Under-recovery Award Set-up and Management

After an award is received, the DLCI is responsible for making sure that under-recovery is accurately reflected in monthly charges, and communicating any corrections to RAS and to VPF.

Award Setup

1. RAS determines sponsor-approved rate and base.
2. RAS enters appropriate costing sheets and rates in KC.
3. Costing sheets and rates feed into SAP.
4. RAS generates Notice of Award (NOA) and attaches in OST.
5. VPF generates Notice of Cost Object (NOCO) and sends to DLCIs.
6. DLCI compares NOA and NOCO for accuracy and reports any differences to RAS.

Managing Awards with Under-recovery

In addition to their regular review, DLCI administrators should:

• Confirm all entries that post to under-recovery funding sources:
  • Research projects using the under-recovery allocation account(s): Entries will post to the under-recovery allocation account(s).
  • Research projects using local or discretionary funding: DLCIs/Dean’s Office works with VPF to do a budget transfer (rounded to the nearest dollar) with G/L account 490104 from local source account into DLCI under-recovery allocation account. 
  • All other projects: Use of local or discretionary accounts is through a journal voucher process. Follow guidance from your Dean’s Office. 
• Communicate with the department approver regarding:
  • Changes to award’s under-recovery amount
  • Questions regarding the DLCI under-recovery allocation account.

Closeout

Accounts with under-recovery follow typical closeout processes. During closeout, VPF will make any corrections not addressed during the award management phase.

^{Updated November 18, 2025}