University Letter

UND's faculty and staff newsletter

Reminder about Federal grant purchases near the end of an award

The Division of Research & Economic Development would like to remind faculty and staff who have been awarded a Federal grant to support their creative activities, that by Federal law and policy, the funds awarded must be spent, and the items which have been purchased used, before the end date of the award.

Once an award closes, Federal agencies consider a project completed and resources from the award formally cannot be used to continue the work.  Practically, what this means is that equipment and larger purchases should be made at the beginning of an award and never at the end of an award. Supplies may be purchased throughout the life of an award, up to a month or two before the end of the award, but there should never be large supply purchases at the very end of an award.

In the event of an audit by a Federal agency, any large purchases at the end of an award will be flagged and most likely will be disallowed resulting, at a minimum, in repayment by the awardee and potentially suspension or disbarment from future Federal funding.

— Barry Milavetz, Associate Vice President for Research & Economic Development