The Draws are prepared as close as possible to the actual expenditure of funds to maximize the cash balance of the University based upon the cash positions of the awards involved. The UM System Controller’s Office must manage the cash position of the respective LOCs and other Federal drawdowns. Program costs must be paid for by University funds before reimbursement is requested from the Federal Government. Treasury in excess of immediate needs or in excess of the limits for any award. The University must not draw funds from the U.S. Amounts received under this method of payment are recorded directly to the applicable sponsored program revenue account. The University submits a payment request for an identified group of federal awards when funds are needed for reimbursement of expenses. The federal sponsoring agencies (e.g., NIH, NSF, USDA) authorize funds that meet the aggregate expenditure activity of the agency’s awards to the University. Under the terms of certain awards with some federal agencies, the university can drawdown funds via electronic systems. The UM System Controller’s Office is responsible for preparing and performing cash drawdowns for federally sponsored programs. To provide guidance and identify requirements of using LOC’s or other electronic payment mechanisms to Drawdown federal funding. This policy identifies documentation required when cash requests for federal awards are paid through a Letter of Credit (LOC) financing system or other electronic payment mechanisms. The specific requirements for cash management are unique to each federal program and are found in the laws, regulations, and the provisions of award agreements pertaining to the program.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |