Contracts and Grants Accounting

CLOSEOUT EXCEPTION REQUEST

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There may be instances where the RA/Department needs to charge the award for expenditures that were omitted from or incorrectly posted to the Ledger supporting award closeout. The corrective actions CGA can take depends on why the closeout GL was incorrect, and when the request for closeout exception is submitted: not all requests can be accommodated. Reasons for submitting a Closeout Exception Request include:

New Payroll Cost Transfer -- a payroll cost transfer request was submitted but not processed AND that payroll expense was not “accrued” via journal transfer during the Adjustment period (see Journal Transfer for Payroll Expenses).

Missed Expenses -- outstanding direct expenses incurred during the award period were overlooked and not accrued (see Accruing for Expected Award Expenses)

Incorrect Payroll Cost Transfer -- a payroll cost transfer request was submitted but incorrectly processed; the payroll expense recorded in the GL is incorrect  

New Recharge -- a request to update a recharge chartstring was submitted to the recharge unit but the request was not processed AND that recharge expense was not accrued

Retroactive Payroll -- an unanticipated correction to a payroll expense incurred during the award period is discovered after the award expires

Expense Greater than accrual -- actual expense recorded in the GL is greater than the  accrued amount by $300 or more

Sponsors typically require a Final Financial Report (FFR) of all award expenses no later than 90 days after the award expires. If CGA receives an approved Exception Request too close to the FFR deadline, or if the reason for requesting the exception is not satisfactory, it may not be possible to grant the exception and invoice the sponsor for the additional expense. Requests for additional reimbursement after the sponsor receives the FFR can be problematic as well. There are also system and accounting consequences of reopening an award once it has been closed.

Closeout Exception Request Timeframe

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Requirements for a Closeout Exception Request

As soon as the need to record an additional expense or correct an existing expense for closeout is identified, gather the supporting documentation for a Closeout Exception Request (form available in the RA Grants WorkCenter). There are different requirements and procedures depending on the reason for the request (see table at the bottom of this page) and when the Request is made.

For Requests submitted before the FFR is issued (70-90 days after award expiration), CGA will make every effort to include the additional expense on the final invoice before it is sent to the sponsor.

  1. The RA first records the missing expense in the GL by posting an accrual or journal transfer
  2. The Exception Request is accompanied by supporting documents and the GL showing the expense.
  3. The RA’s supervisor approves the request, then CGA determines if the corrections can be included in the FFR.

For Requests submitted after the FFR is issued (90-120 days after award expiration), the PI must first get the sponsor’s approval to bill for the additional changes.

  1. The PI requests permission from the sponsor to bill for the expense.
  2. The Exception Request is accompanied by the sponsor’s written approval and supporting documents.
  3. The RA’s supervisor approves the request, and if CGA determines the exception can be made, the award fund is reactivated in BFS.
  4. CGA notifies the RA, who then posts the expense/accrual journal and provides a GL to CGA.
  5. CGA revises the FFR, then inactivates the award fund.


Exception Requests AFTER deficit clearing runs (the 6th business day of the month subsequent to issuing the FFR) are handled based on University policy. The Department is responsible for any expense where the actual cost has not posted to the GL by the time FFR is issued. Requests to revise a Final Financial Report after it has been issued are very rare and require substantial documentation and approvals. Contact CGA to discuss your ad hoc Closeout Exception request: CGAawards@berkeley.edu.

Specific documentation is required depending on the reason for requesting the exception:

Action before a 70-90 day Request Action before a 90-120 day Request Include on the Request Form Supporting documentation
New payroll cost transfer post a payroll transfer journal to the ledger PI obtains sponsor’s approva

1. Date of UPAY request

2. Reason for missing the accrual deadline

1. GL showing the payroll transaction is posted

2. Copy of the OPTRS UPAY form
Missed expenses post an accrual journal to the ledger PI obtains sponsor’s approval Reason for missing the accrual deadline

1. GL showing the accrual journal is posted

2. Requisition, purchase order, and if available, invoice with associated award number
Incorrect payroll cost transfer post a payroll transfer journal to the ledger PI obtains sponsor’s approval

1. Date of UPAY request

2. Explain how the error came about/ should be corrected

1. GL showing the payroll transaction is posted

2. Copy of the OPTRS UPAY form
New recharge post an accrual journal to the ledger PI obtains sponsor’s approval Reason for missing the accrual deadline

1. GL showing the accrual journal is posted

2. Copy of the initial request to update the recharge
Retroactive payroll if necessary, post a payroll transfer journal to the ledger PI obtains sponsor’s approval

1. Date of payroll correction request

2. Explain why the payroll expense was missed

1. GL showing the payroll transaction is posted

2. if available, a copy of the payroll correction request
Expense greater than accrual PI obtains sponsor’s approval Reason for underestimating the accrual amount

1. GL showing the actual expense transaction

2. Copy of the actual paid invoice