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.
There are variations to cost allowability for expenses immediately preceding and after the project end date. See Expenses at Closeout for information on specific costs.
Principal investigators are responsible for all Final Reporting Requirements.
Early Termination provides information aobut the termination of a sponsored project before the official end date.
Federal Award Closeout
The Federal government requires 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).
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
- 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 necessary 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 a fixed price project with an F&A waiver/cost rate reduction has unspent residual funds at the completion of the project, the F&A line item budget will be recalculated and F&A applied based on the full rate applicable for the activity type. Remaining funds in a fixed price project with a F&A waiver demonstrate the cost reduction was not necessary for the project objectives, therefore, the full F&A will be assessed. 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.