The Award Process

So, you've submitted a proposal - What happens next? When the sponsor has reached a decision, Duke will be informed through either a notice of award letter or a regret letter. If the proposal is to be funded, then the sponsor sends notice to Duke that contains the terms and conditions that Duke must accept to receive the funding.
The ORS staff are responsible for negotiating the terms and conditions of awards, contracts and cooperative agreements which define the relationship between the University and the sponsor and clarify each party's obligations. This is done in consultation with the PI so that he or she understands the issues involved with a contract and can assist by providing background information pertinent to the research being contemplated.
To help make the relationship with the sponsor a success, use the ORS website for information on everything from pre-award spending, to award changes, to award closeout. Remember, careful planning and a good understanding of your sponsor's requirements will help you manage your project smoothly and keep the time required for administrative work at a minimum. A few resources in particular can help you with your planning and management: the ORS New Award Notice Memo [1], the Award Management Checklist [2], the OP2 Manual [3] and the Post Award Administration Manual [4] found on the OSP website.
When a notice of award arrives in ORS kicking off the Award Process, several things must happen simultaneously. The process involves several offices at Duke including ORS, OSP and the owning department.
Establishing the WBS Element
In order to spend funds when an award arrives, a separate, or restricted, award account must be set up so that the university can report back to the sponsor on how the funds were used. That account is called a WBS element or, in the old terminology, a fund code.
Upon receipt of an award notification, ORS requests a WBS element from OSP. (If a PI receives the original copy of an award it should be forwarded to ORS immediately so that this process can be started and the project can be underway as quickly as possible.) This request may take two forms.

1. WBS Element Request Pending Award Acceptance: In order to reduce the amount of time it takes to request and receive a WBSE, ORS will request the new code prior to the acceptance of the award. For instance, ORS might receive a grant with a complex set of terms and conditions. ORS will request the code and then review and negotiate the T&Cs if needed. Subcontracts from other Universities might fall under this procedures but most cooperative agreements and contracts would not.
2. WBS Element Request with Accepted Award: Many of our sponsors issue a consistent set of terms and conditions with each grant Duke receives so they are acceptable with minimal review. Standard grant T&Cs from NSF and NIH require very little review and little to no negotiation. In these cases, the goal of ORS is to have the award documentation accompany the WBSE request to OSP within 48 hours of receipt of the award notice.

It should be noted that there are three instances when ORS will wait to request the WBSE from OSP.

1. When the PI has not completed RCC training,
2. When the PI or any co-PIs do not have up-to-date COI disclosures on file, and
3. When the award is a contract that will require significant negotiation.

30X - 38X WBS Elements
WBS elements are 7-digit numbers. A sponsored project WBS element is identified by the first three digits of the 7-digit number. It will always begin with a three - meaning restricted - and thus is referred to as a 3XX account. The second digit identifies the sponsor, and the third identifies the type of activity funded, e.g. research, fellowship, conference. The last four digits comprise a unique identifier for the account. It will look something like this: 3339999 and translates to 3 for restricted fund, 3 for National Science Foundation, 3 for research.

• Parents and Children: If it is necessary to account separately for different components of a single project, parent and children WBS elements may be established as needed. For example, if subawards are included in a project, ORS will request a different WBS element for each of the subrecipients so that the PI and department grant manager can more easily track expenditures.

For a detailed explanation of Cost Objects, and 3XX WBS elements in particular, see the Financial Services Chart of Accounts [5].
39X WBS Elements
Miscellaneous 39X accounts are established for external funds received through mechanisms other than the standard proposal and award process. Examples include all gifts, conference and symposium fees for events sponsored by Duke, editorships, class gifts, executive education programs, and corporate scholarship programs. The primary difference between fund codes in the 30X - 38X series and the 39X series is that there is no requirement for financial reporting back to a sponsor on a 39X code.
If funds are received outside the normal proposal and award process, the department or school should request that a miscellaneous 39X fund code be created for the funds. The WBS Element Request for a Miscellaneous Code [6] form has been designed for submitting the request.
Signing the Award
If the award requires a signature of acceptance, ORS will sign on behalf of Duke or, if needed, secure the President's or the Vice Provost for Research's signature. Some sponsors, particularly small foundations, send letters of agreement to PIs requesting that they sign and return the documents. PIs may sign the documents if they wish, but as they are not authorized to enter the University into any agreements, the award documents must also be approved and signed by ORS. ORS will then return the fully executed documents to the sponsor or, if necessary, ORS will return the document for sponsor signature and await the fully executed copy.

