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
- Fulfill the requirements established by the federal Cash
Management Improvement Act of 1990.
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
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).