We have been notified by Air Force Office of Scientific Research (AFOSR) that all new and renewal research grants will be awarded and reimbursed using a scheduled payment plan rather than reimbursement on a cost reimbursement plan.  AFOSR is changing their payment method stating that current and future research funding is under extreme pressure and must continuously be justified.  As a result, expenditure rates will be monitored.  Slow spending rates will be interpreted as an indication that funds are not needed and can be used elsewhere.

AFOSR will make payment based upon a predetermined payment schedule.  Payments will normally be made quarterly in advance of performance, based upon a spending profile which should be provided as part of the proposal (See section 4.3 of Proposer's Guide to the AFOSR Research Programs).  If the spending profile has not been provided as part of the proposal the Contracting Officer will request this information prior to issuance of the notice of grant award.  Payments requested should be limited to the amounts needed to conduct research during each respective period.

Expenditures will be monitored and tracked by AFOSR.  The predetermined payment schedule cited in the notice of grant award will be compared to the quarterly expenditure report that Research and Sponsored Programs (RSP) will be required to submit to the Grants Administration Office.  In the event actual expenditures significantly deviate from the established payment schedule AFOSR may unilaterally adjust the payment schedule, contact RSP to negotiate a revised payment schedule, and/or reduce the total amount of the award.

AFOSR grants require a quarterly financial report.  At the time RSP prepares that report, an e-mail message will be sent to the PI and the departmental administrator for those awards showing a large cash balance.  If there is a substantial balance, the PI may wish to contact his/her Program Officer to explain the reason why the balance is what it is.

Being proactive in advising the agency of changes in spending, and providing justification for those changes, may prevent the reduction of the award.  If you know that the rate of expenditures on your award is significantly different from the payment schedule cited in the award, please contact Chuck Hoffman at 608-262-0253 as soon as possible.

xc:  Sponsored Program Administrators