May 10, 2010

Berkeley Establishes New Fund Advance Process

The Sponsored Projects Office has developed a new process of establishing a Fund Advance at Berkeley. Under a Fund Advance a pending project’s costs can be charged to a fund number that will become the permanent fund number for the project when the official award is received, and cost transfers will not be necessary.

Go to to access the form and directions. The new process (effective immediately) will allow Fund Advances for pending awards to go forward under any one of the following three conditions:
  • Type A. The request is for a 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 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 up to 90 calendar days.

  • Type B. The PI or Department/Unit is able to provide an unrestricted fund (i.e., 19900 or non-restricted gift fund) and appropriate chart string 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. Under this option, the pre-award period will be limited to up to 180 calendar days.

  • Type C. The Chair/Director/Dean of the PI’s Unit is willing to sign 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.” Under this option, the pre-award period will be limited to up to 180 calendar days.
PIs should note that a Fund Advance always poses some risk to the University. For this reason, Fund Advances will not be processed for pending awards in which:
  • 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 executed.

  • The University informed the sponsor at the time of proposal submission that the University reserves the right to negotiate the terms and conditions of any award that might result.

  • There is reason to believe that award terms and conditions will conflict with University policy and a protracted negotiation period is likely.

  • Research compliance issues related to human subjects, animal care and use, stem cells, and/or financial conflict of interest have not yet been approved/managed.

  • The award is for a UCOP-funded project.
If you have any questions about the new form or process please contact your SPO Research Analyst.