Contents

• Overview
• What is Award Termination?
• ⚠️Important Notes
• Step-By-Step Instructions
  • Initiate the Termination
  • Set Up the Termination
    • Step 1: Choose termination mode
    • Step 2: Set the details for the termination
    • Step 3: Void or Claw Back Disbursements or Expenses (if needed)
    • Step 4: Review Termination Summary
  • Recommended Step: Update the Award Agreement With Termination Language
  • Notify the Awardee
    • Before Notifying the Awardee
    • How to Notify the Awardee
• What Happens After Notifying the Awardee
  • Mutual Termination
  • Grantor Issued Termination
• Reconcile Funds After Notification or Termination
  • Add Voids or Clawbacks After Notifying the Awardee
  • Recover Money From Clawbacks
• Email Notifications
• Termination Statuses at a Glance
• What to Do Next
• Related Articles

Overview

This step-by-step guide shows Program Admins how to terminate an active award in Next. 

🔍 Looking for what happens once an award is already terminated? See ➡️ What Happens After an Award is Terminated.
 

What is Award Termination? 

Award termination is when you end an active award, fully or partially. You might use it when a project ends ahead of schedule, the awardee can't continue, or the awardee hasn't turned in required reports.

• Full termination: The new award amount is $0.
• Partial termination: The new award amount is reduced, but above $0.
   
• When you start a termination, you'll choose one of two types: 
  • Mutual: You and the awardee agree to end the award. The awardee can accept, request revisions, or decline.
  • Grantor Issued: Your agency ends the award without the awardee's acceptance. The awardee can view the termination but can't take any action.

• When does the award become "Terminated"?

  • Mutual: When the awardee accepts, or when you use Manual Override.
  • Grantor Issued: As soon as you notify the awardee.
• What is the effective date? 
  • The official end date of the award. You set it in Step 2. Awardees can still log expenses after this date (within the cycle's limits), but only for costs that happened on or before it.
•  Who can terminate an award?
  • Organization Owners 
  • Client Admins (in partner-managed accounts) 
  • Program Owners
  • Program Managers

⚠️Important Notes 

Post-Award Activities  

• While the termination is in progress:

  • Admins can't add new disbursements.
  • Awardees can't log expenses or start new progress reports.
  • Awardees can still submit reports they've already started. Admins can approve or reject these reports, but can't request revisions.

Voids & Clawbacks 

If more has been committed or paid than the new award amount, you can void unpaid items and claw back paid ones.

• Added during the termination: Applied once the award is "Terminated." Canceled if the termination is discarded, or declined (Mutual only).
• Added after you notify the awardee: Applied right away. You add these from the Expenses and Disbursements pages, including after the award is "Terminated."

Discarding or Reinstating

• You can discard the termination any time before you notify the awardee. Discarding starts post-award activity again and cancels any voids and clawbacks you added in the termination.
   
• Once an award is "Terminated," you can't make any more amendments to it. The only exception is reinstating the award. For more info, see ➡️Reinstate a Terminated Award (coming soon).
   

Step-By-Step Instructions

Initiate the Termination

1. In the program, click the cycle name to open the cycle. 
   
   
    
2. In the cycle, click Awarding in the left-hand menu. 
   
   
    
3. Locate the awardee whose award you want to terminate, and click their hyperlinked award agreement.
   
   
    
4. In the upper-right corner of the award agreement, click Terminate Award. 
   
   
    
5. In the pop-up, click Initiate Termination.
   
   

Set Up the Termination

In the Terminate Award pop-up window, complete the steps below. As you move through the steps below, click Back to return to a previous step, Cancel to clear your work and exit, and Next to move to the next step. 

Step 1: Choose termination mode 

1. Select a termination mode, then click Next.
   
   

A. Mutual Termination: Select this when you and the awardee agree the award should end early. For example, the project finished ahead of schedule, the awardee can no longer continue, or the awardee asks to end it themselves.

• What happens: Once notified, the awardee can Accept, Request Revision, or Decline. If they don't respond, you can accept on their behalf with Manual Override.

B. Grantor Issued Termination: Select this when your agency needs to end the award without the awardee's acceptance. For example, missed reports, an audit finding, or a policy change.

• What happens: Once notified, the award becomes "Terminated."
   

Step 2: Set the details for the termination

1. Complete the following fields:
   
   

a. Reason for termination: Select a reason from the dropdown. (The options depend on the termination mode you chose in Step 1). This will appear to awardees in the notification email. 

b. Effective date: Enter or select a date. This is the official end date of the award, and it appears in the termination emails. Awardees can still log expenses after this date, but only for costs that happened on or before it.

c. New Award Amount: Enter the new total for the award. Enter $0 for a full termination, or any amount above $0 for a partial termination. The current amount and the net change are shown for reference.

d. When finished, click Next in the bottom-right corner. 
 

