Deficit and Residual Balances
Deficit balances occur when UNLV does not receive sufficient payment to cover the costs allocated to a project, and they may occur for several reasons. While OSP has instituted policies and procedures to reduce and mitigate the risk of full or partial nonpayment, there is no way to totally remove the risk. PIs should be aware that any deficits will be covered by their individual F&A account or a college/department account if insufficient funding is available in the PI’s account.
In the event collection attempts are unsuccessful, OSP will notify the PI of the overrun and request an unrestricted department or college account number to cover the costs. The dean and chair/director will also be notified so they are aware of the situation. If the PI does not respond with an account number within 30 days, OSP will transfer the overrun to the PI’s F&A account (if any) or the department/college facilities and administrative cost accounts if the individual PI’s account is not sufficient to cover the overrun. OSP will communicate with the dean/chair/center director before any transfer occurs if it impacts any account other than the PI’s individual account.
If ongoing collection attempts are successful, the debited PI, college, or department cost account will be credited.
When a project is fully funded by advance payments and the available funds are not fully expended, a cash balance may exist at the end of the project. If total payments exceed the amount of total reimbursement claimed, OSP will determine from the terms of the award the proper disposition of the remaining cash. If the award is fixed price, the residual balance will be retained by UNLV. If the award does not provide adequate instruction, a notification will be sent to the sponsor along with the final report requesting information regarding the disposition of the unexpended cash balance. If after a reasonable period of time the sponsor does not reply, it will be assumed that the funds may be retained by the university. In the event that the sponsor subsequently requests the residual amount, the school is obligated to provide funding.
If the unexpended cash balance is to be returned to the sponsor, OSP will initiate the return of the balance. If the award terms or sponsor authorizes the university to retain the residual balance, the balance will be treated in accordance with the OSP Fixed Price Policy.