Carryover Requirements

All unobligated funds that are available for carryover must be used to support the original approved goals and objectives of the program based on the Notice of Funding Opportunity (NOFO).

1. Balances 25% or Less
1. Recipients retain the authority (no prior approval required) to carryover a portion or all unobligated grant funds remaining at the end of a budget period for balances that are 25% or less than the annual amount awarded.
2. Please report carryover for 25% or less on the Federal Financial Report (FFR) under the “Remarks” section.

Note: Recipients may not carry over funds that are identified as restricted in the NoA’s Terms and Conditions.

2. Balances that Exceed 25%
1. Recipients must obtain prior approval from the DGM for use of all unobligated balances that exceed 25% of the annual amount awarded for the budget period. Recipient is required to submit the following items:
1. An official request on letterhead to use carryover funds, stating the amount and what the funds will be used for.
2. A statement as to the why the carryover funds were not spent during the budget period awarded.
3. A detailed line item budget and justification for the amount of carryover funds requested.
4. The official request should be signed by the Authorized Organizational Official (AOR) and the Finance Office, if applicable.
5. A FFR, certifying funds are available for use.

Once the carryover request is submitted via GrantSolutions, the amendment application is reviewed by the Grants Management Specialist (GMS) for:

1. allowable and reasonable costs and required documents;
2. a cost analysis on the line item carryover budget and justification; and,
3. review of the FFR to ensure funds requested are available.

The GMS will provide any comments or concerns with the line item budget and justification to the Program Official (PO).

The PO will identify whether the recipient has performance issues that may have caused a large unobligated balance. They will provide feedback to the GMS on any programmatic concerns they might have with the line items requested in the carryover request.

After the PO reviews the carryover request, they will recommend approval or disapproval of the recipient’s request. If recommending disapproval, they will provide a detailed explanation stating why the request was not approved.

Some common occurrences that will delay your carryover requests are:

1. Delinquent FFRs.
2. Incomplete/missing information in the carryover amendment.
3. Inadequate budget justifications.
4. Submitting carryover amendments outside of GrantSolutions (via e-mail or mail).

1. Find your grant on the My Grants List page.
2. Click the Manage Amendments link.
3. Click “New” at the bottom of the Management Amendments page.
4. Select the Carryover Amendment type, and click “Create Amendment”.
5. Upload the required documents (noted above) on the Amendment Application Control Checklist.
6. When finished, click “Verify Submission” to submit.
7. To complete, click “Finalize Submission”.

If no additional documentation is needed from the recipient, the DGM has 30 days to process the request and issue a NoA reflecting approval of the carryover funds.

1. What is the deadline to submit a carryover request?
   Carryover requests should be submitted after the previous budget period’s FFR is submitted, if needed.
2. If I request carryover of 30% of our annual awarded amount, do I have to justify the entire amount, or just that part over the 25% limit?
   For carryover requests of more than 25% of the annual awarded amount, you must submit a budget and justification for the full carryover amount.
3. Can funds that have been carried over be rebudgeted?
   Yes, carryover funds can be rebudgeted. Please ensure when rebudgeting, you work within the guidelines of the approved budget and program goals and objectives. If there are questions, please contact your GMS first.
4. What limitations, restrictions or policies govern how carryover funds can be rebudgeted? For example, if a recipient has $7,000 unobligated from the personnel line item of their budget, can they use that for another valid line item or must it be carried forward into the personnel line item again?
   IHS recipients can rebudget 25% or up to $250,000 (whichever is less) of the total direct cost for the budget period. It does not matter whether the total direct cost includes carryover funds or not. You cannot exceed the 25% or $250,000 (whichever is less) in rebudgeting line items in a budget period.