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:
- 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.
- 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.
- GCA completes a final reconciliation when preparing the final invoice or final financial report, which includes completing closeout actions in Workday.
- 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".
- 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 grant worktag 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 award line 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.
Deficits
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 Deficit Transfer Request topic. If unallowable costs have caused a deficit, an accounting adjustment should be processed instead. See Deficit Process for Sponsored Program Awards 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.