Advance Accounts and At-Risk Extensions
General Guidance
Northwestern Sponsored Research (SR) approves and establishes Advance Accounts (previously known as “prespend” accounts) to allow faculty to incur expenditures for necessary project activities prior to receipt of an award.
SR also approves At-Risk Extensions in response to formal requests submitted by faculty and research staff to enable faculty to continue work on an existing award while they await formal authorization of the next period by the sponsor or pass-through entity.
Advance Accounts
- Established prior to the receipt or issuance of a new sponsored award (pre-award).
- Established with the understanding that risk is borne by the department in the event (1) the award is not received or (2) the sponsor disallows all or a percentage of costs incurred during the pre-award period.
- Require provision of a non-sponsored departmental account as guarantor.
Advance Accounts may be approved when:
A new award is expected with reasonable assurance, as evidenced by:
- Receipt of a notification of intent to fund from the sponsor (this may include an e-mail from the originating sponsor or Pass Through Entity).
- Submission of a proposal to transfer an incoming award from another institution or organization.
Advance Accounts may NOT be approved when:
- The anticipated award terms include indications of activities in which Northwestern does not or cannot engage: non-fundamental research, including classified or controlled activities; personnel restrictions; or technological capabilities beyond university capacity or readiness.
- The award is from a sponsor that does not allow pre-award spending.
- An award has been received by SR and the Sponsored Research Officer (SRO) anticipates that review or negotiation/execution will not be unreasonably delayed. That is, the SRO expects that an active award account can be established within 30 days.
Advance Account Requests must be submitted through CERES and comply with all departmental policies and procedures.
At-Risk Extensions
- Established prior to the receipt or issuance of an award update (amendment or modification) to approve a future budget period.
- Established with the understanding that risk is borne by the department if the next period is not authorized.
- Require provision of a non-sponsored departmental account as guarantor.
At-Risk Extensions may be approved when:
The next period is expected with reasonable assurance, as evidenced by:
- Submission of required reporting or technical deliverable(s) for continuation funding.
- Receipt of notification of intent for continued funding from the sponsor (may include an e-mail from the originating sponsor or Pass Through Entity).
At Risk Extensions may NOT be approved when:
- Required reports are overdue.
- Sponsor has requested additional clarification on current unexpended balances.
Duration of Advance Accounts or At-Risk Extensions
- Advance Accounts for new awards are established for a period not to exceed 12 months or the sponsor’s limit, whichever is shorter. Advance Accounts are not to exceed the end of the first anticipated budget period.
- At-Risk end date extensions for continuation awards are established for a period not to exceed 12 months or the end of the anticipated budget period, whichever is shorter.
- Departments may request shorter duration for either type of request per their own established policies.
Approval of Advance Accounts or At-Risk Extensions
- Follow any local unit-defined business processes regarding additional approvals that should be collected prior to submitting the request for SR review. When needed, those approvals must be documented and attached to the request prior to submitting for SR review.
- After SR approval and processing, the Project Account Summary will be issued in CERES with the chartstring.
Financial Considerations for Advance Accounts or At-Risk Extensions
- A departmental guarantee account is required to support: 1) disallowed expenditures and 2) any and all costs incurred in the event the award is not received.
- Expenses incurred during the Advance/At-Risk period should be continually assessed for necessity to minimize the financial impact on school or departmental budgets in the event the expected award is not received.
- Northwestern cannot guarantee acceptance of a sponsor’s terms and conditions; an award may be declined should negotiations be unsuccessful.