Summary Points:
Administrators and PIs need to be aware of the relevant policies and regulations of both the institution and the sponsor governing the administration of sponsored projects. That knowledge will not only enable administrators and PIs to make appropriate decisions, it will enable them to ask the right questions when difficult situations arise.
Open communication between PIs and administrators as well as among them and the sponsored programs office is very important. It can greatly reduce the frequency of problems, and mitigate negative effects when problems occur.
It is important to remember that the sponsored funding is made in the name of the institution, not the PI. Therefore, the institution is responsible for providing the proper stewardship in managing sponsored project funding. Administrative staff, irrespective of where they are employed within the institution, have the responsibility to make this stewardship a top priority.