My Notice of Grant Award indicates that I will receive advance payments. Are there any limitations on the amount that I can request?

Unless your Notice of Grant Award includes a restriction on the amount that can be requested, there is no specific limitation on the amount you can request as an advance payment, either as a percentage of your award or otherwise. However, HHS grants administration regulations require that you minimize the time between requesting funds from the HHS Payment Management System and disbursing them for program purposes. In addition, States are subject to the Cash Management Improvement Act and its implementing regulation at 31 CFR Part 205.

Both the Payment Management System and ONC monitor your cash management practices to ensure that excess funds are not advanced. As a rule of thumb, excess funds generally are considered to be any amount that will not be disbursed within 3 days of receipt. ONC also monitors quarterly drawdowns against achievement of program milestones. If your cash management practices are deficient or amounts drawn down are inconsistent with expected performance, ONC may discontinue use of advance payments or take other appropriate enforcement actions.

Content last reviewed on November 14, 2013
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