skip navigation
About UsNews CenterGrants/FundingPartnershipsResourcesFor CongressTraining & TA
OJP Topics

2.2 Acceptance of Award and Award Conditions

Federal Obligation Process

When an award is approved, the Federal agency that is granting the award will reserve (set aside) the amount of the money provided under the award and record the obligation in its accounting system. Any funds or monies that are set-aside funds are reserved against the award until all of these funds are spent.

If the funds are not used within statutory or other time limits, the funds that were set aside will revert back to DOJ or the awarding agency through de-obligation of the unused balance.

Funding process:

  • On the award date, notification is made of award approval and obligation, as described previously.
  • Once an award has been accepted, in order to receive payment of funds obligated in DOJ’s accounting system, recipients must be in compliance with the special conditions listed in the award document as well as with all reporting requirements.
  • All recipients are required to submit the SF-425 (also known as the Federal Financial Report or FFR) for each award on a quarterly basis for the life of the grant. A copy of the FFR is located in Appendix II.
  • All recipients are required to submit performance/progress reports. Recipients should review their award conditions to determine the frequency.
  • Funds will not be disbursed if reports are delinquent.

information iconFinancial Management Tip

If the award date is after the start date of the award period, the first FFR submitted to DOJ should cover the time period from the actual start date of the award to the end of the calendar quarter.  Recipients will be required to submit FFRs for all due dates which have passed upon acceptance of the award. For example, an award's period of performance is October 1, 2017 to September 30, 2018. The recipient is awarded the grant on October 20, 2017. The first FFR covers the period from October 20, 2017 to December 31, 2017.