Re: Residual funds and discretionary accounts Hefren, Judy 30 Aug 2006 10:56 EST
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 ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================