DEPARTMENT OF HEALTH & HUMAN SERVICES Administration for Community Living

 

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Program Instructions

AIDD-IM-19-01

Issued: February 4, 2019

TO:

Director, Designated State Agencies

Executive Directors, State Councils on Developmental Disabilities 

Executive Directors, Protection & Advocacy Systems

Chairpersons, State Councils on Developmental Disabilities 

Subject: 

Liquidation waiver process, eligibility, and instructions for unliquidated obligations at the end of 

the liquidation period for State Councils on Developmental Disabilities (DD Councils or SCDD) 

and Protection & Advocacy (P&A) grant awards

Legal and Related References: 

42 USC 15001 et seq. Developmental Disabilities Assistance and Bill of Rights Act of 2000

45 CFR 1326.2 Obligation of Funds

45 CFR 1326.3 Liquidation of Obligations

ACL issued Notice of Awards

Related Information Memorandum:

ADD-IM-19-01: Administrative Requirements of Federal Grant Funds pertaining to Obligation, 

Liquidation, and Date of Completion of Work Authorized

Effective Date for Liquidation Waiver Requests:

Federal Fiscal Year 2019

Background:

The Developmental Disabilities Assistance and Bill of Rights Act of 2000 (DD Act) allows State 

Councils on Developmental Disabilities (SCDDs) and the Protection & Advocacy for Individuals 

with Developmental Disabilities (PADD) an additional year after the fiscal year the grant is 

awarded to obligate and complete grant activities (42 USC 15022). A third year to liquidate and 

close out the grants are allowed by program regulations (45 CFR 1326.3). The liquidation period,

for DD Councils and P&A grants, is the timeframe when all obligations made within the project 

period must be liquidated. It is important to be aware, that all obligations and work authorized 

must be completed by September 30th of the additional Federal Fiscal Year (FFY) after the fiscal 

year grant was awarded. Although the Protection & Advocacy for Traumatic Brain Injury 

(PATBI) and Protection & Advocacy for Assistive Technology (PAAT) grant programs are 

authorized under different statutes, the Administration for Community Living (ACL) applies the 

obligation and liquidation time periods as defined in the DD Act and corresponding DD Act 

regulations for the P&A PADD grant program.
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A liquidation waiver may be issued for the liquidation of specific obligations; all other 

liquidations must be completed by the end of the FFY, as required by statute and programmatic 

regulations. Liquidation waivers are not designed to be annual requests, however should be 

utilized in the limited circumstances described below. Repeated annual requests for liquidation 

waivers could lead to denial of liquidation waiver requests. The DD Act program regulations (45 

CFR 1326.3) allow for liquidation waivers of federal funds at the discretion of the Secretary of 

the U.S. Department of Health & Human Services or his/her designee, in the following 

circumstances:

 When state/territory law impedes liquidation

 The amount of funds to be liquidated is in dispute

The Administration on Intellectual and Developmental Disabilities (AIDD) will also consider a 

liquidation waiver request when there is a Presidential declared disaster that prevents a grantee 

from liquidating funds.

AIDD notes that a state or territory having a different fiscal year than the FFY is not a valid 

request for a liquidation waiver.

Liquidation Waiver Conditions for Eligibility:

1. One of the below circumstances is met:

i. State law is impeding the liquidation of funds; or

ii. The amount of funds to be liquidated is in dispute; or

iii. A Presidential declared disaster prevents the grantee from meeting liquidation 

deadline, as approved by the Secretary of the U.S. Department of Health & 

Human Services or his/her designee.

2. Liquidation waivers will only be considered for grant awards in the final liquidation FFY.

3. Liquidation waivers will be for liquidation purposes only, and not for purposes of obligating 

funds.

4. All SF-270 and SF-425 financial reports must be current and submitted in the required 

format.

5. All State Plans/Statement of Goals and Priorities (SGP), amendments, and programmatic 

reports due before the liquidation waiver request deadline must be submitted in required 

reporting format.

