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|Part III: Post Award Requirements|
|Chapter 2: Period of Availability of Funds|
HIGHLIGHTS OF CHAPTER:
REDESIGNATION OF FUND YEAR
States are prohibited from changing their block/formula awards and their related obligations and expenditures from one Federal fiscal year to another.
AVAILABILITY OF AWARDS
Block/formula grants administered by the Bureau of Justice Assistance (BJA) and the Office of Juvenile Justice and Delinquency Prevention (OJJDP) are awarded for the Federal fiscal year of the appropriation plus two additional Federal fiscal years.
Formula grants administered by the Office for Victims of Crime (OVC) are available for the fiscal year of the award plus three additional fiscal years.
Discretionary awards made by OJP offices and bureaus are awarded for a specified time, and a particular award period is established for each award (usually 12 or 18 months).
OBLIGATION OF FUNDS
An obligation occurs when funds are encumbered, such as in a valid purchase order or requisition to cover the cost of purchasing an authorized item on or after the begin date and up to the last day of the grant period in the award. Any funds not properly obligated by the recipient within the grant award period will lapse and revert to the awarding agency. The obligation deadline is the last day of the grant award period unless otherwise stipulated. (Example: If the award period is 10/1/98 to 9/30/99, the obligation deadline is 9/30/99.) Block/formula grantees and subgrantees must complete performance during the obligation period. Performance as a result of a contract under a block/formula grant may be completed during the expenditure period not to exceed 90 days after the end date of the grant.
No additional obligations can be incurred after the end of the grant.
NOTE: For LLEBG Block Grants, the obligation of funds and the request for drawdown of funds will begin after the required public hearing and advisory board meeting(s).
EXPENDITURE OF FUNDS
Block, formula, and discretionary funds which have been properly obligated by the end of the award period will have 90 days in which to be liquidated (expended). Any funds not liquidated at the end of the 90-day period will lapse and revert to the awarding agency, unless a grant adjustment notice extending the liquidation period has been approved. (Example: If the award period is 10/1/98 to 9/30/99, the expenditure deadline is 12/29/99.)
NOTE: For LLEBG Block Grants, all Federal funds including interest, revenue, dividend, and match must be spent within 2 years (24 months) from the date the grant payment is made to the jurisdiction. There are no extensions of the obligation/expenditure period of the award. The LLEBG Block Grant recipients will receive a Grant Adjustment Notice (GAN) that will identify both the obligation and expenditure periods. A GAN will indicate the appropriate 24-month obligation/expenditure period of an award.
AWARD EXTENSION CRITERIA
Block, formula, and discretionary awards (except for Victims Compensation, and Assistance funds) may be awarded an extension of the obligation date in response to a written extension request stating the need for the extension and indicating the additional time required. Written requests should be submitted in the following time frame:
NOTE: Byrne Formula awards have new requirements to request extensions. The recipient should contact the BJA grant advisor for the additional requirements.
The extension allowable for any project period is generally 12 months, and requests for retroactive extension of project periods will not be considered. Generally, only one extension per award will be permitted. Application for an extension of the obligation period of a program or set of programs beyond 12 months must be justified by extraordinary circumstances beyond the control of the recipient and subrecipient.
Extensions will be considered only if the EXTENSION CRITERIA established below are met by the recipient at the time the request for the extension of the obligation deadline is submitted to the awarding agency for approval. Modifications of the general extension policy stated above are at the discretion of the awarding agency. Extension of the expenditure deadline date is allowable for all awards (including Victims Compensation and Assistance) upon written request for the extension and written approval by the awarding agency.
The criteria for extending the obligation or expenditure deadline for a project, program, or set of programs include the following:
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