Revised Budgets
If the sponsor issues an award for an amount that does not match the proposed budget, ORS may ask the department to submit a revised budget for the awarded amount.
If the award amount differs less than 5% from the original proposed amount, ORS will make the revisions and process the award. If the award amount differs greater than 5% from the original proposed amount, then ORS will request a revised budget from the department. Depending on the complexity of the budget, ORS will give the department either 10 or 60 days. If the department fails to respond within the specified time frame, then ORS will complete the budget revisions and process the award. ORS will assume that effort remains the same as proposed and the department will need to fill out a Request for Rebdugeting of Funds form to make any further changes.
Further Documentation
In order to process the award appropriately, ORS may need to coordinate with the department to get copies of certain documents. If ORS does not have copies of the complete proposal on file, then ORS will request them from the department. The sponsor may also have additional compliance requirements, such as an approved IRB or IACUC protocol, or IRB training in which case ORS will request copies of the relevant documents from the PI and co-PIs.
Once all requirements are met and a fully executed document is ready, ORS will distribute the sponsor's award notice, the ORS New Award Notice [1], and any attachments to the PI, co-PIs, the administrative unit, and OSP. OSP will enter the revised budget "plan" into SAP R/3.

Department Pre-Award Spending
Situations may arise, where the PI needs to begin spending the funds prior to the start date of the award. On many federal grants, Duke has the authority to approve pre-award spending up to 90 days prior to the start date. However, this is not always the case.
To request approval for pre-award spending, fill out the WBS Element Request for Pre-award Spending [7] and submit it to ORS. Depending on the sponsor's policy, the request may be approved by ORS or may need the sponsor's approval (see further explanation below).
The purpose of pre-award spending is not simply to start a project early, but rather to make expenditures which would facilitate beginning the project on the specified start date.

For example:

• Purchasing supplies and equipping a lab
• Purchasing equipment when a sale price is only available before the start date
• Making employment offers for project staff

Please keep in mind that all costs incurred must be allowable under the potential award and all pre-award costs are incurred at the recipient's risk. A sponsor is under no obligation to reimburse such costs if for any reason the recipient does not receive the award, or if the award is less than anticipated and inadequate to cover costs. The PI's department will have to absorb any costs which are disallowed or not covered by an award.

Pre-award Spending with Federal Funds
Uniform, government-wide regulations govern pre-award spending on federal grants. If a project has been recommended for funding, federal agencies have several options. They may:

• prohibit pre-award spending
• require written agency approval
• allow universities to incur pre-award costs 90 days prior to an award without prior written agency approval
• exercise the default position provided in the regulations, as follows: If a federal agency does not explicitly address pre-award spending in its regulations or in the terms and conditions of an award, and if the award supports research, the requirement for prior written agency approval is automatically waived. The authority to approve requests for pre-award spending is transferred to the University.
• Pre-award spending more than 90 days prior to the start date of an award must always be approved by the agency.

Pre-award Spending with Non-federal Sponsors
ORS will contact non-federal sponsors on behalf of PIs who wish to initiate pre-award spending to determine if it is permissible, and if so, what procedures should be used.

If sponsor approval is required:

1. A letter describing the need to incur expenses before the proposed start date of the award should be addressed to the sponsor. The letter should be addressed to whomever told the PI that the project was recommended for funding. This will usually be a program officer.
2. The request must be sent to ORS for countersignature along with the WBS Element Request form.
3. When approval is received, ORS will authorize OSP to establish an account for the project

If Duke can internally approve pre-award spending:

1. A WBS Element Request for Pre-award Spending form [7] should be filled out and sent to ORS. The form must be signed by the department chair, or if the PI is in a professional school, the dean.
2. Given that ORS has already established with the sponsor that pre-award spending is allowable, ORS will pass along that authorization to OSP to allow early spending.