i. Closing Cost Reimbursable Sponsored Research Funds (5-Ledgers)
ii. Closing of Fixed-Price Contracts (5-Ledgers)
iii. Close-out of Campus and Community Programs (9-Ledgers)
iv. Close-out of Campanile Funds(C-Ledgers)
v. Close-out of Research Support Funds (2-Ledgers)

i. Closing Cost Reimbursable Sponsored Research Funds (5-Ledgers)

Project director receives and automated notification of sponsored research funds that are scheduled to end within 90 days prior to the scheduled end date of the project budget period. Project director should work with their SRA grant specialist during this time to forecast final expenditures, finalize cost-sharing documentation, request no-cost extensions or carryover of unobligated funds to a subsequent budget period.

1. Technical Reports
   The PI is responsible for submission of final technical reports and deliverables in accordance with the format and due dates specified by the sponsor agency. The PI is responsible for record retention of all programmatic materials and reports; however, a copy of all reports should be forwarded to the SRA grant specialist as documentation for the award that the requirement has been fulfilled.
   
   Technical reports and deliverables must be submitted by the deadline set by the sponsor agency. The submission of late reports and deliverables is a significant issue that can negatively impact both the PI and the institution. Failure to submit reports in a timely manner could result in the sponsor denying payment of SDSU Research Foundation invoices and/or may jeopardize future funding from the sponsor.
2. Financial Reports
   Once the fund has ended, the SRA grant specialist works with the project director to finalize all expenditures and if applicable, verify that cost-sharing documentation has been completed in preparation for submission of a final invoice or financial report to the sponsoring agency. SDSU Research Foundation is typically required to submit either a final financial report or a final invoice within 60-120 days after the end date of a project. Due dates for specific awards may vary. Refer to the award document or fund analysis (available in MyRF) for specific award requirements. Not meeting these deadlines may result in denial of payment for legitimate expenses and may also jeopardize the SDSU Research Foundation’s ability to receive future funding.
3. Closeout Reporting
   Sponsor agencies may also require additional reports at the time of award closeout such as an invention report, equipment inventory report, or contactor’ release. The SRA grant specialist coordinates with Finance and Accounting staff and the PI on the submission of these reports. Refer to the award document or fund analysis (available in MyRF) for specific award requirements.
4. Records Retention
   Funding agencies require SDSU Research Foundation to retain records on closed awards for a specified period to provide a window of time in which they may access the records for audit purposes after a project has ended. SDSU Research Foundation is required to retain all years of a competitive segment of an award for a minimum of three years after the final year of the project has ended. (A competitive segment is funding awarded in one-year award increments (up to 5 years) referencing the same grant/contract number.)
   
   If a closed project’s files are the subject matter of audits, appeals, litigation, or the settlement of claims arising out of the performance of the project, SDSU Research Foundation is required to retain these records until resolution is reached. The PI is responsible for retaining all programmatic records and reports for the required period of time and making them available as needed in the event of an audit or other request.

ii. Closing of Fixed-Price Contracts (5-Ledgers)

Most agreements received by SDSU Research Foundation are cost-reimbursable; however, periodically a sponsor agrees to pay SDSU Research Foundation a set fee for satisfactory completion of contracted services or submission of deliverables. The determination of the fee should be negotiated based on the best estimate by the PI of the costs necessary to perform the services being contracted. The budget should include full F&A cost recovery applicable to the type of award based on SDSU Research Foundation’s federally negotiated F&A rates. Any requests for a waiver or reduction of the full rate must be approved in writing by the PI, dean, and the vice president of research and innovation. During the contract period, all expenditures necessary to complete the contract must be charged against the fund, including reimbursement to SDSU for any state-funded expenditures incurred on behalf of the project.

SDSU Research Foundation either receives set payments or invoices the sponsor based upon a set schedule, generally tied to the completion of certain project tasks and/or deliverables. In the event the project director was able to complete the contracted services for less than the agreed upon rate and the applicable federally negotiated F&A rate was applied, the remaining direct cost balance may be requested to be transferred into a campus and community programs (9-ledger) fund. Project director should contact their SRA grant specialist for assistance.

The following information must be provided with the request:

• A detailed explanation of how services were completed and why a surplus is remaining. Specific line-item surpluses should be addressed in the explanation.
• A calculation of the percentage of funds remaining as compared to the original cost estimate to complete the work.
• A certification by the PI that all expenditures necessary to complete the contract have been posted to the fund.
• A certification that there are no costs that have been incurred by SDSU that have not been reimbursed by the fund.
• A certification from the dean of the college that work was not done on university time and no reimbursement is owed when funding remains in faculty line items because faculty performed the work but waived their salary compensation.
• An explanation as to how the surplus will be used once it is transferred into a 9-ledger.

