Award Close Out

6.1 Overview

6.2 Getting Started

6.2.1 Six Tips for Managing Award Close Out
6.2.2 Planning for Continuity
6.2.3 Award Extensions
6.2.3.1 Requesting an Extension
6.2.4 Subrecipient Close Out
6.2.5 Final Request for Funds
6.2.6 End of Award
6
6.3 Close-Out Policies and Procedures
6.3.1 Financial Close Out
6.3.1.1 Finalizing Total Expenditures
6.3.1.2 Remaining Funds

Award Close Out

6.3.1.3 Meeting Your Cost-Share Requirement
6.3.1.4 Final Federal Financial Report (SF-425)
6.3.1.5 Final Foreign Tax Reporting
6.3.1.6 Final Audit
6.3.2 Administrative Close Out
6.3.2.1 Maintaining Documentation
6.3.3 Human Resource Close Out
6.3.3.1 Team and Interpersonal Dynamics
6.3.3.2 HR Legal Requirements and Contractual Obligations
6.3.4 Final Performance Report

6.4 Post-Award Use of USAID-Funded

Goods and Commodities
6.4.1 Sale of Property and Equipment
6.4.2 Final Inventory Report
6.4.3 Other Close-Out Considerations
6.4.4 Letter to USAID

6.5 Summary

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 6.1 Overview
Skip Ahead
Award close out represents the end of a f Award Extensions
particular funding stream, but it is not the end of
f Finalizing Total Expenditures
your work. Rather, it is the start of a transitional
phase for your organization and your team, and f Final SF-425
there may be implications for your beneficiaries. f Maintaining Documentation
f HR Requirements
Whether or not you have additional funding
to maintain your project, the close-out phase f Final Performance Report
is an important time for documenting and f Sale of Property
evaluating what you have learned, as well as
f Final Inventory Report
shifting human, financial, and other resources
to different activities, and meeting your final f Close-Out Timeline and Checklist
responsibilities to USAID under the terms and
conditions of your Cooperative Agreement.

This chapter covers the USAID requirements

for final reporting (6.3.1), regulations concerning
the use of assets purchased with USAID funds 6.2 Getting Started
after the award period is over (6.4), and the
documentation you are required to maintain
after the award (6.3.2.1).

6 Objectives
• Learn what steps you must take to close out
an award and when you need to take them. As an award comes to an end, managers must
• Learn the requirements for final reporting. deal with several important issues:
• Understand what you may and may not do
• Management Challenges—When a projects
with property and other project-related assets
Award Close Out

ends, enthusiasm for it may begin to fade,

after the award has ended.
and staff and partner organizations may
• Understand what project documentation you be eager to move on to the next project. In
are required to maintain and for how long. some instances, staff may turn their attention
to securing new positions or morale may
slip as the end of the project approaches.
Key Terms and Acronyms However, this is a vital time when the loss of
• Close Out—The final phase of a project key staff can disrupt the process of phasing
in which activities are finalized and out or transitioning a program. Ideally, your
administrative tasks completed. organization has other projects to which
• Cost Share—The portion of project or you can reassign staff. However, this is not
program costs the USG does not cover. always the case, and the end of an award
This may be in the form of cash or may also involve the conclusion of some
in-kind contributions. staff members’ contracts. This can lead to
challenging gaps in staffing, especially in
• NICRA—Negotiated Indirect Cost Rate small organizations.
Agreement, a rate negotiated individually
between an organization and USAID to • Donor Requirements—Donors have
cover indirect cost. (For more information deadlines for completing final reporting
on indirect costs and NICRA, see USAID’s requirements and may ask for debriefs
Best Practices Guide for Indirect Costing at from the project team. There are particular
http://www.usaid.gov/business/regulations/ programmatic and financial requirements
BestPractices.pdf.) for USAID.

• No-Cost Extension (also called a Non- • Transition Challenges—If part or all of

Funded Extension)—When the recipient your activities are being shifted to a new
requests and is given additional time beyond funding stream or other implementers, your
the award end date to use unspent funds organization needs to tend to a number of
from the original award to complete activities. financial and program management tasks.

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 Addressing all of these challenges takes your organization’s private or other funds. A
time and money, and you must plan, budget, final evaluation can be extremely valuable to
and start them well before the award’s end your organization beyond the specific project.
date, because you should complete them It can help to measure the impact your work
beforehand if possible, as you cannot spend has had on the communities where you have
project funds after the award end date, and been working—critical information that can
staff may move on to other projects. Even strengthen marketing materials and support
though these tasks will not demand your future proposal efforts. It also allows you
full attention right away, it is best to begin to document lessons learned that can help
preparing for the close-out phase early—as improve the design and implementation of
much as a year before the end of the award. future interventions.

An evaluation gains credibility when

consultants who are independent of your
6.2.1 Six Tips for Managing project conduct it.

