denied selection for funding on future ED grant applications and/or.subjected to specific award conditions or designated as a "high-risk" grantee, which could mean being placed on a "cash-reimbursement" payment method (i.e., a grantee would experience the inconvenience of having to pay for grant activities with its own money and waiting to be reimbursed by the Department afterwards).Grantees that do not follow Federal cash management requirements and/or consistently appear on the Department's reports of excessive drawdowns could be: If you need assistance with returning funds and interest, please contact ED's G5 Hotline by calling 1-88. Grantees determined to have drawn down excessive cash will be required to return the excess funds to the Department, along with any associated earned interest, until such time as the money is legitimately needed to pay for grant activities. However, even amounts less than these thresholds could still represent excessive drawdowns for your particular grant activities in any particular quarter. For the purposes of drawdown monitoring, the Department will contact grantees who have drawn down 50% or more of the grant in the first quarter, 80% or more in the second quarter, and/or 100% of the cash in the third quarter of the budget period. Department staff will contact grantees who appear to have drawn down excessive amounts of cash under one or more grants during the fiscal quarter to discuss the particular situation. Keep in mind that the Department monitors cash drawdown activity for all grants on a weekly basis. pay out grant funds for project activities as soon as it is practical to do so after receiving cash from the Department.plan carefully for cash flow in your grant project during the budget period and review project cash requirements before each drawdown and.monitor the fiscal activity (drawdowns and payments) under your grant on a continuous basis. take into account the need to coordinate the timing of drawdowns with prior internal clearances (e.g., by boards, directors, or other officials) when projecting immediate cash needs so that funds drawn down from ED do not stay in a bank account for extended periods of time while waiting for approval. In order to meet these requirements, you are urged to:
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