Closing An Award

What is the end date of an award?
What is an adjustment period?
What kind of warnings and notifications does OSP send to the PI and the fund manager?
What are the responsibilities of the Principal Investigator (PI) at the end of an award period and during the adjustment period?
Who prepares the final financial report for an award?
What happens when an award goes into deficit?
Where are project records of a closed award kept?
How are audits of closed awards conducted?

1. What is the end date of an award?

The end date of an award is the last date on which expenses can be incurred on the project. The end date is usually specified in the award agreement. In addition, the Office Sponsored Projects (OSP) also communicates the end date of the award to the Principal Investigator (PI) in the award summary.

For more information on award closing procedures and requirements, please see chapter twelve, “Award Close-Out,” of the PI Guide.

2. What is an adjustment period?

An adjustment period is the period during which the PI and the fund manager must finalize all matters relating to the award. The adjustment period begins after the end date of the award and end with the issuance of the final reports to the sponsor. The usual length of the adjustment period is 90 days, however, it may be much shorter based on sponsor requirements.

It is the responsibility of the PI and the fund manager to ensure that all encumbrances are liquidated within the adjustment period and prior to the issuance if the financial report. If positive balances remain, they are usually returned to the sponsor and deficits are moved to the unit general fund.

For more information on award closing procedures and requirements, please see chapter twelve, “Award Close-Out,” of the PI Guide.

3. What kind of warnings and notifications does OSP send to the PI and the fund manager?

OSP notifies each PI at 90, 60 and 30 days prior to the end date of an award. These are reminders that the PI must:

Notify Personnel whose employment ends with the sponsored project
Prepare any Technical reports
Process all Final charges before the end of the budget period

For more information on award closing procedures and requirements, please see chapter twelve, “Award Close-Out,” of the PI Guide.

4. What are the responsibilities of the PI at the end of an award period and during the adjustment period?

Before the end date of the award the PI must ensure that the project has indeed been completed and all expenses are incurred. If the PI believes that a no cost extension is required it is imperative that the process is started before the end date of the award.

During the adjustment period the PI must ensure that the following reports (if required) are completed.

Technical Reports
Cost-Sharing Reports
Termination of Project Personnel
Patents, Copyrights and Inventions
Record Retention
Property Inventory

For more information on award closing procedures and requirements, please see chapter twelve, “Award Close-Out,” of the PI Guide.

5. Who prepares the final financial report for an award?

OSP will prepare and file a final financial report within the deadline set by the sponsor, usually 90 days. Depending on the sponsor, this report may vary from a detailed accounting of each type of expense to a summary document. The financial report will be based on the monthly financial report generated by the Office of the Comptroller. Once the report has been filed with the sponsor and any deficits and surpluses are cleared the award is ready to be financial closed in SIERP.

For more information on award closing procedures and requirements, please see chapter twelve, “Award Close-Out,” of the PI Guide.

6. What happens when an award goes into deficit?

While a deficit should never occur, there are circumstances where it does. If a project account is in deficit upon expiration of the term of the award agreement, the PI must clear the deficit. The unit is responsible to cover any deficits. For assistance in the regard please contact your OSP staff representative.

For more information on award closing procedures and requirements, please see chapter twelve, “Award Close-Out,” of the PI Guide.

7. Where are project records of a closed award kept?

OSP maintains the official file of record for non-financial award documents. The Office of the Comptroller and the unit maintain the official files of record for financial documents. All financial records must be retained and available for audit for a period of three years from the date of submission of the final financial report or otherwise specified in section .53 subpart C, of OMB Circular A –110. In addition, any cost sharing on other project records, which are maintained by the Principal Investigator or unit, obtained or prepared by the Principal Investigator or unit, also must be retained and available for audit.

For more information on award closing procedures and requirements, please see chapter twelve, “Award Close-Out,” of the PI Guide.

8. How are audits of closed awards conducted?

Auditors representing sponsors will periodically examine the Smithsonian records for the purposes of:

Determining whether contract or grant funds were used in accordance with applicable laws, regulations, procedures, and terms or grants and contracts;
Making objective appraisals of the financial accounting system and internal controls to ensure that programs are being charged with appropriate amounts;
Determining the accuracy of the financial reports and records.

OSP coordinates all activities with sponsor auditors. PIs are not normally contacted directly by auditors representing the sponsor as OSP is the administrative contact point for such matters. In the event that the PI is contacted, the auditor should be referred immediately to OSP and no information given by the PI.

For more information on award closing procedures and requirements, please see chapter twelve, “Award Close-Out,” of the PI Guide.