No-Cost Extensions: What Most Universities Get Wrong

What a Compliant NCE Requires

No-cost extensions (NCEs) are one of the most commonly misunderstood aspects of post-award management. While many institutions treat them as routine administrative actions, they carry compliance and financial implications that require careful review.

A successful NCE request must demonstrate that the original scope of work remains unchanged, that sufficient unobligated balances exist, and that additional time—not additional funding—is required to complete project objectives.

Common Risk Areas

Failure to align institutional systems with sponsor-approved extensions can result in expenses posting to expired accounts, creating audit risk and financial reporting discrepancies.

Institutions should ensure that all extensions are properly documented, approved in sponsor systems (e.g., Research.gov), and reflected in internal financial systems to maintain compliance and reporting accuracy.