Effective for Awards issued after May 1, 2023:

If a residual balance exists upon project closeout: 

1. If the fixed-price award budget included an F&A waiver or any other limited rate, the residual balance will first be used to cover F&A costs at the University's full negotiated rate identified on PSU’s Negotiated Indirect Cost Rate Agreement according to the project type (research, instruction or     other sponsored activity).  F&A at the full rate will be calculated and applied to direct costs incurred.

2. Then, the remaining residual balance will be utilized to cover any cost overruns (deficits) made by the Principal Investigator(s) on other restricted accounts for which they are responsible.

3. Finally, any remaining residual balance will be distributed as follows:

• If the residual balance is ten percent (10%) or less of the total award amount, the entire [remaining] residual balance will be transferred to a Converted Fixed Price Index (CFPI) created for the Principal Investigator.

• If the residual balance is above ten percent (10%) of the total award amount, no more than ten percent (10%) of the total award amount will be transferred to the Principal Investigator’s CFPI.  The remaining residual balance will be maintained in RGS.

Awards issued before May 1, 2023 will be charged F&A costs at the University's full negotiated rate identified on PSU’s Negotiated Indirect Cost Rate Agreement according to the project type (research, instruction or other sponsored activity) prior to transfer of the remaining balance to the Converted Fixed Price Index (CFPI) created for the Principal Investigator.