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PPS 5.13

OFFICIAL
 

Policy and Procedure Statement 5.13 Fixed Price Agreements – Residual
Review Date: 06/01/2019 (14 Paragraphs)
Review Cycle: June 1, E4Y  
Reviewer: Director, Sponsored Programs  

 

POLICY STATEMENTS

1. The purpose of this PPS is to establish the policies and procedures under which the Office of Sponsored Programs (OSP) will close out accounts which were established for fixed-price agreements with external funding sources.

2. At the completion of a fixed price sponsored contract, a balance may remain. After the work is completed and the account reviewed for any outstanding commitments, the unspent balance may be transferred to another account.

3. All costs incurred to complete the work for the agreement must be charged to the account.

4. All Indirect Costs (IDC) will be considered earned at the completion of a fixed price agreement and all IDC must be fully charged to the grant prior to any residual transfer.

5. When there is a residual balance remaining of more than 25% of the total project budget, a written justification from the Principal Investigator (PI) is required. The justification should be provided to OSP staff. The justification should include a detailed explanation of the reason(s) that actual expenditures were less than budgeted expenditures for the project and how the project objectives were accomplished without incurring all budgeted expenditures. After the justification is reviewed by OSP, the remaining residual balance will be transferred to the PI’s residual account.

6. Residual balance transfers of 25% or more of the total project budget require the approval of the Assistant Vice President for Research.


PROCEDURES

7. Residual Account Transfer: Once final payment is received from the sponsor and the fixed-price restricted account has been closed, OSP will prepare any necessary accounting entry to fully charge IDC to the fixed-price account.  The PI will request the remaining residual balance be moved to the PI's residual account via a Residual Transfer Request (Form GAO-03). The residual balance will be transferred only after confirmation from the PI has been received to ensure that all costs have been correctly charged to the project account.

8. Justification: When the residual exceeds 25% of the total project budget, the PI will provide a written justification as described in Section 5 above and attach the justification to the Residual Transfer Request.

9. Additional Approval: The Assistant Vice President for Research will approve residual balance transfers of 25% or more of the total project budget on the Residual Transfer Request.

10. Exception:  At certain times, a fixed price account may be extended rather than closed.  Exceptions are approved by the Director – OSP and the PI.

11. Types of Expenditures from Residual Accounts: Expenditures from residual accounts should benefit and promote the advancement of the mission of Texas State University. Research residual funds are unrestricted and can be used for any official use in compliance with UPPS 03.04.05 guidelines for the use of returned indirect cost funds.

12. Time Period: Expenditures may be made from the residual accounts until all funds are expended.

13. Responsible Person: The responsible person for a residual account is
the PI.


CERTIFICATION STATEMENT

14. This PPS has been approved by the reviewer listed below and represents Texas State’s Division of Academic Affairs policy and procedure from the date of this document until superseded.


Review Cycle _____________________ Review Date: ______________
Reviewer: ________________________ Date: _____________________
Approved:_________________________ Date: _____________________

Gene Bourgeois
Provost and Vice President
for Academic Affairs

Texas State University
Provost and Vice President for Academic Affairs
Last Updated: June 24, 2015
Send Comments and questions to: tg12@txstate.edu