We are trying to work with our state government regarding proposed rule clarifications affecting contracts issued to the Florida state universities from Florida state agencies.  The state is proposing that, for all agreements with subrecipients of federal financial assistance where a fixed-price award is used, the university must return to the state agency any residual amount where total expenditures are less than total budget awarded.  They consider this residual to be unearned funds.  The state’s proposal will permit any such residual to remain with the university for vendor-type awards that are issued on a fixed-price basis since they are not financial assistance.

 

Does this meet with your understanding of A-133 requirements?  Does it make sense to issue fixed-price awards for financial assistance?  Thanks!