Closing a Project Account
It is important to close out grant accounts accurately and timely in order to ensure the timely and accurate submission of the Financial Status Report to the funding agency. Therefore, to close out the grant account, it is absolutely essential to:
- Know the grant end date.
- Make sure all appropriate costs have been expensed.
- Make sure all encumbrances are cleared in a timely manner.
It is absolutely essential to know the grant end date so that four (4) to six (6) weeks prior to that date, in addition to the on-going monitoring of the grant, the close-out process can begin.
Make sure all appropriate costs have been expensed and make sure that all encumbrances are cleared in order to:
- Maximize the use of funds, making sure all award money is spent appropriately.
- Ensure the efficient, effective and timely submission of the Financial Status Report to the funding agency.
To Manage the End of the Grant Account Efficiently and Effectively:
Know the grant end date. Then, four (4) to six (6) weeks prior to the grant end date, begin work on the following tasks:
- Making sure all appropriate costs have been expensed.
- Making sure all encumbrances are cleared.
- Review employees funded by this account and complete any necessary personnel actions.
Fund 50000 (Federal Funds from the Public Health Service): How They Are Closed
The PAF team reconciles the U.S. Public Health Service funds quarterly with the Department of Health and Human Services (DHHS). A “Fund 50000” grant stays active on the Federal Payment Management System Report until the DHHS closes it. This can be as much as fifteen (15) months after the grant termination date. During this period, the status of the account will be reflected as “Closed” on the Project Tab of the UTH Grants panels in FMS.
When DHHS closes the grant, PAF changes the Status from “Active” to “Inactive” in the Grants Panels by checking the “Closed” box on the Project Tab of the Grants Panels.
Clinical Studies and Miscellaneous Private Contracts: How They Are Closed
If there are residual funds in these types of accounts, and the funding documentation indicates that the funds vest with UTHealth, then these residual funds can be closed out to a gift account. In most cases, the funds should be closed to a Restricted Gift account that has a research-related purpose.