Expired or inactive SAM.gov registration
SAM.gov registrations must be renewed annually. If your registration lapses, you cannot receive a federal award — even if your application scores highly. Renewals can take 2-4 weeks to process, so expiring mid-cycle is a real risk.
How to fix it: Set a calendar reminder 60 days before expiration. Verify your status at SAM.gov monthly.
Missing or overdue single audit
Organizations spending $750,000 or more in federal awards must complete a single audit under 2 CFR 200 Subpart F. A missing or late audit signals financial risk to reviewers and can block new awards from being processed.
How to fix it: Engage your auditor immediately. If your audit is in progress, document the timeline and expected completion date.
Budget that doesn't align with program scope
Reviewers look for budgets that directly support the proposed activities. Disproportionate administrative costs, unexplained line items, or a budget that doesn't match the narrative are immediate red flags.
How to fix it: Build the budget from the work plan, not the other way around. Every line item should trace to a specific activity.
Organization type doesn't match eligibility
Applying to a program restricted to 501(c)(3) organizations when you're a government entity, or to an FQHC-only program when you're not designated — these are automatic rejections that waste months of effort.
How to fix it: Read the eligibility section of the NOFO before anything else. If it's ambiguous, contact the program officer.
Geographic service area outside funder's target
Many programs are restricted to specific states, regions, or underserved areas. Applying from outside the target geography is an immediate disqualification, yet it happens frequently.
How to fix it: Check geographic eligibility in the NOFO. For programs targeting underserved areas, verify your census tracts qualify.
Incomplete or outdated governance documentation
Missing board rosters, expired bylaws, or no conflict of interest policy. Funders see governance gaps as organizational risk indicators that suggest the applicant may not be able to manage federal funds responsibly.
How to fix it: Conduct an annual governance review. Keep board rosters, bylaws, and policies current and accessible.
No indirect cost rate established
Without a negotiated indirect cost rate or formal election of the 10% de minimis rate, you either leave significant funding on the table or submit a budget that underfunds your actual costs — leading to unsustainable programs.
How to fix it: Negotiate a rate with your cognizant agency or formally adopt the 10% de minimis rate under 2 CFR 200.414(f).
Prior grant findings unresolved
Outstanding audit findings, unresolved monitoring issues, or delinquent reports from prior grants are visible in federal systems. New program officers check these before making awards.
How to fix it: Address all findings with documented corrective action plans. Close out delinquent reports before applying for new awards.
Applying to the wrong funding stream within an agency
Large agencies like HRSA and SAMHSA have dozens of distinct programs. Applying to the wrong NOFO — even within the correct agency — results in rejection because your proposed activities don't match the program's statutory authority.
How to fix it: Match your program activities to the funder's specific program, not just the agency. Read the full NOFO, not just the summary.
Missing required certifications or assurances
Standard federal certifications (lobbying, drug-free workplace, debarment) are boilerplate but required. Missing signatures or incomplete forms result in administrative rejection before your application reaches reviewers.
How to fix it: Create a checklist of required forms from the NOFO. Have your AOR review and sign all certifications before the deadline.
The Real Problem
Most of these disqualifications are entirely preventable. The problem isn't that organizations lack capability — it's that they discover blockers too late in the process. By the time a NOFO drops with a 60-day deadline, there isn't enough time to renew an expired SAM.gov registration, negotiate an indirect cost rate, or complete a missing audit.
A readiness assessment completed before you ever start an application saves months of wasted effort and dramatically improves your success rate. The best time to fix these issues is now — not when the clock is ticking on a deadline.