Recently, the Indiana State Board of Accounts mandated that when a sponsored project is complete, if there are residual funds in the account, they must be moved to an account outside of the contract and grant fund group. These funds will no longer be subject to the restrictions of the contract and grant fund group. On the Indianapolis campus the funds may be moved to a Designated Fund account, and on the Bloomington campus the funds may be moved to a Designated Fund account or a General Fund account. On other campuses, check with the campus Chart Manager to determine what account type is recommended.
Only direct charges should be transferred to the Designated or General Fund account; indirect costs that would have been applied should be transferred to the appropriate Responsibility Center income account. A transfer of funds document should be used. To calculate the direct cost, you divide the total amount of the residual funds by 1.x where x equals the indirect cost percentage. An example follows:
If you have any questions, please contact your C&G Analyst or Consultant, or contact Jennifer Foutty, Manager of Contract and Grant Administration, at 855-4884 or email@example.com.