Fund closeout is the process by which the University determines all allowable and applicable expenses are properly accounted for under the award’s terms and conditions. If at the end of the project period, the Principal Investigator has not secured a renewal, supplement or no-cost extension, the fund closeout process must be conducted. Upon award expiration, final financial deliverable requirements stated in the award documents or sponsors policy manual are to be completed. It is important that all requirements are completed within the timeframe indicated by the award terms and conditions. Non-compliance can lead to financial loss and places the University at risk of obtaining future funding from the sponsor.
The Financial Closeout of Sponsored Projects procedure was developed to ensure fiscal compliance in accordance with Sponsor and University policies. Timely submission of financial reports and invoices to sponsors will be enforced and is critical for the reimbursement of allowable and applicable sponsored projects costs.
Closeout policies, procedures, and required documentation vary depending on the sponsoring agency. Effective interpretation and application of government, federal, sponsor, award-specific, and University policies and requirements is important. Given the varying levels of regulations, the order of precedence usually starts with the individual award terms and then each regulation is applied to determine the applicable rule. Often the most restrictive rule applies.
The University has an obligation to ensure timely fiscal compliance with Sponsor and University's policies and guidelines. It is essential that collaboration from Principal Investigators, research administrators of the administrating unit, and support from other business unit(s) takes place as appropriate. Understanding the shared responsibilities to financially close out funds is critical to effective and timely fund closeout.
- The Principal Investigator is responsible for complying with award specific terms and conditions, including the submission of programmatic, financial, invention, inventory and equipment reports.
- Extramural Fund Management (EFM) is responsible for ensuring accurate and timely financial reporting to the sponsor.
- The Department Chair or ORU Director is responsible for ensuring that all financial transactions are properly recorded in a timely manner to be in compliance with Sponsor’s and University’s policies and guidelines.
For details regarding the roles and responsibilities of parties in research administration, please refer to UCLA Policy 910: Management of Sponsored Projects on the Closeout Resources page.