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Recipients are responsible for managing the day-to-day operations of their grant. To fulfill their role as a steward of federal funds, NIH awarding offices monitor grants to identify potential problems and areas where technical assistance might be necessary. This active monitoring is accomplished through review of reports and correspondence from the recipient, site visits, and other information available to NIH.
Payment
The Department of Health and Human Services grant payments may be made by one of several advance payment methods, including SMARTLINK II/ACH, or cash request, or by cash request on a reimbursement basis, as specified in the Notice of Award (NoA). Additional information on payment methods is in the NIH Grants Policy Statement.
Monitoring Expenditures
Applicant organizations are required to have financial systems in place to monitor their grant expenditures. NIH monitors recipient expenditures under individual grants within each budget period and within the overall project period. The funding that NIH provides for each budget period is based on an assessment of the effort to be performed during that period and the recipient's associated budget, including the availability of "un-obligated" balances. Although NIH allows its recipients flexibility with respect to re-budgeting (see Administrative Requirements—Changes in Project and Budget in the NIH Grants Policy Statement), NIH expects the rate and types of expenditures to be consistent with the approved project and budget and may question or restrict expenditures that appear inconsistent with these expectations.
The Grants Management Specialist (GMS) reviews recipient cash expenditure reports to determine whether they indicate a pattern of accelerated or delayed expenditures. Expenditure patterns are of particular concern because they may indicate a deficiency in the recipient's financial management system or internal controls. Accelerated or delayed expenditures may result in a recipient's inability to complete the approved project within the approved budget and period of performance. In these situations, the GMS may seek additional information from the recipient and may make any necessary and appropriate actions.
Prior Approval Requests
All requests that require prior NIH approval must be made in writing (e-mail is acceptable) to the Grants Management Officer at least 30 days before the proposed change. The request must be endorsed by the Authorized Organization Representative. Failure to obtain required prior approval from the appropriate NIH awarding office may result in the disallowance of costs, termination of the award, or other enforcement action within the NIH's authority.