How to Read Your Notice of Award
The Notice of Award is the binding document that sets up your grant. Reading it carefully at the start prevents disallowed costs and surprises later.
Here's what to check on every new award.
The money and the periods
- Confirm the approved budget, the budget period, and the full project period.
- Note the obligated amount versus future-year commitments.
- Check for any amount withheld or restricted pending a condition.
The terms and conditions
- Read award-specific terms and restrictions on spending categories.
- Identify what requires sponsor prior approval (scope changes, equipment, carryforward).
- Note reporting requirements and their due dates.
Set up and reconcile
- Confirm the account is set up to match the approved budget.
- Flag any cost-sharing or special compliance requirements.
- Diarize reporting and closeout deadlines immediately.
Common pitfalls
- Skipping the terms and conditions, where prior-approval requirements and restrictions live.
- Missing award-specific reporting dates that differ from the standard schedule.
- Assuming the full project period is funded. Usually only the current budget period is obligated.
The Notice of Award is the rulebook for the grant, and the prior-approval and restriction clauses are where disallowed costs come from.
Frequently asked questions
What is a Notice of Award?
The binding document that establishes a grant, obligates funds, and sets the budget period, project period, and terms and conditions.
What should I check first on a Notice of Award?
The funded amount and period, any restricted or withheld funds, prior-approval requirements, and the specific reporting deadlines.
Does the Notice of Award fund the whole project?
Usually it obligates only the current budget period. Future periods depend on progress and available funds.
Track this in GrantsManager
GrantsManager surfaces every deadline, reconciles spend, and keeps effort and reporting in one place, so checklists like this stay out of your inbox.