Budget Estimates. Each state estimates its regulatory grant needs and sends the estimate and supporting justification to the Office of Surface Mining. The initial estimate is prepared 18 months before the beginning of the federal fiscal year. So, for example, a state's estimate of how much regulatory funding it will require in the grant to be awarded during federal fiscal year 2004 will be requested in the spring of 2002. Format and instructions for each estimate are included in the Office of Surface Mining's request to the grantees. The grantee prepares a revised regulatory grant estimate 3 months before the beginning of the federal fiscal year. No budget estimates are required for Abandoned Mine Land grants because the funds are allocated by formula.

Grant Application. The state or tribe submits a grant application to the appropriate the Office of Surface Mining Field or Regional Office 60 days before the starting date of the grant. The application may be sent by e-mail or in a hard copy. The application includes the planned objectives of the program during the grant period, the proposed budget, and some required federal and the Office of Surface Mining forms (download an application package). See Federal Assistance Manual, Chapter 5-10A for the requirements for an Abandoned Mine Land grant application or Federal Assistance Manual, Chapter 5-10R for the requirements for a regulatory grant application.

Application Review. When the Office of Surface Mining receives a grant application, it is reviewed by the program and grant specialists who work with that grantee. The Office of Surface Mining may contact the grantee to request missing items, to ask questions, or to discuss concerns. If necessary, the Office of Surface Mining and the grantee may meet to negotiate problems. Based on the programmatic and financial reviews, the Office of Surface Mining authorized official decides whether to approve the grant. See Federal Assistance Manual Chapter 5-20A for Abandoned Mine Land application review procedures or Federal Assistance Manual, Chapter 5-20R for regulatory application review procedures.

Grant Award. The awarding office notifies the Office of Surface Mining's Office of Communications of the planned award so they can do the appropriate Congressional notification and Fact Sheet. The award document is signed by the authorized Office of Surface Mining official, and then sent to the grantee to be signed by their authorized official. The award information is sent to the Office of Surface Mining's Division of Financial Management and entered into the accounting system so that the grantee may make cash advance or reimbursement requests when the grant starts. See Federal Assistance Manual, Chapter 5-20A for Abandoned Mine Land award procedures or Federal Assistance Manual, Chapter 5-20R for regulatory award procedures.

Cash Payments. Grantees may request grant payments at any time on an advance or reimbursement basis. The request should be made electronically. The Office of Surface Mining currently uses its own DDX drawdown system, but will be transferring to Treasury's ASAP system in the near future. The U.S. Treasury transfers funds electronically to the grantee's bank account, generally the next business day. Any grantee experiencing any difficulties with a drawdown transaction should call their the Office of Surface Mining grants specialist immediately. See Federal Assistance Manual, Chapter 1-102 for more information on payments to grantees.

Grant Amendments. An amendment to the Office of Surface Mining grant is needed to change the amount of federal funding, the budget period dates, or the scope or objectives of the grant. In an Abandoned Mine Land grant, an amendment is needed to transfer funds between subaccounts. The Office of Surface Mining may approve some changes by letter, such as purchasing equipment not in the original budget, or (in a regulatory grant) transferring more than 10% of the total budget between line items. Other changes do not generally require the Office of Surface Mining approval. A grantee planning any change to an Office of Surface Mining grant should discuss the situation with their the grants specialist to determine what action is appropriate. See Federal Assistance Manual, Chapter 5-30A for the rules and procedures for Abandoned Mine Land grant changes or Federal Assistance Manual, Chapter 5-30R for the rules and procedures for regulatory grant changes.

Grant Monitoring and Oversight. The Office of Surface Mining performs programmatic and financial oversight and monitoring of grantee operations. Programmatic oversight is generally carried out according to the annual plan developed by the Office of Surface Mining field office and the grantee. Financial monitoring may be carried out in response to the annual oversight plan, a separate work plan, the Office of Surface Mining or federal requirements, or a concern raised by the grantee, the Office of Surface Mining, or an outside party.

Grantee Annual and Semiannual Reports. During a grant budget period, grantees are required to submit regular programmatic and financial reports to the Office of Surface Mining. Reports may be submitted electronically or with a signed original and two copies. Regulatory grants require semiannual reporting. The reports are due 30 days after the end of the six-month period. Regulatory grant financial reports should use the SF269 or SF269A form; programmatic reports may use the optional Office of Surface Mining-51. Abandoned Mine Land grant reports are required annually. The report is due 90 days after the end of each twelve-month period. Abandoned Mine Land financial reports should use the Office of Surface Mining 49 form; programmatic reports may use the Office of Surface Mining-51. See the Forms page to download copies of a report package or the individual forms. See Federal Assistance Manual, Chapter 5-60A for more information on Abandoned Mine Land grant reports or Federal Assistance Manual, Chapter 5-60R for regulatory grant reports.

Closeout. Final reports are due to the Office of Surface Mining 90 days after the end of the grant budget period. Final programmatic and financial reports should use the same forms as the annual and semiannual reports. In addition, the closeout package should include a transmittal letter with the required clearance language and an Office of Surface Mining 60 form if there is any grant property. When the Office of Surface Mining receives the closeout package, it reviews the reports, determines whether all grant requirements have been met, deobligates any unexpended funds, and closes the grant. See Federal Assistance Manual, Chapter 5-70A for more information on Abandoned Mine Land closeout or Federal Assistance Manual, Chapter 5-70R for regulatory grant closeout. The grantee must keep grant records for three years after the date the closeout package is submitted to the Office of Surface Mining, or until all audits and disputes have been resolved.

Audit. The Office of Surface Mining grants are covered in the single audits completed annually for states and tribes. If the single audit, or any other review, reports any findings or questioned costs related to a grant, the Office of Surface Mining will work with the grantee to resolve the audit concerns.