Close budget

The Grant and Contract Closing Process

GCA's goal is to close budgets to status 4 within 120 days of a grant or contract budget's end date.

Budget closeout begins after:

  1. The grant or contract expires, and...
  2. The Final Action Date (FAD) has passed.
The closing process at a glance:
  1. GCA sends a Notice of Expiration (NOE) letter through campus mail to the department administrator around the 10th of each month for budgets set to expire during the following month.
  2. The PI and his or her staff follow the instructions in the NOE and work with GCA to ensure that all expenditures are allowable.
  3. When the award, expenditures, cash, and revenue are equal, all payments have been received from the sponsor, all encumbrances have been cleared, and any cost sharing commitment has been met, GCA closes the budget to status 4.

NOTE: GCA will not close a budget if you notify them you have an extension or supplement/extension in process.

How the Department Can Support the Closing Process

GCA endeavors to close budgets to status 4 within 120 days because the longer a budget remains open due to an unresolved issue, the more difficult it becomes to resolve it. For example, staff turnover at either the department or the sponsor's offices can lead to a loss of institutional memory necessary to correct cost share issues, resolve unpaid invoices, etc. These issues can in turn jeopardize UW's ongoing relationship with the sponsor. We therefore ask you to partner with us to ensure a timely and smooth closing.

Respond to your Notice of Expiration (NOE)

The NOE contains a reminder of the Final Action Date and other actions the department needs to review before budget closeout. Please use the NOE as a prompt to make sure your budget is ready to close in good order. Learn more about departmental review when the NOE is received.

Know your Final Action Date

The Final Action Date (FAD) is the date by which the department needs to complete all transactions related to a budget or inform GCA of the exact dollar amount and account code of any expected late-posting charges, credits, or transfers. The FAD is calculated to allow the PI and his or department to charge allowable expenditures after the end date while providing GCA with time to complete the final reconciliation. The FAD is posted on GrantTracker and the NOE letter.

GCA begins work on final invoices and financial reports as soon as the FAD has passed without departmental notification. If you expect late-posting charges or credits, you must inform GCA no later than the Final Action Date, or these charges or credits will not be included in your final invoice or report.

Failure to comply with the Final Action Date will lead to inaccurate final invoices and reports, which may put your budget in deficit and/or jeopardize UW's relationship with the sponsor.

Respond to GCA requests to resolve outstanding issues.

The following issues may prevent your budget from being in balance and ready for closeout:

  • Open Invoices
    If we haven't yet received all payments due from the sponsor, we cannot close the budget. While we send monthly delinquency notices for all past due payments, we may also ask you to follow up with the sponsor, because in many cases they respond better to a more personal contact. If you receive communication from a sponsor refusing to pay an invoice, please let us know right away.
  • Open Encumbrances
    We cannot close a budget that has open encumbrances. The encumbrance code table lists contacts for liquidating the different types of encumbrances.
  • Unmet Cost Share
    We cannot close a budget that has an unmet cost share pledge. Learn more about the cost share process.
  • Award and Revenue Out of Balance
    We cannot close a budget whose award and revenue amounts are out of balance. Award-revenue imbalances can arise from a variety of issues, and the Closing team will contact you if the department needs to reverse or correct a transaction to bring the budget into balance.
  • GCA Follow-up Process

GCA closing staff may contact you about these issues via GrantTracker. Please respond to their requests as soon as possible.

Closing FAQ

More Information on Closing

 

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