Award Close Out To ensure that you have adequate time to

complete a thorough evaluation, contract it
1. Develop a close-out plan. to start no later than six months prior to the
To successfully manage the close out of end of your award. You can share evaluation
your award, start by creating a close-out plan findings and your experiences with other
that details the different activities and when NGOs in your network and in presentations at
they will be completed as well as who will various forums and conferences, where you
oversee them. This will help your organization can meet prospective partners and donors.
keep track of important close-out deadlines
and plan better for the future. 4. Pursue extension requests early. 6
If you have unspent funds as the award
2. Work with staff early to ensure a
end-date approaches, or there are ongoing
smooth transition.
activities that will have a detrimental effect on
One of the biggest challenges at the end the community if stopped, you might consider
of an award is dealing with the impact of requesting an extension. Seek guidance

Award Close Out

staff who leave before the project ends. on whether USAID will consider giving you
If there is a lack of clarity about ongoing an extension and what type of extension
funding or other projects, staff may accept (see 6.2.3) to pursue.
other opportunities prior to the end of the
award. This presents a difficulty not only 5. Work with subrecipients on their close out(s).
for transitioning or closing out the project,
but also because you run the risk of losing It is important to work closely with
some valuable knowledge necessary for final subrecipients during close out for two
reporting when staff members leave. reasons. First, as the prime partner, you are
responsible for ensuring that subs comply
The best strategy is to work with staff early with all financial and other requirements
to see whether there are additional projects under your award, including post-award
or other funding to secure their jobs for the requirements. Therefore, it is in your interest
foreseeable future. However, if their departure to make sure your subrecipients understand
is inevitable, you should work with these and meet their requirements.
staff members to have them document their
experiences, especially as they relate to the Second, if you are handing over activities
final stages of the project, including the final to your subrecipients, the close-out period
report. Throughout this process, consult local is critical to the successful transition of
labor laws to ensure that you comply with all your program. Make sure you have enough
host-country requirements. resources available to complete this
transition, so your subs will be prepared
3. Conduct a final evaluation to measure to manage the activities on their own.
impact and learn lessons.
It is a good idea for subrecipients to close out
Your project budget should include funding 30 to 60 days before the end of your period
for a final, end-of-project evaluation; if not, of performance and not implement activities
you may want to consider funding one with during this time. This will give both you and

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 your subrecipient(s) time to complete close- There are three general types of extensions:
out requirements related to subawards. 1. Non-Funded (also known as a No-Cost)
Extension—This occurs when the recipient
6. Close out with the community. requests and receives additional time beyond
the award end date to use unspent funds from
As you close out, and the donor, your
the original award to complete activities. This
staff, and subrecipients begin to focus on
does not increase the overall award amount;
other projects, be sure to “close out” with
it simply gives you more time to continue
community leaders and beneficiaries to
your program.
maximize their ability to sustain the services
on which they have come to rely. Be sure
A non-funded extension is probably the
to thank community members and leaders
most common type of extension, since it
for supporting your project and staff, and
does not require USAID to obligate additional
make sure they know whom to contact if they
funds beyond the current obligated amount
have questions or need additional support
and helps to ensure that the original project
in the future. In fact, it is advisable to inform
goals are met.
the community of your exit strategy from
the outset to empower its members to take
2. Funded (or Cost) Extension—This occurs
ownership of the program and avoid
when you have run out of funds and time,
surprises during close out.
but you have not met your targets, or you
otherwise need additional time and money
to complete your program.
6.2.2 Planning for Continuity 3. Agreement Expansion—This occurs when
USAID asks you to expand your existing work.
6 One of the first steps in the close-out process
USAID usually provides additional funding
is to assess the need to continue your project’s
services or interventions, and, if warranted, and, sometimes, additional time to complete
to explore options for funding. At least a year the extra work.
before the end of the award, you should start
thinking about whether your organization will: A modification to your agreement may occur
when USAID has a gap in its overall program
• continue the project with funding from that it wants you to fill temporarily while a larger
Award Close Out

new sources; program is being competed. For example,

• request an extension; you are working with several community
organizations, and your Agreement Officer’s
• transfer responsibility for services or Technical Representative (AOTR) asks that
interventions to a local partner that has you expand your project to work with several
alternate funding; or additional organizations for a year while USAID
• simply close out your activities (if, because, develops and solicits a subgranting/capacity-
for example, there is no ongoing need for building program implementer.
the services).

