Responsible administrator:
Senior Vice President for Finance & Administration
Responsible department:
Contracts and Grants
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Related Links:
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Who should know this policy? – University faculty, staff, and administrative personnel who account for restricted funds which are fixed price in nature.
Purpose of the policy:
To establish a procedure that (1) provides access to residual funds in restricted fixed price accounts where the statement of work has been completed, (2) ensures that the expenditure of residual funds in these accounts are not restricted by the former sponsor’s requirements but continue to follow University and State purchasing quidelines, and (3) minimizes the burden placed on the institution’s financial operations regarding oversight of these accounts. Certain various accounts may also be affected by this same policy.
Definitions:
Fixed Price A sponsored agreement or contract established within a University restricted account whereby the sponsor agrees to pay an agreed upon price, for an agreed upon product or deliverable.
Fee-for-Service A sponsored agreement or contract established within a University restricted account whereby the sponsor agrees to pay an agreed upon price, for agreed upon services or individual tasks performed.
Various Accounts Donations or gifts made to the University of Georgia established within a University restricted account for the benefit of a particular department activity, principal investigator, or general field of research.
Policy/Procedure:
A. Fixed Price/Fee-for-Service accounts with greater than $500 in residual balance may be extended for six months following the project’s completion or final ending date, or may be transferred to the Department’s 950 residual balance account. Fixed Price/Fee-for-Service accounts with less than $500 in residual balance will automatically be transferred to the Department’s 950 residual balance account.
B. In order to extend or transfer a restricted account residual balance greater than $500, a Request for Access
to Residual Balance form must be submitted
to the Contracts and Grants Department. The Principal Investigator, Department Head/Director, and Dean,
or their appointed designees will confirm the following:
1. All work has been completed and all project costs have been incurred and charged to the project’s restricted account. No project costs were charged to a separate UGA account, account of a UGA affiliate (UGA Foundation, Arch Foundation, UGARF, etc.), or third part funding source. If project costs were charged to a separate account, attach an accounting of those costs and justification for charging to a separate funding source.
2. All interim and final technical reports have been submitted to the sponsor and copies sent to the Office for Sponsored Programs.
For residual balances in excess of 25% of the total award amount, the PI must provide explanation as to how excessive funds remain while still achieving the statement of work.
C. Upon receipt of the completed Request for Access to Residual Balance form described in B above, any remaining facilities and administrative costs (overhead) will be charged to the residual fund balance and the remaining funds will either remain in the restricted account for a period of six months or will be transferred to the department’s 950 residual balance account. After the six-month extension period has expired, the remaining funds will then be transferred into the 950 residual balance account for departmental use. The original restricted account will be closed out and deleted.
D. Restricted Various Accounts with balances less than $500 and no additional deposits anticipated, or any
various account that remains inactive for a period of one year will be transferred to the 950 residual balance
account and closed. A notification letter will be sent to the principal investigator and account administrator
prior to transfer and close of a various account.
E. Departments, Centers, or Fiscal Units are permitted to establish 950 residual balance accounts for the purpose
of transferring residual balances. The purpose of this account is solely for receipt of residual balances of
multiple fixed price/fee-for-service or inactive gift funds in various accounts, which remain after their specified
time limit. The Department, Center, or Fiscal Unit is responsible for maintain the residual balance account
records including principal investigator balances. No other funds or income may be deposited into this
account.
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