Oregon State University

302-01: Closing Fixed-Price Grants

Grant, Contract & Gift Accounting Manual
Section 302: Closeout
Revised: 08/08/2003

 

Purpose

To identify the procedures for closing awards.

Applicability

All employees.

Background

The Office of Post Award Administration has designed a suggested closeout check-off sheet to help facilitate the closeout process.  A sample of the Grant & Contract Closeout Checkoff Sheet is located in the drop-down menu under "Forms" on the Business Affairs website.

Definition

Closeout Date

The date that all final documents must be received by the sponsor.

Closeout Date

The period that all final documents must be processed and sent to the sponsor. For example, if it says 90 days, you will have until closing of the period following 60 days after the end date to make corrections. To allow for processing time the department should process all corrections 30 days prior to the contractual due date of reports. Remember that this information will be noted on the Award Information Sheet of the original award only. It will not be noted on the Award Information Sheet of future amendments.

Procedure

A fixed price agreement is invoiced for a flat amount for the task or scope of work and the expenses are not subject to detailed reporting.  OSU is under Cost Accounting Standards, that state that costs will be estimated (the proposal) and incurred in the same manner.  Therefore, if there is salary in a fixed price budget, it is expected that salary will be expended on the index set up for the award.

When Oregon State University (OSU) receives a fixed-price award, the funding entity intends that it be spent for a specific project.  Once that project is completed, unless restricted by the award document, it is OSU’s policy to allow the department to retain the remaining cash for their use toward the support of departmental research.  After ensuring that all appropriate expenditures have been posted, the remaining cash is considered by OSU to be a restricted gift. Cash balances exceeding 20% of total award will require agency approval. The cash is transferred to a departmental restricted M2XXXX fund less appropriate F&A costs, if award allows F&A costs.  The Manager of the Office of Post Award Administration must be informed in writing that the fixed-price project is completed so the appropriate transfer can be made.  The appropriate M2XXXX index should be included in the request.

The end date of the fixed price agreement means the same as the end date of a cost reimbursable agreement.  This date is when the project is to be completed and the technical reports (deliverables) submitted to the sponsor. Whether OSU is allowed to bill in total or is required to invoice in detail has no bearing on the technical project.

If the project is not complete by the end date shown on the award, then a no-cost extension should be requested by the PI to the sponsor.  The sponsor needs to know how the research is progressing and when it can expect the deliverables.  If the sponsor does not require a formal amendment, the no-cost extension request can contain an agency approval signature-line.  Once signed the approval should be forwarded to the Office of Post Award Administration for input.

Assuming that the project is completed within the end date these funds should close in the same timely manner as cost reimbursable funds.

Contact Info

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