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CHAPTER 5-240

CLOSING A REGULATORY GRANT

5-240-00 What does this chapter do?

5-240-10 Where do these requirements come from?

5-240-20 When do we close out a regulatory grant?

5-240-30 When is your closeout package due?

5-240-40 How can you submit these reports?

5-240-50 What information must you submit to close out a regulatory grant?

5-240-60 How will we review your information and close your grant?

5-240-00 What does this chapter do?

This chapter describes what you, a state or tribal recipient of a regulatory assistance agreement, 

and we, the Office of Surface Mining Reclamation and Enforcement (OSMRE) must do to close 

a regulatory grant or cooperative agreement. 

5-240-10 Where do these requirements come from?

The requirements for closeout procedures come from the Uniform Administrative Requirements, 

Cost Principles, and Audit Requirements for Federal Awards, at 2 CFR 200 subpart D. 

5-240-20 When do we close out a regulatory grant?

A. We normally close out regulatory agreements no later than 180 calendar days after the

end of the performance period. The first 90 days allow you to report to us. The

remaining 90 days allow us to complete the closeout process.

B. We may close regulatory agreements without an audit. However, we may take additional

administrative action after closeout if a subsequent audit identifies any findings or

questioned costs.

C. We will not close an agreement until you have paid all allowable costs and we have

deobligated all unexpended funds.

D. We will not close an agreement if it is in litigation or under appeal.

E. If we terminate an agreement, we will not close it until all termination actions have been

completed.

5-240-30 When is your closeout package due?

A. Your complete closeout package is due to us 90 days after the end of the performance

period of the agreement.
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B. If you have made every reasonable effort to send a complete closeout package within 90 

days but cannot meet the due date, you may request and we may approve an extension. 

You must send us a written request with a justification explaining why you need the 

extension. You must submit interim performance and financial reports to us following 

the requirements in chapter 5-230. We will notify you of our approval along with any 

interim steps that we may require.

5-240-40 How can you submit these reports?

A. You may send hard copy reports with original signatures by mail.

B. Alternatively, you may submit reports by e-mail. The forms must include the name and 

title of the authorized official who signed them and the date signed, and you must 

maintain the original signed forms in your files. 

5-240-50 What information must you submit to close out a regulatory grant?

A complete closeout package for a regulatory agreement includes the following information:

A. Final Financial Report (SF-425). See Chapter 5-230 for more information on your 

financial report.

1. You must report all program income in accordance with the cost sharing option, 

using program income to meet your required non-Federal match. You may use 

excess program income by the addition option, increasing the budget for your 

regulatory program. See Chapter 2-210 for more information on program income. 

2. You cannot show any unliquidated Federal obligations on your final report. You 

must pay all obligations before we can close the grant. 

B. Final performance narrative report. See Chapter 5-230 for information on your program 

narrative report.

C. Report of government property, if you acquired or held property under this grant. Report 

property on the Tangible Personal Property Report (SF-428) that allows for any other 

inventory format acceptable to our awarding office. Your inventory must list all 

equipment or real property acquired under this grant or transferred into this grant from 

previous regulatory grants. You must notify us whether you transferred the property to 

the subsequent regulatory grant or disposed of the property. 

D. Report of Federally-owned property, if you have any. You must provide a separate list of 

all Federally-owned property provided to you for use under this grant. Use the Tangible 

Personal Property Report (SF-428) that allows for any other acceptable property list. 

You must request that the property be transferred to a subsequent grant or properly 

disposed.
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5-240-60 How will we review your information and close your grant?

Our awarding office will review the closeout package and determine if it is complete and 

acceptable. If the closeout package is not acceptable, we may return it to you with an 

explanation of what you should do to complete or correct it, ask you for additional information, 

or take other actions to resolve the problems. After we receive an acceptable closeout package, 

the awarding office must complete the following actions within 60 days.

A. Review the closeout package and the grant.

1. Verify that we have added all known changes to the grant by appropriate revisions 

or amendments.

2. Resolve any grant suspensions, withholding of funds, disputes, and violations of 

grant clauses and assurances with you.

3. Write a brief evaluation of your performance under the grant and keep it in our 

official grant file.

4. Reconcile the inventory of Federally-owned property to our records, and approve 

the transfer to a subsequent agreement.

5. Verify that the grant and the file are complete. We will use a checklist to 

document this step. 

B. Process the final grant action to de-obligate any unexpended funds. 

C. We will send you a written notice that we consider the grant to be closed, and remind you 

of the record retention and access requirements in Chapter 2-260.