Continuation Funding and Grant Closeout

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If continuation funding is available, you should consult with your grants management officer or program officer to determine the protocol for applying for that funding. If you are not granted continuation funding from your award agency, you must complete the grant closeout process. This involves liquidating all obligations of the award within ninety days after the budget period and refunding unobligated cash. This chapter will give you a brief overview of the responsibilities of your organization during the closeout process and the responsibilities and adjustments of your Federal award agency.

You have ninety days to submit all required reports.

Upon completion of your project, you must submit all required financial, performance, and equipment reports to your grants management officer within ninety calendar days of completion of the award. Prior to the end of the project period, you may request an extension of that time period from the Federal funding agency if needed.

However, unless an extension is authorized, you must liquidate all obligations incurred under the award within ninety calendar days of the budget period or the date of completion. You must also promptly refund any balances of unobligated cash that the Federal awarding agency has advanced or paid and that is not authorized to be retained by the recipient for use in other projects. OMB Circular A-129 governs unreturned amounts that become delinquent debts. Upon award completion and closeout, equipment records must be maintained, but report only equipment valued at over $5,000.

The Federal awarding agency will make prompt payments for allowable reimbursable costs under the award being closed out. When authorized by the terms and conditions of the award, the Federal awarding agency will make any upward or downward adjustments to the Federal share of costs after closeout reports are received. In the event that a final audit has not been performed prior to the closeout of an award, the Federal awarding agency will retain the right to recover an appropriate amount of funds after fully considering the recommendations on disallowed costs resulting from the final audit.

The Federal government retains certain rights following closeout.

The closeout of an award does not affect any of the following:

  • The right of the Federal awarding agency to disallow costs and recover funds on the basis of a later audit or other review.
  • The obligation of the recipient to return any funds due as a result of later refunds, corrections, or other transactions.
  • Audit requirements.
  • Property management requirements in 2 CFR 215.31-37.
  • Records retention as required in 2 CFR 215.53.
Click to open interactivity Any superfluous funds paid to your organization are considered a debt to the government.

Any superfluous funds paid to your organization are considered a debt to the government.

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