Closing an OSP account occurs when
- The work on the project has been completed (or the end date is reached)
- All the project Accounting records are in order (the required technical, financial, patent, and equipment reports have been submitted to the sponsor)
- Cost-sharing commitments have been met and documented
- All project income has been received and the index cash balance equals zero.
The Federal government and many Non-Federal sponsors require that projects be closed within 90 days of the termination date of an award. In fact, many sponsors refuse to issue new awards if existing awards are not properly closed.
Accounting Services will return to the submitting department, any expenditures and corrections submitted after 90 days.
To close out an account, the PI must have spent the monies in accordance with the terms and conditions of the award and/or university and state regulations.
As the PI, you will want to work with your Grants and Contracts Accountant in Accounting Services to ensure that erroneous charges, unallowable charges, and over-expenditures are removed from the sponsored project account.
In order to close properly, an account’s total expenditures must match its total income. If expenditures are less than income, excess income must be returned to the sponsor.
Even more important, sponsors will not reimburse Weber State University for charges that exceed the award amount. In certain instances, the PI may be asked to reimburse the University from personal funds should over-expenditures occur.
Accounting Services notifies OSP when the financial transactions of a contract and account are satisfied. At that point, OSP conducts the internal process to close the contract file.