Fixed-Price Award Balances Overview
This guidance explains UC Riverside’s standards and procedures for transferring unexpended balances on fixed-price sponsored awards to the Org’s Fixed-Price Surplus Fund. It applies to all fixed-price awards received by UCR—federal, state, industry, foundation, or other—and is relevant to Principal Investigators (PIs), departmental administrators, and central administrative offices. The intent is to ensure compliance with University policy, sponsor requirements, and sound financial management practices.
Key Terms & Responsibilities
- Fixed-Price Award – A sponsored agreement under which UCR receives a predetermined amount to complete the scope of work and deliverables, regardless of actual project costs.
- Unexpended Balance – Residual funds remaining after all allowable costs have been charged, deliverables accepted by the sponsor, and sponsor payments received.
- Principal Investigator (PI) – Ensures deliverables are met, expenditures are timely and appropriate, and residual balances are justified.
- Department/Unit Administrator – Reviews expenditures, prepares closeout documentation, and certifies compliance with sponsor and University requirements.
- Extramural Funds (EMF) – Reviews and approves final balances, confirms compliance, and processes the transfer of residual funds.
Conditions for Retaining Balances
UCR may retain unexpended balances on fixed-price awards provided that:
- The award terms and conditions permit retention of residual funds.
- All required work has been completed and accepted by the sponsor.
- All allowable costs have been charged in accordance with University policy and sponsor requirements.
- The award is not in deficit at the time of closeout.
Residual balances, less applicable indirect costs, are transferred to an established Organization Sales & Service Fixed-Price Surplus Fund. These funds must be used to support the PI’s research or academic program in accordance with University policy.
Extramural Funds (EMF) will process a one-time transfer of the balance based on final closeout documentation.
Steps at Award Closeout
- At award completion, the PI and departmental administrator review expenditures to confirm all allowable costs have been charged.
- If a balance remains:
- Calculate the residual balance less indirect costs.
- Example: An award with a surplus of $6,820 and an indirect cost rate of 10% results in $6,200 distributed to direct costs and $620 to indirect costs.
- Complete the Fixed-Price Surplus Funds Transfer Certification Form.
- Provide justification for significant unexpended balances (defined as greater than $10,000 or more than 25% of the award).
3. Submit documentation via the Finance Administrative Services Portal.
- Select Request Help → Contracts & Grants.
- In the Short Description field, enter: “Fixed-Price Surplus Funds Transfer.”
4. EMF review – EMF verifies sponsor payments and reporting obligations, and if appropriate, approves the transfer of residual funds.
Additional Information
- If immediate access to funds is needed, a $1 “dummy budget” may be created in the GL using the Org’s Fixed-Price Fund. Departments should exercise caution: any overspending beyond the final balance will be the department’s responsibility.
- Delays in following the steps above can hold up closeout and the transfer of residual balances to the Org’s Fixed-Price Surplus Fund.