Fixed Price Agreements Distribution of Residual Balance Process

Office of Research Guideline #33

November 2025 

Introduction 

The residual balance process at Washington State University, as defined in UPPM 40.27, governs the management of funds remaining after the completion of a fixed-price agreement. These agreements provide a set payment for specified work, and any surplus after applying facilities and administrative (F&A) costs is considered a residual balance. To ensure compliance and fiscal integrity, the University has established clear guidelines for distributing these funds. 

Important Note: All conditions outlined in UPPM 40.27 must be met before any residual balance can be distributed. 

Procedure Steps 

Step 1: Determine Threshold

• Under $10,000 and less than 50% of total project budget: Sponsored Programs Services (SPS) will transfer the residual balance to the departmental fixed-price consolidation account. 
• Over $10,000: The requester must complete the Residual Balance Questionnaire and submit it to the Office of Research at orso@wsu.edu. 

Step 2: Initial Review

The Office of Research Support and Operations Manager (OR-SOM) will:

1. Verify that the questionnaire is complete. 
2. Confirm budget figures in collaboration with Sponsored Programs Services (SPS). 

Step 3: Leadership Review

Once confirmed the request will be forwarded to:

1. Associate Vice President for Research Operations (AVPR) 
2. Vice President for Finance and Business Services (VPFBS) for review and decision making. 

Step 4: Decision Options

Leadership may approve one of the following: 

1. Full retention of the residual balance. 
2. Partial retention of the residual balance. 
3. No retention of the residual balance.

Step 5: Communication and Documentation

The requester will receive a formal decision via email to be logged into MyResearch with the original agreement. 

References 

• UPPM 40.27