Closeout Overview:

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Closeout Overview

SAO-Award Closeout Training MAY 4, 2007
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THE CHANGING CULTURE OF GRANT MANAGEMENT
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THE CHANGING CULTURE

• Grant money is becoming more competitive
• Sponsors are becoming less flexible about
  agreement requirements
• Georgetown University culture is changing to meet
  the demands of the sponsors and to remain
  competitive

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THE CHANGING CULTURE

• These changes are manifesting themselves in many
  ways
• More collaboration between institutions
• More collaboration between PIs
• Fewer grants being awarded
• Monitoring quantity of No Cost Extensions
• Increased oversight (and audits) by sponsors
• Less flexibility at the end of the grant period

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THE CHANGING CULTURE

• Less flexibility means higher expectations
• The consistent expectation of SAO is that grants
  will be closed promptly and accurately
• The administrations expectation is that grants
  will be closed in a timely manner
• The sponsors expectation is that grants will be
  closed in a timely manner
• The result of these increased expectations is an
  increased pressure to perform the closeout process

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Knowing the Food Chain at GU

• Knowing departmental hierarchy will assist
• in getting results faster and sometimes
• timely. It is crucial to the entire process that
• each analyst is familiar with
• - Departmental food chain ladder and
• - Whos responsible for what?

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Key to a Timely and Efficient Closeout Process

• Beginning the process 90 days prior to
  expiration
• Constant communication with the PI/designee
  through out the process
• Familiarity with the award terms and conditions
• Review of Closeout Checklist

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90 30 Days Award Expiration Notification

• Once you received your copy of the 30 days award
• notification letter the process begins.
• keep award on your radar
• submit final worksheet within 30 days after
  expiration
• set timelines for final adjustments/and or
  response from department

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THE CLOSEOUT CHECKLIST

• The items on the checklist should be used as a
  blueprint in carrying out the closeout process at
  the end of a grant
• The checklist can also act as a road map during
  the life of a grant and guide the departments in
  the management of the grant

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THE CLOSEOUT CHECKLIST

• Advantages to SAO-
• A good starting point
• Reduces the of communications from sponsors for
  Closeout documentation long after the award end
  date
• Reduces the of communications between SAO and
  external/internal auditors or of audit findings
• Ensures The University is in compliance with the
  financial reporting requirement as per the
  agreement
• If the checklist is used consistently it should
  make the work done at closeout easier and less
  time consuming
• Going forward, we hope to consistently use the
  checklist as a road map during the grant closeout
  process

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So lets get to it . . . .
FIRST THINGS FIRST!!!!!!!

• STEP I
• Review contract/agreement
• - to determine required closeout documentation
• - to familiarize yourself with specific
  reporting
• requirements
• - to determine expenditures requiring
  pre-approval
• from sponsor and unallowable charges.
• Pre-award may also entered reporting requirement
  on the award profile screen, i.e. Cost Share,
  Program Income

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STEP II

• Download Checklist
• -Checklist can be printed or downloaded from
• - each item on the checklist should guide your
  communication with the department
• - the checklist serve as a reminder during the
  closeout process of the questionable charges to
  look for
• - the checklist should remind you to check on
  status of subcontract final payment and closeout
  documentation as per agreement.

CHECKLIST
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ITEM 1 ON THE CHECKLIST

• Formal Time Extension/Renewal
• - is an extension being requested?
• verify information with OSR/OSP
• - is award being renewed?
• ensure new cost center has been setup by
  OSR/OSP
• - is additional funding pending?
• confirm availability of funds with OSR/OSP

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ITEM 2 ON THE CHECKLIST

• Final Technical/Progress
• - verify if report has been submitted and the
  date the report was sent to the sponsor
• - the name of the person to whom the report was
  sent to or contact information which may
  include
• - Mailing address
• - Phone number
• - Email address
• -request documentation for the files

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Final Technical/Progress

• - examples of acceptable documentation
  include
• -a cover letter addressed to the sponsor
• - an email sent to an Award Officer, with
  header info
• - a fax that makes reference to the attached
  report
• SAVE TREES . . . . The actual report does not
  need to be on file in SAO just proof to show an
  auditor that the report was sent
• Showing an auditor a final report does not show
  the auditor that the report was sent to the
  sponsor

