Office of Sponsored Programs (OSP)

Residual Funds on Fixed Fee Contracts/Agreements

 

Policy:
Effective April 2012, Handbook of Operating Procedures (HOP) 7.1.9 Residual Funds on Fixed Fee Contracts/Agreements was implemented. The entire policy can be found at http://www.uthscsa.edu/hop2000/7.1.9.pdf.

As stated in the policy, when residual funds for Fixed Fee Contracts/Agreements are in excess of 25% of the amount received, the department Chair/administrative unit head and Dean or Executive Committee Member must approve such transfer using the Office of Sponsored Programs Request for Transfer of Residual Funds Form. This form can be downloaded at http://research.uthscsa.edu/osp/forms/residual_funds_form.docx.

Some examples of Fixed Fee Contracts/Agreements include clinical research studies of drugs and devices, fixed fee research studies and hospital annual operating agreements. This policy is applicable for any fixed fee projects in fund groups 41xxx - 48xxx regardless if the Office of Sponsored Programs or the Office of Accounting completes the closeout process.

Procedures:
The project residual balance is determined after the project end date and the receipt of the sponsor's final payment. Cost transfer requests received by OSP that will reduce the residual balance will not be approved once sixty (60) days have passed since the agreement or project end date.

Examples of Policy Application:
Example One (Residual balance > (greater than) 25% of payments received):

Payments received on project total $100,000.
Project expenditures totaled $50,000.
Residual Balance of $50,000 is 50% of the total payments received.

(Office of Sponsored Programs Request for Transfer of Residual Funds Form must be processed)


Example Two (Residual balance < (less than) 25% of payments received):

Payments received on project total $100,000.
Project expenditures totaled $80,000.
Residual Balance of $20,000 is 20% of the total payments received.

(Office of Sponsored Programs Request for Transfer of Residual Funds Form is not required. Funds can be transferred without any approvals.)


Revised May 2012