Upon receiving an award, the most important task is to read and understand the award documents carefully. Still, it’s important to know that any one award intersects with several levels of regulations, not just the specific terms and conditions attached to the notice of funding. With so many levels of regulations, the most specific regulation takes precedence and must be followed.
While it is a significant administrative task to study and implement the many layers of regulations involved with external funding, these rules serve an important function. They are designed to ensure compliance with the law, thus increasing public trust in federally funded science. Abiding by these regulations also ensures that our institution upholds a strong reputation as a grantee. Material non-compliance with the terms and conditions of an award can result in increased scrutiny from grant officials and the audit community, leading to a termination of the award or an institutional label of “high-risk grantee.” This can result in more difficulty securing funding or collaborations. To further understand how these regulations intersect for federal and non-federal awards, please see below.
Federal Awards
All federal awards are broadly governed by Uniform Guidance, which is managed by the Office of Management and Budget. This is a vast collection of coded regulations that provides guidance on the most basic level of compliance and allowability. For example, Uniform Guidance contains general terms on cost principles for budgeting, including the definitions of “reasonable” and “allocable,” as well as examples of expenses that are generally regarded as unallowable.
While still following the broad terms of Uniform Guidance, each federal agency may have its own agency-specific terms, or research terms and conditions, that awardees must follow. Agency-specific terms inform what actions (such as changing key personnel) require prior approval and how to request it. Many agencies keep webpages that spell out their agency-specific terms in their entirety and link them in the award documents. This is called “incorporation by reference.”
In addition to these agency-specific terms, individual funding opportunities may outline their own program specifications in the program announcement. These could include deeming certain costs unallowable or setting a required level of effort for the Project Director or other key personnel.
Award documents received from the prime sponsor may detail additional prime award terms, like how much a PI/PD can rebudget without requesting prior approval.
In the case of a subaward, all federal, agency-specific, and program specifications for the award “flow down” to this subawardee. The pass-through entity, which serves as the sponsor, can also require additional subaward terms if deemed necessary. For example, if Montclair State University receives an award from the NSF with a subaward to another university, we may impose additional terms and conditions on this subawardee, such as requesting that they submit monthly invoices instead of quarterly invoices to better track their spending.
Of course, intersecting with every stage of proposal development and award management are institutional policies at Montclair, as well as federal, state, and local laws. For example, institutional procurement policies govern any purchasing done at the University, and institutional travel regulations define travel policies and procedures. Federal, state, and local laws serve as the foundation for Uniform Guidance, minimizing risk to individuals and communities.
Non-Federal Awards
Non-federal sponsors often have their own terms and conditions, which may be outlined on their webpages, in their program announcements, or in their award notices. These can vary widely by sponsor. Some common differences to look out for are intellectual property restrictions, publication clauses, and reporting requirements.
Overall, there are layers of terms and conditions that inform any given award. Several regulations may overlap between federal, agency, and program regulations, but the most specific instruction is the one that must be followed. This is why it’s critical to read the award notice carefully and be aware of terms that are incorporated by reference. The pre-award specialists and post-award officers in the Office of Sponsored Programs have the administrative and regulatory expertise to navigate the many layers of administrative policy involved in federal funding work to ensure that all grants remain in compliance–and to allow researchers the time and freedom to focus on their projects.