1. Award Closeout Process Effective January 1, 2016
Presentation to CSS Team 2 November 9, 2015
Youssef Kubis, Director, Contracts and Grants Accounting
Kimberly Page, Manager, Contracts and Grants Accounting
Elise Mills, Contract & Grant Manager, CSS Team2 (ERSO) & Deputy Director, CSS RA, Campus Shared Services
Objectives for this training:
Review what has changed, and what has not changed, in the closeout procedures
Cover how managers can implement best practices to ensure requirements/deadlines are met
Provide managers with the information, tools needed to train their staff
Detail processes that managers may need to review with staff to ensure consistent practice across campus AND compliance with sponsor and university requirements

2. Background CGA Award Closeout process implemented 7/1/2014
The full process wasn’t implemented at that time
We’re ready to implement the full process now (1/1/2016)
Why now?
What is new?
CGA and CSS roles in the process

3. Why implement the full process now? Confluence of 3 Factors:
Internal and external focus on compliance and oversight
Uniform Guidance (§ Closeout)
SAS-115 (internal review process to ensure accurate and complete transactions)
CGA metrics and monitoring
CSS best practices for award management
Need a solution to the problem of post-close charges
New tools for award lifecycle management

4. What is New?
Upon issuing the final financial report/invoice to the sponsor, CGA will perform the following steps in the PeopleSoft C&G System:
Change the Activity status from “Ended” to “Final”
Change the contract status to “Closed”
Place billing and revenue plans on hold 
Run the COA inactivation and GL check process
If no results returned, set the Fund status to “Inactive.” All expenditures rejected.
If any results are returned (i.e., pending transactions), the Fund status remains “Active.” This will prevent expenditures (except payroll) from posting to the award’s GL but will allow AR activity and deficit clearing to be processed, and the RA to close any open Purchase Orders.

5. A Word about Status Values and Transactions

7. What this means to CSS and CGA: Closeout Timeline
Award Expired - Day Zero
30 Days - Termination Notice
60 Days - Termination Notice
CCF Form Due the next day after GL Close for 2nd Month after Award Expiration
90 Days - Termination Notice
May 2, 2014
June 1, 2014
July 1, 2014
July 31, 2014
October 10, 2014
Award Closeout Process
Final Award Activities
(dates in green are example only)
90 Days - Award Closed & Final Financial Report is submitted
October 29, 2014
~ 120 Days – Deficit Clearing
November 27, 2014
30 Days
~20 Days
Pre-Expiration Period
Adjustment Period
Final Closeout Period
Tasks to be completed in each closeout phase, as well as the completion deadlines, have not changed. The standard 90-day time period for closing awards remains the same. The Award Closeout Certification form (replaces the Concurrence Report) is submitted the day after the GL is closed for the award’s closing month, the award close/Final Financial Report still due date is still +90 days.
Request final invoices, make transfers
Change payroll chartstring for future distributions
Request recharge changes, cessation
Request no-cost extension if required
RAs
Transfer expenses and overdrafts
Transfer payroll via UPAY
Accrue unposted expenses
Close POs
Submit Closeout Certification
CGA
Verify costs for Final Financial Report/invoice
Review for unallowable expenses
Review cost share report
Submit Final Financial Report/invoice to sponsor
Run COA inactivation process (CGA supervisor)
CGA Accounting Team
Deficit clearing runs
Run COA inactivation process

8. Tools available for award management
Termination notices (90/60/30/0 Day)
No additional s from CGA staff
Need your help to keep contact information updated
CGA updates RA information in PeopleSoft C&G module (“Post Award Administrator”)
CSS updates Department Contact fields in PeopleSoft C&G module
Payroll Personnel System (PPS) Suspense Correction component
Simplified payroll suspense clearing.
Upcoming enhancements include:
Ability to handle corrections for the issue with PPS where we have the over $1000 benefits
Ability to process PET requests for bi-weekly vacation accruals where the gross earnings are zero
Ability for CSS Payroll unit to run report on all approved PET data 
Ability to change the BU on a PET
PI Portfolio
Expense accrual process
Queries and metrics for award closeout
provides visibility and allows monitoring of closeout timeliness

9. Things to consider during award closeout
Different closeout timelines
NIH and NSF awards
UCB as Subrecipient
Closeout Exception Requests
Only rare and extreme circumstances such as system outages or significant BFS reporting issues
Cost Share Contribution Reports
Submitted with Closeout Certification Form
Certified by PI and supported with documentation
CGA analysts will review in advance of closeout if time available

10. Things to consider during award closeout
No Cost Extensions
CGA is monitoring “late” closeouts due to pending NCEs
CGA will only suspend the closeout process (for a pending NCE) or extend the award (for an approved NCE) upon written direction from SPO/IAO
Awards in overdraft
Final invoice is based on actual expenses recorded on the GL
CSS must proactively perform cost transfers timely (during the adjustment period) to bring total expenditures to equal or below budget limit
CGA will generate financial journal to move partial expense in overdraft to department chartstring (personnel, equipment, subs, participant support costs- 48hr window to take final action)

11. Things to consider during award closeout
Deficit Clearing
Deficit clearing will be performed on all closed awards processed as part of step “4.b" above
There will be no reversal of deficit clearing except in extreme and exceptional cases and only after obtaining CGA manager’s approval
CSS RAs should not process any transactions during the CGA Final Closeout Period except in extreme cases with the approval of the CGA manager. CSS RAs cannot process any journal entries after the award is closed; remaining over-expenditures (including payroll) will be cleared by the deficit clearing process

12. Stats and Department Contact Maintenance
Statistics
Department Contact Maintenance
URL:
Path: Controller’s Office website>training>RA Grants WorkCenter and other BFS Procedures>Other BFS Procedures>Department Contact Maintenance.pdf

13. CSS RAs and Close-outs – what can we do?
How can I as a research administrator have any control in this process?
I cannot change any online systems or deadlines.
What’s to be done?

