Agreement Review & Negotiation
When an agreement related to a proposed project is received, the Sponsored Projects Office (SPO) reviews all terms
and conditions to ensure compliance with University of California and UC Merced policies. If revisions are required,
SPO proposes updated language to the sponsor and negotiates until all issues are resolved. The Principal Investigator
(PI) will be contacted whenever sponsor requirements necessitate PI input, clarification, or consent.
Review Order and Turnaround Time
- Agreements are reviewed in the order received.
- Initial review with proposed edits is completed within 10 business days of CGO receipt.
- Complex agreements may require additional time; SPO will keep the PI informed.
- If the sponsor imposes a deadline, SPO will make every reasonable effort to meet it.
Negotiation with Sponsor
- SPO sends revisions to the sponsor when necessary.
- Negotiations continue until all terms are mutually acceptable.
- The fully executed agreement is routed to the PI once finalized.
Award Setup
After SPO receives a Notice of Award (NOA) or signed agreement, a Cayuse award record is created. A formal award
announcement is sent to the Principal Investigator (PI), Contract & Grant Administration (CGA), Project Portfolio
Financial Management (PPFM), and Post-Award Research Administrators (RAs).
The announcement outlines required next steps before spending may begin and includes a Cayuse Award Summary (CAS)
form summarizing important information from the award agreement.
Award Setup Responsibilities
| Award Setup Function | Award Setup in Cayuse | New Project Request to PPFM | Expenditure Account Setup |
|---|---|---|---|
| Sponsored Projects Office (SPO) | X | ||
| Contract & Grant Administration (CGA) or Department Research Administrators (DRA) | X | ||
| Project Portfolio Financial Management (PPFM) | X |
Pre-Award Spending: Risks, Liabilities, & Limitations
Pre-award spending requires careful assessment because the university assumes financial and legal risk when allowing
expenditures before receiving a fully executed award.
If you believe pre-award spending is necessary, please work with your assigned post-award Research Administrator to
complete the
Pre-Award Spending Request Form, attach all required supporting documentation, obtain the necessary approvals,
and email the completed request to spo@ucmerced.edu for review.
Risks
The PI must identify an alternate funding source to cover costs if:
- the sponsor delays the start date,
- certain costs are deemed unallowable, or
- the sponsor ultimately does not issue the award.
Liabilities
Without a signed agreement, UC may be exposed to legal risk involving indemnification, intellectual property,
subject injury obligations, and compliance requirements.
Limitations
Allowability of pre-award spending depends on sponsor policy, expected award terms, and campus guidance. Terms vary
by agency and by whether the award is a grant, cooperative agreement, or contract.
Award FAQ
I submitted a proposal without routing through SPO and have now been awarded. What do I do?
This is considered an “after-the-fact” award. A Cayuse SP record must still be created before an account can be
established. All documents normally collected at the proposal stage must be provided. If the award includes
problematic terms or presents legal or financial risk, it may need to be declined.
Submit the project details through the Proposal Submission Request (PSR).
How do I determine whether my funding is a gift or a sponsored project?
Use the Grant vs. Gift guidance available on the Forms & Resources page.
