I review preaward coding requests for The University of
Connecticut Research Foundation.  Preaward codings are granted only
when a start date for the project can be verified and an approximate
date can be given when the award documents will be received; this
information from a Grants and Contracts, or equivalent, office of the
sponsor.  A coding issued prior to the receipt of paperwork allows
the PI to type out purchase orders and employment and/or travel
authorizations, all to be effective after the start date of the
project.

 Preaward expenditures are approved by The University's
Office of Grants and Contracts.  They occur before the start date and
are only allowed by certain agencies.  Your auditor may be
questioning whether a particular agency allows such expenditures;
travel before the project start date may be an example.