The purpose of this work instruction and relevant job aids are to document the process for preparing final invoices and financial reports. The process details the steps in preparing the backup documentation, completing the final invoice or financial report template, and processing the final account adjustments. The expectation is that all final invoices and financial reports are submitted by the sponsor's due date. The AMT AD should be promptly notified in the event circumstances arise which prevent the final invoice or financial report from being submitted on-time.
1. Verify which accounts are to be included in the final invoice/report in ERA:
- Search by the award ID under “All” in the Awards module.
- In the Award workspace, find the list of accounts associated with that award under the “Information” tab.
- Review the “Related Awards” tab for any additional accounts that need to be included in the reporting.
- Pay Special Attention to:
- Funding Restrictions: Accounts are sometimes created to hold restricted funds (ex. REU, participant support, equipment) to ensure these funds are used for their intended purpose. A special review of these accounts is required to verify sponsor prior approval is not required before using these funds to offset a deficit in a related account.
- Fixed-Price Awards with Multiple Accounts: Child accounts should be treated as cost-reimbursable awards with F&A adjustments based on actual expenses.
2. For each account included in final invoice/report, confirm PREPARATION steps from Fiscal Reconciliation Job Aid have been completed and appropriate backup documentation is included from Advantage Web Reports, MyReports, SuperReports and/or iAward Tool.
- G210-W report for all accounts for the last full month of the project
- 611E-W report for all accounts covering period from G210-W to present
- 400-W report for all accounts as of present
- USR6 report for all accounts, if current G210 report shows non-personnel direct cost encumbrances posted.
3. For accounts with direct cost encumbrances posted on the USR6 report, the AMT GCO should contact the Department Research Administrator to confirm when encumbrances will be cleared. Normally, encumbered expenses should not be included on a final invoice/report; however, an AMT Team Lead may grant an exception. To request an exception, submit an email to an AMT Team Lead with the amount and a justification supporting the exception. Upon approval, the encumbered expenses should be reported on final invoice/report as a work-paper adjustment.
- NOTE TO STUDENTS: Add comments in the ERA Deliverable task stating "<DATE> returned to GCO to verify DC encumbrances". Change Status to *Officer* Queue.
4. Confirm all post-term expenses have been validated. Refer to Fiscal Reconciliation Job Aid.
- NOTE TO STUDENTS: For post-term expenses which cannot be validated, make comments in the ERA Deliverable task stating "<DATE> Returned to GCO to verify PPEs". When 400-W report shows expenses coded to 7390-41 and/or 7390-99, make comments in ERA stating "<DATE> Returned to GCO to review 7390-XX expenses."
5. Confirm all steps under EXPENSE AND ENCUMBRANCE REVIEW & EXPENSES AND ENCUMBRANCE RECONCILIATION from Fiscal Reconciliation Job Aid have been completed. Work with Department RA on any unresolved issues.
6. For each account, reconcile direct costs on account's G210-W report as follows:
- $187,227.06 + TDC <Report Period End Date>
0.00 - Pre-term unallowable expenses
(599.85) +/- Post-term expenses
0.00 + Work Paper adjustments (Team Lead approval required)
$186,627.21 = TDC Allowable
7. Confirm that F&A reconciliation contains most current data and is supported by the backup documentation. Skip to step 13 for awards with a single account and 0% F&A rate.
- NOTE: For ASUF awards, see ASUF Awards Job Aid on Quality Management SharePoint.
- Direct Cost total for each account should match the "TDC Allowable" total calculated in step 6. F&A Exclusions fields should tie to numbers highlighted on 400-W reports. Verify that Budget Total matches the ERA Obligated Total on the “Information” tab in the Award workspace.
8. Prepare additional documentation to fulfill the sponsor's reporting requirements for the invoice/financial report.
- Payroll detail can be obtained from the iAward Tool or MyReports.
- Non-Payroll Expense Detail can be obtained from the 611E-W Web Report
- Some sponsor invoices or financial report templates may require additional reconciliation(s) be prepared to satisfy the data elements within the specialized template. The additional reconciliation(s) can be incorporated into the F&A Reconciliation Worksheet, however, all data fields will need to be clearly labeled. In addition, a summary should be included explaining the reconciliation and how the fields tie to the fields within the invoice/report template.