The path you choose will depend on many

factors, which is why it is important to make 6.2.3.1 Requesting
a decision in consultation with the Mission, an Extension
partners, community leaders, beneficiaries,
and donors. To determine whether you will have funds
remaining at the end of your program, review
your pipeline and burn rates. If you believe
your program will benefit from a non-funded
6.2.3 Award Extensions extension, begin discussing this with your AOTR
very early—at least six months prior to the
Programs rarely proceed as predicted, and it end of your award. You will need to undertake
is often difficult to make up for delays simply by different activities if your award is continuing
working faster. Depending on your program’s rather than shutting down. If you wait too long to
particular circumstances and needs, you may request an extension, you risk losing staff and
want to pursue an extension to get extra time may have to restart close-out activities.
and/or funding for your program.
When discussing the possibility of an
extension with your AOTR, be sure to explain

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 why you are unable to complete your award This ends your obligations and releases you
within the original time frame. Further, be from future liability.
prepared to demonstrate how the additional
time will allow you to meet or exceed your Subrecipient close-out requirements are
original targets. If your AOTR is receptive, he or basically the same as those for prime partners,
she may tell you to prepare a formal request in though subs report to the prime and not
writing and include a budget to show how you directly to USAID. Some key requirements you
intend to spend the remaining funds during the may want to coordinate with your subs include:
extension period. The request gets submitted
• Final Performance Reports—Your
to the AO, who will make a final decision and,
subrecipients must contribute to the final
if an extension is approved, will complete a
report, including data. The final performance
modification to your agreement.
report should say whether each subrecipient
achieved its goals and targets. If a subrecipient
If your request for an extension is approved,
fell short, it needs to explain any shortfalls.
you will continue your regular financial and
performance reporting during the extension • Financial Close Out—Be sure your
period at the same intervals as before. (For subrecipients make their final expenditures
detailed reporting requirements, see chapter 5.) and complete their final financial report in
Remember to always get an extension approval time for you to meet your financial
in writing in the form of a modification to reporting deadline.
your agreement. • Inventory Report—Subrecipients are
required to complete a final inventory report
Extensions are never guaranteed, no matter (see 6.4.2).
what the circumstances. Therefore, plan careful
and begin this conversation early. • Records—Subrecipients are required to
maintain the same documentation as primes. 6
Work with your subs to make sure they know
what documentation they must maintain
6.2.4 Subrecipient Close Out and for how long. (For more on maintaining
documentation, see 6.3.2.1.)
Subrecipients must also close out at the end of

Award Close Out

an award, and the prime partner is responsible
for ensuring that they comply with all post-
award requirements. Work with your subs 6.2.5 Final Request for Funds
early so they understand their requirements,
and make sure they have the resources and As your award end date approaches, start
help necessary to comply. Set deadlines for thinking about your final request for funds.
submitting final reports to ensure that there Three months before the end of the award, you
is ample time to incorporate them into your should submit the final Standard Form-270
final reporting. (SF-270) Request for Advance or Reimbursement
or the final Standard Form-1034 (SF-1034),
Some organizations choose to close out according to the arrangements laid out by the
with their subrecipients 30–60 days before Financial Management Office (FMO). (For
the end of the award, so that financial close detailed information on how to fill out the
out, final invoices, property disposal, and final SF-270 and SF-1034, see chapter 4.) In
reporting are all completed prior to the award addition, some agreements may require a final
end date. If so, point this out when you put SF-425 within 90 days of the award end date.
your subagreements in place, so that your
subrecipients are not surprised. Confirm that If your organization is not operating on a
subs know that any costs they incur after quarterly advanced-funding basis, review the
the end date of their subawards will not be SF-270 and SF-1034 deadlines.
reimbursed. If your subrecipients did not close
out before the award end date, you should At this time, it is also best to keep a close
collect all subrecipient reports within 60 days of eye on remaining award funds and outstanding
the end of the award. costs. If your accounting system is cash-based,
rather than accrual-based, set up a special
The final step after receiving your subrecipients’ spreadsheet to track funds during the last
report is to send a close-out letter formally three months of your award.
ending your contractual relationship with subs.

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 There are several key components to
6.2.6 End of Award financial close out, including finalizing total
expenditures, preparing a final financial report,
Check your Cooperative Agreement to
and maintaining documentation. Before you
determine the exact end date of your award.
can complete these steps, however, you must
If you have received an extension, you must
finalize all billing related to the award, including
have a modification of your agreement from
all final payments to subrecipients. Once you
your AO documenting the change that states
complete this process and complete a final
the new end date.
SF-270 or SF-1034, you can finalize your
total expenditures and prepare your closing
At the end of your award, review the information
financial report.
you need for the financial and performance
reports. Most important, stop incurring costs
to be charged to the award. If you foresee the
need to incur expenses after the award ends,
seek prior approval from your AO. Otherwise, 6.3.1.1 Finalizing
you are responsible for any costs you incur after Total Expenditures
the award end date.
The first step in financial close out is to finalize
Note that you are permitted to pay outstanding total expenditures. This process helps to
obligations to vendors for costs incurred prior to determine whether any funds are remaining and
the end date. You must pay all these expenses to make sure your organization has contributed
and reimburse USAID any remaining funds the total minimum required cost share.
within 90 days of the award end date.
As you will recall from chapter 4, award funding
6 is obligated in stages and then disbursed
to your organization through advances or
6.3 Close-Out Policies reimbursements. Determine your totals for the
following categories:
and Procedures
• Total USAID-Award Amount—This is the
There are four key aspects to closing out ceiling or total estimated cost of your award
a project: financial, administrative, human (not including any cost share).
Award Close Out

