Administration of Small Dollar Awards

Effective Date: December 8, 2025
Responsible Office: Office of Sponsored Projects
Responsible Executive: Vice President for Research & Innovation

Purpose

This policy establishes institutional guidance for the review, acceptance, and administration of small dollar awards received in support of research, scholarly, or creative activities at the University. The policy ensures consistent treatment, compliance with sponsor and institutional requirements, and appropriate allocation of administrative effort relative to award size.

Scope

This policy applies to all University faculty, staff, and academic units that receive or are offered external funding for research or related activities in amounts typically less than $15,000, or another threshold as established by the Office of Sponsored Projects (OSP).

Definitions

• Small Dollar Award: External funding, typically under $15,000, with limited administrative, reporting, or compliance requirements.
• Principal Investigator (PI): The individual primarily responsible for the design, conduct, and completion of a project funded by an external sponsor.
• Sponsored Project: Externally funded activity that includes defined objectives, deliverables, reporting, or other formal obligations to the sponsor.
• Cost Center: A departmental or college-level account established to manage funds internally when an activity does not meet the criteria for a sponsored project.

Policy Statement

All externally funded activities, regardless of dollar amount, must be reviewed by the Office of Sponsored Projects to determine the appropriate administrative treatment. Small dollar awards may be accepted and managed using one of two methods, as outlined in Section 5.

The method of acceptance and administration will be determined based on the nature of the funding and sponsor requirements.

Options for Managing Small Dollar Awards

Option 1: Standard Sponsored Project Setup

Criteria:

• The award includes terms and conditions, deliverables, or reporting obligations.
• The sponsor requires invoicing, financial reporting, or programmatic documentation.

Requirements:

• The award will be processed through the standard sponsored projects proposal and award setup process.
• A sponsored project account will be established in PeopleSoft.
• The full applicable indirect cost (F&A) rate will be applied in accordance with the University’s federally negotiated rate agreement or other approved institutional rates.
• OSP and Grant Management Accounting (GMA) will manage compliance, billing, reporting, and closeout in collaboration with the PI and department.

Appropriate Use: Federal, state, local, corporate, or foundation-funded projects with defined objectives or deliverables.

Option 2: Department/College Cost Center Setup

Criteria:

• The award is small in amount and the administrative burden of full OSP oversight would be disproportionate to the benefit.
• The sponsor does not require formal financial reporting, detailed documentation, or compliance oversight that would require OSP or other university office review and approval.

Requirements:

• A University cost center may be established under the requesting department or college with the approval of the Budget Office and relevant department or college.
• The department or college assumes full fiscal and administrative responsibility, including expenditure tracking, billing (if applicable), and communication with the sponsor.
• OSP and GMA will not manage or oversee the account but may provide procedural guidance in conjunction with other relevant parties at the University.

Appropriate Use: Small-scale projects, community or professional collaborations, or short-term project activities with minimal reporting requirements.

Decision and Review Process

When a small dollar award is received or offered:

• Notification: The PI or department must notify OSP and provide a copy of the award notice or agreement for review.
• Review: OSP will evaluate the award terms to determine whether it constitutes a sponsored project or departmental activity that could be considered a small dollar award.
• Classification: OSP, in consultation with relevant departments, will determine the appropriate management option under this policy.
• Documentation: OSP will document and retain the classification decision in accordance with institutional recordkeeping requirements.

Roles and Responsibilities

 

Role	Responsibilities
Principal Investigator (PI)	Notify OSP of award offers; provide necessary documentation; comply with applicable University policies; and manage the project according to the selected option.
Department/College	Agree to ensuring fiscal and administrative management of cost center accounts when applicable; maintain appropriate records and reports; ensure compliance with sponsor expectations.
Office of Sponsored Projects (OSP)	Review and classify small dollar awards; manage awards processed under Option 1; provide guidance for Option 2; maintain documentation of decisions.
Budget Office	Support establishment of cost center accounts and ensure appropriate financial controls for departmental management.