Step-by-step Process for Grant Closure (Consolidation)

The steps below detail the process for grant closure due to consolidation:

1. Closure of existing grants should be planned as a part of grant-making. No separate closure plan and budget is required. Once the new Grant Confirmation is signed, the old grant is considered financially closed.
2. The Principal Recipient (PR) should complete an inventory of non-cash assets under the closing grant that are not consumed as of the grant end date and will be transferred into the new grant. In these instances, the PR shall maintain ownership over the assets, but in conducting the inventory, will have clear documentation of the assets to be managed under the new grant. The timing for completion of this activity should be discussed and agreed between the Global Fund Country Team and the PR.
3. The PR should complete a list of outstanding commitments and liabilities as of the grant end date, which will be accounted for and paid under the new grant. UNDP Country Offices (COs) should ensure that General Management Support (GMS) is charged on all outstanding commitments and liabilities (and on all undepreciated assets, inventory, prepayments and estimated liquidation advances/expenses).
4. The CO should rapidly determine in-country cash balances, including at Sub-recipient (SR) level, prepayment and other advance balances with procurement agents and service providers, and undisbursed funds under the closing grant. These will be transferred to the new grant after setting aside funds required to settle outstanding commitments and liabilities under the closing grant.
5. The Global Fund administratively closes the grant when it has completed the review and approved the required reports.

The PR should submit the following report(s) on the progress towards programme objectives and targets from the last Progress Update date until the day before the new grant start date for the constituent grant(s) no later than 60 days after the end of the reporting period agreed for the constituent grant(s):

a. Final Progress Update (“PU ”) for the IP;

b. Final Tax Report for the IP;

c. Audit Report; and

d. Financial Closure Report

Audit Report: The PR should submit audit report(s) for the constituent grant(s) covering the audit of financial statement(s) up to the last day before new grant agreement start date, as per the timeline agreed upon in the original constituent grant agreement(s). However, if the financial statement of the constituent grant(s) to be audited covers less than six months, these periods can be audited with the first audit for the grant.

Inventory: The PR should complete an inventory of non-cash assets under the closing grant that will be transferred to and managed under the new grant.