Closing Types

The closing type for a budget depends upon whether the budget has a deficit or an unexpended balance and whether there is a continuation budget at the time of closing. The closing type determines the actions GCA and the PI/staff need to take to bring the budget balance to zero.

Deficit with continuation budget: An award in which expenditures are greater than revenue and there is a continuation budget.

NIH Awards:

  • Non-Competing Research Awards: GCA will transfer over-expenditures to the continuation budget.
  • Competing Research Awards: Cost overruns are not allowed. GCA will separate pre-award costs from cost overruns. Pre-award costs are all allowable expenditures incurred 90 days prior to the start of the new budget period. If the over-expenditure precedes the 90 day pre-award period, GCA will transfer the pre-award cost portion to the continuation budget. The remainder of the over-expenditure must be transferred to a departmental non-federal budget.
  • Training Grants: Cost overruns will not be based on pre-award calculation. Please refer to the Training Grants website.

Other Letter of Credit Awards:

GCA determines whether the carryover of the deficit to the continuation budget is allowable on a case by case basis.

All Other Awards:
To transfer the deficit from an award to the continuation budget, you may need written approval from the sponsor. Check the guidelines for your particular award.

Deficit without continuation budget: A budget in which expenditures are greater than revenue and there is no continuation budget.

Transfer the excess expenditures and resolve your deficit by:

  • Providing GCA with an appropriate non-federal budget number (i.e., Gift, Income, State, Research Cost Recovery (RCR), etc.) for the deficit transfer. See the University Deficit Policy.
  •  Preparing an online expense transfer or an online salary expense transfer through the Financial Desktop to transfer specific expenditures to an appropriate budget. See GIM 15 for additional information on the transfer of expenditures between budgets.
  • Transfer allocations between parent and sub–budgets or vice versa to balance the award amount with expenditures.
     

Unexpended balance with continuation budget: A budget in which revenue is greater than expenditures and there is a continuation budget.

GCA determines whether sponsor regulations require prior approval to carry unexpended balances forward to the continuation budget.

If prior approval is not required:

  • GCA carries forward the balance as unallocated direct costs (38-99-00) and facilities & administrative (F&A) costs (25-99-00).
  • No additional departmental action is needed to spend these funds.
     
If prior approval is required, (GCA sends you a letter telling which action applies to your budget) either:
  • On all federal awards, GCA:
    • Carries forward the entire balance in the restricted category (37-99-00).
      • The department is not allowed to spend these funds.
      • To obtain approval to release the restricted funds, the department must follow the OSP (Office of Sponsored Projects) instructions for a Concurrence Letter.

or
 

  • On all non-federal awards, GCA:
    • does not carry forward the balance until they receive written approval from the sponsor via OSP.
      • To obtain approval to carry forward the balance, the department must follow the OSP instructions for a Concurrence Letter.
      • If carry forward is denied, GCA will return the balance to the sponsor.

Note: With some sponsors, the unexpended balance may be applied as partial funding for the next budget period reducing the overall project budget.
 

Unexpended balance without continuation budget: An budget in which revenue is greater than expenditures and there is no continuation budget.

Fixed Price Awards (budget type/class 05/14 and 05/31) and

  Fixed Price Clinical Trial budgets (budget type/class 05/16 and 05/35):

  • If the unexpended balance is greater than 25% of the award amount:
    • Department submits a request to OSP to extend the budget period to complete the project or to transfer the balance to departmental Fixed Price Surplus Account if the project is complete. Reference that this is a fixed price budget.
  • If balance is less than 25% of the award amount:
    • Request up to a one-year extension to complete the project from GCA using GrantTracker or ask GCA to transfer the balance to the departmental Fixed Price Surplus Account if the project is complete.
    • To establish a Fixed Price Surplus Account for this purpose, contact Office of Sponsored Programs

All Other Awards:

  • GCA automatically returns the unexpended balance to the sponsor.

Supporting Documents

Contacts:

For questions on a specific budget number (xx-xxxx), go to GrantTracker

For all other budget administration questions, contact GCAHELP Tel: 206-616-9995

 

 

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