WHAT HAPPENS TO MONEY REMAINING IN THE GRANT ACCOUNT WHEN THE STUDY IS COMPLETED?
Most research grants/agreements have a termination date specified in the written agreement. To extend the agreement beyond that date generally requires a written modification to the agreement. When this is possible (and it generally is), the account remains active. If the project has terminated, the P.I. must request an extension for use of the remaining funds. All expenditures from any grant account MUST be justifiable as research-related. Typically, corporate sponsors claim research grants/agreements as tax deductible research expenditures. For this reason, if MUOT cannot clearly justify the research-related nature of all expenditures from grant accounts, the College may incur a tax liability for Unrelated Business Income. Recent IRS rulings suggest that a record of publication of research supported from a grant account is a key factor in determining that monies in that account are NOT Unrelated Business Income.
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- WHAT HAPPENS TO MONEY REMAINING IN THE GRANT ACCOUNT WHEN THE STUDY IS COMPLETED?
