Advance Account [Hardship] Requests

Best Practice

Advance Accounts eliminate the need for expense transfers and allow investigators to begin recording and monitoring project related expenses. If it is determined project work will begin prior to receiving an award notice an Advance Account is utilized to ensure project expenditures are captured and monitored appropriately.

There may be instances where there is reasonable certainty an award is forthcoming but the award notice has been delayed.

An Advance Account Request, or Hardship Authorization Request, allows establishment of a project grant number prior to receipt of the sponsor award notification. Establishing this project grant number allows costs to be properly allocated to projects experiencing a delay in the award process.

The following are examples of situations when requesting a hardship may be appropriate:

When the University of Michigan is a subcontractor, and the direct sponsor has the prime award in hand, but the sub-recipient agreement is still under negotiation.
A gap in the timing of funding when one grant is ending and a new grant is beginning.
A project is being transferred to the University of Michigan from another institution.
Intergovernmental Personnel Act (IPA)Agreement with the Department of Veteran’s Affairs (VA).

If it is determined an advance account, or hardship, is appropriate the following information is required for the request:

Brief description of the need (proof of sponsor funding is not required to request a hardship).
The requested start and end dates for the period of support.
A direct and indirect cost budget, including the applicable indirect cost rate and basis (i.e., Total Direct Costs or Modified Total Direct Costs), consistent with the proposal the account is being requested for and any known sponsor requirements.

It is important to remember sponsors are NOT invoiced and the unit requesting the hardship is financially responsible for any expenditures charged to the account if the award, once issued, does not cover the costs incurred or the award does not materialize for some reason.

A Hardship Project Authorization Notice indicates the PGN number was established in response to a hardship request and contains a project/grant number (PGN) and shortcode but no Award Record or UM Award ID. The UM Award ID (AWD) and Award Record are created when official award documents are received and processed.

Helpful Hint

The eResearch Training has a library of Quick Reference Cards including Hardship step-by-step instructions.

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