9. AMT GCO: Complete Final Cost Share Reconciliation, if required. Refer to the Documenting Cost Sharing Job Aid for additional guidance.
10. Complete final invoice/report in accordance with award terms and conditions. For awards with no final invoice or financial report requirement from the sponsor, the backup documentation prepared in previous steps should be treated as the final financial report.
- On Final SF 425s, line 10.a. Cash Receipts should be inputted as final expenditures. Sponsors will often request revised final 425s if there is an amount listed in 10.c. Cash on Hand. By the time the sponsor is reviewing the final report, the final LOC draw should be processed. Therefore, Cash Receipts will match Cash Disbursements (i.e. Final Expenses).
- NOTE TO STUDENTS: Do not print invoices or financial reports that require cost share to be included. Instead, save backup documentation and report or invoice template that has all information completed except the cost share portion in the Working File folder in SharePoint. The student should update the ERA Deliverable task to the *Officer* queue, change the status to “Awaiting Second Review” and put a note in the comments section stating the report is complete except for cost share.
11. Prepare final invoice/report for 2nd review process (see Prepare Invoice/financial Report for Second Review and Mailing in WI-EP-110).
12. For GCO-prepared final invoice/report, request another Account-Load GCO to complete the 2nd Review of invoice/report (see 2nd Reviewer Procedures in WI-EP-110).
13. Submit final invoice/report in accordance with Submission/Saving Procedures in WI-EP-110 and proceed to Final Account Adjustments.
1. Notify Department RA via email to remove unallowable expenses. Use "Email Template Request to Remove Unallowable Expenses” saved in SharePoint folder ACCTG > Award Monitoring and Change > Memos. Save sent email in Sharepoint Award Account # Miscellaneous folder. Setup an Outlook reminder 30 days from the date of email to check on status.
2. Process J1 to adjust final F&A. Refer to the “Creating and Using J1s” Job Aid for instructions on how to prepare the J1.
- NOTE: For ASUF awards, see ASUF Awards Job Aid on Quality Management SharePoint.
3. For awards with multiple accounts, submit activation requests to process budget adjustments (if over +/- $25.00) between accounts to ensure reported expenses do not exceed the budget on a single account within the award family or to roll-up budget funds from a child into a parent. Below is a list of items which should be verified before processing budget adjustments.
- NSF REU Child Accounts: budget adjustments on REU Child accounts should not be processed as these funds should not be used to offset a deficit on another account within the award family. Refer to NSF Research Experiences for Undergraduates (REU) for additional guidance.
- Child Accounts Setup for Restricted Funds: At times, child accounts are created for restricted funds, such as Participant Support or Equipment, because they require sponsor prior approval before these funds can be used for a different purpose. Be cognizant of the sponsor's rebudgeting requirements before processing a rebudget of these funds to offset a deficit on another account within the award family.
- Cost Share Companion Accounts: Budgets on all cost share companion accounts must be adjusted down to the final revenue amount if the cost share commitment was met using other funding sources (e.g. contributed effort, waived F&A, etc.). This adjustment is required so CMT knows the final budget to be funded.
- Multiple Accounts Setup for a Fixed-Priced Award: Excess budget and revenue on child accounts should be transferred to the parent account.
- Potential Carryover Accounts (PCAs): See Managing Carryover on Sponsored Projects Job Aid for additional information.
- Subaward Accounts: Confirm that subaward has been closed by searching in the Subawards module in ERA. To find the subaward in the Subawards module, search “All” subawards, filtering by the Account #. If necessary, submit a request to email@example.com to setup a task to transfer the residual budget from the subaward to the parent.
4. Request final Letter of Credit (LOC) draw in the ERA Deliverable task, if needed. The Cash Management Team will use the information provided in the “Final Cum Expenses” field to post the final draw to the account. CMT will allow an additional 6 weeks for the expenses to post to the account or the funds will be returned to the sponsor and a new final draw request will be required.
