In this season finale of Grants Management Experts, Jasmine Markanday wraps up Season 2 with one of the most crucial and often daunting areas of federal grant management: when things go wrong in federal grants.

Under 2 CFR 200.339–343, Jasmine explains the federal remedies available when a recipient or subrecipient fails to comply with grant requirements from temporary suspensions to full terminations and how you can protect your organization through proactive compliance, strong internal controls, and effective communication.

What You’ll Learn in This Episode 

The consequences of non-compliance:

• How federal agencies can withhold payments, disallow costs, or suspend/terminate awards
• The impact of termination listings in SAM.gov and how it affects future funding opportunities

Understanding termination:

• The three ways termination can occur: by the agency, mutual consent, or by the recipient
• What a termination notice must include reasons, effective dates, and scope
• Why transparency and procedural fairness (2 CFR 200.341–.342) matter in the appeals process

The financial impact:

• What happens to costs incurred during suspension or termination (hint: most are unallowable)
• The two limited exceptions that may apply
•  How suspension or termination halts your ability to charge costs to the award

How to protect your organization:

•  Strengthening internal controls and training staff
• Documenting compliance, communication, and corrective actions

• Understanding your right to object, appeal, and provide evidence before termination decisions are final

Key Takeaways

• Know the risks: Non-compliance can lead to more than disallowed costs; it can result in termination, SAM.gov reporting for five years, and future funding loss.

• Act quickly: If you receive a notice, respond immediately and explore corrective actions.

• Prevention is everything: Strong internal controls, policies, and staff training are your best defense.

Resources & Links

• 2 CFR 200.339–343: Remedies for Non- Compliance

• Learn more at markanday.consulting

Connect with Us

• Instagram: @markandayconsulting
• LinkedIn: @markandayconsulting
  

If this episode was helpful, please share it with your colleagues and leave a review to help other grant professionals find the show.

That’s a wrap for Season 2! Join Jasmine next season as she continues unpacking practical insights, compliance strategies, and expert guidance to help you stay informed and stay compliant.

Quote to Remember: “Grants management isn’t just about going after the money, it's about protecting your organization, the communities you serve, and the trust they’ve placed in you.” - Jasmine Markanday