Cash Surplus
A cash surplus occurs when sponsored expenditures are less than the income received on the award. The treatment of cash surpluses at the end of an award are dictated by the sponsor’s terms and conditions of the award.
Refund
Most remaining sponsored cash surpluses are refunded to the sponsor, as required by the sponsor’s terms and conditions of the award. OSP Research Finance validates sponsored balances as part of the closeout process by confirming cumulative expenditures with the Department/Local Level Managing Unit. Any income in excess of the cumulative expenditures is refunded to the sponsor by OSP Research Finance.
Interest
Interest income accrues on non-Federal sponsored funds with surplus balances. If the terms and conditions allow for the retention of accrued interest, OSP Research Finance will coordinate a transfer of the interest with the Department/Local Level Managing Unit. If the sponsor’s terms and conditions require the remittance of interest to the sponsor, OSP Research Finance initiates the transfer.
Fixed Price Contracts
Fixed price contracts are awards where the sponsor issues “fixed” payments in return for goods or services. Most fixed price contracts allow for the retention of any cash surpluses, including interest. Depending on the amount of the cash surplus, the PI and Department/Local Level Managing Unit may be required to complete a Fixed Price Residual Balance form, as outlined in the Guidance for Fixed Price Sponsored Awards. Once the form is approved, OSP Research Finance will initiate the transfer of the surplus balance.