Effective October 17, 2017, the Office of Sponsored Research (OSR) has an updated Policy and Procedure pertaining to residual fund balances on fixed price agreements. Effective with this updated policy, residual balances on sponsored projects will now be transferred to the administering department when all of the following conditions are met:
- All direct charges and project revenue have been accounted for properly
- All project deliverables have been provided to the sponsor
- All project payments have been received from the sponsor
- Sponsored agreement terms do not require the University to return the residual balance
- Amount of indirect costs generated by the project’s expenditures have been recovered
- Justification is provided for residual balances greater than 25% of the Total Project Budget
Indirect costs will not be applied to residual balances except in the following rare instance: When fixed price projects receive a full or partial F&A waiver, full indirect costs will be collected from the residual balance, up to the amount that would have been applied to the incurred expenses if the waiver had not been approved and full F&A had been allowed from the start of the budget period.
The full updated Policy and Procedure may be found on the OSR website:
- OSR Policy 700.4 – Residual Fund Balance
- OSR Policy 700.4 – Pro.1 Requesting a Residual Balance Transfer
Please contact us at ResAdminOSR@unc.edu with any questions regarding these updates.