15h. Management of Grant Funds
15h.1 Award Acceptance
Upon receipt of GrantSolutions notification, the authorized user must access the system and accept the award no later than 30 days after receipt of notification.
The authorized user must be the individual that has the authority to execute a legal document on behalf of the Owner. If the management agent has such authority and provides evidence to HUD, then that individual may serve as the authorized user and may accept the award on behalf of the Owner.
IMPORTANT HIGHLIGHT: Each Grant has a unique User ID and Password for the authorized user. Please be sure that when you access the system to accept the award that the correct User ID and Password are being entered. If a recipient fails to accept the award within the desire timeframe, HUD may withdraw the offer.
15h.2 Availability of Funds
No grant funds will be made available until the authorized user has accepted and submitted the Notice of Award (NOA) via GrantSolutions. Funding should be available for drawdown within 2-3 weeks from date of acceptance.
Reimbursement is the preferred method under this program. Grantee shall enter reimbursement requests on a monthly or quarterly basis through the eLOCCS system.
In accordance with the Prompt Payment Act, HUD must make payment within (30) calendar days after receipt of the reimbursement request through eLOCCS, unless HUD reasonably believes the request to be improper. For the latest guidance regarding payment methods, please see 2 CFR 200.305.
Grantee shall minimize the time elapsing between the transfer of funds from HUD and the disbursement of funds for program purposes. The maximum time between HUD transfer of funds and grantee disbursement of funds shall not exceed seven (7) calendar days after receipt of funds.
Additional information regarding the Prompt Payment Act can be found at https://fiscal.treasury.gov/prompt-payment/
Timely Vouchering. HUD requires that grantees use the eLOCCS system to draw down funds on a monthly (preferred) or quarterly (mandatory) basis. Each draw down from eLOCCS must be used to cover expenses through the end of the previous month. Failure to do this may impact future extension funding amounts. Grantees must drawdown funds based on the requirements established. Timely drawdowns help ensure program compliance.
Supporting Documentation Requirements. Grantees are required to maintain detailed expense documentation in their files. All vouchers must be supported by basic payment documents, either hard copy or soft copy source records, which include purchase orders, contracts, receiving reports, invoices, bills, statements of accounts, etc., showing sufficient information to adequately account for the disbursements. HUD will randomly review monthly/quarterly voucher to ensure compliance and reserve the right to request documentation as deemed necessary. Please do not submit supporting documents to HUD unless requested.
Voucher review. The examination of the voucher shall be done to ensure:
- The payment is permitted by law and complies with the terms of the applicable obligating document (NOA);
- The required administrative authorizations and approvals are obtained;
- The payment is supported by basic payment request documents and/or other acceptable forms of support;
- The amount of the payment and the name of the payee are correct;
- The goods received or the service performed complies with the agreement;
- The quantities, prices, and calculations are accurate;
- All cash, trade, quantity, or other discounts are taken;
- All applicable deductions are made and credited to the proper account in the correct amount;
- Appropriated funds are available for the time period, purpose, and amount of the proposed payment;
- Controls are in place to prevent duplicate payments
End of Fiscal Year Closeout. HUD’s accounting systems are typically closed the first two to three week of October. During this time, no funds may be disbursed. To avoid any reimbursement delays, grantees are encouraged to submit vouchers no later than the end of the first week of September. This will allow for sufficient time for the Grant Specialists to process any manual vouchers or for the system to approve any automatic payments. If vouchers are not paid prior to the annual cut-off date, grantees must wait until the systems reopen before any payments can be made. In August, your Grant Specialist will inform you of the exact cut-off date for CY 2018.
15h.5 Improper Payments Elimination and Recovery Improvement Act of 2012(IPERIA).
The Improper Payments Elimination and Recovery Improvement Act of 2012 requires that each agency review prepayment and pre-award procedures and ensure that a thorough review of available databases with relevant information on eligibility occurs to determine program or award eligibility and prevent improper payments before the release of any Federal funds. This Act also establishes a Do Not Pay Initiative that requires all awards of Federal funds to be prescreened prior to award, as well as during the pre-payment and post-payment processes in order to prevent improper payments.
15h.6 Termination of Award.
HUD may terminate an award if a grant has been inactive for more than 180 days and the grantee fails to provide a justification and has not complied with HUD’s request to satisfy the terms of the agreement.
If an owner’s eligibility status changes during the course of a funding period, making the owner ineligible to receive SC funding, HUD has the right to terminate this award. A change in eligibility status may be due to prepayment of the mortgage, sale of the property or opting out of an assistance contract.
HUD staff must notify the grantee of HUD’s intention to terminate the grant.
15h.7 Closeout of Award
HUD staff must conduct the necessary reviews to ascertain that the statutory, regulatory and programmatic requirements have been met prior to closing out a grant. Closeout is subject to any of the following criteria:
- The grantee did not initiate a request for an extension in the prior performance period
- Grantee no longer satisfies the eligibility requirements
- Grantee fails to comply with reporting requirements
- Non-responsiveness; and/or
- Service Coordinator position has been absorbed into budget