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Responsible administrator:
Senior Vice President for Finance & Administration
Responsible department:
Contracts and Grants
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Who should know this policy? –University faculty, staff, and administrative personnel who submit and account for Grants and Contract type funding.
Purpose of the policy:
To establish a procedure that (1) provides access to residual revenue in restricted fixed price accounts, (2) ensures that the expenditure of residual revenue in these accounts is not inhibited by the former sponsor’s requirements, (3) documents that further expenditures from such accounts are for approved purposes, and (4) minimizes the burden placed on the institution’s financial operations regarding oversight of these accounts. Certain various accounts are also 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 will be extended for 2 years following the project’s completion or final ending date, and
will remain restricted accounts.
B. The following information must be submitted to Sponsored Programs/Contracts and Grants before the account can be
extended. Principal Investigator and/or Department will need to confirm the following:
1. All work has been completed
2. No outstanding items remain open or in question with the sponsor
3. All reports (technical and financial) have been received and accepted by the sponsor
4. All payments for the project have been received
A checklist form with place for signatures has been devised inclusive of the items listed above in order to expedite
the process for principal investigators. This form may be found at the following web site address:
http://www.busfin.uga.edu/contracts_grants/residualbalance_form.doc
C. If the residual balance remaining is greater than 25% of the awarded amount, dean’s (or a designee’s) signature will be
required on the initial request to obtain the two-year extension.
D. Once C&G receives the information described in B above signed by the principal investigator and dean (or designee):
1. F&A will be taken on the balance of the residual funds, if assessed on the restricted project account, in one lump sum
at the time of the extension.
2. Balances greater than or equal to $500.00 will be extended.* Balances less than $500.00 will be transferred to the
department’s 950 restricted project account.
E. Each Department, Center, or Fiscal Unit will be permitted to establish one 950 restricted project account for the purpose of
transferring small residual balances remaining after the two-year period extension or those initial amounts of less than
$500. 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. No other funds or income may be deposited
in this account.
F. After the two-year extension period has expired:
1. Any remaining funds in the account will roll into the 950 restricted project account for department access. *
2. The original project restricted account will be closed out and deleted.
G. Restricted Various Accounts that have balances less than $500.00 with no additional deposits anticipated, or any various
account that remains inactive for a period of two years will be transferred to the 950 restricted project 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.
* Before the account is extended for the two-year period, the remaining residual balance funds will be utilized to cover any cost overruns (deficits) made by the same principal investigator on other restricted accounts where he/she is responsible.
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