- Assets for Independence (AFI)
- Guidance, Policies, and Procedures
- Q's and A's
Even as grantees are closing out at the end of their Assets for Independence (AFI) project periods, the Office of Community Services is there to help. Grantees can contact the AFI Resource Center at any time to talk about their closeout or how to request an extension. Here are a few questions grantees often have when wrapping up their AFI projects:
1. What is the last day an Individual Development Account (IDA) participant may make an asset purchase? Grantees may actively engage in project activities throughout the entire project period, plus the 90-day closeout process. By the end of the 90 days, grantees must conclude the entire process, including reporting, returning unspent Federal funds to the Administration for Children and Families (ACF), and completing all other financial transactions. So, grantees should make sure IDA participants finish asset purchases well before the 90-day period ends so they will have time for those other obligations.
2. When do all unspent Federal funds in a Project Reserve Fund have to be returned to ACF? No later than 90 days after the end of the project period.
3. What should grantees do with unspent non-Federal funds that remain after they return the Federal portion? Grantees may reallocate unspent non-Federal funds—according to any arrangements made with the sources of those funds—as soon as they return the corresponding unspent Federal funds to ACF (see the Nonfederal Cost Share section in Information Memorandum 2005-01).
4. If a grantee does not spend its entire Federal grant and needs to send back funds, should it also return a proportional amount of the administrative funding? No. Grantees are not required to remit any portion of the grant award allocated for administrative costs, non-administrative costs related to participant activities and services, or data and evaluation costs if they have spent the entire amounts allowed for those expenses.
5. Can grantees draw down funds after the 5th anniversary of the award date? No. Federal grants policy restricts grantees from drawing down grant funds starting on the 5th anniversary of the award date. Any funds a grantee has not drawn down by the 5th anniversary are automatically returned to the Federal Treasury.
6. If a grantee has obligated funds in the Project Reserve Fund for participants who are not going to be able to make asset purchases, how does it de-obligate those funds? Grantees may simply reallocate the funds to other participants or return them to their Project Reserve Funds.