OSU GCG 209-06: Temporary Terminations

Policy

Indexes and funds for sponsored awards may be closed to further activity during the project period for various reasons.

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Procedure

If it is necessary to close a project to further activity, both the index and fund will be terminated.  The department will be responsible for removing any personnel payroll defaults that have been established on that index and fund until such time that the fund can be reopened.  Any continuing research is recorded as unsponsored department research and expenses should be charged to a cost share index.

Examples for temporary terminations:

• The award budget is overspent without documentation of further funding from the sponsor within the next 30 days.
• Dispute with the sponsor over progress of the research
• Contractual default by either party
• Mismanagement of funds
• Sponsor issues a stop work order
• Default on scheduled progress payments by sponsor

Temporary termination of a sponsored project due to a deficit balance may be avoided if the department submits a guarantee letter to the Office of Post Award Administration.

The guarantee letter must provide an index that will be responsible for the deficit balance if the sponsored award does not receive additional funding.  Department Head and Dean signatures are required.  Expenditures will be allowed up to the amount guaranteed.  If expenditures exceed the amount guaranteed, a revised guarantee letter must be submitted or the temporary terminations policy will apply.

The Principal Investigator, Department Accountant and Department Head will be notified when closures are necessary. The reason for termination, any necessary action for reactivation and timing issues will be provided.

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Cross Reference

See GCG 209-05: Over expenditures

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