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Award Acceptance & Administration

Account Closeout

Residual Balances

Tool Kit

Templates:

Institutional Audit Report:

Submit Underwrite Request:

Once the project is completed, any residual funds on fixed price awards must be moved to an unrestricted account. The department is responsible for notifying the Office of Research Administration when the project is completed and all costs have been properly charged to the account. Please check with your fiscal officer to determine the appropriate account to utilize for the residual balance. Indirect cost will be transferred to the appropriate responsibility center income account.

Procedure for handling residual balances on commercial accounts:

Residual funds on fixed price awards that are no longer subject to the restrictions of the contract or grant agreement must be moved to an account outside of the sponsored project fund group. The department must ensure that the project is complete and that costs are allocated correctly to the project before a transfer is initiated. No-cost extensions may not be requested or granted when the effort related to the project is complete and when the intent of the extension would be merely to spend a residual by charging unrelated costs to the project.

Transfers greater than 50% of the award total or greater than $50,000 must be approved by the Office of Research Administration. Departments must provide written justification for the transfer because a significant residual balance calls into question the integrity of accounting for costs related to the project. Written justification is required to adequately ensure that costs appropriate to the fixed price account have not been incorrectly placed on cost reimbursable, federal or federal pass through accounts.

Definitions:

A fixed price award is provided to Indiana University by an external funding agency when a fair price for the anticipated work is determined at the proposal stage.  Costs are pre-determined based on a fixed fee per unit of service or product. The total award is not subject to any upward or downward adjustment of funds based on actual cost. There is no stipulation or expectation that excess funds be returned to the funding agency.

A residual fund is defined as an unobligated, unspent balance remaining in a sponsored account at the conclusion of the project.  A residual fund occurs when the income or revenue is greater than the expense incurred upon completion of the project.  A residual fund may occur on fixed price awards for seminars or conferences, certain per-patient drug studies and clinical trials, and other fixed price contracts.

Procedure:

The expectation is that a fixed price award will have the expense closely match the income if the costs were sufficiently determined at the proposal stage. Charges to fixed price accounts, including drug studies and clinical trials, must reflect all actual effort and related costs incurred - without exception.

The department is responsible for notifying the Office of Research Administration should there be a residual at the conclusion of the project. The Fiscal Officer or delegate will be required to certify that 1) all income has been received for the project, 2) all project work is complete, 3) all reports and or other deliverables have been provided to the agency, and 4) all expenses have been properly charged to the account.

Using a Transfer of Funds document and after securing any required justification and approval, the Office of Research Administration staff member will move the residual funds to the appropriate account as provided by the account Fiscal Officer or delegate.

On the Indianapolis campus the funds may be moved to a designated fund account. On the Bloomington campus the funds may be moved to a designated fund account or to a general fund account. On other campuses, the campus Chart Manager is responsible for determining the appropriate type of account.

Direct charges will be transferred to the designated account and Facilities and Administrative (F&A) costs, also known as indirect costs, will be transferred to the appropriate responsibility center income account. The following demonstrates a residual funds transfer:

From:

Sponsored project account object code 9900 - $10,000.00

Sponsored project account object code 9955 - $2,500.00

To:

Departmental account object code 9915 - $10,000.00

Departmental account object code 9903 - $2,500.00

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