Handbook for Principal Investigators

THE END OF THE PROJECT

Allowable Expenditures Near the End of the Project
Where a funding period is specified in the award document, the investigator may charge the project for only allowable costs resulting from obligations incurred during the funding period and any pre-award costs authorized by the awarding agency. Investigators must consider the lead time in ordering goods; items must be delivered and used for the benefit of the project. Auditors will review expenditure activity at the end of the project period. A large amount of orders placed at the end of a project may give the appearance of spending up the available budget balance for goods to be used for future research. This is called "stockpiling" and is not allowable.

An exception to the cost principle requiring direct benefit to the project would be for orders placed at the end of the project to replenish stock used during the project period. This is differentiated from "stockpiling" in that the investigator is bringing the supply level to the level at the beginning of the project, thereby properly charging the project for supplies used on the project. Another exception to this cost principle would be for capital items specifically authorized under the sponsored agreement. Where the purchase of equipment or other capital items is specifically authorized under a sponsored agreement, the amounts thus authorized for such purchases are assignable to the sponsored agreement regardless of the use that may subsequently be made of the equipment or other capital items involved. (Ref: A-21 C.4.a(2))

After Project End Date

Valid post-termination expenditures are those charges that post to the account after the end date (within the closeout period specified by the sponsor), but actually occurred before the end of the project. Some examples are:

• Payroll for hours worked prior to the end date, but paid and posted after the end date.
• Long distance telephone charges (which usually lag one month) for services provided within the performance period.
• Liquidation of valid purchase orders (must be in the form of a completed PO, not a purchase requisition) that were encumbered in the University system prior to the end date.
• Expense transfers and corrections of errors (RFAAs or PETs) that either move expenditures, or transfers allowable expenditures to the account.

SPS will review all post-term expenses for validity.  Detailed backup documentation must accompany all post-term expenses in order to evaluate and determine the direct benefit to the project.

Termination before the End Date
A project may be terminated by the sponsor, the University, or by mutual agreement of both the sponsor and the University. The award agreement and/or agency regulations specify the process for terminating a project before the end date.

Transfer of the Project to Another University
When the principal investigator on a research project transfers from The University of Arizona to another institution, the project under the same principal investigator may be supported at the new institution for a period up to the remainder of the previously approved project period. The first step is for The University of Arizona to "relinquish" its interests and rights in the grant. Some agencies, e.g., NSF, NIH, have a form for this purpose. The investigator will be asked to estimate the amount of unobligated funds remaining on the project. This figure will be verified by the Sponsored Projects accountant, who will also request department head concurrence for the transfer (letter or e-mail). After receiving the relinquishing statement from the University, the sponsor will terminate the grant with The University of Arizona and establish a new grant with the new institution for the remainder of the project.

The process is the same for non-Federal sponsors. The University of Arizona will "relinquish" its interest in the grant and return unexpended funds to the non-Federal sponsor. The sponsor will then establish a new agreement with the new institution.

When the amount of time and funds remaining in a project are modest, and if both the University and the new institution are in agreement, the University may issue a subaward to the new organization for completion of the project. Sponsor approval is required before a subaward may be issued. In no event will funds be transferred from The University of Arizona to the new institution without sponsor approval and a subcontract.

Gift funds and funds remaining at the end of a fixed-price contract are considered University funds and are not available for transfer to the new institution.

Equipment purchased with sponsored funds for use on a specific project normally remain available for use for the duration of the project. Principal investigators who are in the midst of projects that included funding for equipment and who will continue the project at a new institution with sponsor support may arrange to have the equipment transferred with them. Shipping costs for such equipment may be charged to the University grant account or the new institution grant account. Approval of the department head, dean, Sponsored Projects Property Administrator, and the Vice President for Research is needed before the equipment may be transferred. Reference FRS Departmental Manual, Section 15.33, Table 7 for University policy and procedures regarding transfer of equipment purchased with sponsored funds, state funds, and/or a combination of funding sources.

Contract Closeout Documents

Final Financial Report
A final financial report is required for most cost-reimbursement contracts and grants. Sponsored Projects Services prepares the financial report and, with concurrence from the principal investigator, mails the report to the sponsor. Most sponsors require the final financial report within 90 days of the termination date of the project.

Final Technical Report
The principal investigator is responsible for preparing and submitting the final technical report to the sponsor. A computer-generated notice is sent to all investigators 60 days before the end date of the FRS account as a reminder. This is the only notice that Sponsored Projects will send regarding the final technical report. The principal investigator does not need to send Sponsored Projects a copy of the final report. If the final technical report is late, the sponsor will contact Sponsored Projects and may threaten to shut off funds to the University for all accounts and stop issuing new awards. This can be a rather embarrassing situation for the investigator who has not submitted the technical report.

Refunds to Sponsor
At the end of a cost-reimbursement project, Sponsored Projects will refund to the sponsor cash received in excess of expenditures. Concurrence from the principal investigator is required before refunding the unexpended balance.

Remaining Balance on Fixed Price Accounts
Funds remaining at the end of a fixed price contract are considered local "discretionary" funds. Indirect costs are charged to the account up to budget. The remaining account balance is available to the principal investigator and no further indirect costs will be charged to the account. Remaining balances on fixed price accounts may be consolidated into one account.

Mailing Address:
PO Box 3308
Tucson, AZ 85722-3308

Phone: (520) 626-6000
Proposal Fax: (520) 626-4130
Post Award Fax: (520) 626-4137
Email: sponsor@u.arizona.edu

The University of Arizona
All contents copyright © 2003. Arizona Board of Regents.