Guarantee of Expenditure (GOE)

FAQ

Why is a GOE needed for my award?

Per the procedure adopted by the University Research Council in 2010, a GOE is required whenever our direct sponsor is categorized as ‘Private’, and we are not able to secure a 100% up-front payment. This applies to:

  • Private universities and healthcare systems
  • Foundations
  • Industry agreements
  • Other private sponsors

We do not typically require GOEs for:

  • Direct federal awards (federal agencies)
  • Other public entities (city, county, or state government agencies)
  • Awards with private entities that provide 100% up-front payment.

Purpose of the GOE:

The GOE is only for the portion of the award that is not paid up-front. While we often succeed in negotiating full or substantial up-front payments from private sponsors, it’s not always possible. Some sponsors use withheld final payments or deliverables-based payment schedules to ensure reporting or deliverable compliance. Some simply cannot afford to cash-flow/pay us until they can access their own cost-reimbursable or deliverables-based prime funding.

The GOE ensures expense coverage in the unlikely event that any invoices remain unpaid. To manage this risk:

  • Sponsored Programs Accounting (SPA) monitors cash balances throughout the award and alerts the unit to issues and unpaid invoices.
  • The PI and Business Services should closely track expenses and invoicing to protect the department. Additionally, the PI should ensure they meet reporting and deliverables deadlines required for payment, communicating any issues or delays to SPO/sponsor as soon as they are known so they may be addressed.

If unpaid invoices accumulate, an internal stop-work order may be issued by SPO, SPA, or the department until the invoicing issues are resolved.

What’s new?

The process itself isn’t new, but we’ve recently clarified the procedure, moved from a paper form to a digital ‘Kuali Build’ form, and added a workflow check for consistency. You may notice more frequent requests because we’re applying the existing procedure more consistently.