Award Closeout

What is a Closeout?

The award closeout is the final reconciliation and reporting of expenses. Most sponsors require a final report or invoice to be submitted to them once the project period has ended. This is part of the reporting requirements outlined in the initial award documents.

The fund manager prepares a Closeout packet (COP) which consists of worksheets that may require additional review or documentation to reconcile the expenses posted to the General Ledger.  The PI reviews the COP for accuracy and signs the certification page. The COP and certification page serve as the final documentation submitted to the central office (EFM). EFM then prepares the final invoice or report to close out the contract or grant.

Notifications

Prior to Fund expiration, Office of Research Administration (ORA) sends three notifications which includes the fund expiration date, current balance, EFM accountant and key demographic information of the award. These three notifications are received by the PIs and the fund managers as follows:

  • 90 days prior to fund expiration
  • 30 days prior to fund expiration
  • On the day of fund expiration

Semel Institute Closeout Policy

Award closeout is the final reconciliation and reporting of expenses. Most sponsors require a final report or invoice once the project period has ended. This is part of the reporting requirements outlined in the initial award documents.

The fund manager (FM) prepares a Closeout Packet (COP), which consists of worksheets that may require additional review or documentation in order to reconcile against expenses posted to the General Ledger. The PI reviews the COP for accuracy and signs the certification page. The COP and certification page serve as the final documentation submitted to the central office Extramural Fund Management (EFM) responsible for preparing the final invoice or financial report to close out the contract or grant.

The Office of Research Administration (ORA) sends three notifications, which include the fund expiration date, current balance, EFM accountant and key demographic information of the award. The PI and the FM receive the three notifications as follows:

  • 90 days prior to fund expiration
  • 30 days prior to fund expiration
  • On the day of fund expiration
Mandatory 90-day meeting

To ensure the accuracy of transactions posted to the fund, a mandatory meeting with the PI, Admin and FM will be set-up 90 days prior to the budget period end date. FM’s will initiate this meeting by sending a request via email based on the schedule found in the Final COP submission deadlines table below. The meeting will include the following:

  • Expense Monitoring – It is the PI, Admin and FM’s responsibility to conduct a thorough review of expenses posted to the ledgers as of the 90-day mark prior to fund close. This review will identify Warning/Unallowable object codes and necessary action to correct/justify the transactions.
  • Funding Changes – The admin and PI must request from the FM any salary changes required for staff or academic personnel within 2 weeks of the 90-day meeting, accompanied by all necessary documentation i.e., Staff DCR, Semel Cost Transfer Justification, and Faculty DCR.
  • Cost Transfers consist of the following 2 types:
    1. Non-Payroll Cost Transfers – Non-payroll cost transfers can be requested at any time. During monthly reconciliation, any errors should be identified and transfers requested prior to receiving the next monthly financial report. Any transfers after 120 days from the doc date will not be allowed for transfer, except on an exceptional case basis, unless they are deemed as unallowable charges to the project. In this case, an unrestricted fund would be required to transfer the expenses.
    2. Payroll Cost Transfers
      • Staff: Staff DCR requests should be made in a timely manner to ensure all changes are reflected on the ledger at the time of closing a fund. Staff DCRs requiring payroll cost transfers, requested in the 60 days prior to the fund end date, will only be processed on an exceptional basis and require division director, chair and OES director approval.
      • Academic Payroll: Retro-activity is NOT allowed except under exceptional circumstances, i.e., late award setup, late interdepartmental transfer, late transfer from Dean’s Office. Faculty salary funds changes must be requested in advance based on the schedule set forth in the Semel FACULTY/ACADEMIC APPOINTEE SALARY DCR POLICY AND PROCEDURES by Semel Finance Office. If the request affects an upcoming COP, please indicate that to make the Finance Office aware of the urgency. Requests must be submitted by the due date to have them processed by the quarter’s payroll deadline. Only ONE change/quarter/faculty is allowed; however, Salary Savings (SS) requests can be submitted more often. Actions received after the due date will be subject to processing in the following quarter’s cycle, subsequently changing the effective date of the request to the first month of the next quarter. For PIs over the salary cap, salary CANNOT be moved retro-actively from a NON-CAPPED source (non C&G funds) to a CAPPED (C&G funds) source. There are NO exceptions.

Please Note Late Cost Transfers: Transfers requested 60 days prior to the fund end date, require the admin to submit a cost transfer request form signed by the PI and Center Director to the OES FM, who will then obtain the OES Director and Chair signatures. Any cost transfers requested after the fund end date will ONLY be processed on an exceptional case basis.

Semel Cost Transfer Justification Form is required with Fund Manager, PI, OES Director and Department Chair signature for the following transfer requests:

  • Transfers over 121 days from the transaction doc date
  • Transfers over 90 days on expired funds
  • Transfers within 60 days prior to the fund end date

*Please Note: Retransfer requests are audited and considered High Risk. Strong justification and all signatures are required.

