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CED No-Cost Extension Request Process

Published: November 1, 2020
Audience:
Community Economic Development (CED)
Category:
Publications/Reports, Resource Guide

This page provides CED grantees with information on the no-cost extension (NCE) process and an overview of how to submit an NCE request if one is needed. This page also provides a downloadable template grantees may use to complete the cover letter that is required with the NCE request.

What is a No-cost Extension?

A no-cost extension (NCE) allows a grantee to extend the project period end date and budget period by up to 12-months for the sole purpose of completing grant activities. Keep in mind, NCE requests will not be approved for the sole purpose of using unobligated balances.

Note:

  • A grantee can spend their remaining grant funds during the extension period because the budget period is also extended.
  • However, the NCE does not authorize additional spending on any new activities beyond the purposes consistent with the project proposal.
  • Further, if the project period is five years, the budget period will not be extended and no funds can be spent during the extension period.
When should an NCE be Requested?
Grantees must submit an NCE request in GrantSolutions at least 45-calendar days prior to the end of the project period.
What should I consider before submitting an NCE Request?

If a grantee believes the proposed grant activities will not be completed during their project period, the grantee should contact their Office of Community Services (OCS) Program Specialist to discuss whether an NCE is needed. The grantee should be prepared to discuss the following:

  • The grant activities, goals, and objectives in their approved project proposal that have not been completed during the original project period and why;
  • There is a reasonable expectation that extending the project period will lead to project completion; and
  • That additional funding is not required to complete the unmet project goals.

Note: A grantee must initiate this discussion in advance of the 45-calendar day submission deadline to allow for time to discuss and plan for submitting the request.

What do I include in my NCE Request?
  • Cover letter with signature of the authorizing official. The letter must include:
    • Grant Number
    • Remaining grant balance
    • Requested revised expiration date (recommended one year)
    • Supporting reasons for request
    • Description of the approved grant activities that remain unmet as they relate to approved goals and objectives
    • The proposed project activities planned and currently unmet
    • Indication that the funds will be used to complete activities which were approved, but not completed by the end of the project period. Note: The NCE allows for time to complete the project and meet objectives and goals, this includes drawing down the necessary funds.
  • SF-424 cover sheet signed by the authorized official
  • SF-424A – Budget Information and a Budget Narrative: There is a column for the current budget levels for each category that is on your Notice of Grant Award (NOA). Note: If you are submitting a budget modification, this is where you would reflect budget changes (not applicable if submitting only an NCE). 

A downloadable template that grantees may use to complete the cover letter is available at the bottom of this page.

How is an NCE Requested?

To request an NCE, a grantee is required to prepare and submit a formal NCE Request through the Manage Amendment section in GrantSolutions at least 45-calendar days prior to the end of the project period.

For instructions on how to submit an amendment in GrantSolutions, refer to the following resources:

Who Approves an NCE Request?

The assigned OCS Program Specialist and Office of Grants Management (OGM) Grants Management Specialist review the NCE Request submitted in GrantSolutions to approve or deny the request.

If the NCE is approved, new Notice of Grant Award (NOA) is generated by OGM and the grantee will be notified via GrantSolutions. Grantees can review GrantSolutions or follow-up with their Program Specialist to check in on the status of their NCE Request.

Note: If the project period was for five years, the budget period will not be extended. No funds can be obligated during the extension period.

What if my NCE request is not approved?
If the NCE is denied, the assigned OGS Grants Management Specialist and the OCS Program Specialist will contact the grantee to discuss how to move forward.
Last Reviewed: November 5, 2020