1. Upon termination of a corporate clinical study, the Departmental Business Manager or designated staff will follow procedures in Procedure 4-4-01: Closing a Sponsored Project in order to prepare the project for financial closeout.
2. The Business Manager must ensure that all project obligations have been met. He/she should also ensure the Principal Investigator has reported the appropriate level of effort for the project in the Activity Reporting System and that salaries and fringe benefits have been appropriately charged in the accounting system. This is necessary so that the level of effort on the Principal Investigator's other active Federal and non-Federal projects will not be overstated.
3. If a reduced or waived F&A Cost Rate was granted at the onset of the clinical trial, then the reduced or waived F&A Costs must be charged to the Sponsored Project before the residual funds are calculated and transferred.
4. The Principal Investigator or Departmental Business Manager, with the approval the Departmental Chair, must provide a discretionary Non-Sponsored UDAK to receive the residual transfer. The GCA Accountant will then process the journal voucher for the transfer and close the Sponsored UDAK in the accounting system. When establishing a new UDAK for residual funds, the department should code the fund source component of the reporting code as "Other Sources" (99).General Guidelines
MUSC's Cost Accounting Standards Policies and Procedures - Guidelines for Clinical Trials provides rules to ensure university costs related to clinical studies are properly charged. Fixed price clinical studies may result in residual revenue that can be retained by the University. When a corporate clinical study has been completed and all obligations have been met, excess funds remaining will be transferred from the Sponsored Project UDAK to a discretionary Non-Sponsored Project UDAK for benefit of the department and/or Principal Investigator.
Principal Investigators are cautioned that corporate clinical trials with large residuals (greater than 25% of total project revenue) may require explanations. If the Principal Investigator should transfer to another institution, residual funds under his/her authority will not be transferred. Because the funds were generated while using MUSC resources (effort, space, equipment, etc.), any residuals must remain with the Investigator's home department.
Questions regarding distribution of residuals should be addressed to the appropriate Grants and Contracts Accounting Accountant based on departmental assignment (see Distribution of Grants by Administrator or at 792-2850.