resource, and programmatic, all of which • Total Obligations—The sum of all USAID
are discussed below. funds obligated to you under this award.
Within 90 days after the end of your award, • Total Disbursements—The total amount
you must submit a final report that includes you actually received from your funding
the following components: agency under this award (that is, the amount
of funds transferred to your organization’s
• Final SF-425 Federal Financial Report bank account through the SF-270 or
(6.3.1.4); SF-1034 requests). Be sure to include
all final disbursements.
• Final Foreign Tax (VAT) Report (6.3.1.5);
• Total Expenditures—The total amount you
• Final Performance Report (6.3.4); spent on the award.
• Final Inventory Report (6.4.2); and - Total Expenditures Charged to
• any other reports specified in your agreement. USAID—A total of all expenditures that
you charged to USAID under this award.
This excludes costs covered by cost share
or other donor contributions.
6.3.1 Financial Close Out • Total Cost-Share Requirement (if any)—
This is the amount included in your original
Twelve months before the end of the award, agreement budget.
your organization’s Program Manager must
• Total Cost-Share Contribution—The sum
develop a workplan and budget for the project’s
of in-kind and cash contributions contributed
final year that includes costs for all close out–
toward the award.
related activities. Not only is this a requirement,
but it also will make the close-out process
easier for you.

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 2. Remaining Obligation
6.3.1.2 Remaining Funds
A remaining obligation is any amount of
This section uses several example calculations obligated funds that have not been disbursed.
based on the sample data in Figure 39: This amount is calculated as follows:
Total Obligation – Total Disbursements =
Figure 39—Sample Data on Remaining Award Funds Remaining Obligation
Example: US$3,400,000 – US$3,200,000 =
Total Award Amount (from Your US$3,500,000
Cooperative Agreement)
US$200,000

Total Obligations US$3,400,000 It is critical that you track this amount,

especially in the final months of your award.
Total Disbursements US$3,200,000
If you need to complete any final award
Total Expenditures US$3,989,100 activities before the end of the award, you
can draw on your remaining obligation to
Total Expenditures Charged to USAID US$3,089,100
cover these costs. It also may be possible
Total Cost-Share Requirement US$1,000,000 for your organization to receive a non-funded
extension (6.2.3) to continue your program if
Total Cost-Share Contribution US$ 900,000
part of your obligation is remaining.

There are three important categories of 3. Unspent Advanced Funds

remaining funds to calculate:
The final category of remaining funds is
1. unobligated funds; money advanced to you that you have not
2. remaining obligation; and spent. This amount is calculated as follows:
3. unspent advanced funds. Total Disbursements – Total Expenditures 6
(USAID Share)* = Unspent Advanced Funds
The first two categories are funds you may Example: US$3,200,000 – US$3,089,100 =
still be eligible to receive before the end of the US$120,900
award. The third category is unspent funds
that you will have to return to USAID unless If your organization has been advanced funds
you receive a non-funded extension or other that you have not spent by the time the award

Award Close Out

modification that allows you to spend the funds. ends, then you must return those remaining
funds. When calculating this, be sure to list all
Toward the end of your award, it is important final expenditures, including all final invoices
to determine what funds, if any, remain that and expenses from contractors, suppliers,
you have not disbursed. These include both and subrecipients.
unobligated and obligated funds.

1. Unobligated Funds 6.3.1.3 Meeting Your Cost-

Unobligated funds are the difference between Share Requirement
funds that have been obligated and the total
award amount. This amount is calculated If your organization committed to contributing a
as follows: cost-share amount to the award, then you must
account for and document it. The calculation
Total USAID Award – Total Obligation =
to ensure you have met the cost-share
Unobligated Funds
requirement is:
Example: US$3,500,000 – US$3,400,000 =
US$100,000 Cost-Share Requirement – Total Cost-Share
Contribution = Cost-Share Balance
USAID has no obligation to disburse any Example: US$1,000,000 – US$900,000 =
funds it has not obligated. These funds US$100,000
are made available to you based on the
availability of funds and continued need In this example, the organization committed
for program activities. If you make any US$1 million in cost share, but only contributed
expenditures above the obligated amount, US$900,000 during the life of the award. This
you do so at your own risk. leaves a US$100,000 cost-share balance. As

* In calculating remaining funds, be sure to take out any expenditures covered by cost-share contributions. In our example, the total expenditures =
US$3,989,100, but the cost-share contribution = US$900,000. Therefore, the total USAID share of the expenditures = US$3,089,100.

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 your organization is contractually obligated Tax (VAT) Report to the office listed in your
to meet your cost-share requirement, you will Cooperative Agreement under the Reporting of
be required either to reimburse USAID for the Foreign Taxes standard clause. The VAT report
balance or have the amount deducted from should cover all taxes your organization paid
any final reimbursement requests. (For more and for which the host government reimbursed
information on cost share, see chapter 9.) you since the last tax reporting cycle through
the end of your award. If you receive
reimbursements later, you must submit these
funds to USAID. (For more information
6.3.1.4 Final Federal on Foreign Tax Reports, see chapter 5.)

