We Are All in This
Together:
Close Out Issues
Researchers, Administration
Teams and Sponsored
Projects Staff
Arriving Together at the
End of a Sponsored
Project
The Destination is the
Reason for the
Voyage
Prepare
• “Begin with the end in mind”
”®©Franklin-Covey
• Plan your sail, and sail your plan.
Team
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Primary Investigator
Research Administrators
Sponsored Projects Office
Grant and Contract
Accounting
Objectives
• Understanding no matter
what our responsibilities are
during the life of a project,
they can ultimately effect
the closeout
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Closeout Starts With
Proposal Submission
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The Investigator and/or Team
Your institution’s guidelines
The sponsor’s regulations & references
Award Requirements
Review Items
Complex Projects
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Incrementally funded, multi-year
Contains Subcontracts
Excessive Cost Share
Multi-disciplinary,
Complex financial reporting (e.g., by
task)
CAS Exceptions
Requested
• CAS exceptions must be:
– allowable, allocable, reasonable, identifiable
with a sponsored work and approved by the
sponsor,
• Typical CAS exceptions are
– e.g., Office supplies, clerical salaries,
postage, local phone calls
Subcontract
A contract that assigns some of
the obligations of an existing
contract to another party.
When the Award Arrives
• Congratulate the researcher!
• Setup Team Meeting to:
– Verify the budget
– Verify the cost-share
– Schedule reports
– Setup Internal Financial Tracking System
– Other items as needed
Final Closeout
Checklist
Start with This in Mind
• Final Deliverables
• Money Out = Money In
• Documentation
During the Life of
the Project
• Share your info
• Prompt for reports
• Prompt for
documentation
During the Life of
the Project
• Keep on top of it
• Cost Share – On schedule? On
target? Documented
• Reinforcements
Post Award Issues That
Effect Closeouts
• Anything not routine
• Complex Projects
• Unspent funds (FP)
• Excessive Spending
Review For Project
Changes
• A significant delay in project
• Conflict of interest that cannot be
resolved
• Change in scope of work
• Addition of a sub contract.
Review for NonCompliance
• Review for Non-compliance with
Award Restrictions
–Budget restrictions / limitations
–re-budgeting between categories
–prior approvals for equipment
• Unallowable Costs
• Other
Review Items That Need
Special Monitoring
Special Monitoring
Purchasing cards
Cost Share
Cash Advances
Cost Transfers
Encumbrances
Subcontractors
Hourly-paid Staff and/or Students
Purchasing Cards
All Purchasing Card costs on
sponsored accounts MUST be
directly related to the project and
documented
Cost Share
Documentation
• Audit Purposes
• Mandatory reporting to sponsor
• Voluntary Committed verified &
Documented
• Consequences of Under-reported Cost
Share
Cash Advance
• Use sparingly
• Not a “petty cash” fund
• Costs must be directly related to
the project
• Mostly for field work
Cost Transfers
OMB Circular A-21 prohibition makes cost
shifting audit sensitive
• Post Term Charges
–Largely unallowable (Final report costs
only exception)
Unallowable Costs
–Costs that do not meet the criteria for A
21 Allocable costs.
Open Encumbrances
All encumbrances should be
reviewed at least 30 days before
the end of an award.
Review Subcontracts
• Activate Subcontract
• All payments/financial reports
being submitted in a timely
manner
• All deliverables, progress
reports being submitted
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Date Of Completion
• “Date of completion means the
date on which all work…is
completed or the date… on which
Federal or Non Federal
sponsorship ends.”
Project Termination &
Closeout
CAUTION
CLOSEOUTS
AHEAD
At the End of the
Project
• Should be no surprises
• Use your checklist
• Project deliverables are the
responsibility of the Investigator
Final Closeout Review
 Purchasing
Card Expenditures
Documented
 Cost Share Documentation Completed
 Subcontracts Closed
 Refund
to Sponsor Cleared
Final Closeout Review
 Residual
Transfers Completed (FP)
 Cash Advances
 Encumbrances
 All
Cleared
Cleared
Cost Transfers Completed
 Other
Final Closeout Review
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Final Deliverables Submitted
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Patents, Technical, Equipment,
Inventory
Final Financials, Others as required
Revenue = Expenditures
Records Retention &
Access System
• Retention required for three
years after last action
• Other standards may apply
• Government requires timely
and unrestricted access
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At the End of the Project
Requirements after the
close of the project
Hanauma Bay, Hawaii
Fair Sailing!