Closing Your Award

Recent Changes to the Closing Process

May 2024

At the time of conversion from Fixed Price Surplus (FPS) budgets in legacy FAS to Residual Balance Worktags (RBW) in Workday, the Facilities and Administrative (F&A) portion of the balance was not removed when the balance was loaded. The calculation to charge the F&A portion has been completed and a journal has been prepared that will be posted by 5/31/2024. 

Note: Modified Total Direct Cost (MTDC) base exclusions were not taken into consideration in the F&A calculation.

You can see the balance on an RBW by running the Workday report “Actuals Summary with Statistics Accounts R1300”.

April 2024

There are two changes to the closing process:

  • New Workday Award Line Lifecycle Status: "Pending Adjustment"
  • Weekly automatic Award Line Lifecycle Status from "Expired" to "Closeout in Progress"

If you know that there are additional expenditures that need to post to the grant worktag after the Final Action Date, create an Award Portal ticket to let GCA know along with the reason for the delayed expenditures in the request.

GCA will review the request and can change the Award Line Lifecycle Status to "Pending Adjustment", a new status that prevents the award line from being included in the weekly automatic status change to "Closeout in Progress".

Closing Overview

GCA begins closing an award line after the award line expires and the Final Action Date (FAD) has passed.

Closing Process at a Glance:

  1. The PI and department staff should closely review their award and work with GCA to ensure that all expenditures are posted and allowable prior to the Final Action Date.
  2. The Monday following the Final Action Date, the Workday Award Line Lifecycle Status automatically changes from "Expired" to "Closeout in Progress". "Closeout in Progress" prevents campus from posting transactions (new expenses and cost transfers) to the grant worktag but allows GCA to post closing-related journals. (starting in April 2024)
  3. When the award, expenditures, total invoices and total cash receipts are all equal, all encumbrances have been cleared, and any cost sharing commitment has been met, GCA closes the award line by changing its Award Line Lifecycle Status to "Closed".
  4. Once all award lines are closed, GCA will change the overall award's Award Lifecycle Status to "Closed".

NOTE: GCA recommends requesting a Temporary Internal Extension from the Office of Sponsored Programs when expecting a extension or a supplement/extension from a sponsor. GCA will not keep an award line from changing to "Closeout in Progress" otherwise.

How Departments Can Support the Closing Process

GCA endeavors to close award lines in a timely manner because the longer an award line remains open due to an unresolved issue, the more difficult it becomes to resolve it. For example, staff turnover at either the department or the sponsor's offices can lead to a loss of institutional memory necessary to correct cost share issues, resolve unpaid invoices, etc. These issues can in turn jeopardize UW's ongoing relationship with the sponsor. We therefore ask you to partner with us to ensure a timely and smooth closing.

Know Your Final Action Date

The Final Action Date (FAD) is the date by which the department needs to complete all transactions related to a budget or inform GCA of the exact dollar amount and spend category of any expected late-posting charges, credits, or transfers. The FAD is calculated to allow the PI and their department to charge allowable expenditures after the end date while providing GCA with time to complete the final reconciliation. The award line's FAD is posted in Award Portal.

GCA begins work on final invoices and financial reports as soon as the FAD has passed without departmental notification. If you expect late-posting charges or credits, you must inform GCA no later than the Final Action Date. Failure to comply with the Final Action Date may result in a deficit and/or jeopardize UW's relationship with the sponsor.

Respond to GCA Requests to Resolve Outstanding Issues

The following issues may prevent your budget from being in balance and ready for closeout:

Open Invoices
If GCA hasn't yet received all payments due from the sponsor, the award line cannot be closed. While GCA sends monthly delinquency notices for most past due payments, the department may be asked to follow up with the sponsor, since in many cases they respond better to a more personal contact. If your department receives communication from a sponsor refusing to pay an invoice, please inform GCA immediately.

Open Encumbrances
An award line cannot be closed if it has one or more open encumbrances. To close an encumbrance, follow the steps on Procurement Services Changing or Closing Orders webpage.

Unmet Cost Share
An award line cannot be closed it if has an unmet cost share commitment. Learn more about the cost share process.

An award line cannot be closed if it has a deficit balance. To resolve a deficit on an award line, please submit an Award Portal ticket using the Closing topic. If unallowable costs have caused a deficit, an accounting adjustment should be processed instead. See Grant & Contract Deficit Procedures for explanations of different deficit situations.

Residual Balances (formerly Fixed Price Surplus Transfers)
An award line cannot be closed when the cash received exceeds the total expenditures. In most cases, GCA will issue a refund to the sponsor, then close the award line. Less frequently, UW may retain the residual balance (typically with clinical trial awards or fixed price contracts). GCA reviews the award document to determine if the balance can be retained at the University and will contact the department to obtain a residual balance stand-alone grant worktag or cost center to transfer the balance to. Then, GCA will prepare and submit a journal in Workday to transfer the direct cost portion of the balance to the worktag provided.

If you need a new residual balance stand-alone grant worktag, please submit a Foundation Data Model (FDM) Data Element Management Request form which will be reviewed by Financial Accounting.

GCA may contact your department about these issues via Award Portal. Please respond to these requests as soon as possible. 

Closing Resources