Last Updated 5-2026
Prior Approval
Federal Sponsors expect the grantee institution to anticipate the full extent of its financial requirements when applying for a grant. The applicant should be prepared to justify both benefit to the project and calculation of all costs requested. Approval of a grant budget by the sponsor constitutes prior approval for the expenditure of funds for the specific item included in that budget.
Certain Federal sponsors permit grantee institutions to rebudget between budget categories of the project to meet certain unanticipated requirements in research, training, and program projects, provided that the expenditures are necessary to the successful continuation or completion of the project, that the grant funds are expended in conformity with sponsor policies and the Federal Regulations governing the respective grant with the guidelines set forth below.
Such departures must enhance and not impede progress of the project toward its stated objective and be in conformance with the rebudgeting guidelines of this policy statement and the policies and procedures of the grantee institution. They may further be conditioned by restrictions imposed by the sponsor as a condition for the individual award.
Prizes and Entertainment – Important Allowability Clarification
While prior written approval is no longer required under Uniform Guidance for entertainment expenses, not all costs commonly referred to as “prizes” are entertainment. Certain prizes or incentives may be allowable when they are necessary for the project, meet the definitions and conditions in 2 CFR 200.438 – Entertainment and Prizes, and are otherwise permitted by the sponsor and award terms. Departments must continue to assess allowability, allocability, and reasonableness, and follow sponsor‑ or award‑specific approval requirements where applicable.
In accordance with 2 CFR 200.413(c) – Administrative and Clerical Staff Salaries, prior written sponsor approval is not universally required for clerical or administrative costs; allowability is determined based on whether the costs meet the criteria above and the specific terms and conditions of the award.
Definition of Prior Approval
For purposes of these guidelines "prior approval" is defined as the written permission by an authorized official in advance of an act that would result in the obligation or expenditure of grant funds for certain purposes not included in the approved budget as shown on the award document.
All prior approval requests must be sent to SPS Research Administrators at least 30 days prior to the requested action.
Prior Approval Activity Guidance
Instructions for External Approval Requests
External Prior Approval Template
National Science Foundation Research Terms and Conditions
National Science Foundation Research Terms and Conditions - Prior Approval Matrix – Effective 11/12/2020 (Applicable to grants on or after 12/26/2014)
