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Grant Closeout Process

National Background Check Program Grant Closeout Process


CMS and Office of Acquisition and Grants Management have a process that must be followed for closeout of the National Background Check Program grant. The information below is intended as a guideline for States in preparation for the end of their grant periods. Specific questions about the closeout process should be directed to the CMS Project Officer.


Definition of Closeout
Closeout Responsibilities
Program Responsibilities
Office of Acquisition and Grants Management (OAGM) Responsibilities
Compliance Reminder

Definition of Closeout

Closeout is a process that takes place following the expiration or termination of the project period for a discretionary grant or cooperative agreement. The purpose of closeout is to ensure that final reports are received and evaluated, allowable costs are determined, and amounts due to either the Federal Agency or to the recipient are determined and payment arrangements made.

Closeout Responsibilities

The grant closeout is a critical piece in the life cycle of a grant. Preparation for closeout should begin three months prior to the end date of the grant in order to accurately forecast expenses and any adjusting entries that need to be made.

Program Responsibilities

  1. Issue closeout communications to recipient
  2. Provide closeout guidance and advice
  3. Receive and evaluate all required final reports (quarterly reports and final progress report)
  4. Ensure reconciliation of financial reports

Office of Acquisition and Grants Management (OAGM) Responsibilities

Grant closeout documents must be submitted within 90 days of the end of the current budget period. It is important to note that unless the Centers for Medicare and Medicaid Services (CMS) Grants Management Officer (GMO) approves an extension of this 90-day reporting window in writing, grantees must submit the final reports within the prescribed timeframe.

Documents required are as follows:

  1. Federal Financial Report (SF-425) submitted to the Payment Management System (PMS), Federal Project Officer and Karen Johnson. The final FFR must indicate the exact balance of unobligated funds and may not reflect any unliquidated obligations. There must be no discrepancies between the final FFR and the PMS SF-425. It is not acceptable to submit an inaccurate FFR in order to meet the reporting deadline and then submit a revised FFR to correct it. FFRs should be timely and accurate at the time of submission. A listing of equipment purchased with an acquisition cost of $5,000 or more, if applicable. The SF-428-B, Tangible Personal Property Report, Final Report, found at https://www.whitehouse.gov/sites/default/files/omb/grants/approved_forms/sf-428-b.pdf.
  2. A Final Progress Report which should include, at a minimum, a summarization of progress toward the achievement of the originally stated aims, a list of results (positive or negative) considered significant, and a list of publications resulting from the project as well as plans for the future publications. The Grant Closeout Checklist is representative of the 'Final Progress Report'.

Financial and performance records, supporting documents, statistical records, and all other records pertinent to this grant shall be retained for a period of three years.

Please submit a copy of the FFR and the Final Progress Report to Karen.Johnson1@cms.hhs.gov and your Federal Project Officer.

IMPORTANT: Please remember to include the CMS Award Number on all reports.

Compliance Reminder

Failure to submit timely and accurate final reports may adversely affect future funding to the organization and/or awards with the same principal investigator (PI). Accordingly, CMS may impose sanctions on organizations that fail to correct recurring reporting problems. Such sanctions may include restriction of facilities and administrative (F&A) costs, delay or withholding of further awards to the project or program, and/or designation as a high-risk grantee.

Late closeout may also extend the time period for retention of records by the grantee because the 3-year record retention period begins with the submission of the final FFR. Sec 45 CFR Part 74.53 and 45 CFR Part 92.42. Retention and access requirements for records.