Sponsored Research Accounting Closeout Processes

Sponsored Research Account Closeout Procedures

1. REVIEW ACCOUNT ACTIVITY FOR INAPPROPRIATE CHARGES
2. PERFORM ACCOUNT AUDIT

A. Complete Salary Distribution Worksheet
B. Complete F&A worksheet
C. Complete Reconciliation sheet

3. SEND AUDIT REPORT TO THE DEPARTMENT
4. SEND FINAL REPORT TO FEDERAL SPONSOR

Sample Forms:
1 - Account reconciliation report
2 - F&A worksheet
3 - Salary distribution worksheet
4 - Hold notice
5 - Notice of closeout action required
6 - Letter C

See the web page at http://web.mit.edu/org/c/cao/www/CAO_closeout.pdf for detailed information.

Hold Notice and Letter C Distribution

After a research account terminates, the Sponsored Research Accounting Department (SPNA) within the Controller’s Accounting Office performs a closeout analysis (a review of the account activity over its lifetime). If after SPNA has completed the closeout audit and there are open items that need DLC action SPNA will send a Notice of closeout Action (Hold Notice) to the MIT DLC associated with the research account. The DLC has 30 days to respond to the issues noted on the action notice. Problems could include items such as: subcontract issues, pre or post-termination charges, prepaid expenses, open purchase order commitments, over-expended or under-expended balances.

Further, if the DLC associated with the research account doesn’t respond within the 30 days period then SPNA will send a ‘Letter C’. The DLC has only 15 days to respond to this second notice. The Letter C process is a final letter sent from SPNA to the DLC’s in an attempt to have the DLC assist us in clearing up the problems before we must submit the final financial documents to the sponsor.

Research F & A Underrecovery Process

CAO, OSP, FSS, and the Provost's Office have developed a new way to handle research F&A underrecovery, after reviewing feedback from departments, labs, and centers. The new process was implemented in July 2000 (fiscal year 2001) is described in detail at: http://web.mit.edu/sapr3/docs/webdocs/finop/ur/foURprocess.html

CAO developed a quick guide entitled "Important Underrecovery Cost Objects and GL Accounts" for use in implementing the new underrecovery process.

CAO also developed some underrecovery "Exercises" for use in training CAO Sponsored Accounting staff (in the journal entries they are required to make and the entries to be made by users in the Departments, Labs, and Centers). The "Answers" for these exercises are also available.

If you have any questions on the above processes please call or e-mail Douglas Le Vie at 253-3868 or dougl@mit.edu

Last updated 6/25/03