Unlike cost-reimbursement arrangements, where expenditures are reimbursed after they are incurred, some granting agencies award fixed price contracts.
When such an award expires, leaving a residual balance in the account, a determination must be made as to whether the remaining funds may be utilized. The decision belongs to the awarding agency, and is often communicated within the terms and conditions of the agreement.
If the unrestricted balance results from a firm, fixed-price agreement, it is often available for the investigator to spend. In such cases, where the direct cost balance is less than 15 % of the original direct cost budget, the balance will be transferred; net of indirect costs, to an unrestricted discretionary account and be made available to the Principal Investigator.
Balances remaining that are greater than 15% of the original direct cost budget will be evaluated by the Dean of the School/College to determine their disposition.