Award Closeouts

  

Post-Award Management

The Federal awarding agency or pass-through entity will close out the Federal award when it determines that all applicable administrative actions and all required work of the Federal award have been completed by the non-Federal entity. If the non-Federal entity fails to complete the requirements, the Federal awarding agency or pass-through entity will proceed to close out the Federal award with the information available (eCFR 200.344).

Many sponsors will not remit final payment until all required closeout documents/reports are submitted and accepted .

One or more of the following documents may be required by the sponsor for official closeout of the award:

  • Technical Reports
  • Financial Reports
  • Property Reports
  • Patents/Invention Reports

It is the responsibility of the PI to ensure that all progress/technical reports are submitted timely to the sponsor.

The final invoice due date, which can be within 30 to 120 days after the grant end date, will determine the timeframe the PI/Dept has to finalize costs on the award.

For example,

  • If the invoice is due 30 days after grant end date, then all expenses must be paid and reconciled in less than those 30 days.
  • If the invoice/final report is due 90 days after the grant end date, then all expenses must be paid and reconciled within 60 days of grant end date.
  • If the invoice/final report is due 120 days after the grant end date, then all expenses must be paid and reconciled within 90 days of grant end date.

This is to allow all expenditures to post and clear in the ledger so they can be included in the invoice and proper support documentation be provided to sponsor, if it is required.  It is also necessary that all expenses are posted upon final invoice/report submission for audit trails and compliance.

As grant end approaches, within 90/60/30 days prior the following actions should be in progress:

  • Reallocation plan for all personnel or termination.
  • Pending transactions have been approved.
  • Recurring charges are closed out.
  • Purchase orders and encumbrances are closed out.
  • Deficit on grants have been removed.
  • Subcontract invoices have been received and approved for payment. Note: these must be submitted at least 30 days prior to NJIT’s due date for the sponsor so it can be cleared and posted to the ledger.
  • Cost Share/Match Accounts - During the closeout period, cost share/match accounts must also be reconciled and terminated.  If it is a required match, the PI/Department must ensure that these obligations have been met.

Once the grant is reconciled, billed and all payments collected, the grant will be terminated in the financial system.  No further expenditures can be charged to the sponsored award.

Once a grant is closed, the associated sponsored programs will not be reopened. However, per federal regulations, the federal awarding agency maintains the right to disallow costs and recover funds on the basis of a later audit or review.

Such audits and reviews must be completed within the record retention period.