- ERA Deliverable task, ‘Display Invoice Data’ must indicate ‘True’
- Under ‘Invoicing and Cash Management’ fill in fields 21.0 – 23.0 (Invoice Number example for a SF425: FSR 013116)
- Field 24.0, if needed
- Field 25.0, should indicate ‘Yes’ for ‘Final Draw Required’
- Field 26.0, from the final invoice/financial report backup documentation, locate the total cumulative expenditures for the account and type that amount within the "Final Cum Expenses" field. This amount should not include deficits or unallowable costs still remaining on the account.
- Field 27.0, if needed
- Field 29.0, check box. This will create workflow for a duplicate task in ERA Deliverables for CMT.
- Click ‘OK'
5. Prepare Deficit Transfer Request, if needed. A deficit is defined as expenses in excess of budget. The final F&A Reconciliation Worksheet should be reviewed to determine if a deficit exists.
- Print copy of final F&A Reconciliation and circle the total direct cost deficit amount.
- Type in the total direct cost deficit amount within the "Deficit Write-off" field within the Sharepoint Closeout Task. Keep closeout task open as other fields may need to be updated throughout the adjustment process.
- For total direct cost deficits less than or equal to $300, Process J1 to write off the direct cost deficit to TNW9988 account. This account is the ORSPA write-off account. Refer to the “Creating and Using J1s” Job Aid for instructions on how to prepare the J1.
- NOTE: Unallowable expenses should not be written off to the TNW9988 account. The direct cost deficit amount should be for allowable expenses which would have been covered if the award had enough funding.
- For total direct costs deficits greater than $300, send an email to the PI, copying the Unit/Dept Administrator, requesting a non-restricted account number to transfer the direct cost deficit to. Use email template “Request to Remove Account Deficit” saved in Sharepoint folder ACCTG > Closeouts. Save sent email in Sharepoint Account # Miscellaneous folder. Setup an Outlook reminder 30 days from date of email to check status.
- NOTE: The Director for Research Administration for the College of Liberal Arts and Studies (CLAS) should be copied on emails sent to the PI and RA for projects assigned to departments within CLAS.
- After 30 days, if the direct cost deficit has not been cleared, refer to WI-CP-20 to Initiate 2nd Request to Transfer Deficit.
6. Prepare Fixed Price Residual Transfer (herein referred to as residual), if needed using the final F&A Reconciliation Worksheet. The Fixed Price Residual Balance Job Aid details the methodology supporting the residual calculation. Residual transfers cannot be processed until all revenue has been received.
- Review the payment basis in ERA ( “Information” tab in the Award workspace of the Awards module) and the notice of award to confirm the award is fixed-price and proceed to next step. Otherwise, proceed to step 7.
- Confirm F&A has been adjusted.
- Type in the direct cost fixed-price residual amount within the "Fixed Price Residual" field within the Sharepoint Fiscal Reconciliation Task. Keep the task open as other fields may need to be updated throughout the adjustment process.
- Verify the Local Residual account the transfer should be made to with the Department RA
- For awards with multiple PI's receiving allocations, contact the lead investigator's Department RA to determine if the residual should be split between the investigators.
- Process J1 to transfer Fixed-Price Residual to the Local Residual account. Refer to the “Creating and Using J1s” Job Aid for instructions on how to prepare the J1. Prior to preparing the J1, process an Advantage EB document to open up object code 8001.
- Scan PDF copy of J1 (save as J1 number) and send email to the PI and RA (or account signer) for the Local Residual account notifying them that a residual transfer has been processed. Use email template “Surplus Funds Transfer Notification” saved in Sharepoint folder ACCTG > Closeouts. Remember to attach a copy of the J1 to the email. The account signer can be found by viewing the Advantage ORG1 screen for the Local Residual account.
7. Notify department to remove direct cost encumbrances that were not included in final invoice/financial report.
8. For consortium accounts, refer to the Consortium Quarterly Review Job Aid for additional closeout instructions.
9. For ASU-issued subawards, open the subaward in the ERA Subawards module and review the Current State to confirm the status is Closed. If no, proceed with following steps:
Open subaward in the ERA Subawards module and review “Closeout” tab in the Subaward workspace.