The director of SRA reviews and approves all close-out journal vouchers for fixed price contracts where a surplus balance exists. If a waiver was granted at the contract negotiation stage for an F&A rate less than the SDSU Research Foundation’s federally approved rate, and a surplus balance exists at the end of the agreement, SDSU Research Foundation retroactively applies and collects F&A earned at the full rate on direct expenditures applied against the fund prior to authorizing the transfer of any surplus.

Additional one-up authorizations and justification may be required if the remaining surplus is substantial either in amount or as a percentage of the original cost estimate.

Once approvals have been received, the surplus is transferred into a campus and community programs 9-ledger fund. The 9-ledger fund is established in the PI name and must define how the residual balances will be used. All 9-ledger requests require approval from the college dean or VP, the SDSU Research Foundation director of SRA and SDSU Business and Financial Affairs. All fixed price closeout 9-ledger funds are established with a minimum 6% administrative fee. The difference between the full F&A rate and the 6% administrative fee to be earned is collected as earned recovery of F&A costs prior to the transfer of funds into the project director’s 9-ledger fund.

More information on SDSU Research Foundation’s federally negotiated F&A rate agreement can be found at: https://www.foundation.sdsu.edu/srd_index.html.

iii. Close out of Campus and Community Programs (9-ledgers)

SRA grant specialist review all 9-ledger funds with balances less than fifty dollars ($50.00) on a periodic basis to determine if those funds have fallen into inactive status. SRA grant specialist contact the project director of each fund to determine whether additional activity is expected or if the fund should be closed. Project director should work with their SRA grant specialist to close or consolidate these funds with existing discretionary funds if appropriate.

In addition, a fund review is conducted of each 9-ledger approximately every three years, unless otherwise established by the parameters of the individual fund, to ensure accurate record keeping. All funds are required to be reviewed and re-authorized to continue project activity beyond the fund end date. The review may be completed at the College or Academic unit level or at the fund level. The review process includes verification that the fund’s stated purpose is current and accurately reflects the activities that are occurring, a review of revenue and expenditures to confirm they have remained consistent with the approved operating agreement. Updates will be made to reflect any changes in the origin of income, approved activities, or nature of expenditures related to the fund.

Fund review or renewal requests are approved by the College/Academic unit, the SDSU Research Foundation director of SRA and the SDSU Office of Business and Financial Affairs to determine if the funds should be renewed. If approved, the fund end date is extended for an additional 3-years (or other specified date), a new fund review date is established, and the MyRF fund analysis is updated (if applicable). Project director should notify their SRA grant specialist if the purpose of the fund has changed during the interim period between reviews.

Note: Campus and community program funds (9-ledgers) are not transferable to other organizations or individuals. In the event a project director retires, transfers to another university, or otherwise leaves SDSU or SDSU Research Foundation, the fund will be closed, and disposition of the remaining balance will be determined in consultation with the College Dean or Academic Unit VP.

iv. Close-out of Campanile Funds (C-Ledgers)

SRA grant specialist periodically notify project director of C ledger funds that have low balances and/or have been inactive for a period of time. Project director and fund managers should work with their SRA grant specialist to close or consolidate these funds with existing gift funds if appropriate. Approval from the Campanile Foundation is needed for transfers and consolidation of funds.

v. Close-out of Research Support Funds (2-Ledgers)

SRA grant specialist periodically notify project director of 2 ledger funds that have low balances and/or have been inactive for a period of time. Project director should work with their SRA grant specialist to finalize expenditures and close these funds.

Note: Discretionary funds including most 9-ledger campus and community program activities, all gift funds, and research support funds are not transferable to other organizations or individuals. In the event a project director retires, transfers to another university, or otherwise leaves SDSU or SDSU Research Foundation, research support funds revert to SDSU Research Foundation. All other existing funds under the project director’s name are reviewed on a case-by-case basis to determine reallocation and/or disposition of the funds. If equipment was purchased, the SRA grant specialist notifies the fixed asset coordinator, who provides a recent report of equipment tracked in the inventory system. The SRA grant specialist works with the PI or dean’s office to validate the report and completes a Property Inventory Modification Request form to indicate the desired disposition of equipment at fund closeout.

*Note: Documents in Portable Document format (PDF) require Adobe Acrobat Reader 9.0 or higher to view. Download Adobe Acrobat Reader