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2.2 Conditions of Award and Acceptance

Federal Obligation Process

When you are approved for an award, the Federal agency that is granting you the award will reserve (set aside) the amount of the money that they are giving you and record it in their books. Any funds or monies that are set-aside funds are reserved against the award until you and the subrecipient spend all of these funds.

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

Funding process:

  • On the award date, you are notified of award approval and obligation, as described previously.
  • Once you accept the award, in order for you to receive payment of funds obligated in OJP’s accounting system, you must be in compliance with the special conditions listed in the award document. You also must be in compliance 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.
  • For discretionary awards, performance and progress reports are also required on a semiannual basis.
  • 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, the first FFR submitted to OJP should cover the time period from the actual award date to the end of the calendar quarter in which the award was made.