(A) All obligations must occur on or between the beginning and ending dates of the grant project. This period of time is known as the period of performance. The period of performance is dictated by statute and will be indicated in the grant award notification (“GAN”). As a general rule, state-administered federal funds are available of obligation within the year that Congress appropriates the funds for. However, given the unique nature of educational institutions, for many federal education grants, the period of performance is 27 months. This maximum period includes a 15-month period of initial availability, plus a 12-month period of carryover. For direct grants, the period of performance is generally identified in the GAN.
(B) In the case of a state-administered grant, obligations under a grant may not be made until the grant funding period begins or all necessary materials are submitted to the granting agency, whichever is later. In the case of a direct grant, obligations may begin when the grant is approved, unless an agreement exists with the State Board of Accounts or the pass-through the entity to reimburse for pre-approval expenses.
(C) For both state-administered and direct grants, regardless of the period availability, the town shall liquidate all obligations incurred under the award not later than 90 days after the end of the funding period unless an extension is authorized. Any funds not obligated within the period of performance or liquidated within the appropriate timeframe are said to lapse and shall be returned to the awarding agency. Consequently, the town shall closely monitor grant spending throughout the grant cycle.
(Ord. 2023-14, passed 9-26-2023)