700.4 Residual Fund Balance
Responsible Officer: Director
Responsible Unit: Award Management
Effective date: April 1, 2010
Last revised on: April 1, 2010
Residual balances on fixed price contracts and industry funded clinical trials will be used to further University academic, research and service missions.
Facilities and administrative (“F&A”) costs will be recovered on fixed price and industry clinical trial contract revenue at the full published University rates that are in effect at the time of the award prior to distribution of a residual balance to a departmental account. Residual balances will be transferred to an unrestricted residual funds account (0-12XXX) of the administrative unit of the principal investigator provided the following conditions are met:
- All direct charges and project revenue are properly accounted for
- All indirect costs are recovered by the University at the standard published rates (i.e. on or off-campus federal negotiated or industry clinical trial)
- All project deliverables have been provided to the sponsor
- All project payments have been received from the sponsor
- All project closeout documents have been provided to the OSR
- The sponsored agreement does not stipulate otherwise
A fixed price contract is a legal agreement in which specific services with defined deliverables are performed for a pre-determined compensation amount. The amount of the fixed price contract is generally based on an estimate of the anticipated project cost.
An industry funded clinical trial contract contains the terms whereby an investigator conducts a clinical study for a fixed budget until the study is completed or terminated early.
In some cases, a cash balance (“residual”) may remain at the end of the performance or study period. A residual balance is defined as the unobligated cash that remains at the end of the performance period after all deliverables and financial obligations, including appropriate University facilities and administrative cost recovery (“F&A”), have been met and final payment has been received.
Reason for Policy
This policy and procedures shall ensure the proper distribution of residual balances that result from fixed price contracts and industry funded clinical trial agreements.
Procedures and Related Policies
The following procedure addresses how to request a residual balance transfer:
OSR Research Tool Kits
Questions and concerns can be submitted online at Ask OSR or by using the OSR staff directory. Within RAMSeS, the “Speak to Someone” option assists in locating the staff member best suited to address project-specific issues.
The policies in the Office of Sponsored Research Policies & Procedures Manual supersede any OSR policies, procedures and appendices previously included in the University Business Manual, a publication of UNC Chapel Hill’s Division of Finance.