BACKGROUND: Many projects receive additional funds to continue the work.  However, because of the terms and conditions of the original funding and/or the additional funds, it is not always clear whether the additional funds can be spent out of the existing account number or whether a new account number is needed.

GENERAL GUIDELINES:

New Account Number:

Generally, a new account number is necessary if:

1. the sponsor's terms and conditions (e.g., scope of work, overhead rate) have changed, or
2. the sponsor's reference number (e.g., grant/contract/agreement or purchase order number) has changed AND the University is required to account for revenue and/or expenditures by reference number or
3. the sponsor's terms and conditions restrict carry-over of unexpended funds.

Existing Account Number:

Generally, an existing account number can be used if the sponsor's reference number (e.g., grant/contract/agreement or purchase order number) remains unchanged indicating the additional funds are an increase to the existing award.

Special exception for fixed price agreements:

If the original fixed price account has been fully invoiced and paid, additional funds may be added to the existing account only if they support a project's current scope of work with no break in the period of support or changes in the original terms and conditions (including overhead rate). Typically, these types of awards are for very broad scopes of work. Modifications will result in a new end date on ESIS and the Accounting System to reflect the new requirements of the account.

The table below indicates some examples of sponsors and the usual method of handling their additional funds.

SPONSOR NEW ACCOUNT ADD TO EXISTING ACCOUNT COMMENTS/ REMARKS All Wisconsin Counties   X Amendments issued for two additional years American Cancer Society X   Carry-over not allowed American Chemical Society X   Carry-over not allowed American Heart Association   X Carry-over allowed.  Project number stays same American Heart -- Wisconsin X   Carry-over not allowed Brittingham Trust   X Need to clarify if interest or principal money before adding to existing account. Howard Hughes Medical Institute X   Grants awarded for multiple years.  Any renewal award is a new agreement. Joyce Foundation X   Grants awarded for multiple years.  Any renewal award is a new agreement. Kellogg Foundation   X Keeps same project number;  carry-over allowed. March of Dimes X   Carry-over not allowed Muscular Dystrophy Association X   Carry-over not allowed. Vilas Trust X   Carry-over not allowed Wisconsin Dept of Commerce X   New agreements, new purchase orders Wisconsin Dept of Natural Resources X   New purchase order numbers Wisconsin Milk Marketing Board X   New contact Wisconsin Potato Industry Board   X Fixed price agreement, carry-over allowed, and continuous broad scope of work.

REMINDER:

These are general guidelines;  there are often exceptions. If in doubt about the proper handling of additional funds, the responsible pre-award people should discuss proper handling.

Revised 9/3/1998