Sponsored Programs at Penn Closeout of Sponsored Project Funds

Closeout Process Purpose Understanding the Process By accepting funding from sponsoring agencies, the University agrees to manage and utilize these funds in agreement with the sponsor’s terms and conditions The University has an obligation to sponsors to complete the closing of sponsored projects in a timely manner The closeout process is a collaborative effort. All involved parties work together to ensure the aims of the project are completed, the required reports and documentation are submitted timely, and the financial matters are resolved Understanding the Process The process and procedures required to complete the closeout process vary depending on the sponsoring agency We rely on the terms and conditions of the award to dictate best practices

Adjustment Period The adjustment period - from grant end date until the fund freezes, it should be utilized to make any necessary final adjustments to the fund The adjustment period varies depending on when the final report is due 90 day reporting – fund freezes on the 60th day 60/45 day reporting – fund freezes on the 30th day 30 day reporting - fund freezes on 15th day If you fail to utilize the adjustment period you will be required to submit an unfreeze request An unfreeze request can be used to add additional expenses or to remove an overdraft You need to submit documentation to support pending expenses (copies of invoices, PDA forms, T&E forms etc.) Be mindful of cost transfer policy - additional documentation may be required The unfreeze request should be sent to your ORS accountant who will unfreeze the fund if approved

Unfreeze Request

BA Closeout Checklist Send closeout confirmation to ORS - include direct, indirect and total costs to be reported Review Personnel - salary distribution - effort reporting certified Review Non-Personnel - all object codes reviewed; project-related expenses allowable - unallowable and wayward expenses have been corrected Revenue Impacts - cost share has been properly recorded and documented - program income and interest income have been addressed Financial Issues - receivable issues have been addressed and resolved

ORS Roles and Responsibilities Review the NOA and budget to ensure compliance with T&C and any restrictions - cost share was it met and documented; revenue journal completed - interest income can we spend it; must it be returned in full or partially - program income is it additive or deductive Review Fund Summary Report to ensure proper posting of expenses Begin closeout after receiving confirmation from department of total expenses Reconcile EB’s and F&A and make necessary adjustments Review the Cost Transfer Report - ensure all OV 90 day CT’s have been properly documented and approved Review Stale Dated Check Reports - ensure all stale dated checks have been addressed or voided, if applicable Remove all overdrafts via unfreeze request or process chargeback JE - ORS will process 4827 chargeback JE if no response is received

ORS Roles and Responsibilities Address Unobligated Balances - submit FFR reporting the unspent portion of the award - process carryforward at closeout; if automatic - request email confirmation if carryforward is being requested Address Unliquidated Balances - if allowed they may be carried forward to new year; usually on training grants - if reported on final invoice/financial report they will be encumbered Address Cash Balances - return unexpended cash to sponsor - process a Residual Balance Transfer Prepare and process closing entries and carryovers - closing entries- posting FSRD/FSRI; reducing PBIL if needed - if carryforward is automatic post award will handle - if carryforward requires sponsor approval pre award will handle

ORS Roles and Responsibilities Financial Reporting The Financial Status Report (FFR) will be submitted no later than the due date A copy will be sent to the department and a copy will be scanned into our imaging system (ONBASE) ORS will process closing entries based upon expenses reported We will submit forms to refund any funds that must be returned to the sponsor Revised FFR’s Will only be done in rare circumstances Some sponsors will not accept FFR’s revised to report an increase in expenses There may be a stated time limit that upward revision will be allowed There is no time limit when revising to decrease expenses; this should be done as soon as the need to revise is identified

Funds Are Eligible To Disable When the following criteria are met The final report or final invoice must be submitted FSRD and FSRI s/b posted reflecting Direct and Indirect Costs reported The following should all match PBIL / PBUD Total of FSRD and FSRI Expenses Revenue All encumbrances must be removed Receivable Object Codes 1220/1222/2630 must equal=0 Equipment in Object Code 183X/187X must be transferred to School Surrogate Accounts via an Object Code 4826 Equipment Transfer BBR (ORS billing system) is reconciled (requires ORS action) All stale dated checks have been satisfactorily addressed

In Summary Processes that aid in the closeout of the project Throughout the entire grant cycle the PI and BA should monitor expenses, ensure deliverables are met and submit required non-financial reports At least 3 months prior to termination of the award, attention must be devoted to a full review of the fund and preparation for closeout ORS will send a closeout email at least 30 days prior to the due date of the final report requesting closeout information All pending adjustments should be made before the fund freezes All overdrafts must be addressed and/or resolved prior to the submission of the final report The BA will confirm total expenses to be reported Final financial Report and/or Final invoice will be submitted prior to the due date reporting expenses posted to the G/L if no reply is received

Getting Assistance on Closeouts Closing grants is a shared responsibility For financial matters: - Contact ORS accountant or Post-Award Associate Director Requests or statuses extensions - Contact your Contract Administrator and copy ORS Accountant Requests for carryover approvals Requests for budget or other modifications to agreement, or non-financial matters: - Contact your Contract Administrator