Notice Number: NOT-OD-13-111
Update: The following update relating to this announcement has been issued:
Release Date: September 3, 2013
National Institutes of Health (NIH)
The purpose of this Guide Notice is to alert NIH grantees that in accordance with U.S. Department of Health and Human Services (HHS) directive to Agencies, NIH will transition payment for grant awards to Payment Management System (PMS) subaccounts by the end of FY2014.
This Guide Notice applies to Individual Fellowships at Foreign and Federal Sponsoring Institutions and Awards to Federal Institutions. NIH announced the transition for awards to domestic institutions under NOT-OD-13-112. NIH transitioned the payment of grant awards to foreign institutions to PMS subaccounts throughout FY 2013; see NOT-OD-12-139 and NOT-OD-13-019.
Currently, the NIH Office of Financial Management (OFM) pays awards to Federal institutions and Individual Fellowships at Foreign and Federal Sponsoring Institutions via U.S. Treasury checks or wire transfers. NIH is transitioning all payments to the PMS, which is a centralized grants payment and cash management system operated by the HHS, Division of Payment Management (DPM).
Between October 1, 2013 and September 30, 2014, NIH will transition payment for all new and continuing awards to Individual Fellowships at Foreign and Federal Sponsoring Institutions and Awards to Federal Institutions from OFM to PMS subaccounts (B subaccounts). For these types of awards, PMS will establish subaccounts for each NIH award made on or after October 1, 2013.
For awards to Individual Fellowships at Foreign and Federal Sponsoring Institutions and Awards to Federal Institutions with a non-competing continuation year of funding in fiscal year (FY) 2014 (October 1, 2013 – September 30, 2014), NIH will use a technical process to shift the funding from OFM to a PMS B subaccount by issuing all FY 2014 non-competing continuation awards as Type 4 awards (funded extension awards). This means that all Type 5 awards (non-competing continuation awards) and Type 8 awards (non-competing continuation awards with a change of awarding Institute or Center) for these types of awards will be issued as Type 4s during the transition period. This enables NIH to separately track obligations and payments for grants which span the Federal FYs 2013 and 2014. In addition to changing the record Type and the document number for the FY 2014 award, NIH will change the project period end date of the FY 2013 award when the FY 2014 award is issued. The project period end date will be changed to the budget period end date. This effectively breaks the single competitive segment in to two shorter "competitive segments." The change will be reflected in the eRA Commons; however, NIH will not issue a revised Notice of Award (NoA) for the FY 2013 award. Therefore, the FY 2013 award becomes the final year of the first "competitive segment" and requires final Federal Financial Report (FFR) expenditure data, when such a report is applicable.
NIH will make this transition as seamless as possible for grantees and NIH staff. Records for non-competing continuation progress reports (Type 5), or in rare instances Type 8s, will be converted to Type 4s. The conversion will be processed internally by NIH. There will be no change to the due dates, submission, or review of progress reports for these types of awards for FY 2014.
For Individual Fellowships at Sponsoring Foreign Institutions the institutional allowance will still be issued as a separate award to the sponsoring institution.
For Individual Fellowships at Sponsoring Federal Institutions, the institutional allowance will be awarded along with the stipend and administered through PMS. The awarding IC will provide guidance on the disbursement of the Institutional Allowance as part of the award terms.
Please be aware that no supplements can be issued for these types of awards until the initial FY 2014 award has been issued.
Please see below for procedural changes in carryover of funds for non-competing continuation awards issued in FY 2014 when carryover is applicable.
Change in Process to Carryover Funds for Non-Competing Continuation Awards during FY 2014 (October 1, 2013 – September 30, 2014)- Awards to Federal Institutions Only.
Section III of the NoA for all grants includes a term and condition that states whether the grantee has automatic carryover authority or if carryover of an unobligated balance requires prior approval by the NIH awarding IC.
The change in method of payment from the old accounting system to PMS, affects carryover for these awards regardless of the carryover authority noted in the NoA. Therefore, carryover of an unobligated balance from an award issued prior to October 1, 2013, to an award issued after that date must be done with the assistance of NIH.
In order to carry over an unobligated balance from an award issued to a Federal institution prior to October 1, 2013, to an award issued after that date, the grantee must return the unobligated balance to the NIH at the time the annual FFR is submitted. The final FFR should include a statement indicating that the funds are being returned and if the grantee is requesting carryover. Unobligated balances must be returned by check to the attention of Alan Whatley, Office of Financial Management (OFM), Government Accounting Branch (see address below). Funds returned must reference the grant number and the grantee organization.
Checks remitting unobligated balances of funds issued prior October 1, 2013 (FY2014) should be sent to:
National Institutes of Health
Office of Financial Management
Government Accounting Branch
Attention: Alan Whatley
2115 East Jefferson Street, Suite 4B432
Rockville, Maryland 20852 U.S.A.
If the award was issued with automatic carryover authority, OFM will automatically authorize the carryover in PMS equal to the amount returned by the grantee*. If the award was not issued with automatic carryover authority, the unobligated balance must be returned to OFM at the time the annual FFR is submitted and the grantee may submit a carryover request to the awarding IC. If the request is approved, a revised NoA reflecting the approved carryover amount will be issued and the authorized amount will be reflected in the PMS. Failure to return unobligated balances in a timely manner may affect future funding.
