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.
• oOperating ledger should balance to zero
• oThere should be no liability or fund balances
• oThe 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.