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Final Technical/Progress

• If the technical report will be submitted at a
  future date, SAO will communicate that to the
  sponsor in the Closeout Transmission Letter
• If the award requirements indicate a final
  progress report is due, but the PI states that it
  was not required or that the requirement was
  waived, then something in writing from the
  sponsor is needed for the closeout file

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ITEM 3 ON THE CHECKLIST

• Final Purchases
• - have all the charges hit
• - are there open commitments on the CSR
• - do the final charges fall within the award
  period-after end date charges

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Final Purchases
- After end date charges ideally should not
occur, but if they do happen they should be
promptly removed. Waiting for a new grant
purpose code is not a valid reason from an audit
standpoint - All charges hitting after the end
date should be validated (JV data download is a
useful tool in easily identifying and validating
charges outside the award end date)
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EXERCISE

• JV DATA DOWNLOAD/PIVOT REPORT
• DEMONSTRATION

PP2050861
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ITEM 4 ON THE CHECKLIST

• SubContract
• - has the sub-recipient completed the project
• - Has final invoice been submitted and paid
  (verify that Final is inserted on the final
  invoice)
• - Has sub-recipient closeout documents as per
  the subaward been submitted (obtain copies for
  file)

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ITEM 5 ON THE CHECKLIST

• PI effort/salary
• Liaise with Compliance to confirm
• PI percentage of effort/salary has been allocated
  to award as per agreement
• If rebudgeting was done was it in compliance with
  sponsor rebudgeting guidelines

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ITEM 6 ON THE CHECKLIST

• Labor Distribution
• Liaise with compliance to verify/confirm if there
  are outstanding labor distribution issue prior to
  closing out award-make sure departments change
  distributions at end of award if salary was
  charged on award.

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ITEM 7 ON THE CHECKLIST

• Prior Approval
• - Verify budget line items requiring prior
  approval from sponsor
• - Obtains copy of prior approval documentation
  from sponsor where applicable
• Examples of budget line items requiring prior
• approval Equipment, travel, subawards,
• rebudgeting, change of primary PI

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ITEM 8 ON THE CHECKLIST

• Cost Share/Match
• Cost share is the institutional contribution to
  the cost of
• completing a project
• Also referred to as in-kind

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COST SHARE/Match

• - Obtain documentation from department
  certifying committed/required cost share/match
  was met
• - Verify total cost share commitment in award
  documentation
• N/B Sometimes cost share is specifically
  required by the
• sponsor
• - This may be stated in the program guidelines
• - It may also be a standing requirement
  specific to a particular sponsor, as in the case
  of NSF (1 match on unsolicited most projects)

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BREAK EXERCISE TIME 10 MINUTES
You Be The Judge-20 Question Exercise
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ITEM 9 ON THE CHECKLIST

• Expenditure Type for Equipment Purchases
• - Are items costing less than 5,000 acquired
  after 8/31/03 coded correctly as non-capital
  purchases
• - Are items from 2,500 to 4,999 recorded in
  the proper account

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Expenditure Type for Equipment Purchases

• - If an equipment/property inventory is
  required by the sponsor or terms of the
  agreement, obtain copy of property report from
  Property Department.
• - Prepare property/equipment report as per
  sponsors requirement/standardize format
• - Submit report to sponsor when forwarding
  final closeout documentation
• N/B Verify in the agreement/award documentation
  who has title to equipment at the end of project

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ITEM 10 ON THE CHECKLIST

• Procard Clearing Account
• - Make sure there are no balances in the procard
  clearing account.
• - All balances in the procard clearing account
  should be reclassified prior to closing out
• DEMONSTRATION

Procard
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ITEM 11 ON THE CHECKLIST

• Advances
• - Review advance balances
• verify advance has been cleared to expense
  accounts
• center should not be closed if outstanding
  advances have not been cleared
• Acct Code-02818 02820

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ITEM 12 ON THE CHECKLIST

• Major Project or Activity
• - review agreement to ascertain if award is a
  major project or activity
• - administrative or clerical costs should not be
  allowed on project or activity that are not major
  
