Navigating the Federal Government Shutdown
As of Oct. 1, the U.S. government has failed to reach a spending agreement in time to avoid a shutdown of the federal government. Due in part to financial planning, the Institute does not expect any significant effect on its operations in the immediate term. As in previous situations, a Georgia Tech working group has been assessing the potential of a shutdown and planning mitigation strategies to help ensure business continuity as lawmakers negotiate to reach an agreement.
“Georgia Tech has successfully navigated these situations in the past, and we are modeling scenarios on how the shutdown may affect cash flow and campus operations over time,” said Kim Toatley, vice president for Finance and Planning and chief financial officer. “While we are hopeful that an agreement will be reached soon, we are working to adapt our financial planning and activities to this fluid situation.”
U.S. government programs represent more than $100 million per month in federal funding for research activities at Georgia Tech. If the shutdown continues beyond a few weeks, mitigation strategies will need to be implemented to preserve cash and maintain campus operations. Some strategies include conserving available reserves; requiring Cabinet-level approval for certain purchases, hiring, and non-essential travel; and slowing down select research.
Activities related to ongoing grants and contracts will continue, but additional support and administrative assistance from sponsors may be limited. New grant applications will be on hold, and no new awards will likely be issued. Georgia Tech will continue to submit invoices and make cash requests as systems allow, but payment from sponsors will be delayed. Additional actions will be considered as circumstances warrant, and the Institute will remain committed to limiting the effect on students, faculty, and staff. Researchers can consult Georgia Tech guidance here: osp.gatech.edu/federal-government-shutdown-guidance.
The working group is closely monitoring this situation and will continue to provide information in the coming days.