IFAS Internal Management Memoranda

IFAS; Fixed Cost Contract

EFFECTIVE DATE: December 1, 1993

INTERNAL MANAGEMENT MEMORANDUM: 6C1-6.50-7 (Revised)

SUBJECT: IFAS; Fixed Cost Contract

  1. "Fixed Cost" contracts are those which specify a "specific" amount of funds are available in order to complete a project. (The term "fixed cost" or the equivalent meaning must be clearly evident within the contract or else IFAS must treat the funds as "cost reimbursable", that is, varying with actual expenditures.) If cost overruns are encountered, the Unit must absorb them. If a balance remains at the termination of the project, it is retained by the Unit.

  2. Because expenditures cannot be made from an account after the termination date, any remaining balance must be transferred to the Unit's combined grants account by the following procedure:

    1. When the final report is complete the Principal Investigator (PI) should contact IFAS Contracts and Grants Accounting Section to verify the balance. The PI should send to IFAS Sponsored Programs a memorandum requesting that the balance be transferred to the Unit's combined grants account. The memorandum should be countersigned by the PI's Unit Administrator.

    2. IFAS Sponsored Programs will verify the contract as fixed cost, and all funds received, and forward the PI's memorandum to IFAS Contracts and Grants Accounting. IFAS Contracts and Grants Accounting will record the transaction on the memorandum and forward copies to the PI and Unit Administrator.