1. Grant Closeouts presented by Jessica Rosen
Prepared by
Terry Shoebotham, CPA
Business Management Specialist
In collaboration with:
HSC Contract & Grant Accounting
Main Campus Contract & Grant Accounting
10/13/08
On January 1st, 2009, financial services areas on both Main Campus and HSC will use “Contract and Grant Accounting” to refer to this department. At present on the HSC campus we are called “Post Award”.
We are the same team; we just have a new name. This presentation uses the new name, “Contract and Grant Accounting”, so you can begin getting used to it.

2. Grant versus Fund What is the difference?
First, let’s clarify what the difference is between a fund within a grant and an entire grant.

3. Accounting Structure
Grant Code XXXXX Fund 1 Index 1 Index 2 Fund 2 Fund 3 Index 3
Note that each grant has one or more funds.
Each fund within the grant has one or more indices.
A grant may only have one fund. If that is the case, closing the fund will result in closing the entire grant.
If, however, a grant has several funds, closing one fund will leave the other funds, and their indices, open. These open funds can still accept charges. The grant continues.

4. Grant Closeout Program completion
Progress Reports and other required documentation completion
Banner accounting reconciliation and closure
for each index
in each fund for the entire grant
A grant closeout involves the completion and review of all activity on a completed grant, including:
program completion
Progress Reports and other required documentation completion
Banner accounting reconciliation and closure
for each index
in each fund for the entire grant

5. Grant Closeout Grant Code XXXXX-Status “C” Fund 1-FROE Index 1-closed
Note that each grant has one or more funds.
Each fund within the grant has one or more indices.
When a grant is closed, all indices within each fund are closed. Each fund title is changed to begin with “FROE”. Then the grant is closed.
All reports and other documents are due.
When the grant is closed, the status of the grant changes to “C” [closed] in FRAGRNT.
The title of each fund is changed. A closed fund title begins with “FROE”
Each index in the grant is inactive and no longer used for any expenses

6. Fund Closeout
A grant may require a new fund for each year it is in operation.
A new fund is opened, and as of a certain date, all grant expenses are charged to the new fund/index.
The old fund/index is no longer used for future charges.
A grant may require a new fund for each year it is in operation, or for other periods, depending on the grant requirements. Generally, when a grant requires a new fund, the old fund is closed out. The grant, however, remains open.
A new fund is opened, and as of a certain date, all grant expenses are charged to the new fund/index. The old fund/index is no longer used for future charges. There may be reconciling items that need to be transferred in or out of the old indices before the fund can be closed. A Reconciliation Form is completed by the department for indices in the closing fund, and the fund is closed.
A new fund with a new index will be issued for this continuing grant. As of the beginning date of the new fund all expenses for the grant will be charged to the new fund. All recurring expenses will also be moved to the new fund.

7. Fund Closeout
Grant Code XXXXX-Status “A” Fund 1 FROE Index 1 -closed Index 2 -closed Fund 2 Index 1 Fund 3 Index 2 Index 3
Note that In this example, Fund 1 has been closed. Funds 2 and 3 remain open. The indices in Funds 2 and 3 continue to receive expenses for the grant.
When a fund is closed, only those indices within that fund are closed. The grant continues to be active in at least one other fund. Expenses continue to be charged to one or more indices in an open fund.
When the old fund is closed, FRAGRNT screen in Banner will NOT indicate a status of “C” for closed. The status will remain “A” [active].
When the old fund is closed, FTMFUND screen in Banner will indicate a termination date that is prior to the current date, for the old fund.
When the old fund is closed, FTMFUND screen in Banner will indicate the closure is complete by “FROE” occurring in the title of the fund. The date the fund was closed and the amount for which the fund was closed will also now appear in the title field.
The balance in account A0CC - Claim on Cash, will be zero.
Reports and other documents continue to be due on an ongoing basis.

8. Why Close a Grant or Fund Immediately after it Ends?
Decrease your workload
Remain on good terms with your sponsor
Remain in compliance with Federal regulations
Generally, this will decrease your workload. You should no longer need to review the grant’s indices monthly, or move errant expenses. This can result in significant time savings.
Remain on good terms with your sponsor. When you are in compliance with your grant terms, the sponsor’s perception of the department is good.
The most important reason for UNM to close grants in a timely fashion is to remain in compliance with Federal regulations that require grants to be closed within 90 days of ending.

9. Workflow Process
The Grant Closeout Workflow process is an automated system that is programmed to send s to specific people at various points during the closeout process. Workflow also automatically makes closeout changes to Banner when certain tasks are completed.
Workflow is designed to increase efficiency in the close out process for the Principal Investigator, department, the Pre award, and Contract and Grant departments. Workflow enhances communication, tracking, and accountability during various stages of the process.
Workflow went live on 9/30/08. You can find Workflow on your MyUNM screen:

10. Department Closeout Duties
STEP ONE:
When you get a workflow stating that your fund is ending, you need to determine whether or not this is correct.
Let’s discuss department closeout duties under the Workflow process.

