Project Financial Closeout Guide

Project Financial Closeout Guide

Purpose: The responsibilities of a research administrator, or the single administrative point of contact (SAPOC), are varied and numerous. To support SAPOCs and units, we provide this Project Financial Closeout Guide, along with two choices of Project Financial Closeout Checklists, with the goal of helping you successfully manage pre-closeout tasks, the financial closeout process, and avoid delays and/or financial liability to the unit.

How to Use These Resources: This Project Financial Closeout Guide is a companion document to the two Project Financial Closeout Checklists. You can choose either checklist. Both documents contain the same essential information, but they are organized differently: one as a Timeline Approach and the other with Areas to Address. Unless closing a Project Grant early, these guides are for your reference only and you do not need to submit them to Sponsored Programs.

If you want to close a project early, send your request and attached completed closeout checklist to [email protected]. A single checklist may be used for multiple related sub-P/Gs.

To assist in long-term planning, it may be useful to download a list of projects from Business Objects using a user-defined time period (sort by deptid, SAPOC or other data point): Business Objects > User-Shared > Sponsored Programs > Data Integrity > 90 Day Info

 

COMMUNICATE WITH STAKEHOLDERS
TASK/ISSUE CONTACT GUIDANCE
Communicate with stakeholders
  • Project Director
  • Project Team Members
  • Unit purchasing/procurement
  • SAPOCs of sub Project Grants (subPGs)
  • Subcontracted partners

 

 

REVIEW TERMS OF AWARD, BUDGET, REPORTING REQUIREMENTS
TASK/ISSUE CONTACT GUIDANCE

Budget Category Variances
  • Sponsor Agreement
  • ORSP
  • Sponsored Programs Customer Service Representative
  • Review UM’s standard 25% budget category variance rule and/or sponsor’s budget/award rules
  • Well in advance of end date, justify variances for Sponsored Programs review, request ORSP approval, or request sponsor approval
  

Cost Sharing Commitments
  • Sponsor Agreement
  • ORSP
  • Sponsored Programs Customer Service Representative
  • Review obligation and determine type of cost share commitment: either required by sponsor and quantifiable (committed) or voluntary (uncommitted)
  • Determine if cost share commitment is defined by dollar amount, effort or other quantifiable measure; check progress toward meeting required commitments
  • Address projected variances with ORSP; shortfalls may need to be addressed with sponsor
  

 

Equipment

 
  • Sponsor Agreement
  • Property Control 4-5443
  • Review approved budget and determine if purchase is allowable
  • Review timeliness of purchase; should be able to demonstrate direct benefit to research based on date of purchase and project timeline
  • Generally, equipment purchase in last 90 days of project are unallowable; project-specific circumstances may warrant late purchase
  

Equipment Fabrication
  • Sponsor Agreement
  • Sponsored Programs Customer Service Representative
  • Fabricated Equipment costing $5k or more will be capitalized as “equipment”; indirect cost will be assessed if each build does not meet $5k threshold
  • Property Control will tag all fabricated equipment
  • If build cost is $1-5k and has a life expectancy of two years, then item will be re-accounted to 614420, assessed IDCs, and will impact total available budget
  •  
  

Student Aid / Stipends
  • Typically, Student Aid and Stipends are only allowed on NIH training grants and fellowship awards; review project award and determine allowability of these expenses

Uniform Guidance- Monitored Expenses &  Expenses not Previously Approved by Sponsor but Essential to Research Objectives
  • Sponsored Programs Customer Service Representative
  • ORSP
  • Review award terms for allowability; initiate approvals when necessary (ORSP or directly with sponsor)
  • Specific items and corresponding dollar amount approved by sponsor (proposed/award budget or post-award change) will be allowable on FSR
  • Some expenses previously not identified as Uniform Guidance Cost Principle items (612050- computer supplies) will now roll up to General Supplies & Other budget line
  • Sometimes these expenses may not be identified until the closeout stage. For expenses essential to completing research objectives, but were not previously approved by the sponsor, Sponsored Programs will accept email approval from the sponsor
  
REVIEW REVENUE AND UNIVERSITY COMMITMENTS

TASK/ISSUE

CONTACT

GUIDANCE

Sponsored Funding
  • Review Award Terms - determine revenue designation (cost reimbursement, milestone, payment schedule, letter of credit, advance deposit)
  • Review Status of Outstanding Invoices Ð run M-Pathways Financial & Physical Resources System Report:
    Financial & Physical Resources System > Main Menu > Accounts Receivable > Customer Accounts > Item Information > Item Activity Summary
    NOTE: change business unit to SPFED (federal projects) or SPNON (non-federal projects); enter P/G number in Customer ID field
  • Initiate invoicing for fixed price and milestone invoiced via email request to: [email protected]
  • Final Invoices Ð monitor payment status after end date (sometimes PG inactivated while revenue is still outstanding)

Cost Share Funding
  • Sponsor Agreement
  • Verify Cost Share transfers/revenue received from internal funding sources
  • Verify Cost Share funds received from external funding sources

In-Kind Cost Sharing / Cost Matching
  • Sponsor Agreement
  • This refers to items included in a proposal which:

    1) constitute commitment via transfer of goods, services or information to the project by University or external entity (non-revenue),

    2) are identified as a quantifiable contribution and commitment by University or external entity, and

    are included in award terms as a required commitment (often in lieu of cost share)

    Examples: Washtenaw County agrees to provide road maps free of charge which otherwise would require University purchase; University's imputed indirect costs (indirect costs are waived and quantified as cost-matching in lieu of federal budget line for this expense type)

  • Verify commitments have been met
  • Verify documentation completed for reporting requirements

 

REVIEW OUTSTANDING EXPENSE ACTIVITY AND COMMITMENTS, NOTE IMPACT ON BUDGET, TAKE CORRECTIVE ACTION

TASK/ISSUE

CONTACT

GUIDANCE

Accounts Payable Vouchers and Purchase Orders (PO)
  • Run M-pathways Financials & Physical Resources System report to review status: Main Menu > Accounts Payable > Review Accounts Payable Info > Vouchers > Unpaid Vouchers
  • Request release of purchasing commitment and/or close PO via email
  • Contact Procurement Services and arrange to change chartfield or initiate new purchase order with vendor
 

Concur and Non-Employee Reports
  • SAPOC/unit local records
  • Shared Services Center
    5-2000 option 3
    ssc.umich.edu
  • Concur and non-employee expense reports do not post to M-Reports until after Audit approval; currently there are no searchable database to identify expense reports in this temporary status; SAPOCs should consider keeping local record of activity routing in the last 45 days of the project
  • Contact Shared Services Center if expected activity does not post within 10 business days of processing with unit approval

Financial Aid
Item Types (FAIT)

Human Subject Incentive Program (HSIP) Payments
  • HSIP payments do not post to M-Reports until after Audit approval
  • Run Business Objects Report to review activity that has not posted to M-Reports: Business Objects > UM-Maintained > Financials > FN07 Human Subject Incentive Pymts

Journal Entries (JE)
  • Sponsored Programs
    Customer Service Representative

Lump Sum Advances
  • Shared Services Center
    5-2000 option 3
    ssc.umich.edu
  • Make sure lump sum advances are vouchered and activity post to GL; currently there is a lag in request, approval and posting processes

Subcontract Invoicing and Payments
  • OCA Specialist listed in eRPM subK record
  • Office of Contract Administration
    [email protected]
    3-3193
  • Subcontracted Party
  • Review contract for reporting requirements and deadlines
  • Review outstanding invoices and payments
  • Contact subcontract party and stress need for timely final invoice; request projected receipt date of final invoice
  • Federal Subrecipient Monitoring Guide & Appendix available at:
    http://www.finance.umich.edu/programs/contact/OCA
 

