Grant and Contract Closing Process

• Description
• Process Overview
• PI/Staff Procedures
  • Closing your grant and contract budget
  • Closing types
• Supporting Documents
• Contacts

ANNOUNCEMENT:

Straight from the FRA VII conference here is the FRA Financial Closeout slide show for your enjoyment.

The grant and contract closing process begins when the budget expires and/or after Grant and Contract Accounting (GCA) receives all necessary financial information from the department. (GCA will not close a budget if you notify them that you have an extension and/or supplement in progress.)

1. GCA sends a Notice of Expiration (NOE) letter or email to the PI/staff shortly after expiration of the budget. (The department may initiate the closing request at anytime.)
2. Department responds to the NOE.
3. Based upon the department response to the NOE, GCA:
   • reviews expenditures for compliance with rules and reconciles budget, expenditures, cash and revenue.
   • prepares final adjusting transactions:
     • Journal Voucher (JV) to adjust cash, expenditures and revenue
     • online budget revisions to adjust permanent budget
   • closes the budget and changes the budget status from 1 (active) to 3 (inactive).
   • prepares the Financial Status Report and submits it to the sponsor.
   • sends notification and final reconciliation to the department.
4. After the final adjusting transactions are processed and the account balance is zero, GCA changes the budget status to 4 (closed).
5. After the budget is closed, GCA turns on accounting flag 17 to stop the printing of Budget Activity Reports (BARs)and Budget Status Reports (BSRs).

1. Respond to the Notice of Expiration (NOE) by letter or email
     or   
   Initiate a closing request by sending a letter or email to GCA. In it, address the following:
   • Does the budget have an extension and/or supplement? If yes, the budget cannot be closed at this time.
   • Are all of the expenditures allowable?
   • Are there any unposted charges and/or credits?
   • What is the status of open requisitions and outstanding encumbrances?
   • Are indirect costs accurate?
   • Is the cost share pledge met?
2. For federal training grants, submit a Statement of Appointment form(s) (PHS form 2271.)
3. Use your answers to step 1 (the NOE questions) to determine whether your budget will have a deficit or an unexpended balance.
4. Read Closing Types (remembering if your budget has a deficit or an unexpended balance) and
   1. identify your type of closing
   2. follow the steps listed under your type of closing to bring the balance to zero.

• GIM 18 - Postaward Administration of National Institutes of Health (NIH) Grants
• Administrative Policy Statement 36.2 - Gift Processing Guidelines

Grant and Contract Accounting
A Department of Financial Management
gcaques@u.washington.edu
Modified: April 18, 2006