The intent of this policy is to provide appropriate guide lines to Principal Investigators and Project Directors for the expenditure of residual funds resulting from fixed price contracts.

• A separate trust fund account will be established for funds remaining on fixed price contracts.

• The account will be utilized by the principal investigator/ project director to benefit the program.

• Any funds remaining on a fixed price contract must be expended within eighteen (18) months after the residual account has been established. The account cannot be established until the final fiscal report has been filed with the agency and all funds have been received.

• The expenditure of funds from the established trust fund account is restricted to non-personnel cost within the State guidelines. The purchase of office furniture, carpet, draperies, and office adornments is prohibited. However, special consideration for personnel cost may be requested through the appropriate vice chancellor.

• All expenditures from the established trust fund will be monitored by the Office of Contracts and Grants.

• Any funds not expended in the eighteen (18) month period will revert to a general scholarship fund.

Revised 6/99