11. Department Closeout Duties - Determining What is Ending:
Read your Notice of Grant Award. This will tell you when the grant ends.
If you have a SNAP award [Streamlined Non Competing Application Process] the fund should be extended if the grant is not ending.
There are numerous ways to determine when your grant or fund is ending. Here are some:
[Read Slide]

12. Department Closeout Duties - Determining What is Ending:
For Health Science Center grants, look in FRAGRNT under the User defined tab. It may say “has Expanded Authority”, “Doesn’t have expanded authority”, or “Budget period needs new index”.
Discuss with PI to determine status.
Ask your Fiscal Monitor.
[Read Slide]
Make sure you, your Financial Monitor, the Pre-Award department, and the Principal Investigator understand whether the grant is ending, the fund is ending, or one or both are NOT ending. Then you are ready to respond to Workflow.

13. If the Grant is continuing, but the fund is ending:
Find out the status of the new fund for the grant.
Move all recurring expenses.
Review all expenses.
Find out the status of the new fund for the grant. You will need the new fund with a new index in order for the grant to continue without interruption. If necessary, submit a Request to Spend Funds Form.(RTSF)
Move all recurring expenses, like salaries, P-cards, ITS(phone) charges to the new fund’s index with the correct effective date as soon as possible. Make sure this corresponds with the beginning date of the new award. This may also include Central Lab supply POs, where the CRLS Standing Order needs to be adjusted.
Review all expenses on the fund and move in or out any expenses that need to be moved. If you are reconciling your index monthly, this will be a simple task.

14. If the Grant is Ending: Move recurring expenses to a different index
Remove all (unused) encumbrances
Review all expenses
Move in or out expenses that need to be moved
Recurring expenses that frequently need to be moved include salaries, P-cards, and ITS(phone) charges. They may also include Central Lab supply Pos, where the CRLS Standing order needs to be adjusted.
To do this you will distribute Salaries still on the grant with an EPAF, have your P-card holder modify their default index distribution, and submit an ITS requistion in Fast Info to move the phone charges.
Remove all remaining encumbrances, both salary and PO based.

15. Will there be a Loss?
F&A can be a significant expense. If you need to move or add expenses to your grant before it can be closed, F&A may change.
To avoid a loss in a cost reimbursement grant, do not allow your direct expenses to exceed your direct cost budget. Direct expenses are all expenses in all accounts except 89Z0 – F & A Expense.
For Cost Reimbursement grants, make sure all your other expenses do not exceed your budget for all the other accounts, and you will not have a loss.
The only exception to this is if you have excludable expenses budgeted and instead moved non excludable expenses onto the grant. This will cause your F&A to increase beyond what was budgeted for F&A. If you think you may be doing this, compute your F&A change or ask your Fiscal Monitor for help.

16. Will there be a Loss? With Fee for Service contracts or grants:
Your revenue is dependant upon the services provided.
If costs exceeded the revenue for the services provided, there will be a loss.
[Read slide]

17. Will there be a Loss? When you are unsure:
Of accurate F&A
If the contract or grant has a loss for any other reason
Check with your Fiscal Monitor
You can check with your Fiscal Monitor before you send your Reconciliation back, if you have any questions about the gain or loss status of your contract or grant.

18. Are related reports/documents complete?
PI submits progress report directly to sponsor
Documents are submitted as required
The account administrator documents in workflow that this has been done
The Fiscal Monitor sends the Reconciliation Form and patent if applicable to the department for completion
Notice that as an account administrator, you will not receive your Reconciliation form to complete until this point in the workflow process. You must respond in workflow that required reports have been submitted.

19. Is it Closed Yet? Some Banner Screens that will help: FRAGRNT FGITBSR
You have completed your reconciliation report and sent it back. With Workflow, you will receive an when Contract and Grant Accounting has closed your fund or grant.
This will not occur for contracts and grants that ended prior to September 30, For those awards, you can easily look up their status. Screens FRAGRNT, FGITBSR, and FGITBAL will tell you whether or not the fund or grant has been closed by Contract and Grant Accounting.

20. FRAGRNT
If the entire grant is closed, the status on FRAGRNT will be changed from “A” (Active) to “C” (Closed)
For HSC grants, you must also check A0CC, Claim on Cash, to make sure this account balance is zero.
However, for a closed fund within an open grant, the status will still be “A” for Active. You must look at the fund title to see if it is closed.

