AFI Resource Guide: Returning Unused Federal AFI Grant Funds

Returning Unused Federal AFI Grant Funds

By the end of the 90-day closeout period following the end of the grant project period, grantees must return any unspent federal AFI grant funds. For more information about closeout, see AFI Grant Closeout Overview.

Returning unused federal funds involves the following steps:

STEP 1: Calculate Amount to Return

Complete final Federal Financial Report (SF-425) to calculate any unspent AFI grant funds to return. Determine the amount of federal grant funds you have deposited into the project’s reserve fund that remain unspent. This figure will be item 10c (Cash on Hand) on the final Federal Financial Report (SF-425), equal to 10a minus 10b.
For more information, see the AFI Federal Financial Report Overview.

STEP 2: Return Funds

Go to the Payment Management System (PMS) website for detailed instructions on how to complete the return of funds. NOTE: HHS prefers that grantees return funds electronically, using either ACH Direct Deposit or FedWire, instead of sending a check.

STEP 3: Submit Letter

• Prepare a letter addressed to your Grants Management Specialist documenting the return of funds: AFI has created a template (available for download below) that grantees may refer to in preparing this letter: Here are the key requirements for the letter:
  • Must be on official organizational letterhead.
  • Must reference the grant number.
  • Must include the amount of returned funds.
  • Must include a statement as to why the funds are being returned and describe the funds (e.g. AFI grant funds).
  • Must be signed by the Authorizing Official, as listed in Box 11 of the current Notice of the Award for this grant.
• Submit signed letter via GrantSolutions : The final, signed letter must be uploaded as a Grant Note to the referenced grant, category type “Final Closeout Documents.” If there are additional materials documenting the return of funds, such as a screenshot or email confirmation, those should be uploaded as part of the same Grant Note. Do NOT mail the letter. Keep the original for your files. Federal regulations require that grantee organizations maintain grant records for three years from the date of submission of the final Federal Financial Report (SF-425); your organization may have additional records management requirements.