Drawdown of Federal Funds

Policies and Guidelines for Sponsored Projects Services

This Policy Statements and Guidelines is issued in order to: 

  • Establish effective cash management procedures for Federal programs.
  • Fulfill the requirements established by the federal Cash Management Improvement Act of 1990. 

Policy and Guide

Drawdown of Federal Funds involving Federal Assistance Programs (by CFDA number) covered by the U.S. Dept. of the Treasury Cash Improvement Act (CMIA) shall follow the appropriate drawdown procedures specified by the CMIA Agreement.  

Whether or not the federal program is covered by the CMIA agreement.  Drawdown of Federal funds must be made according to the following guidelines:   

  • Drawdown of funds will be made as close as possible to the actual expenditure of funds.
  • Monitor the fiscal activity (drawdowns and payments) under your grant on a    continuous basis.
  • Plan carefully for cash flow in your grant project during the budget period and review project cash requirements before each drawdown where the Federal grantor issues specific drawdown procedures.
  • Due care will be exercised to ensure that funds will not be drawn in advance of actual expenditures, unless requested by the sponsor, so that the University becomes obligated to pay the sponsor interest on advanced funds
  • NAU must return to the Government the interest earned on grant funds deposited in interest-bearing bank accounts (except for a small amount of interest earned each year that NAU is allowed to keep to reimburse itself for administrative expenses).