Update on DHHS Letter of Credit Subaccount Transition

As last reported in the May Controller's Office Newsletter, all Department of Health and Human Services (DHHS) agencies have been switching the payment mechanism of their Letter of Credit (LOC) awards from pooled (G) accounts to subaccounts (P). The end of the final transition year is quickly approaching; changes should be completed by the end of this federal fiscal year (September 30, 2016).

This process only impacts those awards where UCSF is receiving new monies directly from a federal agency. Key follow-up items for the remaining few awards:

  • If you received a No-Cost Extension (NCE) during the current federal fiscal year, your award will not be transitioned to the new subaccount payment mechanism until the new money is awarded. Alert us if your NCE ended early so that we can set-up a new award to handle the transition correctly and timely.
  • All awards that are considered multi-year funded awards will not transition until the next segment. At UCSF, the most typical grant mechanism for multi-year awards is a Director’s New Innovator Award (NIH DP2 activity code).

As we complete the majority of the awards through this transition, CGA is continuing to take the following steps as awards transition:

  • A new award is required and is established approximately 45 days in advance of the current budget period end date
  • Projects are established on the new award using the same structure as current award unless we receive direction from the RSA
  • Subcontracts are automatically being transferred to the new award
    • Departments will be contacted, as needed, for direction
  • Transitional Federal Financial Reports will be filed 30 days after the end date of the pooled segment

For a list of awards that we have been monitoring for the transition, select the second tab of the Subaccount LOC Migration FY2016 List.