1. Ways to Avoid Returning Grant Funds to Your Grantor National Association of SARA Title III Program Officials (NASTTPO) Hazardous Materials Emergency Preparedness (HMEP) Grant

2. Agenda  Deobligating Grant Funds 101  Effects of Deobligating Grant Funds (Grantee/Grantor)  Trending Grantee Deobligations  Ways to Avoid Returning Funds to Your Grantor

3. Deobligating Grants Funds 101 Categories Categories of Grant Fund Deobligations 1. Deobligation of Obligated Funds Not Yet Expended 2. Deobligation of Unobligated Funds There are 2 categories of grant fund deobligations Grant funds returned which have been obligated, but for unforeseen circumstances, were unable to be expended. Factors Factors leading to deobligations of this nature are (but not limited to):  Project/Contract termination  Reduction in price of supply/equipment items  Correction of erroneous financial records  Cost underrun Grant funds returned which have NOT been obligated. Factors Factors leading to deobligations of this nature are (but not limited to):  Improper planning/forecasting  Emergency management activations  Turnover

4. The Effects of Deobligating Grant Funds Grantee How is the Grantee Impacted?  Possibility of decreased allocations in future funding opportunities high risk  Possibility of being considered as a program risk (‘high risk’ grantee)  Possibility of being awarded under special terms and/or conditions MAY When grant funds are returned by the grantee, it MAY have a direct impact on the grantee agency.

5. The Effects of Deobligating Grant Funds Grantor How is the Grantor Impacted? When grant funds are returned to the grantor, it has a direct impact on the grant program.  Scrutiny from the awarding agency – Why are deobligations so high?  Is staff providing sufficient technical assistance?  Are internal controls in place? Are they effective?  Scrutiny from Congress – Why are deobligations so high?  What is being done to decrease deobligations?  Is the program effective? Is there a need for the program as a whole?

6. Trending Grantee Deobligations 1014 Hazmat Grants Awards & De-Obligations FY2010 – FY2014 HMEP Grants to States, Territories and Native American Tribes Year Award AmountAmount DeobligatedDeobligation Rate FY10-1121,123,317.003,710,178.6117.56% FY11-1221,230,804.003,762,435.5817.72% FY12-1321,321,467.003,150,324.7214.78% FY13-1420,127,010.003,037,156.0015.09%

7. Ways to Avoid Returning Funds to the Grantor Here are a few helpful ways to avoid returning funds to the grantor  Proper planning/forecasting  Conduct a needs analysis early on  Leave sufficient time to create your budget  Lengthy approval processes  Continuously engage sub-grantees (especially those high in risk)  Contingency planning  Identify programmatic/administrative issues early on  Changes in timelines/milestones  Changes in key personnel (vacations/retirements)  Project/contract terminations  Rebudget if needed  Maintain open communication with your grant specialist  Request a performance extension

8. Questions/Comments/Concerns