Underwrites The Risks and Benefits TRAIN ® T HE R ESEARCH A DMINISTRATION I MPROVEMENT N ETWORK

Objectives Upon completion of this class, participants will have gained an understanding of the following topics: 1.Definitions and Types 2.Risks and Benefits 3.Accounting and Management 4.Responsibilities –PI & Department Responsibilities –Central Administration Responsibilities 5.Special Considerations 6.Who to Contact/Where to Go

What is an underwrite? Underwrites are loans made in advance of an anticipated research award. Underwrites can be requested when there is reasonable certainty that extramural funds are forthcoming. If you came from another research university, this may have been called something different (e.g. Hardship Authorization at the University of Michigan, or an (OGC-005) Authorization for Expenditures/ Commitments in Excess of Funds Available at The Ohio State University)

Definitions and Types of Underwrites New Underwrite A temporary account established contingent upon the following variables: College/Unit approval −Typically in three-month intervals. −≤ 25% of the award budget. Sponsor intent to fund the project. Principal Investigator (PI) needs to expedite project start (e.g. to hire personnel). −Pending IRB or IACUC approval (requires written PI statement that no human subjects or animal research will be conducted prior to approval*). −FCOI for all applicable investigators (see USF System Policy 0-309).USF System Policy Bridge Underwrite Interim extensions of on-going/multi-year projects after verification of sponsor intent to continue funding. *Refer to the TRAIN ® Depot Underwrite Process page for USF business process steps.Underwrite Process

Before requesting an Underwrite - consult with your SRA Risks Funding may fall through – Department/Chair/Dean financially responsible. Potential pitfalls: −Dates may change. −Some sponsors do not allow pre-award spending. −Mitigated by pre-award cost approval. −Source of funding (Federal, Federal flow-through, state, private, etc.). Budget may differ – requires adjusted scope/spending. Benefits Allows for immediate direct charging −Enables project initiation (e.g. hiring, purchasing) −Reduces cost transfers Risks and Benefits

Accounting and Management What do I need for an Underwrite to be established? Sponsor intent to fund project with pre-award spending approval. Dean/department agreement on financial responsibility. Estimated award start date. Approved project terms and conditions (preferred). CAS form, if applicable. Sponsored Research (SR) approval. How are Underwrites accounted for at USF? Project ID is assigned. Temporary budget is established. Expenses are charged to appropriate chartfields. Upon official award notice, actual award budget is established. Temporary budget is removed. How do I request an Underwrite? Underwrite Form (No Cost Share) Underwrite Form (for use with Cost Share) Refer to the TRAIN ® Depot Underwrite Process page for USF business process steps.Underwrite Process

Upon pending award notification, perform underwrite risk/benefit analysis. Complete Underwrite Form (no cost share) or Underwrite Form (for use with cost share) and obtain necessary signatures.Underwrite Form (no cost share)Underwrite Form (for use with cost share) Upon RFM notification of Underwrite setup, review project budget via the Finance Mart for accuracy. Upon Sponsored Research notification of actual award receipt, prepare and submit the Grant Budget Release.Grant Budget Release Upon RFM notification of actual award setup, review project budget via the Finance Mart for accuracy. −Award budget added. −Underwrite budget removed. Department Responsibilities – PI & Department Research Administrator (DRA) Refer to the TRAIN ® Depot Underwrite Process and Award Setup pages for USF business process steps. To learn more about reviewing budget setups via the Finance Mart, refer to : Underwrite ProcessAward Setup

Central Administration Responsibilities Sponsored Research Review and approve underwrite contingent upon pending award/contract. Follow up with sponsor regarding notice of award. Research Financial Management Upon receipt of approved underwrite form, complete setup in FAST. Upon receipt of the Grant Budget Release, post award budget and remove underwrite budget.Grant Budget Release

Special Considerations Pre-award expense authorization Awards are either Contracts or Grants. −Contracts require explicit authorization by the funding sponsor’s Contracting Officer for pre-award spending. −Some federally funded grants include pre- award expense authorization up to 90 days prior to the official start date. −For Federal sponsors, check if participates Fed Demo Federal sponsors, check if participates Fed Demo

Where to Go/Who to Contact Research Financial Management (RFM) − Sponsored Research (SR) − research.asphttp:// research.asp TRAIN ® HelpOne: ,

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Trivia Question How many hours is the TCRA?