This procedure applies to all fixed price and fixed fee awards, including clinical trials. Before any project account will be closed out, the principal investigator (PI) must complete and submit deliverables.
Before the end date:
Sponsored Projects Administration (SPA) will send a notification to principal investigators and their departments approximately 60 days before the end date of a fixed price award, inquiring whether a no cost extension is needed. If additional time is needed to complete the work, the principal investigator must obtain a no cost time extension (from SPA or from the Sponsor if the latter requires), requesting the amount of additional time needed and updating progress information or any budgetary detail the sponsor may need. SPA must countersign requests to Sponsors.
Form UM 1767 (Departmental Fixed Price Closeout Checklist) is available for departmental use in maintaining documentation of the closeout. These forms are specifically recommended for retention whenever there were significant changes from what had originally been proposed (e.g., changes in scope, budget, or timeline; significant (more than 25%) unexpended balances or overdrafts.)
On a monthly basis, Sponsored Financial Reporting (SFR) runs a report that identifies all projects that have ended but have not been sent through the closeout process. The SFR accountant and closeout team will work with the PI/department to confirm the project is ready to be closed and proceed with the normal closeout process.
Final project balance:
If the project has received a reduction or waiver from the published F&A rate, SFR will charge the full F&A costs to the project before any final balance is determined. As an example, a project should have received $20,600 in F&A at the 26% rate but received a reduction to 10% and therefore received $10,000. Before the final balance is determined, an additional $10,600 will be taken out of any residual.
SFR will then transfer the balance to a non-sponsored chart-string account specified by the department or to the residual program. A residual program is an account whose sole purpose is to hold balances from fixed price sponsored projects. Use of funds in the residual program is the discretion of the department head consistent with departmental policy.
Post Closeout Action:
The Research Compliance Office (RCO) will periodically assess the fixed price awards held by a PI or a department to verify proper costing (pricing and charging of applicable expenses). Additional clarifying information may be sought, or corrective actions identified if there appears to be a pattern of large unexpended balances or large overdrafts.