Simplify Your Life : Overcoming Closeout Anxiety

1. Simplify Your Life: Overcoming Closeout Anxiety OVPR Closeout Training April 25, 2006

2. THE CHANGING CULTURE OF GRANT MANAGEMENT

3. THE CHANGING CULTURE • Grant money is becoming more competitive • Sponsors are becoming less flexible about agreement requirements • The University of Delaware’s culture is changing to meet the demands of the sponsors and to remain competitive

4. THE CHANGING CULTURE • These changes are manifesting themselves in many ways: • More collaboration between institutions • More collaboration between PI’s • Increase in proposals being sent out • Fewer grants being awarded • Monitoring quantity of No Cost Extensions • Increased oversight (and audits) by sponsors • Less flexibility at the end of the grant period

5. THE CHANGING CULTURE • Less flexibility means higher expectations: • The consistent expectation is that grants will be closed promptly and accurately • The administration’s expectation is that grants will be closed in a timely manner • The sponsor’s expectation is that grants will be closed in a timely manner • The result of these increased expectations is an increased pressure to perform the closeout process

6. THE CLOSEOUT CHECKLIST CAN HELP YOU

7. THE CLOSEOUT CHECKLIST • The OVPR closeout team will be presenting training on various topics that pertain to award closeout • The first session is on the Closeout Checklist • Other topics will be partly determined by you (please leave your surveys at the door!) • So, why the Closeout Checklist???

8. THE CLOSEOUT CHECKLIST • We believe that if the items on the checklist are completed properly, this will greatly reduce your interaction with OVPR at the end of a grant • The closeout checklist can act as a road map during the life of a grant and guide you in the management of that grant

9. THE CLOSEOUT CHECKLIST • Just think . . . . • No more scrambling to do JV’s • Less digging for old or archived receipts and reports • Fewer emails with attached spread sheets junking up your Inbox • Reduced phone calls from OVPR • Less pressure to get it done on OVPR’s schedule • Who could ask for anything more??? • Yes, the closeout checklist is your friend!! Or at least . . . .

10. THE CLOSEOUT CHECKLIST • A good starting point • Departments that return the checklist with all appropriate documentation receive fewer follow-up questions regarding their grants • If the checklist is used consistently it should make the work done at closeout time easier • Going forward, we hope to see the checklist returned more consistently and will be using it as an instrument to monitor progress in the area of grant management and closeout

11. So let’s get to it . . . .

12. FIRST THINGS FIRST • Checklist can be printed or downloaded from: http://www.ovpr.udel.edu/OVPR/do/index?pageId=77# • Please complete the entire checklist before sending it to OVPR: • Boxes stating “checking on this” or “checking with PI” are not very helpful! • Finish it and then send it • Unless you are already working with a specific Closeout Administrator, you may send the checklist and backup to OVPR, Closeout

13. ITEM #1 ON THE CHECKLIST: FINAL TECHNICAL REPORT

14. THE FINAL TECHNICAL REPORT • Documentation is needed for the closeout file that includes the following information: • The date the report was sent to the sponsor • The name of the person to whom the report was sent • Contact information which may include: • Mailing address • Phone number • Email address • An award number and the period covered by the report

15. THE FINAL TECHNICAL REPORT • Examples of acceptable documentation include: • A cover letter addressed to the sponsor • An email sent to an Award Officer, with header info • A fax that makes reference to the attached report • SAVE TREES . . . . OVPR does not usually need the report itself; just proof to show an auditor that the report was sent • Showing an auditor a final report does not show the auditor that the report was sent to the sponsor

16. THE FINAL TECHNICAL REPORT • If the technical report will be submitted at a future date, OVPR will communicate that to the sponsor in the Closeout Transmission Letter • If the award requirements indicate a final progress report is due, but the PI states that it was not required or that the requirement was waived, then something in writing from the sponsor is needed for the closeout file

17. ITEM #2 ON THE CHECKLIST: COST SHARE/MATCH

18. COST SHARE/MATCH • Cost share is the institutional contribution to the cost of completing a project • Also referred to as “in-kind”

19. COST SHARE/MATCH • How do you know if you have committed to sharing the cost of a project? • Check in these places: • The award document • The COA or Maintenance Sheet from OVPR • The blue sheet for older awards • The Proposal Approval Webform • The proposal narrative, budget, or budget justification

20. COST SHARE/MATCH • Sometimes cost share is specifically required by the sponsor: • This may be stated in the RFP or program guidelines • It may also be a standing requirement specific to a particular sponsor, as in the case of NSF (1% match on most projects)

21. COST SHARE/MATCH • Preventative Medicine: How do you show that you have met the cost share requirement? • Attach a cost share report to the Closeout Checklist • Let us know if all of the match expenses were recorded by using the grant project ID#, or by using a dedicated match purpose • Reflect any committed effort on the SAR’s or in the Effort Certification System • Provide the PO# for an equipment purchase, where the expense breakdown by purpose is indicated

22. ITEM #3 ON THE CHECKLIST: AFTER END DATE CHARGES

23. AFTER END DATE CHARGES • After end date charges ideally should not occur, but if they do happen they should be promptly removed. Waiting for a new grant purpose code is not a valid reason from an audit standpoint. • If the expense is legitimate, provide a copy of the receipt or other documentation that shows the original transaction date or date of purchase. We need to validate ALL charges hitting after the end date.

