Office/Contact: Grants and Contracts Administration

Associated Forms: Fixed Price Close-Out Form

SOUTH DAKOTA STATE UNIVERSITY

Policy and Procedure Manual

SUBJECT: FixedPriceAward Residual Balances

NUMBER: XXXXX

  1. Purpose

This policy and its procedures inform Principal Investigators/Project Directors (PIs/PDs) with fixed-price awards how residual balances will be handled at the end of the designated project period.

  1. Definitions

Fixed Price Awards: Also known as fixed fee, fixed sum or fixed amount awards, are a type ofsponsored projectagreement (grants and contracts) under which the external entity provides a specific level of support without regard to actual costs incurred. Accountability is based primarily on performance, results and deliverables.

  1. Policy
  1. All grants and contracts mustbe managed so that the budgetis used to carry out the project objectives during the designated project period.
  2. For fixedprice awards, any available balance remaining at the end of the grant or contract isto be retained by the University.
  1. Procedures
  1. After all deliverables of the award have been fulfilled and payment from the sponsor has been received, the grant fund will be closed out and the residual balanceof up to $5,000may be transferred to a Revolving Account controlled by the project’s PI/PD or their Department.
  1. The Fixed Price Close-Out Form must be completed.This includesconcurrence with the PI/PD’s department head and approval from the Associate Vice President for Research Assurance and Sponsored Programs, or successor, for the transfer of revenue,not to exceed $5,000.
  1. Residual balancesin excess of $5,000 will revert to the University’sF&A RecoverySponsored Programs Risk Management Fund.
  1. Responsible Administrator

The Director of Grants and Contracts Administration, successor, or designee is responsible for annual and ad hoc review of this policy and its procedures. The University President is responsible for policy approval of this policy.

SOURCE: Approved by President on (date)______.

NOTE: The signatures below are required for policy and procedure approval; however, signatures will not be included in the published version of the Policy and Procedure Manual.

Recommended by: ______

Kay F. ScheibeDate

Director, Grants and Contracts Administration

South Dakota State University

Legal Review by:______

Tracy A. GreeneDate

University Counsel

South Dakota State University

Attested by:______

Wesley G. TschetterDate

Vice President for Finance and Business

South Dakota State University

______

Kevin D. Kephart, Ph.D.Date

Vice President for Research and Economic Development

South Dakota State University

Approved by:______

Barry H. Dunn, Ph.D. Date

President

South Dakota State University

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