COVID-19 Revisions to Flexibilities for Federal Grants
Since March, OMB has issued four memos outlining administrative and fiscal flexibilities for federal grants management impacted by the COVID-19 pandemic:
- M-20-11 (Issued March 9 – Expired June 16)
- M-20-17 (Issued March 19 – Expired June 16)
- M-20-20 (Issued April 9 – Expired June 16)
- M-20-26 (Issued June 18 - Expires September 30)
Unfortunately, the federal government is expiring the flexibilities that were implemented starting in March.
The most significant change is related to the flexibilities to charge salaries and benefits for employees that were unable to work on grant activities (idle time). In M-20-26, OMB included language which requires recipients to “exhaust other available funding sources” before charging salaries and benefits for employees unable to perform their duties due to COVID-19. All federal agencies have adopted these limitations.
Unfortunately, the federal government has not provided detailed guidance for this provision. Due to the lack of guidance on what is defined by “exhaust other available funding sources” and how to provide proof of this requirement, our campus can no longer allow idle time to be charged to federal awards after June 17, 2020. Many institutions of higher education have adopted similar internal policies prohibiting the charging of idle time to federal awards after the expiration of M-20-20 on June 16. Idle time charges from March 19 through June 16 are allowable, as long as the charges conform to the University’s COVID-19 policy.
The Office of Grants and Contracts (OGC) will be working directly with departments that have charged idle time on or after June 17 to federally funded awards.
As other flexibilities also expired, below is a table that identifies and describes the flexibilities applicable to administrative units, the source guidance, and the expiration date for each flexibility.
Flexibility | Guidance | Expiration | Description |
Pre-Award Spending | M-20-11 | June 16, 2020 | Awarding agencies may allow necessary pre-award costs for all federal awards |
No-cost extension on expiring awards | M-20-11; M-20-17 | June 16, 2020 | Awarding agencies may extend awards which are active as of March 31,2020 and scheduled to expire prior or up to December 31, 2020 an automatic no-cost extension |
Abbreviated non-competitive continuation requests | M-20-11; M-20-17 | June 16, 2020 | Awarding agencies may accept a brief statement for non-competitive continuation requests for scheduled requests between April 1, 20202 and December 31, 2020. Agencies were requested to post their specific instructions on their website. |
Expenditure of Award Funds for Salaries and Other Project Activities | M-20-11; M-20-17; M-20-26 | June 16, 2020* | Allows for idle time charges consistent with University policy. M-20-26 extends this flexibility until September 30, 2020; however, language was added that recipients must "exhaust other available funding sources" before charging idle time. *The University of Colorado prohibits the charging of idle time after June 16, 2020. |
Waivers from Prior Approval Requirements | M-20-11; M-20-17 | June 16, 2020 | Allows for federal agencies to waive some prior approval requirements |
Exemption of certain procurement requirements | M-20-11; M-20-17 | June 16, 2020 | Allows agencies to waive requirements for geographical preferences and contracting with small and minority businesses, women's business enterprises, and labor surplus are firms |
Extension of financial and other reporting | M-20-11; M-20-17 | June 16, 2020 | Federal agencies may delay the submission of financial and other reports up to three months beyond the normal due date |
Flexibility with application deadlines | M-20-17 | June 16, 2020 | Agencies may provide flexibility with the regard to submission of competing applications and unsolicited applications |
Allowability of costs not normally chargeable to awards | M-20-17 | June 16, 2020 | Agencies may allow recipients to incur costs related to the cancellation of events, travel, or other activities necessary and reasonable for the project |
Extension of closeout | M-20-17 | June 16, 2020 | Agencies may allow recipients to delay submission of any pending financial, performance and other reports required for closeout up to one year |
Donations of medical equipment and supplies for COVID-19 response | M-20-26 | 16-Jun-20 | Agencies may allow recipients to donate medical equipment purchased under a federal award to hospitals, medical centers, and other local entities serving the public for COVID-19 response |
Please note, while some flexibilities may be extended through December 2020, recipients must have submitted their request to the federal awarding agency or pass-through entity by June 16. Most federal agencies have developed a COVID-19 grants management policy page explaining each agency’s implementation of the flexibilities. The NIH’s COVID-19 information page provides the latest guidance and FAQs for award proposals and grant administration.
EXCERPT from M-20-26 – Allowability of Salaries and Other Project Activities
- Allowability of Salaries and Other Project Activities. (2 CFR § 200.403, 2 CFR § 200.404, 2 CFR § 200.405)