24. ITEM #4 ON THE CHECKLIST: OVER EXPENDITURES

25. OVER EXPENDITURES • Over expenditures are not allowed and must be removed • Any over expenditures should be addressed in the 60 days after the grant end date • OVPR is required to promptly move any over expenditures to a department’s 1-book • If correcting transactions have already been initiated, let us know on the checklist so that these efforts are not duplicated

26. ITEM #5 ON THE CHECKLIST: UNALLOWABLE CHARGES

27. UNALLOWABLE CHARGES • Sources for determining unallowable charges: • Read the award document/agreement; review all terms and conditions • Refer to the RFP or program guide; this may be particularly useful for exceptions • Review the OMB circular (take a booklet!) • This is the guiding principal for all federal money • This may also be used by non-fed sponsors • Ask OVPR • Ask the sponsor

28. UNALLOWABLE CHARGES • OVPR will question anything that might be questioned by an auditor. • There are unusual occasions when expenses that are typically unallowable will be allowed. If this is the case, attach adequate documentation to the closeout check list for the closeout file.

29. ITEM #6 ON THE CHECKLIST: OUTSTANDING TRANSACTIONS

30. OUTSTANDING TRANSACTIONS • If all legitimate expenses haven’t hit yet, let us know early on: - For on-campus charges, OVPR may be able to help expedite - For other expenses you may need to request a no- cost extension, so the closeout is not late

31. ITEM #7 ON THE CHECKLIST: EQUIPMENT INVENTORY

32. EQUIPMENT INVENTORY • If an equipment/property inventory is required by the sponsor or terms of the agreement, please provide it as an attachment to the checklist (see example handout) • Equipment Fabrication needs to be capitalized as equipment, or moved to a supply expense before closeout can be completed

33. ITEM #8 ON THE CHECKLIST: SUBCONTRACTS

34. SUBCONTRACTS • If the subcontractor’s final invoice has not yet been received, please contact them to obtain it • After the final invoice has been approved by the PI and sent to OVPR, we will initiate the closeout with the subcontractor • Is our PI satisfied with the invoices submitted? • Is our PI satisfied with the results from the subcontractor? • Is our PI satisfied with the reports submitted by the subcontractor? • GMQ_PO_ACTIVITY_SUM query provides the funds committed and the expenditures

35. ITEM #9 ON THE CHECKLIST: SALARY JOURNAL VOUCHERS

36. SALARY JOURNAL VOUCHERS • Please ensure that all Salary JV’s provide the specific dates of the salary being moved: • Good: “10/1/03 – 12/15/04, 5 pays @ $875.00 ea” • Bad: “moving salary for fall 2004” • Any Salary JV that affects an effort period prior to 09/01/04 will require a revised Sponsored Activity Report (SAR) • Please let us know that the SAR report was revised, or revise it now and return it with the checklist • Effort Certification System (ECS) • JV’s needed for salary after 9/1/04 will require that the corresponding effort report be pushed to you. The completed JV will automatically update the effort report.

37. ITEM #10 ON THE CHECKLIST: FACILITIES & ADMINISTRATION EXPENSES

38. F&A EXPENSES • Verify that the correct overhead rate was used • Month End Statement: • Take the total month end expenses • Subtract out the month’s overhead • Take the new amount and multiply by the F&A rate • The amount calculated should match back to the month’s total overhead • Verify that all F&A has hit • If a transaction has a purpose but not a project, F&A did not hit the correct project

39. ITEM #11 ON THE CHECKLIST: INVENTIONS AND INTELLECTUAL PROPERTY

40. INVENTIONS AND IP • Verify with the PI if any invention or IP issues resulted from the award • If yes, please provide appropriate documentation to OVPR • If no, please note not applicable

41. ITEM #12 ON THE CHECKLIST: PURPOSE AND PROJECT

42. PURPOSE/PROJECT BALANCES • Why don’t my balances match? Why should I care? • How to find discrepancies • Compare Project and Purpose Transactions • Use GMQ_CLOSE_OUT_REPORT (project) and EZQ_TRANS_NONBUDGETQUERY (ledger) • Some discrepancies are more complicated, check with OVPR if you get stuck

43. ITEM #13 ON THE CHECKLIST: FINAL EXPENDITURES

44. FINAL EXPENDITURES • Confirm final expenditure total in the provided space • If the award is underspent, please let OVPR know there will be no other legitimate expenses • If the award is overspent, please remove the over expenditures, after end date charges or unallowable costs

45. ITEM #14 ON THE CHECKLIST: LABOR ALLOCATION MODULE

46. LABOR ALLOCATION MODULE • Please remember to update any LAM entry containing the grant purpose AND/OR project number; this includes match! • Detailed training information is available at: • http://www.udel.edu/UDFS/info/training/shtml#LAM • http://www.ovpr.udel.edu/OVPR/do/index?pageId=30

47. THE END • Please remember to fill out and hand in your surveys • Please make sure that you signed the attendance sheet • Thank you for coming!