One issue appears not to have been addressed in the responses thus
far concerning what happens to money "left over" at the end of a fixed price
contract, such as a clinical trial.  Since the company has probably written
off the cost of the research contract as a Research Expense, I should think
that at the very least, the left over monies would have to be restricted to
research expenditures (even though obviously not for the same project) or the
institution may run the risk, in an IRS audit, of being assessed taxes on
UNRELATED BUSINESS INCOME.  Have I missed something, or is this not a
potential problem when "left over" monies are spent for non-research related
expenses?

Doug Wilkerson, Ph.D.           VOICE:  (419) 381-4252
Assoc. V.P. for Research        FAX:    (419) 381-4262
Medical College of Ohio         e-mail: xxxxxx@CUTTER.MCO.EDU
3000 Arlington Ave.
Toledo, OH 43614