Kentucky State University Business Policies and Procedures Manual
Follow granting agency procedures for filing all required grant reporting.
Grant Close-Out
Responsible position(s):
Grants Manager
Required documents and access:
Banner
Grant agency reporting system
Frequency and timing:
Fiscal period after grant closing date (trail out period)
Steps:
Ensure all expenses have been posted to the grant in the grant period.
Ensure all the indirect costs have been posted and all revenue recognized.
Determine the grant requirements for the disposition of remaining funds at the end of the grant, e.g. retained by the university for unrestricted/restricted purposes, returned to the funder, etc.
Post adjusting entries to close the grant fund.
Prepare any financial close-out reporting for the grantor.
Inactivate the grant fund once the receivable has been paid and the fund balances to zero.
Operating ledger should balance to zero
There should be no liability or fund balances
The only remaining balances may be in Claim on Cash and Grants Receivable if the grantor still owes the university
Allowance for Grants Receivable Credit Losses and Bad Debt Write Offs
Responsible position(s):
Grants Manager
Required documents and access:
Banner
Frequency and timing:
Annually, part of fiscal year-end accrual entries (period 14)
Steps:
Follow up with past-due grantors.
Calculate an allowance for credit losses based on the estimated collectability of grants receivable.