The following policy was distributed to CSM Researchers from the Administration on May 9, 2000.

In an effort to minimize the disruption of on-going research activities and simplify the processing of project related transactions, the following risk policy has been approved for federally funded direct or pass-through research projects.

Multi-year research projects are allowed to incur obligations beyond the present budget period, up to 25% of the currently funded budget, in anticipation of the subsequent years funding. Should expenditures and encumbrances exceed 125% of the current budget, ORA will conduct a review to ascertain the status of the amendment authorizing additional funds. The Director of ORA may convene a meeting, as necessary, with the V.P. for Research, the project PI, and his/her Department Head to determine whether the project should continue "at risk". If the sponsor does not award the anticipated funding, any deficit balance in the research account becomes the responsibility of the PI and his/her department.

Once a project has reached its expiration date, no expenses will be incurred beyond that date and the account will be frozen.

Any questions regarding this policy may be directed to Ralph Brown, Director of Research Administration, ext. 3538.