Fixed Price Accounts

A fixed price contract or agreement is where a pre-determined/fixed amount of funds is awarded by the sponsor to complete a defined scope of work.  Ideally, a fixed price account should be fully expended during the award period.  If more than the approved budget is expended, the University is responsible to cover the deficit.  Occasionally, there may be minimal residual balances at the end of the project.  These residual balances may be retained by the University.

  • Fixed price account transfers
Any deficit or residual balance will be transferred to the PI's College, School or department's Fixed Price control account.  Fiscal officers should submit a request to establish this account to ORS.  University and departmental spending guidelines apply.

The following six criteria must be met in order for a fixed price transfer to the College, School or department's account:
1.  The award is a fixed price contract.
2.  The scope of work is complete and to the satisfaction of the sponsor.
3.  All payments have been received.
4.  All expenses have been recorded in the project account.
5.  The account is ready to be closed.
6.  The project end date has been reached.

Use the Fixed Price - Residual Balance Closeout Form (click to view) form to request balance transfer.  Upon approval of transfer request, the ORS accountant will prepare a JV to transfer the funds.  The FO will be provided a copy of the JV. 
  • Fixed price account extensions
If an end date for the project is not specified in the award document, an extension to the end date initially established for the project account in the University's financial system may be requested if the project is not complete.  The Internal Account Extension Request (click to view) should be completed and submitted to ORS.  The new end date should reflect the PI's best estimate of when all project activities are likely to be completed.

If an end date is not specified in the award document and the project has been completed, a one-year extension to the project account end date established may be available if the following criteria are met:
The award is a fixed price contract and all project deliverables have been met to the satisfaction of the sponsor,
All project funds have been received from the sponsor, and
All project expenses have been charged to the project account.

The PI will have one-year following the submission of the final project deliverable to spend any residual fund balance on project related activities.  If there are still residual funds remaining after the one-year period, the balance will need to be transferred to the College, School or departmental account as discussed in the "Fixed price account transfers" section above.

Accounts Receivable Collections

  • Invoice collection process under APM A8.954
Collection letter(s) are sent to sponsors for unpaid final invoices.

1st Notice 2 months after final invoice submitted
2nd Notice Approximately 2 months after 1st Notice
Notification to Dean/Director Approximately 2 months after 2nd Notice
Account may be sent to a collection agency
  • Cash balances
Any excess cash received will be returned to the sponsor in accordance with award terms.

If despite all collection efforts, the accounts receivable is deemed unrecoverable, ORS will work with school/campus to obtain funds or determine payment plan to reimburse the project account for any cash deficit.  Generally, cash deficits will be charged to the School/College or Research Unit's Research Training and Revolving (RTRF) account or other departmental account provided. 

If payment is subsequently received from the sponsor, the account used to cover the deficit will be credited.

Due Dates and Timeline

Careful attention to deadlines is necessary for a successful closeout process.

Sponsor Due Dates

Sponsor Type Due Date
Federal Sponsor
  • Generally 90 days after project termination
  • Usually require the Standard Form 425, Federal Financial Report
Other Sponsor
  • May be shorter closeout period (60, 45, 30 days)
  • May have their own specific formats for reporting and invoicing
  • May request detailed back up information

Confirmation of Closeout by Fiscal Administrator

The time frame for timely confirmation of final expenditures and approval for closeout by FO is discussed in APM A8.954 as follows:

Report Due Date Fiscal Administrator Confirmation Due By
Standard 90 days 30 days prior to due date
60 to 89 days 20 days prior to due date
Less than 60 days 15 days prior to due date

If timely response not received by ORS:

  • ORS prepares and files final invoice or report based on information in the Kuali Financial System (KFS) at that time and sends final report to the Fiscal Administrator, PI, and Dean/Director.
  • Outstanding encumbrances, suspended transactions or unposted payroll charges will not be included.


Closeout Reports

Report Submission Requirements
Final Technical Report If ORS endorsement is required, the principal investigator (PI) should send original and one copy of the report to their assigned ORS Grants Specialist.

If ORS endorsement is not required, the PI should provide their assigned ORS Grants Specialist with a copy of the transmittal, indicating the date of submission and where the report was sent.
Final Invention Statement or Final Patent Report The PI should send the original and one copy to their assigned ORS Grants Specialist for signature and submission to sponsor.

Final Inventory or Property Report The PI should request report from the UH Property and Fund Management Office (PFMO) and notify their assigned ORS Grants Specialist at the date the report was filed with the sponsor.
Financial Reports Final invoices and standard reports are completed by the ORS Fiscal Accounting Section with confirmation of final expenditures provided by the Fiscal Officer.  Also included are Release and Assignment reports which must be certified by ORS.

If ORS receives notifications of past due final reports, the PI will be notified.  If not completed, the dean/director may also be notified.  If the PI does not comply with the required award terms, future proposals of the PI may be held until all outstanding items are submitted.

Roles & Responsibilities

All parties need to work collaboratively in the closeout process.  Refer to APM A8.954, Section 4 for the responsibilities of the various parties.  Responsibilities include, but are not limited to :

Principal Investigator (PI)

  • Ensures compliance with award terms (for example, adherence to approved budgets and project due dates)
  • Completes all required reports such as technical, invention and cost sharing reports
  • Collaborates with Fiscal Administrator to resolve fiscal matters
  • Determines if a project extension is necessary

Fiscal Administrator (FA)

  • Assists PI in ensuring all project costs are allowable, allocable and reasonable and posted in a timely manner to the Kuali Financial System (KFS)
  • Works with PI to confirm final expenditures for project account
  • Verifies that encumbrances and suspense items are cleared
  • Provides approval to process final invoice or report
  • Provides detailed schedules or back up documentation, if required by sponsor

Dean or Director

  • Ensures that PI and FA carry out their closeout duties
  • Assists PI in securing alternative funding if deficits or disallowances occur

ORS Responsibilities

  • Issues courtesy reminder notices to PI and FA (sent out via "Closeout Notice Mailbox")
  • Submits financial reports to the sponsor and coordinates and/or endorses other report submissions
  • Informs dean/director if closeout problems arise
  • Pursues accounts receivable collections


More Articles...