Dear Colleague,

All Federal grantees and subgrantees need to be aware that non-year 2000 (Y2K) compliant systems may affect their ability to account for Federally funded programs in accordance with Federal requirements. To assist all Federal agencies in advising grantees, the Office of Management and Budget of the Executive Office of the President has requested all grant-making agencies issue the attached advisory for financial management systems to help ensure uniformity and minimize confusion.

On June 27, 1997, NSF issued Important Notice (IN) No. 120 "Year 2000 Computer Problem" to Presidents of Universities and Colleges and Heads of other NSF Grantee Organizations to remind NSF awardees of their responsibilities under NSF grants and cooperative agreements. This Notice remains operative for NSF grantees. Two significant points in IN 120 were:

  1. The Y2K problem is included in the recipient's already stated responsibility to maintain the scientific, administrative, and financial infrastructure of the activity being supported. The Y2K compliance requirement applies to the grantees sub-recipients, which is covered by both the NSF Grant General Conditions (GC-1) and the Federal Demonstration Partnership NSF-Agency Specific Requirements.

  1. NSF should be notified if a recipient concludes that the Y2K problem is likely to have a significant impact on its ability to carry out a funded activity. Funding for Y2K compliance needs will be approached on a case-by-case basis.

Another purpose of this follow-up letter is to alert you that we have established a Y2K website on NSF's Home Page at We hope this site will help you understand the problem, assess your risk, and manage the potential impact. If you become aware of potential significant impacts to your NSF sponsored activities, please contact, through your Grantee Organization, the cognizant Grants Official cited in your grant letter.

Thank you for your cooperation.


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Joseph L. Kull                                                  Linda Massaro
Chief Financial Officer                                      Chief Information Officer