Telephones D U-M and external vendors
  • Internal Service Provider - request final invoicing or expense information; currently there is a lag between services and activity posting to general ledger
  • External Vendor Ð request final invoicing or expense information; currently there is a lag between services and activity posting to general ledger

Tuition Waiver
  • For GSRAs appointed to sponsored funds and all or a portion of tuition is funded by cost share funds; tuition must be manually transferred to the cost share chartfield; compare expenses to sponsor-approved budget; initiate JE to transfer cost share portion using expense account 597000 and include revenue funding to offset expense in the same journal; use account 451110 to fund the tuition cost share is 451110 (remove) for General Fund transfers; use account 422000 is used (remove) for Non-General Fund transfers
  • Make sure tuition waiver follows GSRA appointments; if more than one/two semesters behind, the transfer is a manual process; contact via email: [email protected]

Outstanding and Recent Purchase Requests
  • Unit personnel
  • Check sponsor-specific and project-specific guidelines for final expense activity
  • Lab restocking in last weeks of project is unallowable
  • Check equipment purchases (not allowed in last 90 days of project)
  • The standard practice for procurement is to a pay vendor for all invoices as a single transaction when invoices meet the cost accounting standards and meet U-M internal control guidelines. However, credits are processed differently. Credits (merchandise returned, cancelled services) are not applied against a project until there is either (1) a new charge resulting in a payment which offsets the credit to the vendor, or (2) a vendor remits a check to U-M (which is applied to a specific project). The credit or charge will not post to projects until the vendor status is resolved. Thus, a credit on another P/G may affect expenses posting in a timely fashion to other unrelated P/Gs. Please remember the impact to your project. 

 

RECURRING CHARGES REVIEW ACTIVITY, REQUEST CHANGE TO FUNDING SOURCE MONITOR POSTING TO GENERAL LEDGER

TASK/ISSUE

CONTACT

GUIDANCE

Hospital Recharge Activity
  • Internal Service Provider
  • Clinical Research Calendar
    Review & Analysis Office  [email protected]
  • Contact service provider and request billing change to appropriate short code (inactivation, S/C change, etc)
  • Contact Clinical Research Calendar Review & Analysis Office and request inactivation of Research Medical Record Number

Mail D Metered Service Bar Codes
  • Contact Mail Services to inactivate meter bar codes
  • Destroy remaining bar code stickers

Service Unit Billing
  • Internal Service Provider, as identified with line-item expense
  • Review SUB for last 6 months to determine likely account-holders
  • Request final billing, alert to project end date, and initiate change to chartcom

Strategic Suppliers
  • External Service Provider, as identified with line-item expense
  • Review activity for last 6 months to determine
    likely account-holders
  • Request final billing, alert to project end date, and initiate change to chartcom

Unit for Laboratory Animal Medicine (ULAM)
  • Account and management responsibilities are limited-access; changes may need to be processed by PI or authorized user
  • Internal Service Provider - request final invoice or expense information; currently there is a lag between services and activity posting to activity
MANAGE PERSONNEL AND PAYROLL ACTIVITY

TASK/ISSUE

CONTACT

GUIDANCE

Biweekly Temporary Payroll
  • Review reported time to make sure effort not allocated to project after end date; if timesheet is not available, run Business Objects Report:
    Business Objects > Business Intelligence Launch Pad > Folders > UM- Maintained > Time and Labor > TL01 Time and Labor > TL01 TimeLabor Reported Time by Employee
  • Sponsored Programs likely will request a copy of the timesheet, but will accept the Business Objects report in lieu of timesheet

DBE and Appointment Changes
  • 120 days prior to end date, create staffing plan for personnel
  • If necessary, seek bridging support and/or initiate Reduction in Force action
  • Initiate DBE changes via PAR request 90 days in advance of end date
  • Initiate Hardship account if continual segment is forthcoming
  • If accessible (level 2 I.C. Employment), run M-Reports to check DBE end dates for all project staff; request changes for those still appointed past end date:
    M-Reports > Mgmt Report > Total Picture Effort by Principal Investigator

