Scope
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. 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%; Dean’s 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, http://www.virginia.edu/finance/polproc/proc/1-4a.html
Procedure 1-4 Monthly Review of GA Project or Award Activity, http://www.virginia.edu/finance/polproc/proc/1-4a.html
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 reviewing and approving
the requests made on the Residual Funds form and for requesting 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 – 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.
Definitions
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
At closeout, the OSP Award Manager (OSP Accountant) will generate a
Residual Funds form 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 Residual Funds form will be forwarded to the appropriate fiscal contact
and principal investigator for completion.
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 dean’s office,
department and individual investigator. 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 Dean’s 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.
The Office of Sponsored Programs will notify the principal investigator and
project manager when the residual PTAEO has been established.
End of Activity
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