Lifecycle of an Award

Reporting, Close-outs and Audits

Michelle Vazin, Vanderbilt University

Michele Codd, George Washington University

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Reporting – Getting StartedWhen an award is received:

Review the terms and conditions completely for reporting requirements

What types of reports will be required? How are they submitted? What is the frequency?

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Types of Reporting

Interim and Final Financial Reports Quarterly Letter of Credit Reports Progress Reports Effort Reports Patent & Invention Reports Special Reports (i.e. SBA, FFATA, Property, etc.)

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Things to Consider with ReportingAccuracy of DataTiming to ensure complianceProper approvals at the institutionDocumentation of report submission

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Reporting – Roles and Responsibilities

At your institution, who is responsible? Have clear delineation and assignment of who is

responsible for preparing and submitting a report Most types of reports require coordination amongst several areas who manage awards, (i.e. department, pre-award, post-award, etc.)

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Close Out of Awards Have processes in place to ensure deadlines are met Send notices of expiring awards well in advance of the expiration date Create reports to track closing awards Require written request from the department if deadlines cannot be met Develop a close out policy “Freeze” award once final financial report is sent

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Close Out of AwardsDepartmental Perspective on Close Outs

Review project expenses throughout life of the project Verify that outstanding encumbrances have been paid or liquidated Identify all parts of a project that may have to be closed: subawards, IRB,

other compliance Understand closeout requirements well before closeout Be aware of any non-financial reports due: technical, patent, property Maintain complete, accurate, approved documentation

(check your Record Retention Policy &Procedure) Make sure it’s really closing…..

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Close Out of AwardsFinancial Aspects of Close Outs

Departmental Signoff on Final ExpendituresVerification of Cost SharingVerification of F&AFinancial Status ReportFinal Invoice or DrawFixed Price Agreements Residual BalancesClose Account in General Ledger

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Close Out of AwardsNon-Financial Aspects of Close Outs

Technical ReportsProperty ReportsPI RelocationRecord Retention

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Best Practices for Close OutsVanderbilt University

Initial notice sent 60 days before end of grant requesting memo to close out award or extend. Access database is kept that is an aging for both

interim and final reports. Have a Closeout Policy to facilitate the process

with departments and schools

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Best Practices for Close OutsGeorge Washington University Automatic award management system sends alert

emails 90, 60, and 30 days prior to award end date. Closeout Policy assures consistent practice with all

units. Award system tracks aging for interim and final

reports.

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Types of Audits

Pre-award Financial Statement OMB A-133 Program Specific Special Review F&A Cost Proposal and Disclosure Statement Business System (one or all of accounting, procurement,

property, etc.) Review

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Sources of Audits

Sponsor

OIG for Federal Agency

Independent Audit Firm

Internal Audit

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Potential Institutional Participants in an Audit

Central Offices (Institutional Liasion for audit usually in a central office)

Departmental Offices

PIs

Senior Administration

General Counsel

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Notification

InstitutionalClearancesDefinition

of Scope

&SponsorReview

Preparation

Aar

Conditions

Fieldwork

Management Responses

Exit Conference

Entrance Conference

Audit Report

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Opportunities for Improvement Use audit findings to help guide the institution in developing better

practices Capture and document the things to do so you are better prepared for

the next audit when it happens Close the gap on any weaknesses in day to day process that were detected during the audit Use audit findings to guide the development of new or refinement of

current training materials Assess your policies to ensure they provide the right guidance to your

campus when managing sponsored programs – update if necessary

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Case Study Dr. Cruise’s R01 has ended. The final FSR (Financial Status Report) is due in two weeks. The spending rate on the grant has been low for most of the award period.

A purchase order was issued to buy a SEM charging $20,000 to the project (since here was extra money available) a month before the grant ended. The equipment quote includes an “estimated” delivery date of 90 - 120 days from the date of issue.

The vendor has informed Materials Management that “equipment delivery delays are anticipated” due to low quantities of stock necessary to complete the product.

The PI has requested that the equipment purchase be included in the upcoming FSR. Once invoiced, the PO will fully spend the remaining balance on the grant.

The PO will not be invoiced until the equipment is delivered.

How should the institution address this issue?

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Questions?

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Contact Information:Michelle VazinVanderbilt UniversityMichelle.vazin@vanderbilt.eduTel: (615)343-1558

Michele CoddThe George Washington Universitymcodd@gwu.edu Tel: (202)994-0896