Creighton University

Accounting Procedures

PROCEDURE TITLE:

Close out Grant

PROCEDURE NUMBER:

GAPR 03

RELATED POLICY STATEMENT(S):

None

DATE ISSUED: 

July 1, 1993

DATE REVISED:

July 1, 1997

OVERVIEW

When the intended purpose for a grant has been achieved or the grant period has elapsed, it is imperative that the accounting and budget records be closed out on a timely basis. Additionally, in some situations a grant fund should be closed out on the annual anniversary of the grant award. The procedures for closing out a grant are presented below, with a differentiation between those grants that require external qualitative (results) and financial reporting to the granting entity versus those that only require qualitative reporting.

REQUIRED FORM(S)

None

PROCESSING STEPS

All grants must be closed out at the end of their life. Grants that require external qualitative and financial reporting also need to be closed out at the end of the award period. Grants that do not require external financial reporting are typically only closed at the end of their life.

The procedures for closing a grant are the same, regardless of whether it is at the end of the entire grant life or at the end of the award period. When external financial reporting is required by a granting agency, the Controller's Office will provide the department, principal investigator, and Grants Administration with a reminder letter approximately one month prior to the end of the grant. This letter is an indication that no additional expenditures or activity including payroll and internal services should be charged to the noted fund beyond the date indicated. Additionally, the letter will encourage the department to expedite the delivery of goods and invoices if the expenses are to be included in the current grant period. All goods and invoices must be received within thirty (30) days of the end of the grant or period. All invoices must be received by the Controller's Office during that same thirty (30) day time period, if they are to be processed in the current grant period.

As part of the close out of federal grants, the Grants Accounting Clerk will review the grant file to determine if title to equipment costing $5,000 or more vests with Creighton University or the federal government. If, in the rare case, equipment does vest with the federal government, the federal agency will be contacted by the Grants Accounting Clerk to determine the appropriate disposal steps.

Forty-five (45) days after the end of the grant (or current period), the Controller's Office will mark the grant fund as "non-data enterable" on the financial system, precluding any further entries. The Controller's Office will also provide the department with a Grant Reconciliation Work Sheet detailing how monies have been spent on the grant through the closing date. The department then has fifteen (15) calendar days after the date of the Grant Reconciliation Work Sheet to advise the Controller's Office regarding which fund(s) and organization code(s) should absorb any over-expenditures contained on the work sheet. In the instance that a government grant under expanded authorities is underexpended, the department has 15 calendar days after the close of the grant reconciliation work sheet to advise the Controller's Office, in writing, how they wish to budget the unexpended balance in the fund number established for the continuation of the award.

Since virtually all government granting agencies require a final report within ninety (90) days of the end of the grant, the timing discussed above will allow thirty (30) calendar days for the Controller's Office to resolve any reporting discrepancies that may arise and prepare and submit the final report, without the need to subsequently prepare amended reports reflecting data that was not available earlier.

When no external financial reporting is required by the granting agency, the department is responsible for initiating the grant closing process, in writing, to Grants Administration. After receiving departmental notification from Grants Administration, the Controller's Office will prepare a Grant Reconciliation Work Sheet for the department to use in resolving over-expenditures. For research funded by drug companies (commonly referred to as "drug studies"), there may be under expenditures that result in residual funds. The department should advise Grants Administration, in writing, which University Designated fund(s) and organization(s) should receive the residual funds.

The department, principal investigator, and Grants Administration will receive a copy of the final report prepared and submitted to the granting agency.