Dear Colleagues,

From time to time residual funds remain after performance of a fixed price
contract is completed and payment in full is received.  I would be
interested in how you manage two aspects, in particular, of residual funds.

First, what percentage of the original amount raises a red flag?  For
example, we would be somewhat concerned if $30,000 of a $100,000 project
remained, very concerned about 50% or more but not at all concerned about
10% or less.

Second, how may the residual funds be used and by whom?  May a faculty
member pay his or her own off-duty quarter salary using residual or other
discretionary funds?  We transfer residual funds, less F&A, to an account
for the PI’s use for research-related purposes.  These discretionary funds
may not be used faculty salaries but may be used for expenses such as
student support, travel for meetings with funding agencies, small equipment
and supplies.  The funds remain in the PI’s discretionary account until
spent.

Thank you for any information you are willing to provide.

Cordially,

Ruth

Ruth Smith, Executive Director
Old Dominion University Research Foundation
P.O. Box 6369; Norfolk, VA 23508
Ph 757.683.4293, ext. 600
Fax 757.683.5290
Mobile Ph 757-469-5675

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