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The Office for Research & Sponsored Projects (ORSP) will assist Principal Investigators in reviewing the terms and conditions of an award before acceptance by the University. Once the award is approved, an account to manage the award will be set up by the Post Award Administration and Accounting (PAAA).

Award Set Up/Notice of Award

The first formal indication of a funded sponsored project award is the receipt of a Notice of Award (NOA) from the sponsoring agency. This notice is sent directly to the Office of Research and Sponsored Projects (ORSP) and the Principal Investigator (PI).
The NOA typically includes the following information:
• Budget or Project Period Dates: The duration of the authorized funding.
• Authorized Funding Amount: The amount of funds approved by the sponsor for the budget period.
• General and Special Terms and Conditions: Specific requirements and provisions related to the award.
• Reporting Schedule: Deadlines for submitting technical and financial reports.

Negotiation and Acceptance of Sponsored Agreements

ORSP and the PI share responsibility for reviewing all terms and conditions of an award before its acceptance by the University. ORSP ensures that the sponsor's requirements align with institutional policies, regulations, and the terms agreed upon during the pre-award stage. Additionally, ORSP facilitates the review and signature of award documents and/or contracts by the appropriate signing official.

Acceptance of sponsored project awards establishes binding financial and performance commitments between the sponsoring agency and LMU, as outlined in the approved and accepted final budget. Throughout the grant project, the PI is responsible for managing cost sharing, matching funds, and in-kind contributions, as specified in the funded proposal.

Award Terms and Conditions

Accepting an award from a sponsor entails the responsibility to comply with the award’s terms and conditions. These terms are either attached to the award document or accessible through the sponsor’s website or submission portal.

Key elements covered in terms and conditions include:

Prior approval requirements
Spending limitations
Invoicing frequency
Billing and reporting requirements
Budget and expenditures
Unallowable costs

Determining Applicable Terms and Conditions

If questions arise regarding which terms and conditions apply to an award, follow this hierarchy:

Award-Specific Terms and Conditions
Agency's Program-Specific Terms and Conditions
Agency's General Terms and Conditions

For Federal Awards:

Refer to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200 for federal awards and federal flow-through).
Updated Research Terms and Conditions from participating Federal agencies are coordinated and posted by the National Science Foundation (NSF).

Internal Notice of Award Sent

Using Cayuse SP, ORSP staff will upload all award documentation and note any special terms and conditions associated with the award. The PI will then review and certify the information in Cayuse SP.

Once certified, an electronic notification of the award will be sent through Cayuse SP to Post Award Administration and Accounting (PAAA). PAAA will:

Set up a grant account in Workday.
Provide assistance with financial management throughout the award period until its conclusion.

Modification to Awards (NCE, PI Transfer, and Budget Modifications)

If a Principal Investigator wishes to make changes that deviate from the proposed project scope or budget, a request for sponsor approval is required. The level of approval depends on the type of award and the sponsor’s specific policies regarding modifications. Common types of amendments include, but are not limited to:

Budget modifications
Changes in key personnel
PI transfers
No-cost extensions (NCEs)

The Office of Research and Sponsored Projects (ORSP) collaborates with the PI and the Post Award Administration and Accounting (PAAA), as needed, to facilitate the modification process, ensuring compliance with sponsor regulations and requirements. All modifications are documented in Cayuse SP for the project record and accessible to PI and PAAA.

A no-cost extension (NCE) allows the PI to request additional time—usually up to 12 months—beyond the project period to complete the project’s scope of work without additional funding. The NCE must be requested at least 90 days before the project’s end date and must meet the following conditions:
- The project period is nearing its end, AND
- There is a programmatic or project-related need to continue the research
- Sufficient funds remain to cover the extended effort
In some cases, sponsors may require a detailed budget, budget justification, and a timeline outlining how the remaining funds will be spent during the NCE period. The PI will work with PAAA and ORSP to gather the information required to process the NCE.
A budget modification is required when there are changes to the approved budget of a sponsored project that deviate from the originally proposed or awarded budget. Common reasons for budget modifications include shifts in project activities, unexpected changes in costs, or the reallocation of funds between budget categories.

Process for Requesting a Budget Modification:
1. Identify the Need for Modification
  - Determine the changes in project expenses that require reallocation or approval from the sponsor. This could involve moving funds between categories such as personnel costs, supplies, or equipment.
2. Consult with ORSP
  - Contact ORSP to discuss the proposed changes and ensure they comply with sponsor guidelines. ORSP will help determine whether the modification requires prior approval from the sponsor or if it can be done within the institution’s flexibility.
3. Prepare the Budget Justification
  - Prepare a detailed budget modification request, including a revised budget table that clearly shows the changes.
  - Provide a justification explaining why the modification is necessary, such as changes in scope, unforeseen costs, or reallocation of resources.
4. Submit for Sponsor Approval
  - If sponsor approval is required, submit the budget modification request to the sponsor. This may include updated budget forms or specific documentation as per sponsor requirements.
5. Review and Certification
  - Once the sponsor approves the modification, the updated budget and any required documentation should be reviewed and sent to PAAA and ORSP for record keeping.
Principal Investigator (PI) transfers, both incoming and outgoing. These processes may vary depending on the institution and sponsor policies.

