Research, Sponsored Program, Technology Transfer and Intellectual Property

Residual Balance Transfer

Section: Research, Sponsored Program, Technology Transfer and Intellectual Property Policies
Policy Name: Residual Balance Transfer
Policy Owner: Vice President for Research, Scholarship & Innovation
Responsible University Office: Research Office
Origination Date: December 2, 2020
Revisions:
Legacy Policy Number: New
  1. SCOPE OF POLICYThis policy sets forth the final disposition of residual balances on Fixed-Price, Fixed-Rate, and Non-Refundable grants and contracts at the University of Delaware (UD) in which no designation was made by the sponsor as to the use of any unexpended balance.
  2. DEFINITIONS
    1. “Fixed-Price,” “Fixed-Rate,” & “Non-Refundable” Grants and Contracts – means those grants and contracts under which the sponsor or pass-through entity agrees to a specific level of financial support and there is no expectation that excess funds be returned to the sponsor.
    2. “Residual Balance” – means the unexpended balance remaining after financial close-out of an expired fixed price, fixed-rate, or non-refundable grant or contract.
  3. POLICY STATEMENTThis policy sets forth the requirements for justification, approval, and management of unexpended balances for Fixed-Price, Fixed-Rate or Non-Refundable contracts. If assurances and justifications are provided per this policy, an unexpended balance may be transferred to the appropriate residual account defined by the administering department.
  4. POLICY STANDARDS AND PROCEDURES
    1. The Research Office is responsible for managing and transferring residual balances on sponsored programs during award close-out. Residual balances will be transferred to the administering department when the following conditions are met:
      1. All work activities have been completed.
      2. All direct charges have been charged and accounted for properly.
      3. The applicable amount of F&A costs generated by the expenditures have been recovered.
      4. All project deliverables have been provided and accepted by the sponsor.
      5. All project payments have been received from the sponsor.
      6. The sponsored agreement terms do not require the University to return the residual balance.
    2. Residual balances will be distributed proportionately between direct costs and F&A costs, with the direct cost amount being transferred to the administering department. The F&A residual balance will be transferred to the central F&A pool.
    3. All residual balance requests require a Residual Balance Transfer form be completed and submitted to the Research Office for processing. This form contains:
      1. The total residual balance amount to be transferred off the project and onto an unrestricted residual account.
      2. An unrestricted residual account specified by the administering department to be used for the residual balance transfer.
      3. Confirmation that all applicable conditions have been met for the residual balance transfer to occur.
      4. Approval by the PI, Department Administrator, and Sponsored Research Accountant (or designee).
      5. Additional justifications and approvals required for residual balances greater than or equal to 20% of the total award amount:
        1. Documented justification by the PI to assure that costs for the award have been allocated appropriately and adequately explain:
          1. Why actual costs differ significantly from the original costs projected for the award.
          2. How excessive funds remain while still achieving the scope of work.
        2. Approval by the Department Dean/Director (or designee) and the Vice President for Research, Scholarship, and Innovation (or designee).
    4. Department/PI Responsibilities
      1. Close-out the award ensuring completion of the following:
        1. All direct charges have been accounted for properly.
        2. All project deliverables have been provided and accepted by the sponsor.
        3. The sponsored agreement terms do not require the University to return the residual balance.
      2. Complete the Residual Balance Transfer Request Form and submit it via email to the assigned Sponsored Research Accountant in the Research Office. If the residual transfer is not requested within 120 days of the award end date, RO reserves the right to transfer the residual to a central account to close the award.
    5. Research Office Responsibilities
      1. Close-out the award ensuring completion of the following:
        1. All project payments have been received from the sponsor.
        2. The applicable amount of F&A costs generated by the project’s expenditures have been recovered.
        3. The sponsored agreement terms do not require the University to return the residual balance.
      2. Review the Residual Balance Transfer Request form submitted by the department and verify the final financials.
        1. When residual balances are determined to be eligible to be converted into unrestricted funds, allocate the available balance according to this policy.
        2. If there are concerns about a request for transfer, Research Office staff shall confer with the appropriate campus officials about resolution.
        3. All project accounts are subject to University audit. If in an audit it is found that project charges have been inappropriately recorded, corrections and adjustments will be made.