If it is a fixed price (or fixed unit price) agreement, the sponsor seldom
has a right or need to know.  Suggest you never give them the chance to
meddle.  Of course there are instances in which the sponsor knows the award
is significantly greater than your costs and intends a secondary use of the
funds be specified, in which case, graciously smile and accept the funds
and the enabling language.

Chuck

At 01:57 PM 7/11/00 -0500, you wrote:
>Does anyone's institution require the contract to have language stating that
>the residuals can be kept and how that they'll be used?
>
>-----Original Message-----
>From: Caskey, William PhD. [mailto:xxxxxx@CMH.EDU]
>Sent: Tuesday, July 11, 2000 1:45 PM
>To: xxxxxx@HRINET.ORG
>Subject: Re: How Do You Handle Residual Funds?
>
>
>When funds remain after all bills are paid for industry-sponsored projects,
>half the funds go to an account used to support the research of the
>investigator(s). The other half goes to an unrestricted account in the
>investigator's home section/department which is most often used to support
>additional research. The investigator is free to support any research s/he
>desires as long as it is within the mission of the hospital and meets all
>other requirements. We consider all industry-sponsored contracts fixed-price
>contracts, unless the terms and conditions state otherwise, and that any
>residual is not connected to the original project. We close out the project
>account upon tranfer of any residual funds.
>
>Bill Caskey, PhD
>Director, Research & Grants Administration
>Children's Mercy Hospital
>2401 Gillham Road
>Kansas City, MO  64108
>
>Voice:(816) 234-3879
>FAX:(816) 855-1982
>E-mail:  xxxxxx@cmh.edu <mailto:xxxxxx@cmh.edu>
>
>
>This communication is intended only for the use of the addressee.  It
>may contain information which is privileged or confidential under
>applicable law.  If you are not the intended recipient or the agent of
>the recipient, you are hereby notified that any dissemination, copy or
>disclosure of this communication is strictly prohibited. If you have
>received this communication in error, please immediately notify The
>Children's Mercy Hospital at 816-234-3879 or via return Internet
>electronic mail at xxxxxx@cmh.edu <mailto:xxxxxx@cmh.edu>  and expunge
>this communication without making any copies.  Thank you for your
>cooperation.
>
>
>
>-----Original Message-----
>From: Doug Wilkerson [mailto:xxxxxx@MCO.EDU]
>Sent: Monday, July 10, 2000 2:46 PM
>To: xxxxxx@HRINET.ORG
>Subject: How Do You Handle Residual Funds?
>
>
>I would be interested in knowing how those of you involved in the management
>of industry-sponsored clinical trials handle any funds remaining AFTER all
>of the work is completed, i.e., after the company has accepted all
>deliverables required in the contract, and all of the bills are paid.   Do
>you leave the residual funds in the same account that was established to
>support the work of the clinical trial, or move them to another account?  Do
>you place restrictions on the use of the residual funds?  At the end of the
>trial, do you consider any residual funds to be completely dissociated from
>the original contract and thus available for expenditure for any
>research-related activity, assuming that no contract clauses survive the
>contract which might obviate this option?  What if your investigator wanted
>to utilize residual funds to finance a collaborative research agreement with
>another entity for basic research, would you be comfortable with it?
>
>
>
>
>
>
>
>Doug Wilkerson, Ph.D.              Phone:   (419) 383-4252
>Assoc. V.P. For Research          Fax:   (419) 383-4252
>Professor of Pharmacology         E-mail:   xxxxxx@mco.edu
>Research & Grants Admin.          Web: www.mco.edu/research
>Block Health Sci. Bldg., Rm. 148
>3035 Arlington Ave.
>Toledo, OH 43614-5804
>
>
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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Express Delivery Only:
 Sanger Hall, Rm. 1-073
 11th & Marshall Streets
 Richmond, VA  23219
Voice:  804-828-6772
Fax     804-828-2521
OFFICE e-mail   xxxxxx@VCU.EDU
Personal e-mail xxxxxx@vcu.edu
http://views.vcu.edu/ospa/

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