Closeout

All sponsored awards must be formally closed as soon as possible after the project end date to ensure:

• Only allowable expenses were charged
• No additional charges post after the end date
• All sponsor payments are received

Key Milestones & Notifications

• 90 days before project end date ORA sends an automated reminder to the PI to:

Prepare for closeout, or
Request a No Cost Extension (NCE) if additional time is needed

• After the departmental deadline, ORA moves the award to Close status in Workday, preventing new charges without review.

Deadline Timeline

Direct Federal (includes all awards where the funding is provided from the federal agency to the University)
Financial Reporting & Invoice Due Date	Department Closeout	ORA Submission Deadline Date
120 days after award/budget end date	60 days after the award	90 days after award/budget end date
All non-federal and federal funding provided to the University through a subaward:
Financial Reporting & Invoice Due Date	Department Closeout	ORA Submission Deadline Date
>60 days after award/budget end date	30 days after award/budget date	60 days after award/budget end date
60 days after award/budget end date	30 days after award/budget date	45 days after award/budget end date
45 days after award/budget end date	15 days after award/budget date	30 days after award/budget end date
30 days after award/budget end date	15 days after award/budget date	21 days after award/budget end date

Key Takeaway

Timely closeout protects the PI, department, and University from:

Financial disallowances
Audit findings
Sponsor enforcement actions

Early coordination with ORA and proactive financial review are essential for a successful closeout.

Responsibilities (Closeout Checklist)

Open All Tabs

Before closeout the PI or departmental designee must:
Financial Review
- Review all project expenditures for allowability and accuracy
- Verify all expenses, subrecipient invoices, and payments have posted
- Stop all recurring charges
- Clear outstanding encumbrances and commitments
- Identify the program/gift to cover any overdraft
- Confirm all labor charges and effort are accurate
- Review and confirm cost share requirements have been met
- Update labor allocations to prevent future charges
- Notify ORA immediately of any errors
Compliance & Reporting
- Submit final technical report(s) per award terms
- Submit final IRB report (if applicable)
- Complete and submit all compliance documents
- Document and report intellectual property, including final invention report
- Confirm all deliverables and regulatory obligations are complete
- Complete the Closeout ticket in ServiceNow
Cinical Trials/Per-Patient Studies
- Verify that the department has completed all invoicing
- Reconcile patient enrollment and per patient payments
- Confirm all patient reimbursements have been made
- Ensure revenues and expenses align with the approved budget
Cutting Off Expenditures (Required Actions)
No new charges may be incurred after the project end date unless an approved NCE exists.
Required cutoffs include:
- Standing POs: Submit PO change order to close
- Travel & petty cash: Submit within 10 business days of project end
- Supplies: Purchase only reasonable amounts; no stockpiling
- Equipment: Purchases within 6 months of end date require justification
ORA Closeout Review (Post Award)
ORA performs a formal closeout review that includes:
- Reviewing final expenses and cost transfers
- Verifying mandatory cost share completion
- Reviewing award terms for return of unspent funds
- Preparing and submitting final financial reports
ORA’s review is a closeout audit and does not replace PI accountability.
Acount Overdrafts and Residuals
Account Overdrafts
- ORA transfers overdrafts to a departmental program/gift at award closeout
Residual Balances (Fixed Price Awards)
- Remaining balance is transferred per UM Residual Balance Policy
- Residuals >20% of total revenue require PI written justification