Some projects are funded incrementally, particularly with many sponsoring federal agencies. For example, the University may receive a contract for $300,000 for a period of three years, but the contract may contain a statement like the following: "The total amount of this grant is $300,000. The amount currently available for payment is $100,000, which covers the period January 1, 20XX, through December 31, 20XX. The government’s obligation for the difference of $200,000 is contingent upon the availability of funds. Accordingly, no legal liability on the part of the government for payment of this difference shall exist unless (and until) funds are made available to the grantee by an amendment to the grant."
This type of statement limits the funding ($100,000) to be allowed for the first year (Jan-Dec 20XX). This amount must not be exceeded without the written approval of the sponsor. When the current funding amount is expended (for direct, facilities, and administrative costs), any additional spending on the project is at the risk of the department.
For incrementally funded projects, Grants and Contracts Administration will:
- Issue a notification showing the total project award with an appropriate statement as to the project cost and time limits.
- Set up a budget for only the amount that has been incrementally funded. The direct cost amount appears as the budgeted amount on the monthly departmental Budget Status Report.
- Enter only the incrementally funded amount into the Clemson University Business System (CUBS) so that Grants and Contracts Administration reports show the currently funded amount.
As subsequent periods and amounts are approved by the sponsoring agency, Grants and Contracts Administration will generate new notification letters and budget amendments, as well as update CUBS panels to show current funding amounts.
Any amount over the incrementally funded limit will be treated as pending funds, and written approval (for additional spending) from the department chair is required before spending can exceed the limit. This documentation must also state that the costs will be covered by appropriate departmental funds, should funding not be allowed by the sponsor.