VCOM Institutional Policy and Procedure Manual

VCOM Policy and Procedure

Policy #R014

Edward Via College of Osteopathic Medicine

Policy Order No: R014 Effective Date:

September 15, 2014

Signature on File ____________________________________________ Dixie Tooke-Rawlins, D.O. Provost, Executive Vice President and Founding Dean Signature on File ____________________________________________ James F. Wolfe, Ph.D. President

Office of Research Administration Residual Funds Policy

1. PURPOSE .......................................................................................................................................... 1

2. DEFINITIONS .................................................................................................................................. 2

3. CLOSE OUT PROCEDURE ........................................................................................................... 2

4. DISBURSEMENT OF RESIDUAL FUNDS .................................................................................. 3

5. EXAMPLES ...................................................................................................................................... 4

6. DURATION OF POLICY................................................................................................................ 4

1. P URPOSE

The Edward Via College of Osteopathic Medicine may accept fixed price contracts. Once the College agrees to a fixed price contract, it must complete the work within the required time frame regardless of the actual cost of doing so. At project completion, the project account may approximate zero if costs were estimated accurately and the project went as planned, or may be positive if unanticipated efficiencies were realized. Patterns of excessive residuals indicate that either some project costs are not being appropriately charged to the project accounts (usually meaning that the college is unintentionally subsidizing the work) or projected costs are not being estimated correctly. Inflated prices can lead to charges of violation of cost and pricing regulations if federal funds are involved. Furthermore, excessive residuals may threaten the non-profit status of the institution and/or subject the institution to unrelated business income tax liability.

VCOM ORA Residual Funds Policy

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