PI Transfer- Incoming

When a PI is transferring into LMU with an existing award, the process involves the following steps:
1. Notification of Transfer: The PI notifies the sponsor and the current institution of their intent to transfer the award. ORSP works with the incoming PI to gather documentation.
2. Coordination with Sponsor: The sponsor must approve the transfer and may require specific documentation, such as:
- A letter from the outgoing institution relinquishing the award
- A revised budget, scope of work, and justification for transferring the award to your institution
1. Award Setup at LMU: ORSP reviews the award terms and conditions to ensure compliance. A new award or subaward agreement is prepared if required. The PI works with ORSP to finalize and submit any sponsor-required forms, such as a revised budget.
2. Internal Processes
- The award is documented in Cayuse SP and must be fully routed as a new proposal
- The PI is onboarded with institutional policies and systems for financial management and reporting
1. Transfer of Equipment and Data: Equipment purchased under the award may require transfer approval. The outgoing institution and the sponsor determine the ownership and transfer of assets. Any research data, intellectual property, or regulatory approvals (e.g., IRB/IACUC) must be transferred.
PI Transfer - Outgoing

When a PI is leaving LMU and wishes to transfer an award to another institution, the process includes:
1. Notification of Departure: The PI must notify ORSP, PAAA, department leadership, and the sponsor of their intent to transfer the award. ORSP reviews the award terms to confirm transfer eligibility.
2. Relinquishing the Award: LMU submits a Relinquishment Statement to the sponsor, indicating the remaining funds and confirming the award transfer. Financial reports are prepared to document expenditures and unexpended balances.
3. Coordination with the New Institution: The new institution collaborates with LMU to facilitate the transfer. The new institution submits a revised budget and scope of work to the sponsor and acceptance letter.
4. Closure at LMU: The award is closed out in internal systems. Any remaining subawards or subcontracts are terminated or reissued under the new institution.

Award Management

The Principal Investigator (PI) is responsible for the technical success of the project while ensuring compliance with financial and administrative regulations. Key responsibilities during the post-award phase include:

Executing the project as proposed, using effective management practices.
Managing finances as planned or making approved adjustments.
Reporting progress per award terms.
Maintaining accurate financial records.
Adhering to LMU and sponsor policies and regulations.

LMU has resources and trainings to assist PIs and ensure the successful implementation of their sponsored project:

Key Contacts for essential departments (pdf)
Sponsored Project Expenditure Guide (pdf)
Project Management Guide (pdf)

Award Kick-Off Orientations are held each semester to guide PIs through essential processes for managing their projects at LMU. The orientation covers systems like Workday, hiring personnel, hiring students, purchasing equipment, research compliance, and working with various departments to ensure PIs have a strong foundation to start.

ORSP’s Sponsored Project Manager supports and guides PIs in best practices for project management of awards:

Project Schedules and Timelines
Navigating LMU Systems (Workday)
Budget Management
Compliance
Project Monitoring
Reporting and Deliverables
Post Project Reviews

For more information regarding Award Management and Award Kick-off orientations, reach out to Kimberly Sanchez, Kimberly.Sanchez@lmu.edu

Subawards

A Subaward is issued from a sponsored project to a specific partner for the procurement of services or program-related tasks. The issuance of Subawards under a lead institution’s award must comply with sponsor regulations. All Subawards are subject to the terms and conditions of the larger sponsored project award, as well as LMU’s normal purchasing requirements.

When LMU is the Recipient of a Subaward

When LMU is part of a larger project and receives a Subaward, the agreement ties LMU to a broader proposal submitted by the lead institution or group of institutions. The prime award is issued to the lead institution (the fiscal agent), which then distributes a portion of the funds to LMU to complete specific tasks as part of the larger project.

For financial management purposes, LMU treats the Subaward as a standalone project. While the PI and PAAA may need to submit technical and financial reports to the lead institution, the project is managed internally as an award to LMU.

Key Requirements:

Subawards require formal documentation between LMU and the fiscal agent.
A subrecipient commitment form must be completed, including the scope of work, budget, and budget justification, and signed by both parties before submission.
Prior approval is required for financial submissions by the external fiscal agent.

When LMU is the Lead with Subawards

When LMU serves as the fiscal agent for a project, it may require a third-party entity or organization to complete specific tasks or a portion of the work. This typically occurs when LMU uses external expertise to complete certain aspects of the project.

Proposal Preparation:

ORSP facilitates the subrecipient commitment process, coordinating with the external party or institution for approval protocols.
The proposal must include a detailed scope of work, budget, and budget justification for the Subaward.

Subaward Agreement:

Once the proposal is awarded, ORSP prepares the Subaward agreement. This agreement outlines:

The specifics of the proposal (budget, justification, and work plan).
Sponsor terms and conditions.
LMU policies for invoicing.

The Subrecipient is responsible for managing the technical and administrative aspects of their portion of the award. For any modifications during the project period, they must contact LMU and the fiscal agent.

Questions and Support

All questions concerning Subawards should be directed to ORSP at orsp@lmu.edu. Adequate time should be allocated to facilitate the subrecipient commitment process to ensure compliance with both LMU and sponsor requirements.