CofC Logo

Closeout of Fixed-Price Grant and Contract Accounts

ORGA Information & Procedures

College of Charleston Academic Affairs - Office of Research & Grants Administration
Policy and Procedures for Closeout of Fixed-Price Grant and Contract Accounts

0.0 CONTENTS 1.0 Purpose  2.0 Definitions 3.0 Account Closeout Procedures 4.0 Disposition of Residual Funds

1.0    PURPOSEThe purpose of this policy is to set forth the timetable and procedures for closing fixed-price grant and contract accounts and for disbursing any residual funds in these accounts. 

2.0    DEFINITIONS

2.1    Fixed Price AwardA fixed-price award is one in which there is an agreement to deliver a specified service or utilize funds for a specific purpose at a stated cost. The proposed cost is determined prior to accepting the award by estimating what is perceived to be the actual cost that will be required to perform the service.  All expenditures applicable to the account should be incurred prior to the termination date.2.2    Residual FundsResidual funds are defined as "the cash or unobligated balance remaining ninety (90) days after the project termination date and after all appropriate expenditures have been charged against the account."

3.0    ACCOUNT CLOSEOUT PROCEDURES The College financial records on grants and contracts normally must be closed within ninety (90) days of the stated termination date of the award.  The following procedures for fixed price awards are based on this 90-day time frame. The Principal Investigator and the Grants Accountant must review the award to determine when the final fiscal report is due and adjust the time frame for sponsors requiring submission in a shorter time span.

3.1    Before Award TerminationThe Office of Research & Grants Administration will notify the principal investigator ninety (90) days before the grant/contract end date.  This notice contains instructions and other information relevant to the closeout of the account.  Any request to extend the project period must be received by the Office of Research & Grants Administration at least thirty (30) days prior to the stated termination date of the grant or contract.  Requests for extensions of the project period will not be honored unless the sponsoring agency requests such extension for the purpose of completing the project or unless the initial award period was for less than one year.  In the latter case, a request for a one-time extension of up to one year may be honored.  In the final thirty (30) days before the grant end date, the Principal Investigator should submit the personnel documents to remove all grant-funded positions, effective the day after the grant end date (unless an extension has been requested).3.2     First Thirty (30) Days After Award Termination During the first thirty (30) days after the end date, the Principal Investigator should review the FRS report.  He/she should send to Grants Accounting the necessary request to remove any over-expenditures and/or the necessary documentation to monitor any expenditure applicable to the grant that has not cleared the account.  The Principal Investigator should pay particular attention to the outstanding commitments column - a good indication that some charges are not yet in.  The account cannot be closed until the commitment is paid or until it is cleared.  Note:  Fringe benefits and indirect costs are exceptions.  In addition, to ensure that all financial obligations of a grant or contract have been met prior to closing the corresponding account, the Principal Investigator should ascertain that all commitments to the grant or contract have been appropriately satisfied and have been charged to the account.3.3    Second Thirty (30) Days After Award TerminationIn the second thirty (30) days, Grants Accounting will notify the Principal Investigator by e-mail to request his/her review of the most recent monthly report (FBM092) for any outstanding charges and to ensure that all charges are properly recorded.  Grants Accounting will inform the Principal Investigator of the date that the account will be closed.3.4    Final Thirty (30) Days After Award TerminationIn the final thirty (30) days after award termination, the Principal Investigator must ensure that all outstanding commitments except fringe benefits and indirect costs are cleared (Accounts Payable should be contacted for assistance) and that all positions are cleared from the account.  Grants Accounting will then submit the final financial report to the sponsor.

4.0    DISPOSITION OF RESIDUAL FUNDS

4.1    TimelineThe disposition of residual funds in fixed price grants or contract accounts will occur ninety (90) days after the project completion date. Grants Accounting will notify the Principal Investigator and his/her department chair/unit director prior to transferring residual funds.  It is the responsibility of the Principal Investigator to ensure that all financial obligations and commitments are satisfied prior to the transfer.  After all financial obligations of a fixed price project have been satisfied and after the transfer of the residual funds has been made; the account will be closed.4.2    ProcedureThe College will identify and collect indirect costs on all grants and contracts whenever possible and if not prohibited by the sponsor.  For fixed-price awards for which indirect costs have been identified and collected, 100% of any residual funds will be transferred in accordance with the College's indirect cost distribution policy to the indirect cost account of the school, department, or unit with which the Principal Investigator is affiliated.  For fixed-price awards for which no indirect costs have been identified and collected, 50% of any residual funds will be transferred to the appropriate school, department, or unit indirect cost account and the remaining 50% of the residual funds will be transferred to the institution's general fund.  If closeout procedures do not discover all obligations before the account is closed and residual funds transferred, any unfulfilled financial obligations to the project must be satisfied from the indirect cost account which received the residual fund transfer or from another account approved by department chair, dean, or unit director.
Reviews and ApprovalsSponsor: Office of Research & Grants Administration  October 30, 2002Review: Grants Accounting & Vice President for Business Affairs  November 22, 2002Review: Academic Deans and Associate Provosts  December 4, 2002Approval: Provost  December 5, 2002Approval: Senior Vice President for Business Affairs  December 20, 2002Effective: January 1, 2003