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Informal Notice about Potential Lapse in Appropriated Funds – NIH Grantees Beware!

September 27, 2013 / Ed Jameson / Blog Posts
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This was forwarded to us today by one of our clients.  If you’re in the NIH, you’d better be prepared for this one… You’ll be able to draw down funds if the government shuts down, but no new funds will be added to the system.  Eventually… it dries up.

Dear Grantee:

As you are aware, the Government Fiscal Year (FY) 2013 ends on September 30, 2013 and an Appropriation Act for FY2014 has not yet been passed.  The Administration strongly believes that a lapse in appropriations should not occur, and that there is enough time for Congress to act to prevent a lapse.  However, prudent management requires that we prepare for an orderly execution of contingency plans in the unfortunate event of a lapse.  In the event a continuing resolution or a FY2014 budget is not passed and a lapse of funding occurs, I wanted to provide you with information related to our grant administration processes.

Your particular grant program is funded by appropriations that will be affected by a government shutdown.  As a result, if there is a lapse in funding, HHS’ NIH staff will not be available to provide routine administrative support services.  HHS will, however, maintain the Payment Management System in an operational status to continue processing grant drawdown requests. Given that you have received your award prior to the gap in funding, you may  be able to continue drawing funds from prior awards during an appropriations lapse.  If you received your notice of grant award with restrictive terms and conditions, or if your drawdown request triggers one of the Payment Management System edit checks and/or the drawdown limit controls, you will not be able to drawdown funds.

If you are considering submitting an application for additional HHS federal assistance funding, please be advised that the Grants.gov system will be operational during a lapse in funding and will be accepting applications from prospective grantees.   However, for NIH applications the Grants.gov system will only accept and store applications. Applications will not be processed further until such time as the authority and funding to return to normal business operations are restored.

Please check the website at www.hhs.gov for updates.  Thank you for your assistance with this period of a potential government shut-down and your ongoing support of the NIH.

Sally J. Rockey, Ph.D.

NIH Deputy Director for Extramural Research

rockeysa@od.nih.gov

 

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Ed Jameson, CPA, Managing Partner

I’ve been in practice for over 40 years helping our small business clients procure, manage, and survive audits on more than $6 billion in federal government contract and grant funding. We’ve been featured presenters and panel moderators at Tech Connect’s National SBIR/STTR conferences since 2010, and I’ve presented at the DOD’s Mentor Protégé Summit and present regularly for several state and local organizations.