Off-cycle Payroll
  • Monitor retroactive payroll corrections for completion and accuracy

    Off-cycle payroll corrections are processed on Thursdays (viewable on Friday)

  • Off-cycle payroll corrections do not load as committed activity in M-Reports; they load to M-Reports after business closes; however, off-cycle payroll can be viewed in eReconciliation prior to close of business

PeoplePay
  • Make sure activity posts to General Ledger; unit may need to maintain records for recurring and/or single transactions
  • Currently there is a lag in request, approval and posting processes
  • Some PeoplePay processes through Procurement; some PeoplePay activity processes through Payroll

GSRA Summer Bridging Fringe Benefits
  • Note impact of summer bridging fringe benefit costs for GSRAs
  • Summer bridge fringe benefit costs post in April and always follows the April salary transaction

Vacation Payout
  • Note impact of Vacation Payout (VPO), including FICA for terminating employees; encourage timely processing of paperwork to minimize lag in posting to project
  • Anticipate VPO if PI transfers to another institution
REVIEW DELIVERABLES AND REPORTING DEADLINES

TASK/ISSUE

CONTACT

GUIDANCE

Technical Reporting
  • Sponsor Agreement
  • Confirm PI and project team's understanding of Technical Reporting requirements
  • Confirm/document submission of technical report with posted comment in eRPM (attach final report if available)
  • Confirm submission process with Sponsored Programs if requested (sometimes included with FFR or submitted separately to sponsor)
     

Other Deliverables
  • Sponsor Agreement
  • Confirm PI and project team's understanding of Technical Reporting requirements
  • Confirm submission process with Sponsored Programs (included with FFR or submitted separately to sponsor)
  • Document submission of technical report with posted comment in eRPM (attach final report if available)

Financial Report
  • Sponsor Agreement
     
  • Sponsored Programs Reporting/Closeout Team
  • Verify Financial reporting requirements with Sponsored Programs
  • Complete sponsor-specific financial forms as necessary
  • Returned signed FSR by Sponsored Programs deadline
POST END DATE FOLLOW UP

TASK/ISSUE

CONTACT

GUIDANCE

Final Invoice
  • Submit request for fixed price and milestone invoices to Accounts Receivable
  • Confirm submission of final invoice via email to Sponsored Programs reporting team
  • Monitor payment status

Subcontract Closeout
  • OCA Specialist listed in eRPM subK record
  • Office of Contract Administration
    [email protected]
    3-3193
  • Subcontracted Party
  • Submit closeout request in eRPM

Financial Reporting
  • Sponsored Programs Reporting/Closeout Team
  • If process requires Unit to submit financial report, document submission with Sponsored Programs

Technical Reporting and
Other Deliverables
  • ORSP
  • Confirm submission with PD/PI
  • Technical Report - post comment in eRPM to document submission of Technical Report and attach PDF technical report
  • Other Deliverables Ð post comment in eRPM to document submission and attach confirmation of delivery of Other Deliverables
New charges after closeout
  • Sponsored Programs Reporting/Closeout Team
  • Monitor P/G for activity after FSR submitted to Sponsored Programs; continue until P/G is inactivated
  • If project will be funded in competing segment awarded under new PG, note this on FSR so that Sponsored Programs can assist with
    expense transfers. If award not established yet, request hardship project
  • If project is in deficit, expenses will be transferred to chartcom listed in FSR Memo
  • If there is no deficit, work with Sponsored Programs to determine next steps; either U-M has to issue a revised invoice and FFR, or
    the unit covers the expense

Inactivation of P/G
  • Sponsored Programs Reporting/Closeout Team
  • Monitor payment of invoices
  • Investigate delays, request assistance