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Closing

Closing a grant or contract is the final step in the life of a project. Once the grant or contract has expired, or all of the activity is complete, GCA can start the budget closing process.

GCA begins the closing process after the Final Action Date has passed, any final reporting and/or invoicing requirements have been met, and all sponsor payments have been received. The department may request an early closeout via GrantTracker.

Our goal is to close a budget within 120 days of its end date. However, closeout may be delayed by a variety of unresolved issues--e.g. an unresolved deficit or surplus balance, open encumbrances, incomplete cost share reporting, or open invoicing.

 

Grant and contract budgets automatically close to status 3 after their Final Action Dates have passed. Departments may request status 3 prior to that point to block further expenditures on a budget (e.g. to keep a budget from falling into deficit) via a GrantTracker request.
 

The Record Retention Trigger Date visible in GrantTracker, is the date used to signify the beginning of the record retention period for grants and contracts. This “record retention countdown” begins when any one of the following events occur:

  • An annual or final Financial Status Reports (FSR) is submitted to the sponsor.
  • A final Invoice is submitted to the sponsor when an additional FSR is not required.
  • Budget Closeout, when the final budget reconciliation is completed and the sponsor does not require an FSR or final invoice.

 

In most cases, the answer is "no." However, if your budget is a clinical trial or a firm fixed price contract, the department may keep any surplus remaining. If the surplus is greater than 25% of the award amount, you must work with OSP to create a surplus transfer PAC.  Once the PAC authorizing the transfer is received in GCA the balance should then be transferred within 2 weeks. If less than 25% of the award remains, please give GCA your surplus budget number, and we will transfer the surplus as we close the budget. (In rare cases, surpluses in budgets other than clinical trials or fixed price contracts may be retained, but only with explicit written authorization from the sponsor.)

Grant and contract surpluses must be transferred to a fixed price surplus budget only. Gift budget surpluses may be transferred to another gift of like purpose.

It depends on the sponsor and the award. Please review your award agreement and/or sponsor policies for more information. If they are silent on carryforward, GCA will require written sponsor authorization to carry a balance or deficit forward.

If for any reason your sponsor is cutting off your project before the original, agreed-upon end date, or if your PI is leaving UW employment and transferring her grants to her new institution, you must work with OSP to create an early termination PAC. GCA cannot update the budget's end date or send the sponsor a final report or invoice until we receive such a PAC. In the absence of such a PAC, we are obliged to follow the original final reporting or invoicing schedule. However, we can immediately put the budget in status 3 to prevent additional transactions from posting. You may request status 3 and inform us an early termination PAC is in process via GrantTracker.

If a sub budget and its parent have the same end date, it is GCA's practice to close both budgets to status 4 at the same time. We can, however, close a sub budget to status 3 at any time to prevent additional transactions from posting.

If you wish to close a sub budget completely more than six months before the parent budget's end date, please request closeout via GrantTracker.

If a sub-budget was created for funds restricted for a specific purpose, any funds remaining in that sub-budget remain restricted for that purpose. When the sub budget is closed out, those funds will be restricted on the parent budget in 37-99.

Note: the Transpasu form is NOT required to close a sub budget and return its remaining balance to the parent. Use it if you wish to keep the sub budget open while transferring part of its funding back to its parent.

If you are expecting a no-cost extension or a supplement/extension (adding additional funds to the budget), you may notify GCA via the Closing topic in GrantTracker. We will then flag the budget to prevent it from being closed to status 4. However, we cannot extend the end date unless we receive an Extension PAC (for no-cost extensions) or a Supplement/Extension FA (when additional funding is to be added) from OSP. If you are confident you will receive the extension but expect sponsor approval to be delayed, you may ask OSP to provide an Advance Extension PAC to extend the budget end date with a department budget as backup in case the extension is denied.

The UW fiscal system codes each budget in one of four statuses, which define the transaction types that can and cannot be posted to the budget.

  • Status 1: Open to revenue and expenditures--i.e. a fully active budget.
  • Status 2: Closed to expenditures, open to revenue. Rarely used for grant/contract budgets. The main exception is when a parent budget is set up to receive funding, but 100% of that funding is then allocated to sub budgets where the actual expenditures will take place.
  • Status 3: Closed to all expenditures and revenue, but still allows for Journal Vouchers on Grant and Contracts budgets. This is a preliminary closeout status automatically applied after the Final Action Date (or earlier at department request). Although this status allows for expense transfers, please notify GCA immediately if you plan to make transfers after the Final Action Date. We need an accurate picture of total expenditures at that point in order to submit correct and timely final invoices and/or reports.
  • Status 4: Fully closed. The budget number is inactive and will purge from the system at the next biennium close.