Financial Report (SF-425)

Your final Federal Financial Report is due
90 days after the award end date and may be 6.3.1.6 Final Audit
subject to NICRA adjustments based on your
One fiscal year after the end of the award,
own or a USAID audit. The report includes the
conduct a final audit covering the last
final quarter of activity, all final transactions and
year of your award. You may conduct
expenditures, and the cumulative totals for your
this simultaneously with the end of your
entire award. This report is submitted using the
organization’s fiscal year and submit it as you
Standard Form (SF)-425—the same form used
would other audits in accordance with the terms
to submit your quarterly financial reports. (For
of your agreement. (For more information,
an explanation of how to complete the SF-425,
review the “Accounting, Audit and Records”
see chapter 5.)
provision in your Cooperative Agreement.)
• The report is due 90 days after the end of the
6 award. The end date of the award is indicated
in your original award, unless you have been
granted an extension (6.2.3).* 6.3.2 Administrative
• Block 6 (Report Type) will indicate that this is Close Out
a final report.
• Block 9 (Reporting Period End Date) will Administrative close out consists of completing
Award Close Out

include the dates for the entire award. nonfinancial tasks that may have financial
implications. You must:

The calculations for the “current period” will • Ensure compliance with USAID standards
include the final quarter of the award, and the on the types of documents that need to be
“cumulative totals” will equal the cumulative retained. (Remember, you must be able
totals you spent during the entire life of to provide documents should USAID
the award. request them.)
• Close bank account set up specifically
Please note that blocks 10i–k (Recipient for this program when it is no longer needed.
Share) is where USAID will look to see whether
• Terminate leases (if appropriate) on rented
you have met your cost-share contribution
office space that you do not plan to use after
requirement, if applicable. Ensure that this
the award.
section includes all of your in-kind and cash
contributions toward the program. Some • Terminate supply contracts (including office
organizations attach a memo to their final supplies, leases).
SF-425 that summarizes their cost-share • Terminate utilities (including electricity, water,
contribution, stating whether it was met and, gas, phone, Internet, fuel).
if not, why not.
• Terminate other service providers (including
mobile phones, security, insurance, storage
contracts, shipping, cleaning, banks).
6.3.1.5 Final Foreign • Obtain a receipt from each vendor indicating
Tax Reporting its acceptance of the notice of termination.
• Maintain the office work environment as long
In the 90 days following the end of the award, as allowable.
you are required to submit a final Foreign
* If you received an extension, you will continue routine quarterly reporting until the end date of the extension period as described in chapter 5.

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 • Settle any obligations related to closing so that when there is a new project, former
your office or other program facilities. For employees, even if they cannot be retained
example, if you shared the office with other now, will be keen to rejoin. If you do not handle
programs and had agreements in place personnel issues well, there is the risk of
covering shared office costs, be sure to complaints, low morale, lack of concentration,
cancel these agreements and inform the and poor performance.
remaining occupants of your intention
to vacate.

Please remember that you cannot charge 6.3.3.1 Team and

for any services provided beyond the end date Interpersonal Dynamics
of the project, so it is important to ensure that
all services you receive are closed out in time. Throughout the close-out process, hold regular
meetings where HR issues are discussed. It is
good practice to find out what worked and what
could be improved. This not only engages your
6.3.2.1 Maintaining current team but also provides lessons you may
Documentation apply going forward. Take notes and include
them in the project final report, as appropriate.
Your organization is required to retain all
Where possible, try to retain employees by
accounting records related to your award for at
reassigning them to other projects. Focus on
least three years following submission of the
those with strong skills and competencies
final expenditure report. USAID retains the right
to drive performance. If opportunities exist,
to audit your organization any time during those
three years. Maintaining documentation also
consider promoting staff to more senior 6
positions. For those who are being reassigned
helps if you need to address litigation or claims.
to other projects, be sure to establish a new
cost account for their salary and benefits
Your subrecipients must maintain the same
beginning from the date they can no longer
documentation for three years following the
be charged to the project that is ending.
end of your award. Work with them to make
If it is not possible to reassign employees,

Award Close Out

sure they understand their obligations and
managers should follow local labor laws when
retain all documentation in a safe location.
ending employment and good HR practice by
Note that some countries have their own
conducting exit interviews to learn how they
records retention requirements that are longer
may improve working conditions and retain
than USAID’s, so make sure that both you and
employees going forward. Exit interviews can
your subrecipients are aware of the provisions.
also provide employees with insights that may
help them make their next career move.