Step 3: Void or Claw Back Disbursements or Expenses (if needed)

This step appears if your expenses and disbursements add up to more than the new award amount. To free up the difference:

• Void unpaid expenses or disbursements. This cancels them.
• Claw back paid items. This adds a clawback to the termination. 

1. Use the Expenses and Disbursements tabs at the top of the window to switch between the two.
   
   

Void unpaid items

To void an expense: 

1. Click Void on the far-right of the expense.  
   
   
    
   • To void line items individually: Click the dropdown arrow next to Void to show the expense's line items. Then click Actions > Void on the line item you want to void. 
     
     

2. In the pop-up, enter a comment (visible to the awardee), then click Void in the bottom-right corner. 

• To void a disbursement: 

  1. Click Actions > Void on the far-right of the disbursement.  
     
     
      
  2. In the pop-up, enter a comment (visible to the awardee), then click Void in the bottom-right corner. 
     
     

Claw back paid items

• To claw back paid expenses or disbursements: 
   
  1. Click Actions > Clawback on the item you want to recover funds from:
     • Expenses: First click the dropdown arrow on the far-right of the expense to view its line items. Then click Actions > Clawback on the line item.
       
       
        
     • Disbursements: Click Actions > Clawback on the far-right of the disbursement. 
       
       
        

  2. In the pop-up, complete the following: 

     • Clawback amount: Enter the amount you want to recover. You can claw back the full amount or part of it.
     • Reason for clawback: Enter an explanation. The awardee can see this.
       
       

      

  3. Click Create Clawback in the bottom-right corner of the pop-up. 
     
     

Save & Review Changes

1. When you're finished, click Save and Review Changes in the bottom-right corner. If you'd rather come back to this later, click Skip Reconcile Later. 
   
   
    

Step 4: Review Termination Details

1. Review the termination details. If you need to make changes, click Back. If you want to clear your work and start over, click Cancel, then click Cancel Edits in the confirmation pop-up. 

a) Termination Summary: The current and terminated award amounts, the net change, mode, effective date, and reason you chose. 

b) Recovery: Shows whether the awardee can still log expenses on the award or whether money needs to be recovered. It compares the new award amount to what's already been committed, after any voids. 

• Committed to date: Everything already paid, plus expenses and disbursements that are logged or scheduled but not yet paid.
• Terminated Amount: New award amount you entered in Step 2. 
• Voided Amount: Total of the unpaid items you voided in this termination.
• Clawback Created: Total of the clawbacks you added in this termination.
• To be Recovered: Funds that still need to be freed up. Clawbacks only lower this once the money is recovered.
• Remaining to log (Shows instead of To be Recovered when nothing needs to be recovered): This is the money still available on the award. It only limits what the awardee can log if Award Balance Enforcement is on for the cycle.
  
  

c) Expense Changes, Voided Expenses, Voided Disbursements, and Clawback: The changes you made in Step 3. Each section only appears if you made that kind of change.

d) Message at the bottom of the window: Shows either how much still needs to be recovered from the awardee, or how much is still available for the awardee to log. You can still save and notify the awardee if money needs to be recovered.
 

2. Click Save & Edit Agreement in the bottom-right corner of the pop-up.  

• A confirmation message appears in the bottom left corner of the screen. 
   

Recommended Step: Update the Award Agreement With Termination Language

The termination agreement is a copy of the awardee's last accepted award agreement or amendment. Its text still describes the original award, so the awardee would be reviewing terms that don't match the termination. Update these items before you notify the awardee.

1. Add termination language to a Rich Text Editor field:

• Already have a Rich Text Editor field with award details on the agreement? Click inside it to edit it, add your termination language, then click Save in the upper-right corner of the field.
  
  
   
• Don't have a Rich Text Editor field in the agreement? Add one the same way you'd add any other form field. See ➡️ Add a Form Field. Then, add your termination language to it.

2. For Mutual Terminations ONLY: Update the acknowledgement statement

To accept or decline a Mutual termination, the awardee must check a box at the bottom of the agreement. The Accept button won't activate until they do. The default acknowledgement statement next to the checkbox is usually written for accepting an award, not ending one.

1. Scroll to the end of the termination agreement, and click Edit above the acknowledgement statement. 
   
   
    

2. Write a termination acknowledgement statement, then click Save. For example: "By clicking Accept, I acknowledge that I have read the termination terms above and agree to end this award as described." 
   
