Close Out Project

At the end of a project, the University has an obligation to complete closing procedures that may vary depending on the policies of the sponsor and whether the support was in the form of a grant or contract. Failure to adhere to these reporting requirements in connection with a grant or contract may result in the sponsor withholding new awards or suspending payments for costs on the completed project or other University projects funded by the sponsor. This page covers common considerations for completing the project closeout.

Deliverables: Final technical reports, invention/patent reports and property reports

Final technical reports

The PI has the responsibility to prepare the final technical report. The report may be submitted by the PI or ORSP depending on the sponsor’s requirements. Specific sponsor requirements for the technical report are usually defined in the award package. Some sponsors require that final reports be signed or submitted  by an Authorizing Official of the University. If ORSP submission or signature is needed, a Technical/Progress/Invention Report ACR must be routed to ORSP with all necessary materials and instructions.

Invention/patent reports

In addition to the technical and financial reports, most sponsors require the University to report on any inventions, discoveries, or other novel commercial developments that were funded by the project. The PI must report inventions created in the performance of the project to Innovation Partnerships.

• Patent and invention questions (or those related to protecting and developing intellectual properties that come up as part of the grant closeout process) should be directed to Innovation Partnerships.
• If a research tool was created in the performance of the project that has not previously been disclosed to U-M’s Office of Innovation Partnerships, please submit an invention report describing the research tool.

Property reports/equipment transfers and disposition

Many federal agencies also require a report on property and equipment disposition. The Property Control Office has responsibility for completion of this form. The U-M Standard Practice 520.01 spells out procedures for the disposition of equipment at the end of a project or when it is being transferred to another institution.

The University will approve and initiate a transfer of equipment, the title to which rests with the University:

• If the grant from which the equipment was purchased is being transferred to the new institution, and
• If the Department Chair or Research Unit Director indicates that the equipment is no longer needed by the department/unit, and
• If the new institution is willing to accept the equipment.

However, if the grant from which the equipment was purchased has either terminated or is not being transferred to the new institution, then the University will not release the equipment without appropriate compensation (as determined by Property Disposition).

Similarly, if local funds were commingled with sponsor funds for the initial purchase, partial compensation to the University will be necessary. In any case, the fundamental consideration is that the equipment will not be required for research continuing under the direction of others in the unit. This determination is typically made by the Department Chair or Unit Director.

• For information equipment transfer or disposition, see the Property Disposition website.
• For budgetary information, codes, or closeout, visit the Finance website’s Equipment page.

Final financial status reports and closeout responsibilities

The Finance-Sponsored Programs Reporting area is responsible for the financial reporting portion of project close-out. They prepare the Uniform Guidance monitored costs expenditure review and any financial reports required by the sponsor, including the project closeout reports. They process the financial status report (FSR) in accordance with the Uniform Guidance (2 CFR 200) (particularly § 200.327). These guidelines set forth detailed requirements with respect to the complete and timely submission of financial reports and other such closeout procedures for federal grants and contracts.

Sponsored Programs prepares a final financial report, which is sent to the PI for review and signature approval. In most cases, Sponsored Programs will submit the final, approved report to the sponsor.

Questions relating to financial closeouts can be directed to a unit’s Finance – Sponsored Programs Customer Service Representative or a Supervisor from the Reporting/Closeout group within Sponsored Programs.

Preparation for annual audits

Careful closeouts are also important to help ensure U-M’s compliance and internal control of expenditures charged to federal grants and contracts. Each year at U-M an annual audit is performed (in accordance with the Uniform Guidance, Subpart F). As with any recipient of federal funding, U-M is required to demonstrate compliance and financial internal control audit of expenditures charged to federal grants and contracts. (For non-federal projects, see external audit cost advisory for non-federal sponsors.) External auditors determine if the federally sponsored programs were administered in accordance with the applicable laws and regulations. Finance-Sponsored Programs lists the latest Audit reports. Questions relating to the audit can be directed to a unit’s Finance – Sponsored Programs Customer Service Representative.

Award closeout notification

The variety of sponsor requirements makes it difficult to develop a single closeout procedure. 

Sometimes, sponsors will reach out directly requesting closeout materials. Oftentimes, sponsors simply expect that all closeout items are submitted in accordance with the agreement terms. Project teams are responsible for reading their agreement and abiding by the closeout terms and timeframes of the agreement.  

If ORSP submission or signature of any final technical/invention report(s) is needed, the project team must submit an ACR for a Technical/Progress/Invention Report on the award record and provide all necessary materials. 

Some sponsors require more complex closeout documentation. In these cases, ORSP will send out a Closing Authorization form to be completed by the project team and returned directly to ORSP. When applicable, ORSP will coordinate with other U-M offices to obtain these necessary closeout reports.

Early close out

If you want to close out a project early, initiate an “Early Termination” ACR for ORSP and provide all required documents as noted here. 

You will also need to e-mail Sponsored Programs at [email protected] with a completed closeout checklist.