Final COP submission deadlines:To ensure Semel and EFM meet the sponsor requirements, the OES FM will prepare the COP and send to the Admin and the PI for review per the schedule below:
Semel Closeout Policy Pic

Should the mandatory 90-day meeting not take place, the Fund Manager will process a COP per the expenses posted to the ledger as of the fund end date. Any overdraft will be the responsibility of the PI to cover with an unrestricted fund. Any balances remaining will be returned to the sponsor.

For Questions:
Primary Contact: Hari Wijesekera, HWijesekera@mednet.ucla.edu

Federal Fund Closeout Procedure

This procedure is applicable to federal funds that expire June 30, 2015 and onward. Federal Financial Reports requiring unliquidated balances to be reported separately (e.g. NIH T32, T34, T90, and etc.)

  • When EFM is in receipt of a closeout packet, the standard closeout procedure applies
  • When EFM is not in receipt of the closeout packet by 60 days after the fund expiration, EFM will begin to prepare the final financial deliverable based on expenses posted to the general ledger excluding questionable costs per EFM’s review and submit the final invoice or report to the sponsor. The detailed process is summarized in the table below
  • Review questionable costs and determine to include or exclude following the guidelines below:
Expenses outside the project period (Pre and post period)
  • Exclude payroll with pay period end dates outside the project period

🠚This includes bi-weekly wages paid after the project period even if partially applicable to the project period. Without having information of actual effort allocation of individuals, EFM cannot determine the amount of applicable wages for the period. To prevent over reporting of expenses to the federal sponsor, EFM will exclude bi-weekly payroll expenses with a pay period end date outside the period.

  • Exclude non-payroll with document dates outside the project period

🠚Except for TIF posted to g/l outside period but related to payroll applicable to the period (cost transfer)

  • Exception: cases in which pre-award spending is approved.
Expenses with Warning Object Codes
  • Exclude expenses considered “unallowable” per sponsor guidelines and/or specific award terms and condition
  • Sponsor Guidelines

🠚E.g.: 2CFR 200 Subpart E Cost Principles, NIH Grant Policy Statements, NSF Proposal & Award Policies & Procedures Guide (PAPPG)

  • Award Specific

🠚If budget is not available (most federal), items to be excluded are not limited to the following:

⯁Equipment purchased within 90 days from the fund expiration

⯁5800 / 5810: Space rental when full F&A is applied

⯁3385 / 3390: Insurance (general, auto, and employment practice)

⯁4007: TIF when sponsor explicitly states it’s not allowable (e.g., VA, NSF, etc.)

  • If budget is available:

🠚Exclude items that sponsor guidelines define as “unallowable”

🠚Exclude items that are explicitly not allowed in the budget section

 Expenses with Unallowable Object Codes

  • Exclude all unallowable items
Other Unallowable Expenses
  • Exclude salary in excess of the salary cap when applicable
  • Exclude salary not in compliance with e-verify when applicable
  • Exclude animal/human subject charges without a protocol number indicated in any sequence of the award snapshot
  • Exclude expenses in excess of the budget
  • EFM will email the department (PI, Fund Manager, and Senior Management (e.g., CAO, CFO, Director, or equivalent positions in the award administrating unit)) the total expenses to be included in the final invoice or financial report no later than the 15th of the month when the final is due. If the 15th falls on a weekend, EFM will notify the department on the following business da A summary of reconciliation from the total expenses per general ledger to those for the final invoice and/or financial report will be included in the email. The RAPID closeout packet will be attached to support the reconciliation
  • The department Fund manager will need to confirm the final expenses no later than the 22nd of the month the final invoice or financial report is du If the final amount needs to be adjusted, the department will submit a revised RAPID closeout packet including a list of adjustments and appropriate supporting documentation no later than the 22nd of the month the final is due. If the 22nd falls on a weekend, the deadline to respond will be the following business day.
  • If a response is not received or a response is received but does not include a list of adjustments and/or supporting documentation by the 22nd, EFM will submit the final invoice or financial report.
  • Once EFM submits the final to the sponsor, revisions will be processed only in exceptional circumstances. Revision request forms must be submitted to EFM including an explanation for the cause, a management plan to prevent revisions in the future, and approval of the Department’s Administrative Officer (e.g., CAO, CFO, Director, or equivalent position) along with a revised closeout packet. (See Appendix E: “Final Federal Financial Report Revision Request”) When revision requests are made, the Department Fund Manager will ensure that all allowable and applicable expenses have been posted to the general ledger

Revision of Closeout Packets

  • A revised COP accompanied by Revision request form (LINK) are required when the variance between the final expenditure of the revised COP and that of the original COP Is Greater than $100.
  • Only the department preparer and the approver needs to sign off on the revised COP.
  • If the Variance is greater than $500 then the PI will also need to re-Certify the COP.
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