Note 13. Accrued Grant Liability

Grant advances are liquidated upon the grantees’ reporting of expenditures on the quarterly Federal Cash Transaction Report (SF-272). In many cases, the HHS receives these reports several months after the grantees incur the expense. To avoid understating grant expenses, the HHS developed departmental procedures to estimate and accrue amounts due grantees for their unreported expenses through September 30.

At September 30, the OPDIVs record the liability based on the estimated accrual for unreported grantees’ expenses. If the amount of the collective OPDIV advances outstanding exceeds the amount of the collective estimated expenses, HHS reports the difference as "Advances to Grantees." If the amount of the estimated expenses exceeds the amount of the collective advances outstanding, the HHS reports the difference as “Accrued Grant Liability.”

The HHS’ net grant advances (liability) at September 30, 2007 and 2006, are summarized below:

Report Date: November 15, 2007

AFR Section II Links:

• Message from the Chief Financial Officer
• Office of Inspector General Transmittal
• Independent Auditor's Reports
• Financial Statements and Notes
• Required Supplementary Stewardship Information
• Required Supplementary Information