Closeout Process

Purpose of Closeout Summary

The purpose of a closeout is to show that our organization has been a good steward of federal funds. The grant closeout is a critical piece in the life cycle of a grant. Timely closeouts ensure we have complied with the terms and conditions of the award. Potential failure to submit timely and accurate closeout documents may affect future funding. Additional consequences may include, but are not limited to, corrective actions, withholding or future awards, suspension or termination of awards from the sponsoring agency. Contracts and Grants accounting office performs an in-depth review to ensure we have met the conditions of the award, fulfilled all financial reporting requirements, as well as review of the award to determine if we are required to return any unobligated funding. The closeout process varies by sponsor and by funding mechanism.

Summary of Closeout Process

After the expiration or termination of the project period of performance for an award, the recipient is required to close the award.

Uniform Guidance 200.344 Closeout - The recipient must submit, no later than 120 calendar days after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award. A subrecipient must submit to the pass-through entity, no later than 90 calendar days (or an earlier date as agreed upon by the pass-through entity and subrecipient) after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award. Unless the Federal awarding agency or pass-through entity authorizes an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award no later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award.

For Non-Federal awards closeout of an award will be in accordance with the terms and conditions of the of the award.  Non-Federal awards for State and Other awarding will also be reviewed in depth to ensure conditions have been met.

Reconcile financial expenditures associated with the award

Reconciling your grant indices is expected to occur monthly. This means someone looks at all the expenses in Banner, using either Banner forms or My Reports, and ensure all the expenses pertain to the grant, this includes payroll, and all expenses on the grant are allowable. No expenses to the grant should be missing. Any unallowable charges on the grant after the period of performance will need to be moved off the grant accordingly. In order for Contract and Grant Accounting to close the grant fund, a final reconciliation will need to be done, and sent to the Contract and Grants Accounting Office Fiscal Monitor. The department will verify that the expenses in Banner are correct throughout the life of the grant fund. No more financial activity will be allowed in Banner when the grant fund has been closed.

Reconcile Participant Incentive Accounts

Reconcile expenditures related to participant merchant cards. Unused cards will need to be moved off the grant/fund.  At closeout a written verification stating all merchant cards that were purchased have all been disbursed, or verification stating unused cards were moved to an unrestricted index.

Other Items to review on the award for closeout purposes

  • Review equipment and loaned equipment are in accordance to the Agency requirements and any equipment has been returned if applicable.
  • If applicable, any associated cost share commitments have met the commitment and have been reconciled, reconcile any program income accounts related to the award.
  • Verify all required programmatic, technical and financial reporting has been submitted the agency, this will also include invention statements.
  • If applicable, complete and sign the Large Balance Questionnaire for any gains greater that are greater than $10,000 and greater than 50% of the revenue received on the award.
  • If applicable, submit all required carryforward documentation, partner with your fiscal monitor for carryforward requirements.

Banner Workflow 

Banner Workflow is a workflow solution that automates, simplifies and directs the flow of information for UNM. After the expiration or termination of the project period of performance, the closeout process will be initiated via workflow. Workflow will generate an email to the account administrator listed for the grant in FRAGRNT. The PI will be copied but will not have access to the closeout documents. Those can only be accessed by the account administrator. This will happen when the grant fund is due to end in 90 days. The account administrator will complete Workflow to signify that the grant fund is ending (or is being extended). If it is ending, The Fiscal Monitor will receive notification, and will forward the account administrator the closeout documentation. Once the account administrator has completed the closeout documentation and returned it to the Fiscal Monitor, the Fiscal Monitor will close the grant fund.

Best Practice Closeout Tips

Best practice recommends preparation for the closeout should begin three months prior to the end date of the grant in order to accurately forecast expenses and any adjusting entries that need to be made.  We review the awards per funding agency requirements, uniform guidance and other regulatory environments.

General Tips:

  • Be aware of what types of financial and programmatic reports are required for closeout of the award.
  • Be aware of your closeout requirements per the conditions of your award, for example, do we need to return unobligated funding, carryover requirements, etc.  
  • Reconcile monthly. When the grant fund closes, you will only have sixty days (or less, depending on the requirements of the sponsor) to examine and correct for any irregularities before completing and returning the closeout documentation to the Fiscal Monitor.

 90 days out of the award end date:

  • Monitor account expenditures and look for any budget issues by reviewing spend rates and spend reporting.
  • Review expenditure charges related to equipment and loaned equipment and determine agency requirements based on the conditions of the award.
  • Review cost sharing commitments will be fulfilled by the end of the award.
  • Review program income requirements will be met, if applicable to the award.

 At 60 and 30 days out of the award end date:

  • Perform all the tasks listed above for 90-day tips.
  • Review billing invoices, is the award current on the billing, have payments been received, is there outstanding payments that need to be collected on. Reach out to the fiscal monitor for assistance.
  • Review open encumbrances, will they be fulfilled by the end of the award, and will any encumbrance need to be cleared by the end of the award for closeout purposes.
  • Review reconciliation for merchant cards, at closeout unused merchant cards will need to be moved off the award.
  • Review funds that have scheduled FFR’s; and start looking at spot checking allowability of costs.
  • Review the notice of award for terms and conditions to be sure we meet the requirements.
  • If applicable, review close out sub contracts, review billing and payments received.
  • Begin to collaborate with all key parties, PI, Department Accountants, and Fiscal Monitors regarding final invoice requirements, invention statements, reporting requirements along with final programmatic reporting will be submitted and the requirements met.