| Carryover of unobligated funds: This term is most commonly applied to grants and cooperative agreements. “Unobligated” funds are funds that have not been expended and are not encumbered. If the Report of Expenditures (ROE) indicates that unobligated funds remain at the end of a budget period, refer to the award document to determine whether the funds may be carried forward to the next budget period and, if so, whether Sponsor approval for the carry-forward is required. - If Sponsor approval is required, the administrator should return the verified ROE to Restricted Funds. The administrator and PI must then prepare a letter to the Sponsor to request approval for carryover of the unobligated funds to the next budget period. This letter requires signature of the PI and the authorized institutional official in ORD. The letter to the Sponsor should include a brief explanation of why funds remain unexpended and a justification as to how the funds will be used in the next budget period. A budget may be required by the Sponsor. Be certain to account for facilities and administrative (F&A) costs when planning the budget for the unobligated funds.
- If Sponsor approval is not required, the administrator should return the verified ROE to Restricted Funds along with a completed Carryover Allocation Form.
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