21. FGITBSR
If you use FGITBSR, you can also check the balance in A0CC, Claim on Cash, and make sure it is zero. Then you know the fund has been closed.

22. FGITBAL
If you want to see if a particular fund on a continuing grant has been closed, you can go to FGITBAL. Here, for fund 38530, you can see that the fund title has been changed. It now begins with “FROE”. The current balance in AOCC ,Claim on Cash is zero. You know the fund has been closed.

23. Contract & Grant Closeout Duties - One Touch Process:
HSC Contracts and Grants uses a “One Touch” process whenever possible to close out a grant. “One Touch” means all information is gathered and the files are only touched once. All the closeout work is completed at one time.
The concept is simple, and you can use it too.

24. One Touch Process: Do monthly reconcilements on each grant
Keep all grant information organized and up to date in folders
Near Grant end, proactively move recurring charges (remember to move Telephone charges!)
Pick up the Reconciliation Form ONE TIME and complete it
This process is a goal. You will not reach it every time, but it is something to aim for.
The closer you come to using the one touch process, the quicker your grant closeout work will become.

25. Contract & Grant Closeout Duties -
Closeout begins with your returned Reconciliation Form
Checklists
Closeout begins with your returned Reconciliation Form
Generally the closeout process does not really begin in Contract and Grant Accounting until you have returned this form. Promptly returning this form will help Contract and Grant Accounting close your grant quickly.
Checklists
Some Departments have developed their own Grant Closeout Checklists. The following checklist has incorporated the best ideas currently in use by several departments. You may find this department checklist helpful. Modify it to suit your department’s needs.
Contract and Grant Accounting have a detailed checklist for their staff to use while closing out grants. You can see the many steps they go through in Appendix 3A of your manual. We will discuss some of these steps.

26. Department Closeout Checklist
Grant /Contract___________ Principal Investigator __________________________
Fund __________________ Dept. Closer _________________________________
Index __________________ Completed (sign & date) _______________________
End Date _______________ Reviewed (sign & date) ____________________________
Initial When Completed
Date When Completed
Item
Comments
Is the Grant or contract closing?
Is the Fund closing?
If the fund (but not the grant or contract) is closing, is the new fund/index set up?
All recurring charges are moved off the grant/contract with the correct effective date (including Telecom/ITS).
All expenses are correct grant/contract charges. Any incorrect charges have been moved off.
No correct grant/contract charges are missing. Any missing charges have been moved into the correct fund.
All encumbrances are at zero.
The PI has confirmed that all Progress reports have been turned in.
All other required documents have been completed (list under comments).
The Reconcilement Form has been completed and sent to Contract and Grant Accounting Office.
(HSC only) direct expenses match Banner direct expenses.
Confirm the grant/contract or fund has been closed by the Core Office.
You can find this checklist under “Forms” on the HSC Contracts and Grants Accounting website on both campuses. You can modify it to suit your department’s needs. The URLs are in your Manual for both locations.

27. Contract & Grant Closeout Duties -
Some C&G Closeout Duties:
Check for Unallowable Expenses
Correct F&A if necessary
Check for Unallowable Expenses
Contracts and Grants is not responsible for finding unallowable expenses charged to your grant. The department, under the guidance of the Principal Investigator, is responsible for making sure that only allowable expenses are charged to the grant.
Nevertheless, Contracts and Grants will look at your grant’s expenses for reasonableness. If any expenses that appear to be unallowable are noticed, your fiscal monitor will ask you about them. If they are unallowable, you will be asked to move them off the grant. Money the sponsor has already paid could be returned to the sponsor.
Make sure this does not happen to you. Reconcile your grants monthly and do not let unallowable expenses creep in.
Correct F&A if necessary
Calculating F&A is the subject of another class. Your Fiscal Monitor will check your F&A and correct it, if necessary, at this point in the closeout process.
Don’t assume your F&A is correct unless you know exactly how to calculate it. If your actual line item direct expenses on a cost reimbursement grant do not exceed your line item budgeted direct expenses, you will not have a loss when Contracts and Grants adjusts your F&A on a reimbursement grant.

28. Contract & Grant Closeout Duties -
Some C&G Closeout Duties:
Record the residual balance or loss
Close the grant or fund
Submit financial & Patent report when required
 Record the residual balance or loss
After you have certified the expenses on the grant are correct and your Fiscal Monitor has corrected F&A, the Fiscal Monitor will look at the balance in the grant financial accounts. If there is a residual balance (gain), this will be moved to the unrestricted index that is identified by your department. Losses are recorded in the grant fund as a loss. The loss is charged to account 8600 and the index used is the unrestricted index provided by the department.
Remember that Fee for Service contracts are dependant upon the services provided. Their expenses do not indicate whether or not they will incur a loss. You must look at the revenue earned under the contract.
Close the Grant or Fund
When all your entries are recorded, your fiscal monitor will make sure all revenue owed has been collected and account A0CC, Claim on Cash has a balance of zero. Soon after this point your Fiscal Monitor will close the grant or fund.

