1. INTRODUCTION (PHS GPS 9505)

The Public Health Service (PHS) is the principal health agency of the Federal Government and is one of five operating divisions of the Department of Health and Human Services (HHS). PHS, which is under the direction of the Assistant Secretary for Health, comprises the Office of the Assistant Secretary for Health (OASH) and eight major agencies: the Agency for Health Care Policy and Research (AHCPR), the Agency for Toxic Substances and Disease Registry (ATSDR), the Centers for Disease Control and Prevention (CDC), the Food and Drug Administration (FDA), the Health Resources and Services Administration (HRSA), the Indian Health Service (IHS), the National Institutes of Health (NIH), and the Substance Abuse and Mental Health Services Administration (SAMHSA). Descriptions of the primary areas of concern of these organizations is listed below.

• OASH provides executive leadership for all programs administered by PHS. Under the direction of the Assistant Secretary for Health, OASH is directly responsible to the Secretary of DHHS for the performance of PHS's mission to protect and advance the physical and mental health of the American people.
  
  

  Grant and cooperative agreement programs are administered in OASH by the Office of Disease Prevention and Health Promotion, the Office of Population Affairs, and the Office of Minority Health.
  
  

• AHCPR provides leadership in enhancing the quality, appropriateness, and effectiveness of health care services, and access to such services, through the establishment of a broad base of scientific research, promotion of improvements in clinical practice, and organization, financing, and delivery of health care services.
  
  
• ATSDR works closely with State, local, and Federal agencies to reduce or eliminate illness, disability, and death resulting from exposure of the public to toxic substances at spill and waste disposal sites. ATSDR assesses the extent of danger to the public health from the release of hazardous substances, conducts survey and screening programs to determine relationships between exposure and illness, and assists the Environmental Protection Agency in identifying hazardous waste substances to be regulated.
  
  
• CDC is responsible for the national program of prevention and control of communicable and vector-borne diseases and noninfectious conditions, improving laboratory conditions, and assuring safe and healthful working conditions for all working people.
  
  
• FDA, the Nation's first consumer protection agency, is concerned with research and regulation in such areas as food, human and veterinary drugs (including drugs for orphan product development), biological products, cosmetics, medical devices, radiation-emitting products and substances, poisons, pesticides, and food additives.
  
  
• HRSA provides leadership and direction to programs and activities designed to improve health services for all citizens and to develop health care systems that are adequately financed, comprehensive, interrelated, and responsive to the needs of individuals and families in all levels of society.
  
  
• IHS provides a comprehensive health services delivery system for American Indians and Alaska Natives, with opportunity for maximum tribal involvement in developing and managing programs to meet their health needs. The goal of IHS is to raise the health level of the Indian and Alaska Native people to the highest possible level by assisting Tribes in developing and evaluating their health programs and in coordinating their health planning, providing comprehensive health care services, and serving as the principal Federal advocate for Indians in the health field.
  
  
• NIH seeks to improve the Nation's health by increasing knowledge related to health and disease through the conduct and support of research, research training, and biomedical communications.
  
  
• SAMHSA provides leadership and national focus for Federal efforts to reduce national health problems resulting from the abuse of alcohol and other drugs and to foster improvements in the mental health of Americans through increased knowledge and the advancement of effective strategies for dealing with these health problems.

One of the important activities that PHS carries out in pursuit of its mission is awarding grants and cooperative agreements in support of efforts that help PHS and the recipients achieve mutually beneficial goals.

PHS administers a diverse array of assistance programs concerned with the whole spectrum of health concerns reflected in the missions of its several agencies as outlined above. The PHS agencies and offices are responsible for the award, administration, and monitoring of these programs under a variety of legislative authorities, governing regulations, policies, and procedures utilizing mechanisms ranging from discretionary project grant awards to block grants to States. They administer awards to a wide range of recipients, including State and local governments, educational institutions, hospitals, nonprofit organizations and, in certain programs, for-profit organizations.

The administration of these grant and cooperative agreement programs not only requires adherence to the program objectives for which the award was made but also requires that those objectives be accomplished in a businesslike manner. This is particularly important when the costs to recipients and the Federal Government are rising and Federal funds are limited. For these reasons, recipients of PHS funds must establish sound and effective business management systems to assure proper stewardship of funds and activities. Recipients are expected to exercise the same degree of prudence in the expenditure of Federal funds as they use in expending their own funds.

PHS views its relationship with recipients as a partnership, with the recipient providing the effort and expertise necessary to carry out approved activities and PHS providing financial assistance. In furtherance of its role in this relationship, PHS has established Grants Management Offices in each of its awarding offices. The awarding office Grants Management Officer (GMO) serves as the focal point for the business management aspects of grants administration, including receipt of required reports. The GMO is also the official authorized to make the decision on requests for any changes to the terms of an award. Questions concerning the interpretation of policies or the applicability of certain policies to particular programs should be directed to the designated PHS GMO.

This publication is intended to provide a common understanding of the framework for the administration of discretionary grants within which PHS and recipients must operate. Any questions relating to the subject matter in this document or PHS grant and cooperative agreement policies in general should be directed to the Grants Policy Branch, Office of the Assistant Secretary for Health, U.S. Public Health Service, Room 17A-45 Parklawn Building, 5600 Fishers Lane, Rockville, MD 20857, telephone: 301-443-1874.