Fixed Price Surplus Accounts

Background
Fixed price surplus budgets (budget type/class 05/34) may be set up to allow a fixed price balance from one award to offset overexpenditures from other fixed price awards. Balance transfers from fixed price budgets to fixed price surplus budgets are limited to unexpended balances from fixed price grants (budget type/class 05/14), fixed price contracts (budget type/class 05/31), and clinical trial agreements (budget type/class 05/35). Overexpenditures may be transferred from any grant or contract to a fixed price surplus budget.

Fixed price agreements (budget type/class 05/14 for grants and 05/31 for contracts) provide for a firm price that is not subject to any adjustment on the basis of the University's cost experience in performing the work. Compensation is usually established based upon a fixed amount per test or per deliverable, with the Principal Investigator and parent department assuming responsibility for keeping costs within the amount earned based upon actual performance. This award type places maximum risk and full responsibility upon the Principal Investigator for all costs and the resulting balance or deficit.

Industry-sponsored clinical trial agreements (05/35) are considered fixed price unless otherwise stated in the award documents. These awards are always pay in advance and are contracts. Upon verification from the department that the study is complete, the budget can be closed.

Fully paid, unexpended balances of 25% of the total award amount in fixed price accounts may be transferred to a fixed price surplus budget by Grant and Contract Accounting (GCA) upon receipt of a written request from the department. Departments must obtain Office of Sponsored Programs' (OSP) approval for transfer of an unexpended balance more than 25% of the total award amount.

Process Details: Establishing a Budget
A request to establish a fixed price surplus account form is submitted to GCA by emailing gcahelp@uw.eduFixed Price Surplus form.

As a general rule, a maximum of three fixed price surplus budgets will be approved for an academic or administrative unit: one for on-campus, one for off-campus, and one for clinical trials. Exceptions can be made when a significant number of awards have a non-standard Facilities & Administrative (F&A) cost rate, such as the recently approved Other Sponsored Activity rate of 33.8%. Fixed price surplus accounts are under the direction of the Dean or Department Chair and will not be set up under the direction of the Principal Investigator who oversaw the award. 

Funds in fixed price surplus budgets are unrestricted but still subject to University of Washington policies and procedures.
 
PI/Staff Responsibilities
1. Review contract provisions to confirm that the University may retain any unexpended funds.
2. Determine if the department has an appropriate fixed price surplus account. If it does not, contact GCA to set up a fixed price surplus account.
3. If a budget has an unexpended balance of less than 25% of the award amount, contact GCA transfer the balance to a fixed price surplus budget.
4. If a budget has an unexpended balance greater than 25% of the award amount, contact OSP.
 
GCA Staff Responsibilities
1. Review the department's closing request to determine whether GCA can fulfill the request or whether OSP approval is needed.
2. Close budget and transfer funds per department or OSP’s request.
 
Contacts
• Grant and Contract Accounting: Contact GCA via GrantTracker or gcahelp@uw.edu
• Extensions of fixed price awards: OSP Budget Extension webpage
• Unexpended balances greater than 25% of the award: Departmental OSP Administrator 

 

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