• - administrative or clerical costs charged to
  major project or activity should be limited to
  those listed in the budget

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ITEM 13 ON THE CHECKLIST

• Tuition Allowance
• - make sure statement of appointment is on file
  for
• student working on project (especially NIH T32
• training grants)
• - student time spend on the grant should not
  exceed five years for predoc and 3 years for
  postdoc
• - Make sure there are not more than 3 predocs
  and 2
• postdocs working on an award at the same time
• - make sure stipend level falls within NIH
  approved
• stipend level for the grant period
• - confirm that all stipend/tuition has been
  rightly charged to the grant

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ITEM 13 ON THE CHECKLIST

• Have all appropriate expenses been
• posted to the Cost Center
• - confirm with PI/designee that all
  legitimate charges have been posted (the final
  worksheet could be used to confirm total
  expenditures)

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ITEM 14 ON THE CHECKLIST

• Unallowable Expenses
• Sources for determining unallowable charges-
• - award document/agreement/program guide
• - review and become familiar with the OMB
  circular-A-21
• This is the guiding principal for all federal
  money and is also used by many non-fed sponsors
• - request PI/designee to remove charges
• N/B There are unusual occasions when expenses
  that are typically unallowable will be allowed.
  If this is the case, attach adequate
  documentation to the closeout report and put in
  the folder.

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ITEM 14 ON THE CHECKLIST

• Unallowable/Unallocable Expenses
• When in doubt..verify in A-21, Section-J or on
• SAO Website
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A-21 SECTION J
Quick Check
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ITEM 15 ON THE CHECKLIST

• Overdraft (OD)
• - contact PI/designee to remove overrun from
  cost center
• - transfer overrun to approved department GX
  center using account code 78440 if no response is
  received within a reasonable timeframe

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Final FR CLOSE PROCESS

• Reconciliation-
• - once it is certain all legitimate expenditures
  have hit the account prepare final financial
  report if one is required
• - total expenditure amount reflected on final
  report should equal total budgeted amount and
  total cash receipt in the financial system
• - if budgeted amount reflected in system is
  greater or less than amount reported on the final
  report, request budget adjustment from SAO
  Reporting or pre-award

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FINAL FR CLOSE PROCESS

• - if cash received is greater or less than total
  reported expenditure-
• - remit excess cash to sponsor or department
  specified cost center (if firm fixed)
• - if cash is less than reported amount but
  expenditure and budget balance reflected in the
  system are the same, complete the FR Close
  milestone (verify cash receipt/AR with SAO
  Accounting. SAO Accounting will ensure that the
  cash received balances with the budgeted amount
  and final expenditures reported)

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CLOSEOUT-CLINICAL TRIALS

• Once end date expires
• Confirm with PI/designee that trial is completed-
• If completed, begin the closeout process
• If not, analyst should recommend that PI/designee
  liaise with pre-award in filing a no cost
  extension
• Reconcile balances (expenditures, budgeted amount
  and cash receipts)
• - If budgeted amount is less/ or greater than
  cash receipt verify with PI/designee if budget
  needs to be adjusted or cash was misapplied. If
  budget requires adjustment ensure ORS adjusts the
  budget accordingly
• - If surplus or overrun, transfer balance to
  medical center holding account-GD4007601.

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CLOSEOUT-CLINICAL TRIALS

• Inform Medical Center Finance Office
  (MCF)-Venishea Butler, of transfer
• MCF at the end of each quarter, is responsible to
  transfer to department discretionary account
• If charges are applied after a clinical trial has
  been closed, alert MCF who is responsible to get
  charges applied against department discretionary
  account
• N/B do not transfer surplus or overrun balances
  to department discretionary account. Its MCF
  responsibility

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FILING

• Closeout Documents to include in folder
• Copies of closeout reports submitted to sponsor
• E.g final financial and technical reports,
  property/invention reports (if required),
  releases, etc
• Closeout Report Closeout Checklist
• Sign and date and submit to manager for
  signature. Attached to other closeout
  documentation, put in folder and put folder back
  on shelf

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QUESTIONS???