Some federal agencies and some non-federal sponsors provide cash in advance of the work to be performed under a sponsored project. This policy establishes the appropriate accounting treatment of these cash advances.
January 2003
revisedApril 2006
May 2022
Responsible OfficeResearch Services
Research Services
Some federal agencies and some non-federal sponsors provide cash in advance of the work to be performed under a sponsored project. This policy establishes the appropriate accounting treatment of these cash advances.
Sponsored projects awarded to the University as described above must be credited with Temporary Investment Fund (TIF) interest income on positive cash balances.
Research Services will ensure that all such Sponsored Projects will be identified and designated as funds to earn TIF income.
The Division of Finance will post the amount of any TIF interest earned on the funds identified by Research Services on a monthly basis, calculated according to their written procedures.
The amount of interest earned will be based on the monthly TIF interest rate calculated by the Treasurer’s Office.
Interest earned on all federally supported projects will be reported to the sponsor as required at termination, and then transferred to a designated holding account.
Within 90 days of the close of each fiscal year (close of ADJ period), the total amount of interest income earned on federal funds within the fiscal year will be remitted to DHHS, less the administrative allowance allowed. The amount of the allowance is currently $250.
Interest earned on non-federal awards will be accounted for in accordance with the terms of the specific award.
This policy does not apply to awards funded under a letter of credit.
Principal Investigator
Business Administrator
Office of Research Services
The source of this document is Research Services.