Pro. 1 Requesting Residual Balance Transfer
Residual balances on fixed price contracts and industry funded clinical trials can be transferred to an unrestricted residual funds account (0-12XXX) to be used to further University academic, research and service missions.
The department may request residual balance transfers via an Account Adjustment Form (AJ1) or the Online Journal Entry system (Residual Funds Transfer Manual). Residual balance transfer requests must be approved by the Office of Sponsored Research (OSR).
Residual balances in excess of 10% of the contract amount will be carefully reviewed to be certain that all costs have been recorded and that cost estimates were not inappropriately inflated. Variances will be explained and documented. Department head approval is required prior to the distribution of residual balances in excess of 10% of the contract amount.
On fixed price contracts other than industry clinical trial contracts, full F&A on the unexpended funds will be recorded as unrestricted revenue to the University via the journal entry, and the residual balance will be distributed to the department. Note that F&A is generally recovered on industry clinical trial contracts at the time the sponsor payment is deposited; therefore F&A has already been recorded on industry clinical trial residual balances.
For both fixed price and industry clinical trials contracts, if the F&A rate was waived or reduced, the OSR will adjust F&A to record full F&A prior to determining a residual balance.
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.