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Policy Contact: Grants and Contracts Administration

1. Purpose

   This policy and its procedures inform Principal Investigators/Project Directors (PIs/PDs) with fixed-price awards how residual balances will be handled at the end of the designated project period.

2. Definitions
    
   1. Fixed Price Awards: Also known as fixed fee, fixed sum or fixed amount awards, are a type of sponsored project agreement (grants and contracts) under which the external entity provides a specific level of support without regard to actual costs incurred. Accountability is based primarily on performance, results and deliverables.
       
3. Policy
    
   1. All grants and contracts must be managed so that the budget is used to carry out the project objectives during the designated project period.
       
   2. For fixed price awards, any available balance remaining at the end of the grant or contract is to be retained by the University.
       
4. Procedures
    
   1. After all deliverables of the award have been fulfilled and payment from the sponsor has been received, the grant fund will be closed out and the residual balance of up to $5,000 may be transferred to a Revolving Account controlled by the project’s PI/PD or their Department.
       
   2. The Fixed Price Close-Out Form must be completed. This includes concurrence with the PI/PD’s department head and approval from the Associate Vice President for Research Assurance and Sponsored Programs, or successor, for the transfer of revenue, not to exceed $5,000.
       
   3. Residual balances in excess of $5,000 will revert to the University’s F&A Recovery Sponsored Programs Risk Management Fund.

5. Responsible Administrator

   The Director of Grants and Contracts Administration, successor, or designee is responsible for annual and ad hoc review of this policy and its procedures. The University President is responsible for policy approval of this policy.

Approved by President on 02/15/2017.

Associated Forms: Fixed Price Close-Out Form