Chapter 2-700: Award Termination/Expiration/Closeout

The expiration of an award on its expected expiration date constitutes an implicit assumption that the University has fulfilled its project performance obligations under the award. An award may also be terminated by the sponsor or the University before its expiration date for various reasons including the transfer of the Principal Investigator to another institution.

A closeout or termination may require the submission of a final invoice and a "Contractor's Release." Other aspects of the award that may need to be cleared are: title to property; satisfactory performance of contractual obligations by the Principal Investigator; and the submission of all required reports including final technical and financial reports, patent and invention reports, inventory report, small business and small disadvantaged business subcontracting plan reports, and cost-sharing report. These reports are discussed below, except for subcontracting plan reports which are discussed in Chapter 16-F02.

2-710 Final Financial Report, Contractor's Release, Refunds, and Claims

The campus or Laboratory Extramural Funds Accounting Office is responsible for submitting any financial reports required in order to close out the award. The expiration or termination of an agreement usually requires a final invoice or final financial report from the University. In the final invoice or report, the University would request any residual funds due to the University under the award or refund to the sponsor any excess funds not expended. Awards terminated prior to their natural expiration date can also incur additional costs. See Chapter 7-222 on this subject.

When it is determined by the Extramural Funds Accounting Office that no funds are owed to the University for expenses incurred under the award, a signed "Contractor's Release," if required by the sponsor, may be submitted to the sponsor. This "release" is an acknowledgment by the University that it has no further claims against the sponsor. A contractor's release is not usually required for a grant award.

2-720 Final Technical Report and Other Deliverables

The Principal Investigator is responsible for submission of any final technical report required under the terms of an award as well as other agreed upon deliverables such as data, graphs or software. Failure on the part of the Principal Investigator to deliver any required technical reports to the sponsor in a timely matter may affect future funding from that sponsor to all campuses of the University. In addition, the terms of some contracts provide that final payments will not be made until the required final reports have been submitted. Thus, late or incomplete reports also affect the receipt of the final payment to the University and, in some case, the provision of future awards. It is, therefore, useful for campuses to have some method of monitoring the timely submission of final reports.

2-730 Final Inventory Report and Title to Property

The sponsor's policies on title to property must be followed when closing out an award. Many sponsors request a property inventory report whether or not title to such property is retained by the University. When such title is not retained at the time of acquisition, it is incumbent upon the Contract and Grant Officer to request title at termination. The campus Equipment or Materiel Management Office is generally responsible for completing the final inventory report.

2-740 Patent and Invention Report

If required by the sponsor, a final Report of Patents or Inventions is completed by the Principal Investigator, whether or not the report is negative. If a patentable idea, invention or discovery is made during the course of the sponsored project, the disclosure of such must be made through the Office of Technology Transfer, Office of the President, or the campus or Laboratory equivalent.

2-750 Cost-Sharing Report

If the sponsor requires cost sharing and requests a report of this cost sharing as part of the close-out of the award, such a report is generally generated by the campus Extramural Funds Accounting Office in consultation with the campus unit which administered the award, depending on individual campus procedures.

2-760 Transfer of the Principal Investigator

In the case of a termination of an award because the Principal Investigator is leaving the University and wants to continue the project at a new institution, written approvals from the sponsor, the campus, and the recipient institution are required. The campus or Laboratory Extramural Funds Accounting Office must determine the balance of funds in the project to be transferred. If these funds are in a campus account, the campus must refund the surplus to the sponsor or send the balance to the new institution in accordance with the sponsor's guidance. If the campus has not received the balance of funds available to the project, the sponsor de-obligates that balance to the campus and re-obligates it to the other institution. If the Principal Investigator wants to transfer equipment associated with the project, the campus is responsible for reviewing the title in order to make a determination of whether approval of the transfer will be given by the campus or is required by the sponsor. (See Business and Finance Bulletin BUS-38, Disposal of Excess Material.)

2-770 Termination of Subawards

Before termination of any sub-award issued from the University to another institution, all financial, technical, property, patent, and other reports required should be received from the sub-awardee along with a statement that it releases the University from all further claims under the sub-award. The University Principal Investigator should indicate that the sub-award was carried out in accordance with the work statement. Subrecipient monitoring procedures are issued via RPAC (Contract and Grant) Memos.