Financial Closeout for Post-Award
Closeout is the process of ensuring that expenditures and income are finalized on accounts and that no further action is anticipated.
Close Timeline
90 Days before Funding Period End Date
PI and department contact receive an automatic email notifying that the account is ending.
- At this time, the PI should ensure that
- Expenditures are as expected
- All project costs are incurred by the project end date
- Encumbrances will be finalized
- Salary allocations are moved to other funding sources at project end
- Any required cost share is documented
Review the accounts to determine
- If an extension is needed
- If any budget transfers are needed
- If any salary transfers are needed from departmental accounts, including stop gap accounts
- That all cash advances are reconciled
- That all subaward and contractor invoices have been received and paid
Costs can continue to post to the project for one month after the end date, including payroll and payments for expenditures incurred before the end date. During this time, the PI and department can also make any cost transfers necessary to correct errors.
SPAA will also be looking at accounts to help identify potential issues so they can be resolved in a timely manner.
At Period End Date
PI and department contact receive an email on status of account. This email will include current expenditure information and will encourage the PI and department to finalize expenditures.
Before Final Invoice/Final Reports Due Date
- SPAA will prepare final invoice/final financial reports
- Verify that IDC has earned appropriately
- Send email to PI/department with final invoice/final financial report amounts before submitting final invoice/final financial report
- Submits final invoice/final financial reports
At Close Date
SPAA will verify that all income has been received and coordinate any needed adjustments.
FAQ
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I got an email saying my account is ending…What is this about?
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Automatic emails are sent 90 days, 60 days, and 30 days before the Funding Period End Date in Define for the referenced account. These automatic emails are sent to the Principal Investigator and to the Department Contact listed on the GB1 screen in Define. Additional emails are also sent the month after the Funding Period End Date of the account to the Principal Investigator and Department Contact that contain a brief summary of the financial information on the account. These emails are sent out to provide Principal Investigators and Department Contacts with the information that OSP-SPAA will be using to prepare the final financial reports, final invoices, and financial closeouts for your account(s).
Sample Email Notifications:
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Why did I get this email indicating that my account is ending?
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You received this email because you are listed as the Principal Investigator or the Department Contact on the GB1 screen in Define for the account referenced in the email.
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What is the Funding Period End Date of my account?
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The Funding Period End Date is the date that the account is scheduled to end in Define. This means that you are not authorized to post transactions to the account after that date. Expenditure transactions can be processed after the Funding Period End Date of the account, but the service dates of the expenditures should always occur prior to the Funding Period End Date of the account.
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Is my account really closing? It was just set up on credit.
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Accounts on credit are typically set up for six months or less. You can disregard this email if your account is setup on credit unless assistance is needed from OSP.
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Is my account really closing? This account is receiving an extension.
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These emails are sent out based on the current Funding Period End Date in Define. You can disregard this email if you are expecting the account to receive an extension in the near future. There is likely a timing delay that will be resolved once SPAA receives the extension and updates the Funding Period End Date in Define.
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Is my account really closing? There’s another year of this project.
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These emails are sent out based on the current Funding Period End Date in Define. In some cases, there may be another year pending on your account. However, if carry forward is restricted, a new account may be needed for the next year of the project.
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How soon are the final financial reports due?
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In many cases, the final reports / invoices are due 60-90 days after the Funding Period End Date of the account. The email you received should be used a starting point in preparation for final financial reports, final invoices, and financial closeouts.
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What steps do I take if we are expecting carry forward of funds into the next year of the project?
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Depending on the specific project, there are different scenarios that can occur. In some cases, the unexpended budget may carry forward automatically without any further approval from the sponsor. In other cases, the sponsor may need to approve the carry forward of unexpended funds into the next year. In some cases, the sponsor will completely restrict the carry forward of funds between budget years and the funds are lost. Please reach out to your SPAA specialist if you have specific questions about carryforward on your account.