Fixed price surplus budgets (budget type/class 05/34) are set up when the University is allowed to retain an unspent balance after a grant or contract award is closed out. Balance transfers 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)
- Clinical trial agreements (budget type/class 05/35).
Overexpenditures may be transferred from any grant or contract to a fixed price surplus budget.
Eligible budget types for surplus transfer:
- Fixed price agreements (budget type/class 05/14 for grants and 05/31 for contracts) provide for a firm price rather than reimbursement for the University's costs in performing the work. Compensation is usually established at a fixed amount per test or per deliverable, with the Principal Investigator and parent department assuming responsibility for keeping costs within the amount earned. 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 award contracts are billed by the administering department, and funds received are applied to the budget by Grant and Contract Accounting (GCA). Upon verification from the department that the study is complete, the budget can be closed.
Authorization for surplus transfer:
- Unexpended balances of 25% or less of the total funds received in fixed price accounts may be transferred to a fixed price surplus budget by GCA upon receipt of a written request from the department.
- Departments must obtain Office of Sponsored Programs' (OSP) approval in the form of a PAC (Post-Award Change) for transfer of an unexpended balance greater than 25% of the total funds received.
When an eligible budget is closing with a surplus balance, GCA will:
- Offset unexpended balances under $25
- Transfer an unexpended balance between $25 - $1,000 to the fixed price surplus account (FPSA) with the nearest F&A rate. If the unit does not have an existing FPSA at the 5th organization code level, GCA will create one using the nearest standard F&A rate.
- Transfer an unexpended balance over $1,000 to the FPSA with the nearest F&A rate. If the nearest FPSA is more than 10% from the award, the department can submit a request to create a new FPSA by emailing a fixed price surplus account form to firstname.lastname@example.org.
Funds in fixed price surplus budgets are unrestricted but still subject to University of Washington policies and procedures.
For extensions of fixed price awards, visit the OSP Budget Extension webpage.
- Review contract provisions to confirm that the University may retain any unexpended funds.
- 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.
- If a budget has an unexpended balance of less than 25% of the funds received, contact GCA to transfer the balance to a fixed price surplus budget.
- If a budget has an unexpended balance greater than 25% of the funds received, contact OSP for a PAC.
GCA Staff Responsibilities
- Review the department's closing request to determine whether GCA can fulfill the request or whether OSP approval is needed.
- Close budget and transfer funds per department or OSP’s request.