1. Lifecycle of an Award Reporting, Close-outs and Audits Michelle Vazin, Vanderbilt University Michele Codd, George Washington University

2. Reporting – Getting Started When 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? 2

3. 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.) 3

4. Things to Consider with Reporting  Accuracy of Data  Timing to ensure compliance  Proper approvals at the institution  Documentation of report submission 4

5. 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.) 5

6. 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 6

7. Close Out of Awards Departmental 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….. 7

8. Close Out of Awards Financial Aspects of Close Outs  Departmental Signoff on Final Expenditures  Verification of Cost Sharing  Verification of F&A  Financial Status Report  Final Invoice or Draw  Fixed Price Agreements Residual Balances  Close Account in General Ledger 8

9. Close Out of Awards Non-Financial Aspects of Close Outs  Technical Reports  Property Reports  PI Relocation  Record Retention 9

10. Best Practices for Close Outs Vanderbilt 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 10

11. Best Practices for Close Outs George 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. 11

12. 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 12

13. Sources of Audits  Sponsor  OIG for Federal Agency  Independent Audit Firm  Internal Audit 13

14. Potential Institutional Participants in an Audit  Central Offices (Institutional Liasion for audit usually in a central office)  Departmental Offices  PIs  Senior Administration  General Counsel 14

15. Notification Institutional Clearances Definition of Scope & Sponsor Review Preparation Aar Conditions Fieldwork Management Responses Exit Conference Entrance Conference Audit Report 15

16. 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 16

17. 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? 17

18. Questions? 18

19. Contact Information: Michelle Vazin Vanderbilt University Michelle.vazin@vanderbilt.edu Tel: (615)343-1558 Michele Codd The George Washington University mcodd@gwu.edu Tel: (202)994-0896 19