14. Organization vs. Chaos Organize your work
Make sure you know the present end dates of all your funds.
Make sure you and the PI request NCE’s prior to actual end date (even in subaward instances)
Have a current, detailed projection plan through close-out.
Manage your encumbrances (no need to have lots of items that are years old at close-out time)
Watch out for the new close-out reports from CGA via .
Create your own reminder about the end dates and not just fund numbers, but also award numbers.
The only really ‘new’ procedures are adding more advanced noticing before expiration date, requiring accruals for expenses not yet posted, recording and reporting cost share, and deficit clearing of all overages to department fund.

15. Be proactive about activities
#1: Address overdrafts as soon as you even have a hint that they might happen. This will help you the RA and also CGA in being able to close the award on time and let CGA be able to invoice properly. #2: Review and take action on PPS Suspense in BFS Monthly check in BFS for payroll suspense as soon as the month’s payroll posts (no need to wait for the month to fully close OR for supervisor or payroll to tell you to look for your work)
The only really ‘new’ procedures are adding more advanced noticing before expiration date, requiring accruals for expenses not yet posted, recording and reporting cost share, and deficit clearing of all overages to department fund.

16. ADJUSTMENT PERIOD
Consider timing of your awards and what opportunities you have. Here are 4 examples:

17. FINAL MONTH
1st MONTH CLOSED
2nd MONTH CLOSED
3rd MONTH CLOSED
WITH CGA
ERSO PET deadline
ERSO PET deadline
ERSO PET deadline
ERSO PET deadline
Award Example
Fund End Date
Days to close
Ledger cut‐off
Ledger cut‐off
Ledger cut‐off
Ledger cut‐off
Due to Agency
Due to CGA
type
1 Subaward
10/31/2015 45
10/15/ /6/2015
11/13/2015
12/7/2015
12/15/2015
1/7/2016
1/15/2016
2/7/2016
11/25/2015
2 Vanilla 90
1/8/2016
1/31/2016
3 mid‐month close
11/14/2015
11/13/2015 N/A
2/14/2016
3/7/2016
1/25/2016
2/13/2016
4 NSF/NIH
120
2/11/2016
3/1/2016
ACTION UNAVAILABLE
Deadline structure credit of Gwen Lindsey

18. FINAL MONTH
1st MONTH CLOSED
2nd MONTH CLOSED
3rd MONTH CLOSED
WITH CGA
ERSO PET deadline
ERSO PET deadline
ERSO PET deadline
ERSO PET deadline
Award Example
Fund End Date
Days to close
Ledger cut‐off
Ledger cut‐off
Ledger cut‐off
Ledger cut‐off
Due to Agency
Due to CGA
type
1 Subaward
10/31/2015 45
10/15/ /6/2015
11/13/2015
12/7/2015
12/15/2015
1/7/2016
1/15/2016
2/7/2016
11/25/2015
2 Vanilla 90
1/8/2016
1/31/2016
3 mid‐month close
11/14/2015
11/13/2015 N/A
2/14/2016
3/7/2016
1/25/2016
2/13/2016
4 NSF/NIH
120
2/11/2016
3/1/2016
ACTION UNAVAILABLE
Deadline structure credit of Gwen Lindsey

19. Example #1 Subaward: 45 days to close out (both RA & CGA)
There is no time to wait for 2nd month close.
Take action on any corrections and changes asap.
Timeline for other deadlines only gives RA 1 month to act.
The only really ‘new’ procedures are adding more advanced noticing before expiration date, requiring accruals for expenses not yet posted, recording and reporting cost share, and deficit clearing of all overages to department fund.

20. Example #2 “Vanilla”: 90 days to close out (both RA & CGA)
You can finish at 2nd month close, but barely.
Follow up and act on Payroll suspense asap.
Ensure all other actions necessary are completed.
The only really ‘new’ procedures are adding more advanced noticing before expiration date, requiring accruals for expenses not yet posted, recording and reporting cost share, and deficit clearing of all overages to department fund.

21. Example #3 Midmonth (or anything but end): it’s complicated……
Take action on any corrections and changes asap.
You have 1 good month to “act” on any changes.
After that month, you may miss out on any other opportunities to update payroll (except by creating an accrual).
The only really ‘new’ procedures are adding more advanced noticing before expiration date, requiring accruals for expenses not yet posted, recording and reporting cost share, and deficit clearing of all overages to department fund.

22. Example #4
NSF/NIH: days to close out (both RA & CGA)
You can finish at 2nd month close.
Follow up and act on Payroll suspense asap.
Ensure all other actions necessary are completed.
ANY TIME: If you have cost-share to report – make sure it is done and have report ready & signed off by all in order to submit with your close-out for CGA.
The only really ‘new’ procedures are adding more advanced noticing before expiration date, requiring accruals for expenses not yet posted, recording and reporting cost share, and deficit clearing of all overages to department fund.

23. Questions?