At Florida State University, I would be concerned about a 30% residual.
I simply require the PI to explain why the expenditures were
"significantly less than anticipated".  With few exceptions they are
able to provide an acceptable explanation.  The threshold is a
combination of the percentage and the dollar amount, which more emphasis
on the percentage when it comes to large awards.

The PI's are allowed to use their residuals to fund their summer salary.
The funds must be used to further the research mission of the university
and their non-teaching salary would certainly qualify.

Judy Hefren
Assistant Director
Sponsored Research Accounting Services
Florida State University
850.645.0385

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@HRINET.ORG] On
Behalf Of Ruth B Smith
Sent: Wednesday, August 30, 2006 11:41 AM
To: xxxxxx@HRINET.ORG
Subject: [RESADM-L] Residual funds and discretionary accounts

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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 subscription information and a web-searchable archive, are available
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