Project Close-Out

Reporting to Sponsor

With few exceptions, every sponsored project will require a number of reports during the life of the project and most certainly at its conclusion. Every PI/PD should be prepared to submit a final technical report at the very least. The importance of the submission of such a report on a timely basis cannot be overstated. In a grant or contract arrangement, unlike a gift, the sponsor expects and deserves to be informed of results. Negligence by the PI/PD may substantially impact his/her (and the University's) ability to receive other support from the sponsor; it may also result in a loss of payment for costs already incurred. In addition to technical report(s), other reports may be required relating to inventions, equipment accountability, and fiscal data and voucher submissions. The latter three are the responsibility of the RFS, while the PI must prepare the first two. The PI should send to OSP a copy of their final programmatic report—(if not required, a note from the PI/PD so stating) and a report of inventions, patents, and copyright materials produced with the aid of sponsored funds. These reports will be scanned and stored as an attachment to OSP's InfoEd data base.

Financial Project Close-Out

The Principal Investigator (PI) has responsibility for the technical and fiscal management of a sponsored project, and ultimately the orderly project closeout. Research Financial Services sends a number of letters described below to assist the PI in the vital financial close-out/termination process.

  1. Pre-termination Letter, mailed approximately 90 days prior to a project's termination, is designed to initiate the PI's review of the project financial activity, especially to clear encumbrances and finalize all relevant charges needed prior to project termination.  This letter is informational and does not require the PI to return the letter to RFS.  A project summary report of expenditures is attached and mailed with the letter. 
  2. Close-out Letter notifies the PI that the project has ended and requests that he/she take the necessary steps to resolve any outstanding matters prior to termination (e.g., outstanding charges or issues that RFS needs to know about).  A project summary report of expenditures covering the entire grant period is attached.  This letter is a certification of expenditures for the entire project period and must be signed, dated, and returned to RFS by the PI within two weeks.
  3. Annual Review of Expenditures – This letter addresses projects that have recently completed a budget/grant year but are ongoing.  The annual review letter includes a project summary report through the most recently ended budget period.  This letter requires certification by the PI and must be signed, dated, and returned to RFS within two weeks.  The purpose of the certified letter is to document and ensure appropriate project expenditure review by the PI each budget period.  

Department administrators/business managers also receive copies of each letter.  The signed letters become part of the permanent financial records that are reviewed by internal and external auditors as well as applicable funding agencies.

Financial Management that Ensures Proper Project Close-out

To ensure that proper close-out of sponsored awards complies with agency rules, the RFS Officers perform a close-out review that includes the review of all award and companion account expenditures and receipts, as well as, a review of the payroll system records and the accumulation of data necessary to provide an audit trail.

It is the responsibility of GSU to ensure that adequate provision is made for the auditing of accounting information and the accounting system that processes the accounting data. To this end, the GSU financial system stores five or more years of award accounting data on-line.  RFS maintains hard copies of financial reports submitted to sponsoring agencies and archives related budget and expenditure correspondence for a minimum of five years, unless specified otherwise by the sponsor.

RFS has liaison responsibility for the coordination of all audits, audit responses, and requests for accounting information on sponsored awards from organizations outside the University.

Important Polices to be Followed

  1. Only incur costs for goods received and/or services performed within the budget period of the project. In addition, all goods and services must provide direct benefit to and be consistent with meeting the objectives of the project.
  2. Ensure cost transfers are prepared in a timely manner (within 90 days of the original transaction) if costs were charged to the project in error.
  3. Ensure hourly employees complete time cards for each pay period and that a supervising individual with first hand knowledge of the hours worked signs each time card.
  4. Review Detailed Project Budget Reports (SPECTRUM) on a monthly basis. Look for unusual or unexpected trends (i.e., increases in petty cash reimbursements, unfamiliar names of employees or names of individuals no longer employed.)  See online training for Expenditure Review http://www2.gsu.edu/~wwwvpf/Training.htm).
  5. PIs are responsible for providing timely reports as needed for their grants and contracts.
  6. PIs are responsible for resolving any deficits in their sponsored accounts.
  7. PIs are responsible for identifying the sources of all funds that are listed as cost-sharing in the approved budget.
  8. PIs are responsible for promptly addressing problems related to fiscal activities.
  9. The PIs are responsible for the use of the green university charge card and any "P" card that may be approved for their project. These costs should be closely scrutinized for accuracy.
  10. The PIs are responsible for making sure that the Personnel Effort Reports are completed correctly and in a timely manner.
  11. PIs are responsible for the accuracy of cost transfers that are made to or from their awards. Care should be taken to make certain that costs are legitimate in both scope and time even if a designee is preparing the corrections.
  12. The PI is also responsible for responding to the Project Termination/Close-out letter sent by RFS as project draw to a close. These letters will update the PI on the current status of his/her project and notify him/her of any deficits in spending or documentation necessary for cost share amounts. They should be signed and returned to RFS.

Questions? Contact RFS