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1/31/79 AC 150/5900-1B CHAPTER 6. GRANT CLOSE OUT PROCEDURES 60. GENERAL. The close out of a grant is the process by which the FAA and the sponsor perform the necessary final administrative actions to complete all requirements of the grant agreement and the Federal Aviation Regulations. It is important that all parties involved fulfill these requirements promptly so that unnecessary delays in closing out a grant can be avoided. 61. FINAL REPORTS. When a project has been completed and the final project report has been received and accepted by the FAA, a notice of project completion will be furnished to the sponsor by the appropriate FAA office. Within 90 days after receipt of this notice, the sponsor must submit the final financial status report, a performance status report, and any other reports required as a condition of the grant. 62. INITIAL SETTLEMENT OF COSTS. After the above reports have been reviewed, the FAA will make the necessary settlement for any adjustments to the Federal share of the allowable costs. In this regard, the sponsor must refund to FAA any unencumbered balance of cash advanced. 63. PROPERTY ACCOUNTABILITY. In the event that equipment has been purchased as part of the planning grant (see paragraph 37), property accountability shall be made in accordance with Appendix 3 of AC 150/5100-10. 64. INTEREST ON ADVANCES. Sponsors who are units of local government are required to return to the Federal Government interest earned on advances of grant-in-aid funds. On the other hand, in accordance with Section 203 of the Intergovernmental Cooperation Act of 1968 (Public Law 90-577), states and any agency or instrumentality of a state are not held accountable for interest earned on grant-in-aid funds pending their disbursement. Interest earned must be reported on FAA Form 5100-62. 65. ACCOUNTING RECORDS AND AUDITS. Each sponsor must establish and maintain an adequate accounting record for each project to allow appropriate FAA personnel to determine all funds received (including funds of the sponsor and funds received from the United States or other sources) and to determine the allowability of all incurred costs of the project. On due notice, direct and indirect cost information concerning third -party contracts, force account, and administrative charges shall be furnished. 66. AVAILABILITY AND RETENTION OF RECORDS. The sponsor must allow the Administrator and the Comptroller General of the United States, or an authorized representative of either of them, access to any of its books, documents, papers, and records that are pertinent to grants received under the PGP for the purposes of examination and audit. Such records shall be retained for a period of three years starting from the date of the submission Chap 6 Par 60 29