Project Closeout

As with other stages in the sponsored projects lifecycle,  there are requirements specific to award closeout to ensure that projects are accurately and officially closed.

Cost reimbursement awards will be reconciled to report actual costs to the sponsor for final payment. See Expenses at Closeout for more information on specific costs.

Fixed price awards will be closed out with the process detailed below.

Principal investigators are responsible for all Final Reporting Requirements.

Early Termination provides information about the termination of a sponsored project before the official end date.

Federal Award Closeout

The award notice will specify closeout requirements. Most Federal awards require that all financial, performance and other reports that are required under the terms and conditions of the award must be submitted no later than ninety (90) calendar days after the end date of the award (2 CFR 200.343). Some may have shorter timelines.

Other sponsors such as state and private entities generally have shorter turnarounds ranging from 15-60 days. 

If you receive notice of early termination, contact Sponsored Projects & Contracting Services as soon as possible.

Fixed Price Complete Closeout and Residual Balances

Fixed-price contracts exist when a sponsor agrees to pay a fixed dollar amount for a deliverable item (e.g. the performance of a service, or the construction of a device), regardless of actual expenditures incurred. The sponsor accordingly will not require financial reporting, the return of unexpended funds, or other terms associated with a cost-reimbursable agreement. This type of agreement places minimum administrative burden on the contracting parties, but provides maximum incentive for the contractor to control costs and perform efficiently.

A fixed price agreement becomes fixed price complete when the following have occurred:

  • The Sponsor has received and accepted the deliverable
  • All expenses commiserate with project activity have been posted to the University account
  • The University has received the fixed dollar amount agreed upon, and
  • The University will not be receiving any additional funds from the sponsor for the agreement

If the fixed price complete project results in a positive residual balance, the PI/Department/College are entitled to keep the residual balance, less the applicable F&A adjustment detailed below. The balance will be transferred from the sponsored fixed price account into a Financial Services Office Fixed Price Complete Residual account. The residual account is typically managed by the project PI, however, department and college leadership retain foremost authority of the residual account. If a PI leaves the institution, residual funds may not be transferred. The funds may be used for UArizona business purposes.

Closeout and Posting Expenses:

All allocable expenses incurred to complete the project should be posted to the financial account prior to residual balance calculation. This is necessary in the event of audit or performance dispute, along with properly reporting expenditures associated with sponsored activity in both internal and external financial statements.

Residual Balance Calculation and F&A:

If F&A is budgeted on the sponsored projects fixed price account and there is a positive F&A budget balance, the University will assess F&A to fully expend the F&A budget line item, and the remaining balance will be transferred to the PI/Department/College Fixed Price Complete Residual account.

  • If the account does not have sufficient balance to cover the F&A assessment, F&A will only be assessed to zero out the account. Deficits will not be created due to the F&A assessment.
  • If the account is fully expended, no F&A assessment will be made, regardless of the balance of the budgeted F&A line. The account will be closed.
  • If the account has an internal F&A waiver/cost rate reduction and an available balance: The F&A line item budget will be recalculated based on the actual award amount and activity type. Any remaining residual funds after the full F&A rate is assessed will then be transferred. Cross reference: Fixed Price Complete projects with F&A reductions policy.


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