Award Close Out Policy
Effective Date: 11-01-2008
PDF Version

1. Background
2. Purpose
3. General Statement
4. Policy
5. Definitions
6. Accountability
7. Procedures
8. Annual Review of Procedures Manual

I. Background

Florida Atlantic University is required to comply with financial close out requirements in accordance with OMB Circular A-110 (Relocated to 2 CFR, Part 215), and agency specific terms and conditions.

 II. Purpose

The purpose of this policy is to establish uniform closeout procedures and ensure compliance with OMB Circular A-110 (Relocated to 2 CFR, Part 215), federal and state regulations, as well as, sponsor terms and conditions. 

III. General Statement

Research Accounting is available to answer questions and provide assistance regarding the requirements of the Award Close Out Policy. 

IV. Policy

Florida Atlantic University will submit all financial, performance and other reports to Federal agencies within 90 calendar days after the completion of the award in accordance with the terms and conditions of the award. 

Research Accounting will notify the Principal Investigator (PI) and department designee 30 days prior to project end date to take action to close out the project. The PI and departmental designee will clear out all encumbrances incurred under the Federal awards within 90 calendar days after the funding period ends. 

Research Accounting will review the project grant invoicing and reporting file to verify that final financial report, invoice, property and report of invention have been submitted, if required. 

The University will refund any balances of unobligated cash that the Federal agency or sponsor has advanced or paid that are not authorized to be retained.  The University will return any funds due to the Federal agency or sponsor as a result of later refunds, corrections, or other transactions.

Research Accounting will close out the project account when final payment has been received by the University, and there are no outstanding issues.

For Fixed Fee Contracts whose terms and conditions do not require the return of unspent cash balances, funds remaining will be retained at the University.  The project account will be closed out by first charging the remaining indirect cost or transferring $1,000 to the Division of Research whichever is greater.  Any additional surplus will be transferred to the college or department overhead account.

The principal investigator will be responsible for preparing the final technical report and submitting a copy to the sponsor according to the instructions in the award document.  A copy of the Final Technical Report and the transmittal letter to the sponsor should be sent by the Principal Investigator to Sponsored Program office for University files.

V. Definitions

VI. Accountability

Research Accounting is responsible for;

• verifying that the final financial report, invoice, property and report of invention have been submitted, if required by sponsor agreement, 
• verifying that final payment has been received by the University, and 
• closing out the sponsored projects in the University SCT Banner system when there are no outstanding issues.

The principal investigator is responsible for;

• preparing the performance and final technical report, 
• submitting final technical report to the sponsor, and
• submitting to Sponsored Program for University files a copy of the final technical report and the transmittal letter to the sponsor.

VII. Procedures

Research Accounting will notify the principal investigator and department designee 30 days prior to project end date to take action to close out the project. 

The departmental designee is required to complete the following within 60 days of notification. 

1. Provide the principal investigator with Organization Detail Activity Report and Grant Inception to Date Report to review that charges for the project are allowable and appropriate. 
2. Review all project expenditures to ensure that charges have not posted in error.
3. Verify that all expenses including p-card transactions have posted to project.
4. Stop postage mail and telecommunication charges to project if applicable.
5. Remove cost overruns from project to overhead or department funded account.
6. Inform Research Accounting immediately of any errors charged to projects.
7. Review project cost share expenditures to ensure that charges have not posted in error.
8. Clear out encumbrances through Accounts Payable, Payroll or Purchasing Department.
9. Communicate to Research Accounting that all intended expenditures and corrections have posted.

Research Accounting will identify in the tracking database the sponsored projects which are pending close out.  Research Accounting will review the project’s grant invoicing and reporting file to verify that the final financial report, property and report of invention have been submitted, if required.  The Organization Detail Activity Reports and Grant Inception to date Report will be used to verify that expenses equal those reported in the final financial report or invoice, encumbrances are liquidated and all payments are received.  The departmental designee will be contacted if there are any questions or when cost overrides will be moved.  All unallowable charges including cost overruns will be moved to the department overhead account.

The project account will be closed when final payment has been received by the University, and there are no outstanding issues.  The departmental designee will be notified that the project account will be closed in the University SCT Banner system.

For Fixed Fee Contracts whose terms and conditions do not require the return of unspent cash balance remaining to the sponsor: 

1. Indirect cost expense will be adjusted to amount budgeted or $1,000.00 will be transferred to the Division of Research, whichever is greater. 
2. Remaining balance will be transferred to the college or department overhead account.

VIII. Annual Review of Procedures Manual

The Award Close Out Policy will be reviewed annually.
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