Part III - UNM Finance: Practical Applications

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Standard Accounting Resource Manual (SARM)

MSC 0000 00
1 University of New Mexico
Albuquerque, NM 87131

Closeout Process

Once the grant fund is complete, a closeout process occurs.  This 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.

Final Reconcilement

In order for the CGAO to close the grant fund, a final reconcilement will need to be done.  The department will verify that the expenses in Banner are correct throughout the life of the grant fund.  They will return information received via workflow to the CGAO.  Once this information is received, the grant fund will be closed.  No more financial activity will be allowed in Banner when the grant fund has been closed.

Closeout Helps

  • 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.
  • Use Hyperion Report FRH0005-Closeout Workflow for funds ending on Contracts and Grants, run by account administrator, to see where your grants are in the closeout process.
  • The Department Closeout Checklist (Appendix 2) can be used to help you get through all the steps of closeout successfully.

Shadow System Pros and Cons

A shadow system is a duplicate financial system departments may utilize to track their grants.  When used, the shadow system MUST be reconciled to Banner monthly.  Shadow systems are developed by the department, and may be as simple as an excel worksheet used to list all expenses as they are incurred, or a more complex access database or excel worksheet with complex formulas and macros. 

Positive Aspects:

  • Shadow systems can track Payroll encumbrances and all other encumbered items accurately if a well constructed system is used and maintained. 
  • Shadow systems can be used to develop budget scenarios.
  • Shadow systems can be used as a tool when reconciling Banner.  If all entries are made accurately to the shadow system, anything in Banner that is not in the shadow system is investigated and corrected and vice versa.
  • Shadow systems can be used to produce customized reports.

Negative Aspects:

  • Banner does all of the above, with the exception of some advanced payroll encumbrance tracking.
  • In order to track payroll encumbrances in a shadow system, a great deal of expertise is required to develop and maintain the system.
  • For the most part, shadow systems are duplicate work.


Reconciling your grant indices is expected to occur monthly.  This means someone looks at all the expenses in Banner, using either Banner forms or Hyperion reports, and makes sure all the expenses:

  • Are expenses pertaining to the grant.  This includes payroll expenses.
  • Are allowable on the grant.
No expenses to your grant are missing.