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Recipients are responsible for managing the day-to-day operations of their grant. To fulfill their role as a steward of federal funds, NIH awarding offices monitor grants to identify potential problems and areas where technical assistance might be necessary. This active monitoring is accomplished through review of reports and correspondence from the recipient, site visits, and other information available to NIH.
Payment
The Department of Health and Human Services grant payments may be made by one of several advance payment methods, including SMARTLINK II/ACH, or cash request, or by cash request on a reimbursement basis, as specified in the Notice of Award (NoA). Additional information on payment methods is in the NIH Grants Policy Statement.
Monitoring Expenditures
Applicant organizations are required to have financial systems in place to monitor their grant expenditures. NIH monitors recipient expenditures under individual grants within each budget period and within the overall project period. The funding that NIH provides for each budget period is based on an assessment of the effort to be performed during that period and the recipient's associated budget, including the availability of unobligated balances. Although NIH allows its recipients flexibility with respect to re-budgeting, NIH expects the rate and types of expenditures to be consistent with the approved project and budget and may question or restrict expenditures that appear inconsistent with these expectations.
The Grants Management Specialist (GMS) reviews recipient cash expenditure reports to determine whether they indicate a pattern of accelerated or delayed expenditures. Expenditure patterns are of particular concern because they may indicate a deficiency in the recipient's financial management system or internal controls. Accelerated or delayed expenditures may result in a recipient's inability to complete the approved project within the approved budget and period of performance. In these situations, the GMS may seek additional information from the recipient and may make any necessary and appropriate actions.
Rebudgeting
The recipient institution is permitted to rebudget between budget categories within the total costs awarded to meet unanticipated requirements, provided the expenditures:
- Are within the scope of the approved project
- Enhance and do not impede the successful continuation or completion of the project
- Are allowable under governing regulations and policies
Some rebudgeting actions may require specific prior approval. Administrative Requirements—Changes in Project and Budget in the Grants Policy Statement and the terms of the award should be consulted regarding current policies on rebudgeting and prior approval authority. The grants management specialist assigned to the project may also be contacted for advice.
Prior Approval Requests
In some cases, NIH prior approval is required before a recipient makes certain budget modifications or undertakes particular activities. The NIH Grants Policy Statement provides details for requests that require prior approval.
Effective February 21, 2026, prior approval requests must be submitted in the eRA Commons Prior Approval Module for all grant and cooperative agreement awards. (NOT-OD-26-026)