Financial Closeout

All accounts undergo a closeout process when they are terminated prior to the original expiration date, or when the budget/project ends. Depending on the project, the budget may need to be closed and reopened each year.

When an account closes, the sponsor may require certain deliverables, such as technical, property and financial reports. Sponsored Projects Accounting (SPA) is responsible for producing and submitting the Annual/Final Report of Expenditures, and/or invoices. SPA is also responsible for closing the account in the Kuali Financial System (KFS).

SPA is required to report expenses for the duration of the budget/project period before the report due date, which varies depending on the award’s terms and conditions. If no due date is specified, the university sets a default due date of 90 days after the award expiration.

Department Responsibilities

Your department is responsible for submitting the following to the SPA Contacts and Grants Billing (CGB) fund manager listed in SPA 360 prior to the report due date. Your department’s timely response is crucial. Failure to meet the reporting requirements could impede reimbursement and, more importantly, subsequently funding.

  • Pending expense(s): SPA will send reminder email notifications to the principal investigator (PI) and business/post-award administrator listed on the account. Note: If the account terminates early, the emails will not be sent but the department is still required to provide all necessary closeout information to SPA.
    • The email will provide instructions for reconciling the account for closeout, including:
      • Payroll liens
      • Purchase orders (PO)
    • Reviewing and submitting any adjustments, transfers or corrections to SPA, such as:
      • Non-payroll expense transfer (NPET)
      • Payroll expense transfer (PET)
      • Object code corrections
      • Tuition remission costs
      • Vendor invoices
    • If SPA does not receive your pending transactions and supporting documents, we will close out the account per the general ledger, excluding any encumbrances. Any overdraft or late charges will transfer into the appropriate dean’s revenue center account, and it will be the department’s responsibility to clear these items.
  • Cost-sharing information: If cost-sharing must be reported to the sponsor, provide supporting documentation that clearly demonstrates the cost-share amount(s). If the account includes shared costs that do not need to be reported, simply notify SPA indicating whether cost-sharing has been fulfilled.
  • Balancing the account budget: This includes clearing any deficits in spending categories through the SPA Budget Reallocation (SBR) module in KFS. No negative amounts should remain under the available balance for each spending category.
  • Financial reporting or invoicing templates: Forward to SPA if sent to you by the sponsor. Otherwise, SPA will use the university’s default template.

Unobligated Balances

If the sponsor requires unobligated balances to be returned, SPA will issue a refund with the completed Final Report of Expenditure and/or invoice. Note: Once funds are returned to the sponsor, it is difficult to ask for reauthorization of funding.

Unobligated balances for fixed-price/rate awards do not need to be returned to the sponsor; however, you must complete the Unobligated Balance from a Fixed-Price Contract Form from the Department of Contracts and Grants website.

Account Closure

When SPA submits the financial closeout report, SPA will mark the account as “closed” in KFS. This will stop any further charges from posting to the account’s general ledger. If the account has pending expense(s), SPA will monitor the general ledger for three months. If the pending expense(s) is not posted by the third month, SPA will review the report, mark the account “closed” in KFS and return any unobligated funds to the sponsor.