To establish guidelines for the disposition of residual balances remaining in sponsored project accounts for fixed price contracts awarded to the University.
Fixed Price Contract
An agreement in which the University guarantees to deliver a product or perform a service for a set (fixed) price agreed upon in advance and payable regardless of actual costs. In the event the project costs less than the amount provided, the University is entitled to keep the remaining funds.
An unobligated, unspent balance remaining in a sponsored project account after all work has been completed and all deliverables have been met.
Residual funds from the restricted project account will be transferred to an unrestricted account for use by the PI at his/her discretion subject to the following conditions;
- The project budget represented a good faith and realistic estimate of the cost to perform the work. Note: Any rebudgeting out of the equipment line will be subject to indirect costs.
- The PI confirms in writing that all project-related costs have been charged to the project account and that all deliverables have been met.
Residual balances of less than 15% of the fixed price contract will be transferred to the PI’s unrestricted account.
Residual balances in excess of 15% of the fixed price closeout will be evaluated by the Dean of the school/college to determine their disposition.
SPS has established operating procedures designed to ensure compliance with this policy. This includes working with the PI and department personnel during the closeout process to ensure all project-related costs have been charged to the restricted account, and all deliverables have been met.
Roles and Responsibilities
The Executive Director of the Sponsored Programs Services has overall responsibility for this policy and will review it annually. Any questions relating to the policy should be directed to him/her.
This policy is effective March 1, 2013