GAP 200.180, Closeout of Sponsored Project
- General
- Procedure for Closing Projects with Established End Dates
- Procedure for Closing Projects without Established End Dates
- Closeout Notifications
I. GENERAL
Certain procedures must be followed when a sponsored project is ending to ensure that the University meets reporting requirements imposed by sponsoring agencies. Costs charged to the project must be stopped as of the project end date. All cost adjustments to a project must be recorded within two accounting periods after the end date, or sooner, if the sponsor requires the final financial report/billing prior to 90 days after the end of the project. If cost transfers are not recorded in this time frame, financial reporting may be delayed and the chance of the cost being disallowed is substantially increased. GAP 200.150, Cost Transfers on Sponsored Projects provides further information on cost transfers.
II. PROCEDURE FOR CLOSING PROJECTS WITH ESTABLISHED END DATES
A. During the Three Accounting Periods Prior to Project End Date
Each month the departmental administrator should run the ZF110 (Projects Ending in 3 Months). This report provides a listing of projects that are set to expire within the 3 fiscal months following the fiscal month specified when the report is run. The report provides the Project Number, Description, Org Unit Code, Principal Investigator, and Project End Date. The end date will be listed under the appropriate fiscal month in which it will expire. Below are actions that will be required.
- Process a Cost Distribution Form through iForms to eliminate payroll charges on the WBS element after the end date. The form and instructions are available on the web.
- Charge all expenses of the project to the WBS element by the end date.
- If the project WBS element has been used on any standing orders, monthly phone charges, etc., change the charges to an appropriate funding source, or terminate the services, effective as of the project end date.
B. During the Two Accounting Periods after the Project End Date
The following closeout documentation is required to be submitted by the department to the Office of Sponsored Programs no later than 60 days after the project end date:
- ZF114 Report: Analysis of Transactions After the End Date Report: This report is completed by the department. If the project is training grant funded by NIH, the Obligation Sheet for Training Grants is also completed.
The ZF114 is available for the department administrator to execute themselves. The ZF114 lists all expenses that have been charged to the project after the project end date up to the time the report is executed. The department administrator must review the expenses and indicate in the columns provided whether each expense is allowable or unallowable. All unallowable expenses must be removed by the department. If allowable expenses have not yet hit the General Ledger, the department administrator should add the expense to the ZF114 report and attach the appropriate supporting documentation. - Post Award Close-Out Checklist: This report is completed by the department and signed by the Principal Investigator and the responsible financial administrator
C. Two Accounting Periods after the Project End Date
Unallowable charges (including cost overruns) remaining on the completed project will be transferred first to the departmental current allocated cost center (45x), then to the departmental current General Fund operating cost center (15X). The Office of Sponsored Programs will prepare the journal voucher to accomplish this.
The Office of Sponsored Programs will submit to the sponsor the required final financial reports or billings only after acceptable closeout documentation is received from the department.
The Office of Sponsored Programs will request that the WBS element be closed in SAP once the reported expenses equal the revenue, thus allowing for no further transactions.
III. PROCEDURE FOR CLOSING PROJECTS WITHOUT ESTABLISHED END DATES
When the fund balance has been brought to zero and no activity has occurred for at least one month, the department must notify, in writing, the Office of Sponsored Programs that the WBS element should be closed. The Office of Sponsored Programs will request that the WBS element be closed, thus allowing for no further transactions.
IV. CLOSEOUT NOTIFICATIONS
To facilitate the closeout of a project, the Office of Sponsored Programs (OSP) sends out to the department administrator and business manager various email notifications via SAP. The notifications list all sponsored projects owned by the department and lists the closeout documentations that are required before OSP can submit the final financial report/billing. The email notifications are sent as follows:
A. Standard Notifications – 90 day sponsor due date:
- First Notice – 45 days before project end date – Awareness notice
- 2nd Notice – 30 days after end date – Deadline notice of documentation
- 3rd Notice – 61 days after end date – Provides an extension of time
- Final Notice – 69 days after end date – Unable to submit Final
B. Non-Standard Notifications – less than 90 day sponsor due date:
- First Notice – 45 days before project end date – Awareness notice
- 2nd Notice – At project end date – Deadline notice of documentation
- 3rd Notice – 14 days before sponsor due end date – Provides an extension of time
- Final Notice – 7 days before sponsor end date – Unable to submit Final
Note: This guidance is administrative in nature and is not a cost reimbursement policy. Failure to comply may or may not result in adjustments of charges to the award. Noncompliance with this policy does not mean this cost is unallowable from an external perspective. Any adjustments of charges will be as required under applicable federal cost reimbursement principles. If a cost is removed from an award for any reason, whether or not related to this guidance, the cost will generally be charged to departmental funds.