Period of Performance
The following guideline outlines the period of performance of costs for grants, contracts, and subawards at the University of Texas at Dallas (UTD). The guideline assures compliance with The Office of Management and Budget Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) – 2 CFR 200 – 200.77
The Cost Accounting Standards (CAS) and OMB Uniform Guidance provide the basic criteria to determine direct costs and period of performance on federally sponsored projects.
Where a funding period is specified, a grantee may charge to the award only costs resulting from obligations of the funding/budget period, unless carryover of unobligated balances are permitted, in which case the carryover balances may be charged for costs resulting from obligations of the subsequent funding period.
Budget Period – The budget period is a specific interval of time for which sponsoring agency funds are being provided from a particular fiscal year to fund a recipient’s approved activities.
Performance Period– The performance period is the complete length of time the recipient is proposed to be funded to complete approved activities.
Obligations - refers to the amounts of orders placed, contracts and subgrants awarded, goods and services received, and similar transactions during a given period that will require payment during the same or a future period
Guidelines for Period of Performance
The period of performance is documented in the grant agreement and are available to the principal investigator (PI), as well as all staff involved with the grant program. The grant agreement will provide the following information in regards to period of performance:
- Grant begin/end dates
- Pre-award costs authorized by the federal agency, if any
- For multi-year programs, it will state if any unobligated balances be carried over and charged for obligations of the subsequent funding period
The grantees are responsible for ensuring all approved activities are completed by the end of the grant.
Under limited circumstances, PIs may request authorization after receiving a notice of award, but before the university receives the funds. The PI must be able to prove the costs:
- are necessary to conduct the project, and
- would be allowable under the grant, if awarded, without prior approval
PIs with pre-awrad costs should:
- contact the Office of Sponsored Projects to discuss, after the award information is verified (by a representative of the sponsoring agency with the authority to commit funds), overdraft approval may be given. Credit will be limited to emergency expenses. Many federal agencies allow pre-award costs up to 90 days prior to the start date of a grant.
The risks, liabilities, and limitations associated with pre-award spending must be carefully considered prior to requesting.
Closeout of grant
Valid expenses have 45 days to hit the grant after its end date and be billed to the sponsor. When all invoices have been paid and all necessary final financial reports are filed with the sponsor by the Office of Finance, the award will be considered closed.
- Liquidation of obligations. A grantee must liquidate all obligations incurred under the award not later than 90 days after the end of the funding period (or as specified in a program regulation) to coincide with the submission of the annual Financial Status Report (SF-269). The federal agency may extend this deadline at the request of the grantee.
- The return of unobligated funds at the end of a budget period funds can vary; however, funds are usually returned within 90 calendar days after project completion or the end of the award period.
- The granting agency may extend this deadline upon request by the PI and may be carried forward into a subsequent budget period if properly justified, budgeted for, and approved by the sponsoring agency.
- No Cost Extension (NCE) - A no cost extension is an extension of the project period beyond the expiration date to allow the PI to finish. No additional costs are provided.
- Carry-over funds can only be used to complete activities directly related to and consistent with the activities approved within the grant agreement and/or approved activities not completed in the original budget period.
Issued: June 2015