What happens to any residual balance once a sponsored project under a fixed price agreement ends?
University policy is that there should be little or no residual on a fixed price agreement. However, if there is a balance once the project is over, ASU will first book F&A on expenses or budget, whichever is greater at the fully negotiated rate. Any existing cost overruns on other accounts belonging to the specific investigator will also be net out. This process is to discourage residual balances in an effort to have the investigator properly budget and fully utilize funds provided for all project costs. Next, the balance is transferred to a local discretionary departmental account based on information provided by the Chair of the Department (not the investigator). Refer to http://www.asu.edu/aad/manuals/rsp/rsp509-03.html.
