Industry Fixed Price Award with Dean's Match - Under spending.. Guidance Needed

[Linda Bullis]

Industry Award with 2 PI's (co PI in another Dept) Earlier this summer I approached my Faculty member regarding the lack of spending on this Fixed Price award, which has an end date of 10/31/19 (1 year award) $50K from the Sponsor (0% F&A) with no reporting required per NOGA, $40 K CS/Match from Dean's office MNDrive funds. My faculty member stated he expected to be able to get an extension on the funds, he also indicated co-PI has essentially dropped out of the project. To date the co-PI has Spent zero $'s on his project or match funds. Overall CON 70% will remain after encumbrances by the current end date; MNDrive funds overall between both Dept ID's 96% of balance will remain with encumbrances by end date. 3 Questions:

1). What Guidance do I provide to lead PI , specifically pertaining to the co-Pi that has dropped out of project? Should a formal request to extend the project be submitted to Medtronic?

2). Should spending continue on F Price sponsored funds until it reaches the minimum 25% remaining balance, then request transfer to Dept funds

3). Would the match funds revert back to the college as of the current end date of the project? The majority of the CS/Match budget was related to RA support for both PI's, with some travel and Gen Op Services

My last concern is regarding the Dean's office general recommendation to spend MN Drive funds in a timely manner

[Nicole Pilman]

Hi Linda!

These are great questions related to how to manage fixed price awards!  Here are my responses to each of them.

1.  The PI should contact your SPA GA to let them know there has been a change in key personnel given the departure of the co-PI and that they would like to request an extension.  The SPA GA will work with the PI and sponsor to get the award modified accordingly.

2. Spending should occur on the award for costs that are related to the award and of course are allowable, allocable, and reasonable.  The driver shouldn't be to spend the award below a certain threshold.  When the award ends, you should let your SFR accountant know where any remaining balance should be transferred.  For more details related to fixed price closeouts, please see this administrative procedure: https://policy.umn.edu/research/clinicaltrials-proc01. 

3.  The Dean's Office will have to clarify whether or not the cost share funds would revert and any ramifications for not spending certain funding sources in a imely manner.  The main issue related to these cost share funds, though, is if the cost share is committed and/or reportable to the sponsor.  If so, then allowable charges should go on the cost share accordingly.