Procedure: 8-16

Effective: January 1, 2011

Owner: Office of Sponsored Programs

Latest Revision: May 9, 2014

Unrestricted Residual Balances on Sponsored Program Awards

Procedure Steps

Scope | System References | Policy | Responsibility | Distribution | Ownership


This procedure sets out the process for the handling of unrestricted residual balances on sponsored program awards. At the end of an award, the principal investigator in conjunction with their fiscal administrator will review the account to insure that all charges are appropriate and all sponsor deliverables have been met. This review should include and insure that no other federal sponsored funds have been charged in the fulfillment of outcomes/deliverables related to the project that is being moved to residual funds. In other words, no charges that belonged on the grant you are converting to an RG account live on any other federal sponsored program account. Once this review has been completed, any unrestricted residual balance in the sponsored project will be handled in the following manner. Excess balances of $200 or greater will be transferred to residual PTAEOs (RG awards) assigned to Investigators. Balances of less than $200 will be transferred to a central closeout account. Prior to transfer of the unrestricted residual balance, an administrative fee (in lieu of F&A) will be assessed at the F&A rate converted to a Total Direct Cost Rate (TDC) assigned to the sponsored program (51% MTDC becomes 51% TDC). A minimum of 10% TDC will be assessed. This fee will be charged in one lump sum and will be distributed as follows: OSP, 50%; Deanís Offices, 25%; Departments, 25%.

Attachments:  Residual Balance Form

System References [Top]

Procedure 1-4a Monthly Review and Certification of Sponsored Program Project or Award Expenditures,
Procedure 1-4 Monthly Review of GA Project or Award Activity,

Policy [Top]

Responsibility [Top]

The Principal Investigator

The Principal Investigator is responsible for completing the Residual Funds form with the assistance of the fiscal contact. The PI is responsible for certifying that all fiscal and programmatic obligations to the project and sponsor have been met. The PI is responsible for following University policy and procedures for the expenditure of unrestricted residual funds.

Fiscal Contacts

Fiscal Contacts are responsible for assisting the investigator with the completion of the Residual Funds form and for the reconciliation and cleanup of any issues with the awards.

School/Departmental Administrators

Departmental Administrators are responsible for reviewing and endorsing information on the Residual Funds form. School Administrators are responsible for reviewing and approving the request made by the Residual Funds form.

Award Manager on Residual Award (RG)

The Award Manager is responsible for following University policy and procedures for the expenditure of residual funds- regular state restrictions on expenditures apply to residual funds. Award Managers are responsible for managing the RG award which includes all the duties identified in Financial Administration procedure 1-4 and for taking corrective action on any deficits.

Office of Sponsored Programs

The Office of Sponsored Program is responsible for processing the requests made on the Residual Funds form and retains the option to ask for further review when warranted. OSP is responsible for establishing the accounts. OSP will also insure the cost transfer batch has been completed which will move the funds out of the sponsored research award to the RG award.

Distribution [Top]

Principal Investigator/Program Director
Fiscal Contact  Ė Department
Office of Sponsored Programs

Ownership [Top]

The Office of Sponsored Programs is responsible for ensuring that this procedure is necessary, reflects actual practice, and supports University policy.


Unrestricted Residual Balances - Any remaining cash balances, not due back to the sponsor, after verification that all costs were accurately charged to the project and all deliverables were accepted by the sponsor and final payment has been received. Note that regular state restrictions on expenditures apply to unrestricted residual funds.

Procedure Steps

The Residual Funds form may be generated by an OSP accountant at closeout time or from the field when they are aware that it is appropriate to convert an account. For each sponsored account that expires with an unrestricted balance of $200 or more (balances less than $200 will be transferred to the OSP closeout account and the award will be closed under OSP account closeout procedures).

The principal investigator will review the form and certify that all fiscal and programmatic obligations to the project and to the sponsor have been met.

The principal investigator with the assistance of the fiscal contact will complete the Residual Funds Form and route the form back to Sponsored Programs through their respective grants office.

Sponsored Programs will review the information submitted in the form to verify approval and justifications. If everything is in order, OSP will establish a residual PATEO, and will transfer the unrestricted residual balance from the closed sponsored account to the residual account PTAEO. Only one RG award will be established for each deanís office, department and individual investigator. The ORG assigned to the investigator will be his/her home organization code.

These projects will be established per guidelines from Accounting Services to ensure proper reporting to the Commonwealth of Virginia. Regular state expenditure restrictions will apply to the funds.

In lieu of F&A being charged, a one time, lump sum administrative fee will be charged when the unrestricted residual balance is transferred to the RG PTAEO. A simple conversion of the numeric F&A rate to a TDC rate (when not already TDC) will be made as the basis for the fee. As an example a 51.5% MTDC rate would become 51.5% TDC. In cases of no F&A or F&A less than 10% a minimum of 10% TDC will be assessed.

The funds from the fee will be distributed to Deanís Offices (25%), Department/ unit (25%) and OSP (50%).

In the case of RG awards, Departmental Administrators are responsible for reviewing expenditures to ensure they are appropriate for state funds. As the Award Manager, department administrators are responsible for any award overages and should take care to ensure that these awards remain in a positive cash position. Award Managers would be responsible for the closeout of the RG PTAEO as appropriate.

These awards will NOT have a budget loaded, nor should they have one loaded in the future, due to special accounting necessary for these awards.

The Office of Sponsored Programs will notify the field when the residual PTAEO has been established.

End of Activity

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by the Rector and Visitors of the University of Virginia