Both the unit/PI and Sponsored Financial Services (SFS) have responsibilities for financial closeout of projects.
Who can help?
- Your research administrator or department administrator should be your first contact.
- You may also work with the SFS associate assigned to your sponsor.
Deadlines matter in the closeout process. Know the project end date. Triggers for review and reporting occur at 90 and 30 days before the project ends.
University Policy 3.20, Cost Transfers on Sponsored Agreements covers deadlines for closing out awards.
If you manage sponsored activity in your department review, familiarize yourself with these closeout responsibilities:
If changes are needed 90 days before the project ends:
- Determine whether the project needs a no-cost extension. If so, request one from the Office of Sponsored Programs (OSP).
- Contact Sponsored Financial Services (SFS) if the expiration date needs correction based on the agreement.
If the project will close in 90 days:
- Review the agreement to ensure award activity complies with the award's terms and conditions. Review for restrictions (e.g., salary caps, budget variance threshold, participant support costs, etc.)
- Identify contractual concerns and contact OSP if you find any (e.g., prior approvals that may have been required but weren’t sought, such as if all travel required agency approval.)
- Resolve outstanding questions, issues or concerns with transactions.
- Take action to alter appointments or costing allocations if necessary.
- Make sure proper appointments and disbursements are made for non-compensatory payments (e.g., subsistence payments for visiting academics, interns, etc.) and that contemporaneous documentation of program participants exists.
- Cancel or revise recurring charges or contract orders for purchases, including equipment.
- Clear any open encumbrances for purchases or contract orders funded by the award.
- Clear outstanding assets and liabilities (e.g., travel advances or prepaid expenses).
- Determine wether cost share commitment and cumulative activity will be met.
- Ensure compliance and remove transactions for pre-award costs.
- Close out program income activity and take appropriate action as needed.
- Close out transactions for unallowable expenses, such as normally indirect transactions.
30 days before project termination:
- Review the labor plan, take final action as needed. Submit costing allocation changes in Workday, refer to Payroll's pay calendars for appropriate deadlines.
- Contact subcontractors to request final invoices.
- Review actual and projected expenditures. If cost transfers are required, ensure compliance with the cost transfer policy: University Policy 3.20, Cost Transfers on Sponsored Agreements.
- Resolve outstanding questions, issues, or concerns with transactions or otherwise.
- Notify faculty, staff, and students using the project account and inform them that it is no longer valid as of the project's expiration date.
- Notify on-campus billers (e.g., Service Facilities, CIT) of account changes.
- Cancel or revise recurring charges or contract orders.
30 days before the Final Financial Report due date, or, if no financial report is due, no more than 60 days after the account’s expiration date:
- Process final invoice for subcontracts, purchase orders, or other transactions.
- Review cost share information with SFS. Provide final cost share expenditures and review any questions or concerns related to required match.
- Clear program income account.
- Clear assets and liabilities (e.g., travel advances or prepaid expenses).
- Clear encumbrances.
- Review items charged to the account after the termination date to ensure they were incurred and utilized within the period of performance. Correct post-term transactions (incurred outside period of performance).
- Notify SFS of a true overdraft, providing the funding account. SFS will clear the true overdraft to a cost share sub-account.
- Capitalize fabricated items.
- Ensure that all unallowable or normally indirect expenses are addressed as needed.
- Complete cost transfers that must be recorded in the general ledger no later than 30 days prior to the deadline, or, if no financial report is due, no later than 60 days after the expiration date of the award, for submission of the final fiscal report and closeout. For ore information, refer to University Policy 3.20, Cost Transfers on Sponsored Agreements.
- Ensure the principal investigator has submitted, or will submit, required technical reports by the due date. Indicate sent dates in RASS.