This guidance applies to all GSU faculty and staff responsible for overseeing or managing fixed-price sponsored projects.
This guidance establishes procedures for requesting the transfer of residual balance funds remaining on fixed price agreements after completing the work satisfactorily and submitting all required deliverables to the sponsor.
To the extent possible, Principal Investigators (PIs) and department administrators must prepare accurate, detailed proposal budgets and include costs associated with the fixed-price sponsored award to fully capture all resources necessary for the work performed on the project.
As a non-profit institution, the GSU's mission is not to seek profit from its research activities; therefore, significant residual balances on fixed-price sponsored awards may call into question the validity of the proposed budget and could potentially affect the University's tax-exempt status.
The guidance establishes the following process:
Fixed Price Contract
An agreement in which the University guarantees to deliver a product or perform a service for a predetermined fixed fee as determined in the contract. The payments are made in a "lump sum" or on an agreed-upon schedule. In either of these cases, the payments are not reimbursement for actual project costs but are fixed based on estimates of the cost to complete the project.
A residual or unexpended balance will exist if total costs are below the agreed-upon contract amount. While some sponsors require the return of residual funding, in the case of fixed-price contracts, the sponsor allows the University to retain unexpended balances and use them to support its mission further.
Residual Balance
An unobligated, unspent balance remaining in a sponsored project account after all work has been completed, and all deliverables have been met.
Commitment Control Dates (KK)
These dates in Peoplesoft (Spectrum) are associated with the budget ledger.
Residual Balance Transfer
The guidance of Georgia State University (GSU) states that residual balances on fixed-price agreements are treated according to the terms outlined in the sponsor's contract. If the residual balance is to be maintained by GSU, the balance will be moved to the department residual account.
The facilities and administrative cost (F&A) will be assessed at the agreed-upon rate noted in the award agreement.
Residual balances of more than 10% direct costs of the contract amount will be carefully reviewed to ensure that all costs have been recorded. The Comptroller's office must approve a more than 10% residual balance.
Before the transfer of the residual balance, the Principal Investigator and unit business officer needs to provide and confirm the following:
During their approval process, the Comptroller's Office will complete the following review for residual balances greater than 10% of the direct cost. They will communicate directly with the department if there are concerns:
During the award closeout process, the OSP Post Award Officer must confirm the total payment receipt before completing the transfer of the residual balance.
General Notes for KK End Date Extension Requests
KK End Date Extension Requests are made when spending should continue on an existing project ID (sometimes called "speedtype") without a formal award document indicating a change in the performance period.
OSP will automatically extend the commitment control end dates (KK End Dates
when:
An official award notice is received with a new end date.
An official No-Cost Extension is granted.
The award is Fixed Price:
Close and Inactivate the Project
After transferring the remaining balance to the departmental account, the OSP Post-Award
The officer will close out and inactivate the project.