NOT-OD-00-035: FY 2000 DELAYED OBLIGATIONS

Department of Health
and Human Services (HHS)
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FY 2000 DELAYED OBLIGATIONS
 
Release Date:  May 17, 2000

NOTICE:  OD-00-035

National Institutes of Health

The FY 2000 Appropriations Bill for the National Institutes of Health 
(NIH) contains a provision that will result in the modification of our 
grant award process for a portion of NIH awards.  While most of our 
appropriation is available for grant awards throughout the entire 
fiscal year, $3 billion of the appropriation is not available for award 
by NIH until September 29, 2000.  While appropriations language states 
that such funds delayed by this requirement will be available for 
obligation until October 15, 2000, NIH will issue delayed obligation 
awards on September 29, 2000.

Although some large equipment purchases or contracts can and may be 
delayed, most delayed obligations will occur in research grant 
programs, as they comprise the largest base of funding and have the 
highest degree of flexibility for the timing of disbursements.

NIH Institutes and Centers are employing a variety of plans to 
accomplish this goal, while minimizing the effects on the science and 
award process to the extent possible.   One plan is the issuance of 
partial awards to permit the initiation or continuation of research 
without interruption.  Projects that are included in the delayed 
obligation cohort will receive a Notice of Grant Award that will 
provide a prorata share of the total costs for the budget period.  On 
September 29, when the funds identified for obligation on that date 
become available, a revised Notice of Grant Award will be issued 
providing the balance of support through the end of the budget period.   

This award process does not change existing budget or project periods, 
nor will it change future year commitments.  In addition, it does not 
change existing application requirements for the Continuation of a 
Public Health Service Grant application (PHS 2590, rev. 4/98).  
Grantees are to prepare 2590 applications according to their 
appropriate award instructions.  However, this award process highlights 
existing requirements for 1) complete and accurate 2590s to be 
submitted in a timely manner, and 2) timely submission of Financial 
Status Reports (SF 269), as required. 

Inquiries regarding the calculation of the award or the subsequent 
revised award should be directed to the Grants Management Specialist 
identified on the Notice of Grant Award.
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