Closing Report Associated to a TA

What criteria is needed in order to close a report associated to a TA. For example, a report was in a staged status and associated to a TA. The TA updated to a status of Closed after the report staged. Can the report still be closed?

After closing liability for an expense report associated to a TA, the budget status on the report updates to 'N'. When I try to run the batch budget check process using a transaction type of "Cancel Void Expense Reports" and a process type of "Budget Check", and selecting the report - the process runs to success but in the message log states "