From the Subaward workspace click on “Close” under the My Activities menu.
On the “Close Subaward” activity window that pops up, click “OK to continue”. If an error appears, this indicates that there is an outstanding invoice or incomplete closeout documents. Subawards cannot be closed until this is resolved.
If successful, the “Current State” in the Subaward workspace will be “Closed” and the “Closed Date” will be listed as the date the “Close Subaward” activity was completed.
Confirm that the Subaward state is “Closed” in the “Subawards” tab of the Awards workspace in the Awards module.
10. Request a Refund to the Sponsor (Check Requests) if needed.
- Review the payment basis and payment method in ERA (Select the account within the “Information” tab and “View Account” > “1.0 Account Setup Information” in the Award workspace of the Awards module) to confirm the following information before proceeding:
- Award is cost-reimbursable. If payment method is fixed-price go back to step 7.
- Payment Method does not state Letter of Credit Draw, if so, go back to step 5
- Review the final F&A Reconciliation Worksheet to ensure the F&A total has been correctly calculated and the F&A adjustment has posted to Advantage.
- Calculate refund amount by subtracting current revenue received less final total costs reported on the final financial report. The amount calculated should be positive to indicate revenue is greater than expenses.
- Update closeout task in Sharepoint AMT Task List.
- Task Type: Closeout - Refund
- Final Cumulative Expenditures: Total costs reported for the account as supported by the backup documentation.
- Description: <Today's Date> <Initials>: CMT, please prepare a refund in the amount of $<Refund Amount>. I confirm this is a cost-reimbursable award and unused funds must be returned to sponsor at the following address <Mailing Address>. <Note any special handling requirements>.
- On Fridays, the Cash Management Team will compile the refund packet and route to FOT AD for review and approval following instructions in Job Aid: Check Request (PVQ) Procedures.
- Assigned To: Assigned GCO should remain assigned to closeout task until the account is ready to close.
- Task Type - Choose a task type that is reflective of the current queue the closeout is in.
- Closeout - GCO: Assigned GCO is still reviewing closeout and resolving issues.
- Closeout - Refund: Account requires a refund to be processed prior to closeout.
- Closeout - Deficit Transfer: Account requires a deficit to be transferred prior to closeout.
- Closeout - Final Payment: Account is awaiting Final Payment from sponsor prior to closeout.
- Subaward Closeout: Account has an associated ASU issued subaward that needs to closed within the ERA Subawards module prior to its closeout.
- Closeout - Student - Items 1 to 7 in the closeout checklist are completed and closeout is easy enough to be completed by a student.
- GCO - Revenue Shortfall: Refer to Manage Revenue Shortfall for additional information before using this task type.
- Description - Notes should be included to explain any pending issues that need to be resolved before final closeout.
- Closeout Checklist - Check all items which have been completed.
- Click OK.
Proceed to WI-CP-20 if account(s) are ready to be closed and Sharepoint award files are ready to be archived.
A Revenue Shortfall is defined as a write-off of accounts receivable. In the process of collecting delinquent payments of submitted invoices or scheduled payments, there are occasions when AMT may receive communication from the sponsor indicating an unwillingness or inability to make payment. All Revenue Shortfalls must be recorded by CMT regardless of who identifies the need for write-off action. CMT’s process for managing the revenue shortfall on their end is documented in Job Aid: Accounts Receivable Write-off & Collection Agency Process. The process below outlines the steps the AMT GCO will complete to notify CMT of a Revenue Shortfall.
1. Open the closeout task within the Sharepoint AMT Task List for the award.
2. Update the following fields within the closeout task.
- Change Task Type to "GCO - Revenue Shortfall".
- In the Description field, type "<DATE> <INITIALS>: detailed explanation for the revenue shortfall and recommendation to write it off".
- Attach any written documentation received from the sponsor to the task.
3. Close task. CMT will change the Task Type to "Closeout - GCO" when all adjustments have posted. FOT GCO should proceed to WI-CP-20 to complete closeout of account(s).