6. If the SF-270s, SF-425s, State Plans/SGPs, amendments, and programmatic reports are not 

current, the liquidation waiver cannot be processed. Not having current programmatic and 

financial reports turned into ACL is grounds for denial.

Instructions for Submitting a Liquidation Waiver Request:

1. The request for a waiver must be received by the AIDD Project Officer no later than 60 

calendar days (August 1st) before the end of the FFY for which the request is made. If 60 

calendar days falls during a non-business day, the due date is the closest preceding business 

day by 11:59 P.M. eastern time.

a. Requests received past this deadline will not be considered.
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b. However, if there is a Presidential declared disaster that prevents a grantee from 

meeting the liquidation deadline, the grantee should immediately submit a request for 

a liquidation waiver to their AIDD Project Officer.

2. The waiver request must be an official letter on grantee letterhead, scanned, and sent via 

email to the AIDD Project Officer and ACL OGM Grants Management Specialist.

3. The waiver request must be signed by: 

a. Executive Director of the SCDD and Designated Stated Agency (DSA) for SCDDs; 

or 

b. Executive Director of the SCDD in cases that the SCDD is its own DSA; or 

c. Executive Director of the P&A grant program for P&As.

4. The waiver request must indicate that it has also been sent to: 

a. The Chair of DD Council (for DD Councils), or

b. The Chair of the P&A Governing Board (for P&As).

5. The waiver request must include:

a. The ACL grant number;

b. The original date of the obligation(s) of funds with supporting documentation 

attached to demonstrate date of obligation;

c. The total amount that needs to be liquidated;

d. Justification with documentation as to how:

i. State law is impeding the liquidation of funds; or

ii. The amount of funds to be liquidated is in dispute; or

iii. A Presidential declared disaster prevents the grantee from meeting liquidation 

deadline.

e. Expected date of liquidation.

Federal Review Process:

1. AIDD Project Officers will ensure that liquidation waiver requests are received no later than 

60 calendar days (August 1st) before the end of the FFY for which the request is made. If 60 

calendar days falls during a non-business day, the due date is the closest preceding business 

day by 11:59 P.M. eastern time.

a. Requests received past this deadline will not be considered.

b. However, if there is a Presidential declared disaster that prevents a grantee from 

meeting the liquidation deadline, the grantee should immediately submit a request for 

a liquidation waiver to their AIDD Project Officer.

2. AIDD Project Officers will acknowledge receipt of Liquidation Waiver request.

3. AIDD Project Officers will determine eligibility, based on the above requirements, and make 

recommendations to the Secretary of the U.S. Department of Health & Human Services or 

his/her designee per 45 CFR 1326.3.

4. AIDD Project Officers will notify grantees if the required documentation is incomplete.

5. Grantees will have a time limited opportunity to submit corrected and/or completed 

documents as determined by AIDD.

6. AIDD Project Officers will notify grantees:

a. If the liquidation waiver has been approved or denied;

b. If approved, the deadline for the approved liquidation waiver; and
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c. Conditions of the waiver, if any.

7. All other grant liquidations must occur by the liquidation deadline, which is the end of the

FFY (September 30th) two FFY years after the grant was awarded (45 CFR 1326.3(b)).

8. If the liquidation waiver is not approved, funds will not be available after September 30th, of

the FFY for liquidation and the grantee is responsible for meeting obligations.

ACL plans to conduct additional training in the near future. 

Sincerely,

Jennifer Johnson Tanielle Chandler

Deputy Director Director

Administration on Disabilities Office of Grants Management

cc: 

David Colangeli, Financial Management Specialist, Office of Grants Management

William Kim, Grants Management Officer, Office of Grants Management

Ophelia McLain, Director, Office of Program Support

Sara Newell-Perez, Project Officer, Office of Program Support 

Teresa Nguyen, Project Officer, Office of Program Support

Jimese Price, Financial Operations Specialist, Office of Grants Management

Wilma Roberts, Project Officer, Office of Program Support

Yi-Hsin Yan, Management and Program Analyst, Office of Grants Management

Melvenia Wright, Project Officer, Office of Program Support