Overview of Changes
Effective July 1, 2025 (FY26), we’re changing how we account for certain research awards to improve tracking. Instead of using the single 012000 (Internal Projects) fund source, new projects will use specific, dedicated fund sources that better reflect their purpose.
Here are the new fund sources:
- 012100 for Cost Share projects
- 012110 for Deficit Projects
- 012120 for Salary Cap Projects
- 012130 for Interest Earned Projects
This means that a new Cost Share project, for example, will now be set up with its own fund source: 012100.
Impact on Current Projects
The new fund sources apply only to projects with a start date of July 1, 2025, or later. Projects created before this date cannot be converted.
To ensure consistency, Research and Cost Accounting will take the following steps for all 59 active awards with an existing cost share component:
- A new project with the 012100 fund source will be created for each affected award.
- The project number for this new project will be communicated to the Project Manager (PM) and the Principal Investigator (PI).
- Any costs posted to the old project on or after July 1, 2025, will be transferred to the new project.
- The old project will be closed.
It’s important to remember that for reporting purposes, you will need to consider the budgets and costs of both the old and new projects together. Both projects will be accessible within the same award for easy data retrieval.
Project Transition & Budget Management
The old “Internal” cost share project will remain open until its award closes or until September 30, 2025, whichever comes first.
- All cost transfers related to the old project must be completed and posted in iO before the project closes.
- Once the old project is closed, its budget balance will be calculated. If the balance is negative, the project will be closed, and the PI and department will need to communicate a management plan to Research and Cost Accounting before it can be reopened.
- If the balance is positive, the remaining budget will be transferred to the new “Cost Share” project.
For active labor distributions on old projects, Payroll will automatically update them to apply to the new “Cost Share” project starting July 1, 2025.
Project Managers for impacted awards have been contacted directly by e-mail with the above message. If you have any questions, please feel free to respond to that e-mail or to contact Research and Cost Accounting (rchacctg@rice.edu).