*In accordance with existing policy, the GMO will review unobligated balances in excess of 25 percent of the total authorized amount for the budget period and may request additional information from the grantee. If the GMO determines that some or all of the unobligated funds are not necessary to complete the project, the GMO may restrict the grantee’s authority to automatically carry over unobligated balances in the future, use the balance to reduce or offset NIH funding for a subsequent budget period, or use a combination of these actions. The GMO’s decision about the disposition of the reported unobligated balance will be reflected in the terms and conditions of the NoA.
Change in Annual Federal Financial Report (FFR) Requirement for Foreign Awards under Streamlined Non-Competing Award Process issued after October 1, 2012
Currently, Federal grantees must report expenditure data annually via electronic submission of an FFR through the eRA Commons, even if the award was issued under the Streamlined Non-Competing Award Process (SNAP).
For all initial SNAP awards issued to Federal institutions after October 1, 2013, foreign grantees will not be required to report expenditure data annually via the FFR. NIH will monitor the financial aspects of these grants by using transaction information in PMS. For these awards, FFR expenditure data is required only at the end of a competitive segment. FFR expenditure data must be submitted within 90 days after the end of the competitive segment and must report on the cumulative support awarded for the entire segment. An FFR must be submitted during this time frame whether or not a competing continuation award is made. If no further award is made, the report will serve as the final FFR. This change does not affect awards issued with prior fiscal year funds that are revised after October 1, 2013.
Federal awards that are not issued under SNAP will still be required to report FFR expenditure data annually via the eRA Commons.
Process for PMS Registration for Individuals and Grantees to be Paid through the Payment Management System
All grantees and Individuals supported by an Individual Fellowship at Foreign or Federal sponsoring institutions must register in PMS by submitting the required forms to PMS after an award is issued. The required forms are: 1) one DPM PMS System Access Form for each PMS user and 2) one Direct Deposit Sign-Up Form (SF-1199A) for each organization required if the organization does not have a PMS account for HHS awards or if the organization has a PMS account for HHS awards, but there will a change the banking information.
PMS will send a welcome package if the grantee has no current PMS account with other U.S. Agencies. However, the forms can be downloaded and completed prior to receiving the package. The forms must not be submitted to PMS until the FY 2014 NoA has been issued.
To complete the SF-1199A:
Section one: must be completed by the grantee. Grantee should use the Individual's/Organization’s Name and Employee Identification Number (EIN) as reflected on the NoA.
Section two: Government Agency Name is DHHS/DPM and the address is
Post Office Box 6021, Rockville, MD 20852
Section three: completed by financial institution
To complete the DPM PMS System Access Form:
Item one: the grantee must use the Individual's/Organization's Name as reflected on NoA.
Item two: If the grantee does not have an established PMS Payee Identification Number (PIN), enter the EIN from the NoA.
Item three: provide information on the individual that requires access to PMS.
Item four: the grantee should select “Payment Requests and Inquiries.”
Item five: signature of authorized representative
Completed forms with original signatures must be returned to PMS:
U. S. Department of Health & Human Services
PSC/FMS/Division of Payment Management
7700 Wisconsin Avenue – Suite 10104
Bethesda, Maryland 20814
U.S. Department of Health & Human Services
PSC/FMS/Division of Payment Management
Post Office Box 6021
Rockville, Maryland 20852
PMS will review the PMS System Access form and will issue a Payee Account Number (PAN), Payee Identification Number (PIN) and User Name for the individual and Temporary Password. NOTE: Temporary Passwords are alpha numeric and case sensitive and must be changed once the system is accessed.
The grantee must request funds electronically through PMS; http://www.dpm.psc.gov.
Funds are delivered via Electronic Funds Transfer (EFT).
Payment can be requested as often as needed, but must accommodate only immediate needs.
Change in Processing of Funds Requested for Awards in PMS Subaccounts that are 90 days Beyond the Project Period End Date
When a federal grant expires, recipients can only use remaining grant funds to liquidate expenses incurred during the performance period. Federal grants management policy specifies that within 90 days of the project period end date the grant recipient must submit its final financial report for the grant, unless the awarding agency extends the project period end date or the reporting period due date. See NIH Grants Policy Statement Section 8.6 for more information on the grantee responsibilities for timely closeout is a grantee responsibility.
In an effort to promote more timely financial closeout of awards, PMS will now hold payment requests for funds in subaccounts for awards that are 90 days or more beyond the project period end date. Funds requests for these awards will not be processed unless, and until, the awarding Agency has approved the payment request.
Change in Processing of Form 1099 for Fellows Training at Federal or Foreign Laboratories
For Fellowships awarded on or after October 1, 2013, to individuals training training at a Federal or foreign laboratories PMS will issue Form 1099 and receiving a stipend check from the NIH. For Fellowships awarded prior to October 1, 2013, to individuals training training at a Federal or foreign laboratories NIH will issue Form 1099 and receiving a stipend check from the NIH.
Please direct all inquiries to:
Division of Grants Policy
Office of Policy for Extramural Research Administration
Office of Extramural Research
National Institutes of Health
6705 Rockledge Drive, Suite 350
Bethesda, MD 20892