Preparing for and Responding to the Unknowns of Award Terminations

One day you have an award – and the next, it is terminated without prior notice. This is the scenario numerous recipients find themselves confronting. Practically, there are human resources, revenue, cost share, contractual, and reporting impacts. From the compliance standpoint, allowability and closeout matters rise to the top along with asset disposition. Then there is the question of, “What about future costs required by statute or regulation, like audits and indirect cost rate adjustments?” These requirements do not get waived automatically because an award is terminated. Collectively, known and potential future award terminations create an environment of uncertainty that can derail multiple aspects of an organization’s operations and long-term plans.So, how does one manage these risks?

During this session, we will clarify differences between suspensions and terminations, discuss recipients’ responsibilities once notified of a termination, identify methods to classify allowable, reimbursable costs once a termination has been announced, identify key steps that drive toward liquidation of obligations and closeout of awards, and conclude with a discussion regarding appeal options. Each attendee should leave the session with a better understanding of potential impacts and how to plan for and mitigate related risks related to terminations.

Key Takeaways:

• Identify justifications for award terminations under the Uniform Guidance.
• Discuss the types of costs that are allowable and reimbursable.
• Brainstorm risks related to liquidations and closeout and associated mitigation strategies.
• Recall options to appeal award terminations.

This session is ideal for Grants Managers, Finance Directors, Legal Counsel, Program Managers, Budget Analysts, Finance Managers, Procurement Officers, Auditors, Risk Analysts.