In accordance with OMB Memorandum M-87-32, "Certification of Nondelinquency by Applicants for Federal Assistance," the applicant organization must certify that it is not delinquent on the repayment of any Federal debt before a grant award can be made. The certification applies to the applicant organization, not to the person signing the application as the authorized representative nor to the principal investigator.
Where the applicant discloses delinquency on debt to the Federal Government, the PHS shall (1) take such information into account when determining whether the prospective grantee organization is responsible with respect to that grant, and (2) consider not making the grant until payment is made or satisfactory arrangements are made with the agency to whom the debt is owed. Therefore, it may be necessary for the PHS to contact the applicant before a grant can be made to confirm the status of the debt and ascertain the payment arrangements for its liquidation. Applicants who fail to liquidate indebtedness to the Federal Government in a businesslike manner place themselves at risk of not receiving financial assistance from the PHS.
Federal debt collection provisions contained in Section 3201(e) of the Federal Debt Collection Procedures Act also apply to individuals. PHS will disallow costs charged to awards that provide funds to individuals who are in violation of the Act.