Project Administration - Project Closeouts
(Formally “Project Administration – Account Closeouts”)
Sponsored Projects Finance is responsible for the final close-out of grant and contract projects in ARC. The process for close-out is as follows: A project can be closed out when project-to-date expenses on ARC agrees with the total amount of expenditures on the Financial Status Report submitted to the funding agency.
If a project is overspent (i.e., expenses on ARC exceed the agency award), the overdraft must be cleared in order to close the project. It is the responsibility of the department to CLEAR THE OVERDRAFT PROMPTLY by giving Sponsored Projects Finance an alternate project to which the excess expenses can be moved. Cost overruns incurred on one grant may not be moved onto another grant (except for pre-award costs incurred in accordance with institutional and agency policy).
If a project is under spent, and reported as such on the Financial Status Report, Sponsored Projects Finance will adjust the project budget to equal the expenses reported on the Financial Status Report before closing out the project.
A project may be reported as fully spent based on a fully documented reconciliation, even when expenses on ARC at the time of reporting do not equal the amount reported on the Financial Status Report. This variance is due to authorized transfers pending and/or open commitments not yet expensed. Until those transfers and/or expenses appear on the ARC project, the project cannot be closed. Prompt processing of transactions is necessary for efficient grant close-outs.
When the budget equals the project-to-date expenses on ARC, Sponsored Projects Finance will set a delete flag. The ARC statements will continue to be generated until the end of that fiscal year (June closing) and then for another fiscal year cycle.