NB_120_22_1 - NB 120-22-1 ADS – Rolling Grant and Agreement Closeout Procedures for Fiscal Year (FY) 2022
NB 120-22-1 ADS – Rolling Grant and Agreement Closeout Procedures for Fiscal Year (FY) 2022
National Bulletin: 120-22-1 Date: January 10, 2022
Subject: ADS – Rolling Grant and Agreement Closeout Procedures for Fiscal Year (FY) 2022


 

Purpose.  To communicate expired grant and agreement closeout procedure changes for FY 2022.    

 

Expiration Date.  September 30, 2022

 

Background.  Updates to 2 CFR Part 200 that went into effect in November 2020 have imposed more stringent agreement closeout procedures on Federal agencies. The regulations now direct agencies to close out agreements within 1 year of the period of performance (POP) end date regardless of whether the recipient has provided final reports and payment requests. At the end of FY 2021, compliance with the new mandates required the financial closure of 175 agreements. Every quarter, to maintain compliance going forward, the FPAC Business Center’s Grants and Agreements Division (GAD) and Financial Management Division (FMD) will identify, deobligate, and close agreements not already closed within 1 year of the POP end date.

 

Explanation.  FMD has developed the FPAC Period of Performance Dashboard. The dashboard tracks POP end dates for various open obligations, including grants and agreements processed in ezFedGrants and outside of ezFedGrants. It enables allowance holders to monitor closeout deadlines for those agreements.

Closeout should be initiated within 120 calendar days of the POP end date. Open agreements expired for more than 120 calendar days will appear in the dashboard as “Priority 1.” For all Priority 1 agreements, allowance holders should reach out to partners promptly and give them an opportunity to submit any final payment requests and reports. Once all payments are made and all reports received, initiate a closeout ticket in ServiceNow and follow the closeout instructions in attachment A.

To comply with 2 CFR Section 200.344, GAD and FMD will deobligate and close any agreement not closed within 1 year of the POP end date regardless of whether the recipient has provided final payment requests and reports. There are only two scenarios that warrant an exception to deobligation: (1) there is pending litigation or (2) an extension was executed but not recorded. If either exception applies, contact GAD by email at FPAC.BC.GAD@usda.gov. If an extension has been processed, attach a copy to the email.

Deobligations and closeouts will commence at the end of the second quarter of FY 2022 for all agreements meeting the criteria unless the allowance holder has provided information about an exception as described above. Deobligations and closeouts will continue in this manner every quarter thereafter.

GAD will host agreement closeout training on Monday, February 10, 2022, 3:00 – 4:30 p.m. Eastern Time. Use this link to join: Click here to join the meeting.

 

Contact.  For questions or more information regarding this process, please contact Crystal Blackburn at Crystal.Blackburn@usda.gov. For assistance navigating the FPAC Period of Performance Dashboard, contact Micki Jackson at Micki.Jackson@usda.gov.

 
 


 /s/

ANGELA BIGGS
Acting Deputy Chief for Management and Strategy
      

 
Attachment A - Closeout Steps for Agreements
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