29. Examples: Completed HSC Reconciliation Form FRIGITD FGITBSR
Completed Main Campus Reconciliation Form
FTMACCI
FGITBAL
We have gone over the closeout duties in both the department and in Contracts & Grants under workflow. Now lets look at the detail a little more.

30. Completed HSC Rec. Form = $26,348.79 Related Screens
Note that F&A was left for the core office to complete in the above reconciliation. The total above (green) does NOT match the Banner total on the next screen(blue). If you look at the reconciliation detail (green), however, the direct expense total in the reconciliation [$26,348.79] DOES match the Banner direct expense total (green), line by line. The only difference is F&A.
IMPORTANT NOTE:
Remember that if your Actual line item Direct Expenses [$26,348.79, below] do not exceed your line item Direct Expense Budget you will not have a loss when F&A is adjusted for a cost reimbursement grant. Direct Expenses are all expenses except F&A.
= $26,348.79

31. FRIGITD = $26,348.79 = Actual Expense Total IMPORTANT NOTE:
Remember that if your Actual Direct Expense line items [$26,348.79] do not exceed your Direct Expense line item Budget you will not have a loss when F&A is adjusted. Direct Expenses are all expenses except F&A.
This applies to cost reimbursement grants. Fee for service contracts’ income or loss is calculated based on revenue, not expense.
= $26,348.79
= Actual Expense Total

32. FGITBSR
FGITBSR will show you grant balances. Note that Account A0CC,Claim on Cash current balance is zero.

33. FGITBAL
Now, if you look at FGITBAL for fund 38530, you can see that the fund is closed. The title says “FROE”, and the Claim on Cash balance is zero.

34. Completed MC Rec. Form
The department has identified and noted on the worksheet all items that must be moved or changed. Can we tell from this worksheet which fund is being closed? [answer, “no”]

35. FTMACCI
To determine which fund is being closed, go to FTMACCI. Select “Enter Query”. Input the index[green]. Select “Execute Query”.
This tells you the fund being closed is 272H1, on grant 2R72H.
Once we know the fund that is being closed, we go to FRIGITD to see what the expenses look like for this fund.

36. FRIGITD
Check the “Fund Summary” box. Then click next block.

37. FRIGITD
Note that fund 272H1 is highlighted in the top portion of the screen. This indicates the expenses in the lower half of the screen are 272H1 expenses.
What can you tell by looking at the budget and activity as it is now stated for this grant?
The total Expense is LESS THAN the total budget (see Net Total amount circled of $288.54). The grant is not overspent. There remains an Available Balance of $288.54, which could have been spent but was not. [red]
Once the Contract and Grants Office has collected all outstanding revenue and verified that the Balance Sheet accounts are correct (zero), they will close the grant.
Not all grants with a remaining balance result in a residual balance (“profit”) to the department. Cost reimbursement grants never result in a residual balance (“profit”).
Fee for Service Contracts are dependant not on expenses, but revenue generated from services provided. Many types of contracts and grants do not result in a gain to the department. Ask your Fiscal Monitor to explain if you think you should have received a residual balance and did not.

38. FGITBAL – is this fund closed?
Is the fund closed?
Answer:
No.
There are two ways you can determine the fund is still open from this screen.
The fund name does not say “FROE” with a dollar amount and date. It still has a normal fund name, “MR-Native Language Tribal ” [red]
Account A0CC, Claim on Cash does not have a balance of zero.

39. More Examples: FRIGITD – Looking at grants with multiple funds
FTMFUND – Looking at grants with multiple funds
We have gone over some screen examples that show different aspects of the grant closeout process. Now let’s look at a grant with multiple funds.

40. FRIGITD
Type in the grant number, and check the Fund Summary box by clicking on it.

41. FRIGITD
FRIGITD shows us that this grant has 4 funds. Notice that the activity reflected in the bottom half of the screen is for fund 40170, the highlighted fund.

42. FTMFUND
Next, we go to FTMFUND. We select “Enter Query” (F7). We put the first fund in the “fund” block, and select “Execute Query” (F8).
You may also query the Grant to bring up all associated funds.

43. FTMFUND
The Title says “FROE”, and the termination date is a prior date. This is an indication that the fund is closed. You can check the balance of A0CC, Claim on Cash in FGITBAL, as shown earlier. It is zero.
You can repeat for each index.
If a fund is not closed, you can still see whether or not the fund is active by looking at the termination date [green]. If the termination date is BEFORE today’s date, the fund is inactive.

44. Questions?
Are there any questions?