Last week the VHA CFO circulated the attached financial alert that provides VA guidance on the law change related to the transfer of Inter Agency Agreement funds from VAMCs to NPCs. The guidance itself simply details the steps VAMC offices need to take per standard operating procedure in order to ensure the funds become “no year” funds consistent with the law’s requirement that funds “shall be available without regard to fiscal year limitations.” However, many of you expressed concern about the statement that this policy is not applicable for funds collected/transferred after October 1, 2021. It appears several federal agencies—including VA and OMB—are working to make an administrative fix to the legislation that would make it easier to implement. The fix would deem anything transferred after Sep 30, 2021 to be obligated, thereby satisfying the Economy Act provision that originally created this situation. This is considered a fairly routine fix. The impact is that the process used by VA to account for the funds may change from FY21 to FY22. However, the bottom line is that IAA funds transferred to NPCs will be available to NPCs without regard to fiscal year limitations in FY21, FY22, and beyond. No action is required on your part. Please let me know if you have any questions.