Chapter 2: Fiscal Responsibilities

2.4 Award Terms and Conditions

The Children's Hospital of Philadelphia receives funding from over 200 different sponsors, including federal agencies, foundations and for-profit companies. Each of these has the right to establish its own terms and conditions for awards and each individual award may include specific terms applicable only to that award.

In addition, the classification of funding as a "gift," "sponsored project" or "cooperative agreement" impacts how funds are tracked, indirect rates are calculated, and reports are generated. Generally, the more restrictive an award, the more the CHOP Research Institute support structure works to assist investigators in navigating the terms.Definitions of each classification are available in the "more information" tab.

The terms of an individual award take precedence over the provisions of the cost principles defined by Title 45 CFR Part 74 Appendix E. For example, although travel is defined as allowable under this regulation, your particular award may designate travel, or more likely foreign travel, as unallowable. In that case, you may not charge those expenses to that project. Similar types of provisions may pertain to the acquisition of equipment.

Awards may also contain requirements for advance notification of certain conditions. For example, OMB Circular A-110 requires prior approvals of changes in PI status (including reduction of effort by 25% or more) or significant changes in the scope of work.Other examples of common award terms and conditions can be found under the "more information" tab.

Where required by the terms of the award, you MUST have the written approval of the sponsor's grant or contract officer before charging specified expenses.

Note that all terms and conditions specified in an award "flow down" to any recipients of subawards, e.g. a subcontract to fund a collaborator at Vanderbilt University must also comply.

Cost-type contracts have other requirements including a requirement for notifications to be made in writing to the grant or contract officer.

Finally, award notices specify requirements for reports. PIs who fail to submit timely technical or progress reports, for example, risk losing their funding and jeopardize the funding of other Children's Hospital PIs. Recently, Children's Hospital has seen an increasing number of sponsors, both federal and non-federal, exercising their right to suspend funding in these situations.

Ask the Experts

Sara Dubberly
Director
Sponsored Projects and Research Business Office



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CHOP Research Resources

  • Responsible Department: Sponsored Projects

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More Information

  • Guidance: Definition and examples of "research gift," "contract," "award"
  • Examples of common award conditions and terms
    • Documenting Expenditure Pre-approvals
    • Requirement for Prior Approvals
    • Prior Approvals for Federal Contracts
  • NIH grants policy statement
  • National Science Foundation Office of Budget, Finance and Award Management

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