please contact your SPO Research Analyst.