No-Cost Extension Announcement

We were recently reminded by federal officials that they are taking a close look at Principal Investigator level of effort during no-cost extension periods. PIs are reminded that when they receive a no-cost extension for a grant, the funding agency expects that their effort (time commitment) will be commensurate with the previous budget period. Some flexibility is permitted, but federal agencies required prior written agency approval if there is a 25% or more reduction in a PI's time devoted to the project. For example, permission would need to be sought if the final budget period of the grant contained a 40% level of PI effort, and the no-cost extension period brought it below 30% effort (25% X 40).

In cases where funds are completely expended and the no-cost extension is being used essentially to review and analyze data, the time commitment would require cost-sharing on the University's part. Such cases should be brought to the attention of the Chair and the Dean and signalled on NYU's Prior Approval System form when the extension is requested.