ACCOUNT CLOSEOUTS

CLOSEOUTS FACT OR FICTION?

FACT OR FICTION A THOROUGH CLOSEOUT IS ONLY REQUIRED IF THE AWARD HAS A FINANCIAL REPORT OR FINAL INVOICE DUE FICTION ALL AWARDS SHOULD HAVE A THOROUGH CLOSEOUT PERFORMED TO ENSURE EXPENDITURES ARE VALID FOR THE PROJECT AND TO PREVENT ERRONEOUS ITEMS FROM POSTING AFTER THE TERM DATE

FACT OR FICTION EVEN THOUGH AN AWARD IS CLOSED, IT IS STILL SUBJECT TO THE REGULATIONS STATED IN OMB CIRCULAR A-110 FACT CLOSING AN AWARD DOES NOT AFFECT ANY OF THE FOLLOWING (A110, SUBPART D, 72): RIGHT OF AN AGNECY TO DISALLOW AND RECOVER FUNDS // OBLIGATION OF RECIPIENT TO RETURN FUNDS DUE AS RESULT OF REFUND // AUDIT REQUIREMENTS // PROPERTY MANAGEMENT REQUIREMENTS // RECORDS RETENTION

FACT OR FICTION AWARDS SHOULD ONLY BE CLOSED 90 DAYS AFTER THE END DATE – THERE IS LITTLE POINT IN REVIEWING THE AWARD PRIOR TO THAT FICTION SPONSORS MAY REQUIRE FINANCIAL CLOSEOUTS WITHIN 30, 45, OR 60 DAYS OF THE END DATE

FACT OR FICTION FINANCIAL RECORDS MUST BE KEPT FOR A PERIOD OF THREE YEARS FROM THE DATE OF SUBMISSION OF THE FINAL EXPENDITURE REPORT FACT OMB CIRCULAR A-110, SUBPART C, 53 – RETENTION AND ACCESS REQUIREMENTS FOR RECORDS (NOTE: NON-FEDERAL SPONSORS MAY HAVE DIFFERENT REQUIREMENTS) “FINANCIAL RECORDS, SUPPORTING DOCUMENTS, STATISTICAL RECORDS, AND ALL OTHER RECORDS PERTINENT TO AN AWARD SHALL BE RETAINED FOR A PERIOD OF THREE YEARS FROM THE DATE OF SUBMISSION OF THE FINAL EXPENDITURE REPORT”

FACT OR FICTION CLOSING AWARDS IS AN IMPORTANT STEP IN THE AWARD MANAGEMENT PROCESS FACT PERFORMING A THOROUGH CLOSEOUT FOR EVERY SPONSORED AWARD IS A CRITICAL TASK TO HELP ENSURE FINANCIAL COMPLIANCE AND REDUCE AUDIT RISK

Questions?