6.3.3 Human Resource For staff who are leaving the organization
on good terms, consider providing a letter of
Close Out recommendation (sometimes called reference
letters or referral letters) to assist the individual
Close out can be a stressful time when in finding a new job. This may be separate from
managers are trying to maintain a balance a certificate of service. The letter can explain
between meeting contractual obligations the circumstances of the individual’s leaving
and considering the individual needs of staff. and offer a concise assessment of his or her
Historically, the focus in close out has been on attributes, abilities, and performance. Three
fulfilling contractual obligations. However, this things to keep in mind: be honest, be sure you
may be perceived as insensitivity to staff who can stand by your words, and retain a copy of
are concerned about their future, particularly the letter for the file.
as the project ends. Communication is key
to sustaining a high level of performance. In addition:
All staff should be informed of the close-out
• Archive and secure files for each staff
process and the HR close-out plan, including
member—During close out, you need to
a clear indication of any efforts to retain staff.
protect the privacy of individuals, particularly
When you address personnel issues fairly,
documents that relate to medical, injury, or
your organization is seen as a good employer,

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 disability issues. Ensure that staff who have include final outcomes, lessons learned,
been let go do not continue to have access and conclusions.
to company files, property, or e-mail.
Be sure to submit the report to your AOTR and
• Ensure that all of the organization’s property
the Development Experience Clearinghouse
is returned—At the completion of their
(DEC) (http://dec.usaid.gov) within 90 days of
assignment, collect from departing staff keys,
the end of the award.
badges, computers, cell phones, etc.
• Confirm that staff are aware of any Many organizations choose to take the final
confidentiality agreement they have performance report one step further and create
signed regarding sharing company something long-lasting that they can share with
information, data, or documents. beneficiaries, the community, subrecipients,
and other NGOs. This allows an organization
to highlight its successes and document its
lessons learned and contribute to the ongoing
6.3.3.2 HR Legal effort to improve interventions in that focus
area. Your organization’s experiences may
Requirements and even help other communities struggling with the
Contractual Obligations same challenges. Some organizations share
this document with Web-based communities
The organization must follow the termination of practice, within their NGO network, or at
laws of the country ensuring payment of regional and international conferences, or
severance and other benefits as delineated they submit it to relevant publications.
by law.
To create this report, you will want to develop
6 Staff have a right to receive a certificate of a separate document from the one you provided
service. This can be as basic as providing to USAID, but you will still need to credit
name of employer, staff name, date of USAID, the same way you would on other
commencement of work, date of termination, project-related public communication products.
and location of work. (For more information on branding, see
chapter 3.) An end-of-project evaluation
(see 6.2.1) that objectively documents the
Award Close Out

Within the rules pertaining to the country of

employment, staff need to receive their final impact of your project and provides an
salary, payment of any outstanding expense independent analysis of your project’s success
claims, outstanding leave days not taken, will greatly enhance the quality of this report.
service/loyalty or severance payments, and
other payments mandated by your organization.
Additionally, staff need to be able to transfer
their pension contributions.
6.4 Post-Award Use of
Where staff are eligible for repatriation, all the
costs need to be incurred prior to the project
USAID-Funded Goods
completion date, with shipping costs being and Commodities
agreed before the end date (even if shipping
occurs after the end after the project). At its discretion, USAID determines the
disposition of all USAID-funded goods and
commodities. As a grantee, you should
review the regulations (22 CFR 226.34,
6.3.4 Final http://edocket.access.gpo.gov/cfr_2007/aprqtr/
pdf/22cfr226.34.pdf) regarding the sale or
Performance Report use of equipment outside of award-related
activities three months before the award end
The final performance report is somewhat date. After reviewing the regulations, prepare a
similar to the Quarterly Performance Report disposition plan—a detailed description of what
(described in chapter 5), though it covers the you propose to do with equipment or unused
entire award period. Your AOTR may give you supplies when the award ends. You must
a specific outline or template to follow. At a submit this to your AO, who will either approve
minimum, your final performance report will your proposal or provide further instructions.

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 6.4.1 Sale of Property 6.4.2 Final Inventory Report
and Equipment Within 90 calendar days after the award end
date, you must submit a final inventory that
The following regulations are specified for
lists all equipment you acquired with award
USAID grantees:
funds or received from USAID. The inventory
• USAID reserves the right to transfer the is due, along with the final report, and must be
title to USAID or a third party. The AO must completed in accordance with the terms of your
identify the equipment appropriately or agreement and the disposition plan approved
otherwise make it known to the recipient in by USAID. The final inventory must include:
writing. When USAID exercises its right to
• a list of equipment costing US$5,000 or
take the title, the equipment will be subject
more with a useful life of one year or more
to the Standard Provision, called Title to and
you purchased with USAID funds, and
Care of Property (U.S. Government Title).
(See Annex II, Common USAID • any unused supplies that cost US$5,000
Standard Provisions.) or more.
• If you are instructed to dispose of the
equipment, USAID will reimburse you for For each item listed, include:
reasonable expenses incurred in shipping • original cost;
the equipment to a new location. You
• USAID share of the cost (for example, if your
will need to follow procurement rules
organization paid for part of the purchase with
regarding competitive bidding to get the
cost share or matching, please note that);
lowest-cost service.
• current location and condition of the
• If you do not receive instructions within
120 calendar days after submitting your
equipment and/or how it is being used; and 6
disposition plan, you can sell the equipment • detailed proposal of what you did or intend to
and reimburse USAID for its share. You do with that property.
may deduct and retain US$500 from the While the previous list includes the standard
USAID share, or if the item is worth more requirements, Cooperative Agreements may
than US$5,000, you may retain 10% of the vary. For example, instead of listing equipment