   

Notify the Awardee 

Notifying the awardee sends the termination to them. 

Before Notifying the Awardee

• Finish freeing up funds (if desired):  Click the Actions dropdown in the upper-right corner of the agreement, select Reconcile, and follow Step 3 above.
  
  

• Need to start over? Until you notify the awardee, you can click Discard in the upper-right corner of the agreement. This clears your work and starts post-award activity again. 
  
  
   

• Need to change the details? Click Modify Termination Details in the upper-right corner of the screen. 
  
  

How to Notify the Awardee

1. Click Notify Termination in the upper-right corner of the agreement. 
   
   
    

2. Review the Termination Summary details, then click Next. To make changes, click Cancel, then click Modify Termination Details at the top of the main page.

   
    

3. In the pop-up box, enter a comment explaining the termination, then click Terminate in the bottom-right corner. 


 
➜ What happens next depends on the termination mode you chose:

• Mutual Termination
• Grantor Issued Termination

What Happens After Notifying the Awardee 

➡️ For the full awardee experience, see Review an Award Termination (For Awardees) 
 

Mutual Termination

• The termination status changes to “Proposed." The awardee gets an automatic email with the reason, effective date, original award amount, and new award amount.
   
• While the termination is “Proposed,” the agreement is read-only. The awardee can view the termination details, including voided items, clawbacks, and the To be Recovered (or Remaining to log) amount. This updates as you void items or recover clawbacks.
  
  Awardee's View: 
  
  

• If the awardee requests a revision: The status changes to "Revisions Requested," and you get an automatic email. 
  • Open the Termination Request to deny it, request clarification, or modify the termination details, including adding or removing voids or clawbacks.
     
• If the awardee declines: The status changes to "Declined," and you get an automatic email. 
  • Voids added in the termination go back to their earlier status, and clawbacks added in the termination are removed.
  • Post-award activity starts again. 
  • To still end the award, start a new Grantor Issued termination instead.
     
• If the awardee accepts: The status changes to "Terminated," and you get an automatic email with the effective date, original award amount, and new award amount.
  • Voids from the termination are applied. 
  • Clawbacks from the termination appear on the Negative Transactions page with a "Created" status. 

Grantor Issued Termination

• The award status changes to “Terminated.” The awardee and admins get an automatic email with the reason, effective date, original award amount, and new award amount.
  
  
   
• Voids from the termination are applied. 
• Clawbacks from the termination appear on the Negative Transactions page with a "Created" status. 

Reconcile Funds After Notification or Termination

After you notify the awardee or the award is “Terminated,” you can void unpaid items and claw back paid ones. from the cycle’s Expenses and Disbursements pages, not the termination agreement. 

Add Voids or Clawbacks After Notifying the Awardee 

• Expenses: In the cycle's left-hand menu, click Expenses under the Post-Award section. On the far-right of the expense, click Actions > Void or Actions > Clawback. For more details, see ➡️ Void an Expense.
   
• Disbursements: In the cycle's left-hand menu, click Disbursements under the Post-Award section. On the far-right of the disbursement, click Actions > Void or Actions > Clawback.

Recover Money From Clawbacks 

• Clawbacks appear on the cycle’s Negative Transactions page with a “Created” status:

  • Added in the termination: Once the award is “Terminated.”
  • Added from the Expenses or Disbursements pages: Right away.
    
    
     

• To recover the funds, you must initiate each one.

  1. In the cycle, click Negative Transactions under Post-Award in the left-hand menu.
  2. Find the clawback with a “Created” status.
  3. Click the Actions dropdown on the far-right of the clawback, then select Initiate.
     • Without Payments enabled: The status changes to “In Recovery” while you wait for the awardee to pay you back. Once you’ve received the payment, mark the clawback complete. The status changes to “Recovered.”
     • With Payments enabled: The status changes to “In Recovery.” You don’t need to do anything else. Your ERP will change the status to “Recovered,” or to “Failed” if the recovery can’t be processed.

For more help with clawbacks, see ➡️Create and Manage Clawbacks (coming soon). 

Email Notifications 

• All termination-related emails are set up by default in the cycle and sent automatically.
   
  • To learn more about these emails, see ➡️ Post Award Communications: Email Trigger Guide.
  • To remove any of these emails or create custom templates, see ➡️How to Manage Your Email Communications Setup + How to Manage Your Email Communications Template Library.

Termination Statuses at a Glance

What to Do Next

See ➡️What Happens After an Award Is Terminated to learn what awardees can still do and how to track remaining award funds.

Related Articles

➡️Review an Award Termination (For Awardees) 
➡️What Happens After an Award Is Terminated






 

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