Ways to Avoid Returning Grant Ways to Avoid Returning Grant Funds to Your GrantorFunds to Your Grantor

National Association of SARA Title III Program Officials (NASTTPO)Hazardous Materials Emergency Preparedness (HMEP) Grant

AgendaAgenda Deobligating Grant Funds 101 Effects of Deobligating Grant Funds (Grantee/Grantor) Trending Grantee Deobligations Ways to Avoid Returning Funds to Your Grantor

Deobligating Grants Funds Deobligating Grants Funds 101101CategoriesCategories of Grant Fund

Deobligations

1. Deobligation of Obligated Funds Not Yet Expended

2. Deobligation of Unobligated Funds

There are 2 categories of grant fund deobligations

Grant funds returned which have been obligated, but for unforeseen circumstances, were unable to be expended.

FactorsFactors leading to deobligations of this nature are (but not limited to):Project/Contract terminationReduction in price of supply/equipment itemsCorrection of erroneous financial recordsCost underrun

Grant funds returned which have NOT been obligated.

FactorsFactors leading to deobligations of this nature are (but not limited to): Improper planning/forecastingEmergency management activationsTurnover

The Effects of Deobligating Grant Funds The Effects of Deobligating Grant Funds How is the GranteeGrantee Impacted?

Possibility of decreased allocations in future funding opportunities

Possibility of being considered as a program risk (‘high riskhigh risk’ grantee)

Possibility of being awarded under special terms and/or conditions

When grant funds are returned by the grantee, it MAYMAY have a direct impact on the grantee agency.

The Effects of Deobligating Grant Funds The Effects of Deobligating Grant Funds How is the GrantorGrantor Impacted?

When grant funds are returned to the grantor, it has a direct impact on the grant program.

Scrutiny from the awarding agency – Why are deobligations so high? Is staff providing sufficient technical assistance? Are internal controls in place? Are they effective?

Scrutiny from Congress – Why are deobligations so high? What is being done to decrease deobligations? Is the program effective? Is there a need for the program as a whole?

Trending Grantee DeobligationsTrending Grantee DeobligationsHazmat Grants Awards & De-Obligations

FY201010 – FY201414HMEP Grants to States, Territories and Native American Tribes

Year

Award Amount Amount Deobligated Deobligation Rate

FY10-11 21,123,317.00 3,710,178.61 17.56%

FY11-12 21,230,804.00 3,762,435.58 17.72%

FY12-13 21,321,467.00 3,150,324.72 14.78%

FY13-14 20,127,010.00 3,037,156.00 15.09%

 

Ways to Avoid Returning Funds to the GrantorWays to Avoid Returning Funds to the GrantorHere are a few helpful ways to avoid returning funds to the grantor

Proper planning/forecastingProper planning/forecasting Conduct a needs analysis early on Leave sufficient time to create your budget Lengthy approval processes Continuously engage sub-grantees (especially those high in risk) Contingency planning

Identify programmatic/administrative issues early onIdentify programmatic/administrative issues early on Changes in timelines/milestones Changes in key personnel (vacations/retirements) Project/contract terminations Rebudget if needed

Maintain open communication with your grant specialistMaintain open communication with your grant specialist Request a performance extension

Questions/Questions/CommentsComments/Concerns/Concerns