Award Close Out

proceeds for selling and handling expenses. that costs US$5,000 or more, your organization
• Titles to supplies and other consumable may be required to list all equipment that costs
equipment are vested with your organization US$500 or more.
when you acquire them. If the value of the
remaining new and unused supplies exceeds
US$5,000 at completion of the program, and
the supplies are not needed for any other 6.4.3 Other Close-Out
USG-sponsored projects, then you may
retain the supplies, but you must compensate Considerations
USAID for its share of the cost. You may not
In addition to the key reports and activities that
use supplies acquired with USAID funds to
take place throughout the close-out phase, you
provide services to outside organizations
must address a number of other tasks before
for a fee that is less than private companies
close out is complete. These tasks may not
charge for equivalent services, unless the
apply to everyone, but when appropriate your
USG specifically authorizes you to do so.
organization should:
• You must, at a minimum, provide the same
• Reconcile Advances—If you have given
type of insurance coverage for real property
advances to any staff or subs, be sure to
and equipment acquired with USG funds
have them submit final expense reports
as you provided to your organization’s
and reimburse you if any funds remain.
other property.
• Close Bank Account—Close the bank
• Your AO will give you special instructions if
account you set up specifically for this program.
your agreement allows you to purchase any
real estate, including land or buildings. • Terminate Leases (if appropriate)—
Terminate leases on rented office space
that you do not plan to use after the award.

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 • Insurance Policies—Cancel no-longer- Keep this letter on file, as USAID may request
needed insurance policies. an update on your close out, and you can
resend the original letter.
• Outstanding Contracts—Close out
any outstanding contracts with vendors,
consultants, and other contractors.
• Office/Facility Close Out—Be sure to take 6.5 Summary
care of any obligations relating to closing your
office or other program facilities. For example, This chapter reviewed some of the key
if you shared the office with other programs USAID requirements and other issues for
and had agreements in place covering you to consider as you approach the final
shared office costs, be sure to cancel these phase of your award. Be sure to start close-
agreements and inform the remaining out preparations early, and work closely with
occupants of your intention to vacate. your staff and subrecipients to ensure that the
investment your organization made through this
award has the best possible long-term impact
on the communities and beneficiaries you serve.
6.4.4 Letter to USAID Figure 40 is a timeline ranging from 12 months
The final step of the entire close-out process is before your award end date to 3 years following
to send a letter to your AO confirming that you the end of your award that covers close-out
have completed key close-out actions, including tasks you must undertake. Items on this
submitting the final invoice, inventory, and all timeline are relevant to both prime recipients
other reports to appropriate parties as well as and subrecipients.
closing out all subcontracts and subagreements.
6
Award Close Out

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 Figure 40—Close-Out Timeline and Checklist

Time Activity Who Details

12 months Budget for close Program Manager Develop a workplan and budget for the project’s
before end out (required) final year that includes costs for all close out-
of award Teal indicates related activities.
required activity

At least Plan for continuity Executive Director 1. Assess the need for continuing your project’s
9 months of services or other services or interventions, and, if warranted,
before end project-funded explore options for funding. In consultation with
of award activities (optional, partners, community leaders, beneficiaries,
but highly and donors, determine whether your
recommended) organization will:
a. continue the project with funding from
new sources;
b. transfer management of the project or
responsibility for services to a local partner
who has alternate funding; or
c. close out your activities because, for
example, there is no ongoing need for
the services.
2. Create a plan that describes the steps
necessary for a smooth transition.

6 months Begin end-of- M&E Manager Conduct an evaluation of the project and
before end project evaluation or Consultant document your experiences. This will help USAID
of award (optional) and your local partners improve future activities.
6
Request a non- Program Manager Determine whether your program needs a
funded extension Finance Manager non-funded or other type of extension. Then,
(optional, as Excutive Director begin discussions with your AOTR. Review your
needed) pipeline and burn rates to determine whether
you will have funds remaining at the end of
your program. USAID officials will require an

Award Close Out

explanation of why you need the extra time and
what you plan to achieve during the proposed
extension period. A detailed budget for any
expenditures to be incurred after the original
award end date will be required for a cost or
non-funded extension.

Executive Director Discuss employment opportunities and end-of-

project transitions with staff. This should help
to retain them as long as possible and prepare
you if a person chooses to leave before the end
of the project period. Consult local labor laws to
ensure that you comply with all requirements.

Develop close-out Prime and 1. Review close-out requirements with

requirements for Subrecipient subrecipients and make sure they have the
subrecipients Program Managers resources and help they need to comply.
(as needed)
2. Set a deadline for submitting reports to
you to ensure that you have ample time to
incorporate them into your final report.

