Procedure
Sidebar
Table of Contents
Governing Policy
Questions?
Please use the contact section in the governing policy.
This procedure applies to all fixed price and fixed fee contracts, including clinical trials. Before any sponsored project will be closed out, the principal investigator (PI) must complete and submit deliverables to the sponsor.
Before the project end date:
Sponsored Projects Administration (SPA) will send a notification to PIs and their unit administrators approximately 60 days before the end date of a fixed price award, inquiring whether a no cost extension is needed. If additional time is needed to complete the work, the PI must obtain a no cost time extension, requesting the amount of additional time needed and updating progress information or any budgetary detail the sponsor requests. SPA must countersign requests to sponsors.
Form UM 1767 (Departmental Fixed Price Closeout Checklist) is available for departmental use in maintaining documentation of the closeout. These forms are specifically recommended for retention within the department whenever there were significant changes from what had originally been proposed (for example, changes in scope, budget, or timeline; significant unexpended balances or overdrafts).
After the project end date:
On a monthly basis, Sponsored Financial Reporting (SFR) identifies all sponsored projects that have ended and have not been sent through the closeout process. The SFR accountant will work with the PI/unit administrator to confirm the sponsored project is ready to be closed out in EFS and then proceed with the normal closeout process.
Distribution of Final project balance:
If there is a residual balance after the project has ended, the SFR accountant will assess the published F&A rate to that balance. After the F&A has been charged, the remaining balance will be transferred to a departmental non-sponsored ChartField string specified by the unit administrator or to the residual program.
| Type | Direct Costs | F&A @54% MTDC | Total |
|---|---|---|---|
| Award Amount | $64,935 | $35,065 | $100,000 |
| Total Actual Expenses | $50,000 | $27,000 | $77,000 |
| Preliminary Residual Balance | $23,000 |
| Type | Direct Costs | F&A @54% MTDC | Total |
|---|---|---|---|
| Residual Balance | $14,935 | $8,065 | $23,000 |
$14,935 is distributed to a departmental ChartField string.
$8,065 is distributed to the academic unit’s F&A recovery string.
Distribution of Final project balance if F&A was reduced
If the sponsored project has received a reduction or waiver from the published F&A rate, the SFR accountant will first use the residual balance to assess and charge the published F&A rate on all expenses charged to the project. If there is any remaining balance after that assessment, the SFR accountant will assess the published F&A rate to that balance. After the F&A has been charged, the remaining balance will be transferred to a departmental non-sponsored ChartField string specified by the unit administrator or to the residual program.
| Type | Direct Costs | F&A @32% MTDC | Total |
|---|---|---|---|
| Award Amount | $75,758 | $24,242 | $100,000 |
| Total Actual Expenses | $52,000 | $16,640 | $68,640 |
| Preliminary Residual Balance | $31,360 |
Calculation 1: Recovery of Full F&A on actual expenses
Total Actual Expenses $52,000 + F&A @54% MTDC = $28,080
Full F&A ($28,080) - actual F&A charged (16,640) = $11,440
$11,440 sent to the unit’s F&A recovery string
Preliminary Residual Balance of $31,360 - $11,440 = $19,920 (true residual balance)
Calculation 2: True Residual Balance apportioned to direct and indirect
| Type | Direct Costs | F&A @54% MTDC | Total |
|---|---|---|---|
| Residual Balance | $12,935 | $6,985 | $19,920 |
$12,935 is distributed to a ChartField string assigned by the unit.
$6,985 is distributed to the unit’s F&A recovery ChartField string.
Oversight:
In instances where the residual balance is at least $50,000 and at least 25% of the budget, the SFR Director will verify charging of applicable expenses prior to that balance being distributed to the non-sponsored ChartField string(s).