Fiscal Spend Down Policy

Background

The Wisconsin Partnership Program (WPP) is governed by a number of rules and requirements through the Insurance Commissioner’s Order, the Grant Agreement with the UW System Board of Regents, and the University of Wisconsin’s rules and policies as well as local, state and federal laws.

This policy outlines the expectations and procedures for the responsible and timely expenditure (“spend down”) of grant funds awarded by WPP. It ensures alignment with WPP’s Cost Principles and Non-Supplanting policies.

Definitions

Proration: The process of allocating the cost of a good or service proportionally based on the portion of time or usage that directly benefits the funded project.

Computing devices: Includes laptops, desktops, tablets, and accessories (e.g., printers, storage drives).

Policy

Expenditures made in the final 90 days of the grant period will be reviewed to ensure alignment with project goals and alignment with WPP’s Cost Principles Policy. To ensure compliance and good stewardship of these funds, expenditures may be disallowed if they appear to be for the purpose of exhausting funds and/or provide no benefit to the project.

WPP administrative staff will closely monitor project spending activities within the last 90 days of the project end for any concerning expenditures. Examples of activities that would be prohibited include but are not limited to:

1. Making large, unplanned purchases not included in the approved budget and that do not benefit the award in the award period.
2. Stockpiling supplies that are not essential to the completion of the project.
3. Purchases of computing devices
4. Purchases of equipment with a value equal to or exceeding $5,000 and a useful life greater than 1 year.
5. Accounting Adjustments of unrelated costs to the grant in an effort to use up remaining funds.
6. Hiring temporary staff or consultants without clear, time-bound deliverables directly tied to project completion.
7. Significant increases, defined as increases of 25% or more, in payroll allocations for any individual without prior written justification and approval.
8. Purchasing goods/services that are received/rendered outside of the award period.

To ensure smooth closeout, grant recipients are encouraged to consult with WPP Administration for pre-approval of any costs anticipated in the project’s final 90 days. Expenditures lacking sufficient justification and documentation will be disallowed. Expenditures made near the end of the award may be prorated to ensure appropriate benefit to the WPP award.

The WPP Administrative Leadership Team retains sole discretion to approve or deny award expenditures, whether in full or in part.