Project Closeout Process
Overview. The project closeout process is the procedure of formally completing all responsibilities tied to the award.
The Final Technical Report
This must be submitted by the Principal Investigator (PI) and typically includes a comprehensive summary of the project’s objectives, accomplishments, outcomes, and broader impacts (NSF). This report is due within a specific time frame after the award ends (e.g., 90–120 days, depending on the agency) and failure to submit may affect future funding.
Inventions or Intellectual Property
The PI must complete a Final Invention Statement, disclosing any new technologies, discoveries, or patent applications made during the project. This statement is required even if no inventions were made and is submitted through agency-specific portals (e.g., iEdison for NIH or NSF).
Equipment Disposition or Transfer
Federally funded equipment (typically with a value of $5,000 or more) must be inventoried and handled in accordance with 2 CFR 200.313. If the equipment is no longer needed for the original project or other federal activities, the institution must request disposition instructions from the funding agency or follow agency guidelines, which may involve transfer to another project, sale, or return to the agency.
Financial Closeout
Overview. In the financial closeout phase of a federal grant, institutions must ensure that all allowable project costs are posted to the grant account before submitting the final invoice or financial report. This involves reconciling internal financial records with actual expenditures, verifying that all obligations have been fulfilled, and confirming that charges are consistent with the approved budget and federal cost principles. Work with your Grants Management Officer at Sponsored Programs Administration to make sure that all financials are reconciled.
Unexpended remaining funds
If there are unexpended funds remaining at the end of the grant period, and the sponsor does not allow carryforward or extensions, the institution may be required to refund the unobligated balance to the funding agency.
Cost Sharing
Institutions must document and report any cost sharing that was committed as part of the award, ensuring it meets federal standards of allowability and verification. Cost sharing can be documented with a cost sharing timesheet.
CSUSB cost sharing timesheet
UEC’s policy on cost sharing and FAQ
Program Income
If program income (e.g., fees from service or sales) was generated during the project, it must be tracked and reported according to 2 CFR § 200.307 and the sponsor’s requirements (e.g. NIH), typically showing how it was used to further the project’s goals.
Record Retention
Uniform Guidance: Under 2 CFR § 200.334, recipients and subrecipients of federal awards are required to retain financial records, supporting documents, statistical records, and all other pertinent records for a period of three years from the date of submission of the final expenditure report. For awards renewed quarterly or annually, the retention period is three years from the submission date of the respective financial report. Exceptions to this retention period include situations involving litigation, claims, or audits initiated before the end of the three-year period, in which case records must be retained until all issues are resolved. Additionally, records related to real property and equipment acquired with federal funds must be retained for three years after final disposition. Records concerning program income earned after the period of performance must be kept for three years from the end of the fiscal year in which the income was earned, if reporting is required. For indirect cost rate proposals and similar computations, if submitted for negotiation, records must be retained for three years from the date of submission; if not submitted, the retention period is three years from the end of the fiscal year covered by the proposal. If records are transferred to or maintained by the federal agency, the retention requirement does not apply to the recipient or subrecipient.
Electronic vs. paper records management. Section 200.336 of 2 CFR mandates that, when feasible, federal agencies and recipients should collect, transmit, and store federal award information in open, machine-readable formats to enhance accessibility and efficiency. Recipients are not required to maintain paper copies if original records are electronic and unalterable.
Audit & Compliance Reviews
Overview. Federal Audit & Compliance Reviews are formal evaluations conducted to ensure that recipients of federal funds are using those funds in accordance with applicable laws, regulations, and grant terms, with the goal of verifying financial integrity and programmatic compliance
Subpart F of 2 CFR Part 200 establishes the audit requirements for non-federal entities that expend federal awards, detailing thresholds, audit types, and responsibilities to ensure accountability and compliance with federal regulations.
Internal audit
An internal audit is conducted by an institution’s own audit or compliance office to assess internal controls, identify risks, and ensure compliance with policies and grant terms
External Audit
An external audit is performed by independent auditors or government agencies (such as during a Single Audit) to formally evaluate the institution’s financial records and compliance with federal regulations.
Single Audit
A Single Audit is a comprehensive, organization-wide financial and compliance review required for non-federal entities that expend $1,000,000 or more in federal funds in a fiscal year, assessing adherence to federal regulations and proper use of funds across all federal programs.
Common audit findings
Common audit findings in federal grant management often include issues with effort reporting, cost transfers, and subrecipient oversight.
Effort reporting findings typically arise when employee time and effort charged to federal awards are not accurately documented or certified in accordance with institutional policies and federal regulations, leading to questioned salary costs. Cost transfers become problematic when expenses are moved between accounts without adequate justification, supporting documentation, or within an unreasonable time frame, suggesting poor internal controls or attempts to use available funds improperly. Subrecipient oversight issues occur when prime recipients fail to adequately monitor subrecipients’ financial and programmatic performance, including lack of risk assessments, missing subaward agreements, or failure to review subrecipient invoices and audit reports.
Strategies for maintaining readiness for external federal audits.
Ongoing internal reviews involve regularly monitoring financial transactions, compliance documentation, and project performance to identify and correct issues before they escalate, ensuring that records are accurate and up-to-date.
Checklists serve as structured tools that help research analysts consistently follow federal requirements and institutional policies, guiding actions such as proposal submission, expense documentation, reporting, and closeout activities to ensure nothing is overlooked.