AFI Guidance Drawing Down Federal Funds Awarded Before July 1, 2007
Drawing Down Federal Funds Awarded Before July 1, 2007
Grants awarded before July 1, 2007 have numbers 0001-0467. For grants with numbers 0468 and above, see the instructions for awards made on or after July 1, 2007.
Grantees that received AFI awards before July 1, 2007, can access their Federal funds with a simple, two-part process.
- First, a grantee must set up its direct deposit arrangement using the Federal Standard Form 1199A so the HHS Division of Payment Management (DPM) can deposit grant funds into the grantee's bank or credit union account.
- Second, the grantee must ask the Office of Grants Management (OGM) to release the funds and transfer them to the grantee's bank account.
Part One: Set Up the Electronic Funds Transfer
To establish the electronic funds transfer process, the grantee must take the following steps to complete the Standard Form 1199A:
- Download a copy of Standard Form 1199A.
- Follow the special, step-by-step instructions for completing the form provided on this Web site. Do not use the instructions on the form itself. Find your Grants Management Specialist.
- Submit the original, signed form to OGM, addressed to the attention of the appropriate Grants Management Specialist. Submit a copy to the Office of Community Services (OCS) as well.
After receiving the completed Standard Form 1199A, OGM will verify that the information on it is consistent with details provided on the grantee’s funding application. The Grants Management Specialist will contact the grantee if any issues arise. When the 1199A is in order, OGM will transmit the form to DPM, which will enable the electronic funds transfer. HHS will then wire the grant funds to the grantee's Project Reserve Fund.
Note: If the name of the financial institution listed on the Standard Form 1199A differs from the name listed on the application, the Grants Management Specialist will contact the grantee for clarification. The grantee will be advised to submit a letter indicating it has changed its financial institution.
Only grantees who received awards before July 1, 2007, must follow this step.
Part Two: Request the Grant Funds
After setting up the electronic funds transfer process, the grantee must ask HHS to transfer the funds into its Project Reserve Fund.
Remember, the amount of Federal grant funds released cannot exceed the amount of non-Federal cash contributions deposited in the Project Reserve Fund.
The grantee, OGM, and DPM each play important roles in this process:
- Deposit non-Federal cash funds into a Project Reserve Fund account. The grantee must deposit at least some of the non-Federal cash into the Project Reserve Fund to draw down any Federal AFI grant funds. Grantees can draw down Federal funds incrementally as they deposit non-Federal cash.
- Submit two related letters to OGM, with copies to OCS.
- Grantee drawdown request letter: An official request from the grantee asking that HHS release the grant funds for deposit into the grantee’s bank account. Use this template to put together a drawdown request.
- Financial institution account verification letter: A letter from the grantee's financial institution verifying the grantee has the non-Federal cash on deposit. The letter must be signed by a financial institution official. Use this template to get started on a financial institution account verification letter.
Both letters must include the following information:
- Grantee name
- Grant number
- Name of bank or credit union and account number
After receiving the two letters from the grantee, the Grants Management Specialist will verify that the financial institution and account number are the same as those listed on the approved Standard Form 1199A, and that the grantee has submitted all required fiscal and narrative reports. OGM will not approve the drawdown of funds until all required reports have been received. OGM will contact the grantee if any reports or other required information is missing.
When the grantee's request and paperwork are in order, the Grants Management Specialist will send a "Release of Funds" memo to DPM authorizing it to release the requested funds to the grantee's bank or credit union account.
DPM will deposit the requested amount of Federal funds into the grantee’s Project Reserve Fund after receiving DPM's memo. The funds are electronically wired and will usually appear in 48–72 hours.
Special Note: Some credit unions and community development financial institutions are AFI grantees that have their own Project Reserve Funds on deposit. Such grantees may submit one letter that both requests the grant funds and verifies the non-Federal funds are on deposit. The letter must be signed by both the AFI project authorizing official (signature on the application) and the authorized financial official (not a clerk or teller) of the institution. Both these contacts should be listed on the NoA unless they have changed.