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 Figure 40—Close-Out Timeline and Checklist (continued)

Time Activity Who Details

3 months Begin subrecipient Subrecipient It is recommended that you have your subs close
before end close out Executive Director out 30–60 days before the end of the award, so
of award they can be sure that all final costs and reports
are complete before the award end date.

Begin tracking Financial Manager Keep a close eye on remaining award funds by
accruals tracking accruals during the last three months of
your award.

List administrative Program Director List all contracts, leases, insurance policies,
close-out tasks and other items that will need to be cancelled
or transferred as well as important dates and
contract provisions to be considered.

Submit inventory Program Manager Review the regulations regarding

disposition request selling or using equipment outside of
to your AO award-related activities.
Create a detailed description of what you
propose to do with the equipment or unused
supplies when the award ends. Note that USAID
has the final say over equipment disposition.
Submit this to your AO, who will either approve
your proposal or provide further instructions as
to what is to be done with the equipment. If you
6 do not hear from the USAID within 120 days of
submitting the inventory report, you may sell the
equipment and reimburse USAID for its share.
(For more information, review the “Title
To and Use of Property” provision in your
Cooperative Agreement.)
Award Close Out

End of award Review information Executive Director, 1. Stop incurring costs to be charged to the
needed for Financial Manager award (unless you have prior approval, which
financial and means the award date has been extended).
performance
reports required by 2. Begin financial close out, including
your donor demonstrating that you have met all cost-share
requirements and have finalized all award-
related expenditures.

60 days Collect Subrecipient If your subs did not close out before the end of
after end subrecipient Executive Director the award, collect their reports now to ensure
of award reports due adequate time to incorporate their contributions
to prime into your final report.
(recommended)

After receipt of Executive Director Send a letter formally ending your contractual
the subrecipient relationship with your subrecipient(s).
reports, send
close-out letter
to subs

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 Figure 40—Close-Out Timeline and Checklist (continued)

Time Activity Who Details

90 days Submit the final Financial Manager Submit the final SF-425 in accordance with
after end SF-425 Federal the terms of your agreement covering the entire
of award Financial Report award period. Be sure it demonstrates that you
(required) have met any and all cost-share requirements
and that your accounting system confirms your
cost share, in case of an audit. Unspent funds
must be returned to USAID.

Submit final Program Manager Submit final performance report, which

performance focuses on final outcomes and lessons learned
report throughout the entire award period, to your
(required) AOTR and the DEC, in accordance with the
terms of your agreement.

Submit final Program Manager Submit final inventory report, which includes a
inventory report list of equipment, any unused supplies, and a
(required) statement describing where you disposed of
the final inventory.

Submit final Financial Manager Submit the final VAT report to the office listed in
VAT (foreign tax) your Cooperative Agreement under the Reporting
report (required) of Foreign Taxes standard clause. The report
covers taxes paid and reimbursed through the
end of your award in accordance with the terms
of your agreement.
6
End of fiscal Submit final audit Auditor Conduct a final audit covering the last year of
year after (required) your award. You may conduct this in sync with
award close out the end of your organization’s fiscal year and
submit it as you would other audits in accordance
with the terms of your agreement.

3 years Maintain records Financial Manager Maintain all accounting records related to

Award Close Out

following (required) your award for at least three years following
submission of submission of the final financial report. The
final financial USG retains the right to audit you and/or your
report subrecipient(s) at any time during those
three years.

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 Figure 41—Key Close-Out Activities through an Organizational Development Lens

Program Management Human Resources Financial Management

• Engage subrecipients and/or • Prepare list of personnel who • Terminate leases as appropriate
partners in discussing close-out are departing. and obtain deposits if applicable.
options; agree on a way forward
• Work with key staff on • Manage office/facility close out.
(to close down the project or
employment transition
search for alternatives). • Notify service providers and/
as needed.
or vendors of termination of
• Communicate close-out
• Have contracts amended services and expected
processes to all relevant
to reflect the close-out date departure date.
stakeholders, including
(especially in case of
the host government. • Finalize consultant deliverables,
an extension).
payments, etc.
• Scale down or terminate all
• Plan for proper termination of
program activities. • Document final utilities payments.
staff and all committed salaries
• Remove signage and other and dues in compliance with • Ensure that payments by check
documentation from subrecipient local labor laws. clear before the bank account
and/or partner sites. is closed.
• Ensure liquidation of outstanding
• Verify acceptance of final project staff advances. • Close project bank account.
deliverables from AOTR. • Submit final financial report.
• Delete relevant information
• Debrief senior management and permanently from computers/
key field staff on lessons learned. cell phones.
• Finish archiving all final project
records in formats where original
data and information cannot
6 be altered.
• If necessary, secure off-site
storage for all project records
for the length of time both
your funding agency and host
government require.
• Submit final performance
Award Close Out

report to DEC
(http://dec.usaid.gov).

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