In the interest of greater accountability, Federal sponsors closely monitor cash requests on sponsored projects and are giving additional scrutiny to final letter of credit draws.

  • Many Federal sponsors consider draws initiated more than 90-days after the end date of an award as late and  have developed special review procedures for late draws.
  • It is critical that UVM remain in compliance with these changing sponsor practices or we risk disallowed costs and non-payment.
  • It is critical that all expenses are posted in PeopleSoft to the relevant project number before the final financial report is due and that SPA complete all draws in a timely fashion.

The table below highlights the procedures instituted by some of UVM’s largest sponsors:

Sponsor Name Federal Process for Draws
NSF Late draws must be justified with a clear and concise one sentence explanation and must be approved by the NSF GMO. NSF has made it clear that GMO approval of late draws is not guaranteed.
NASA The business office of NASA needs to approve the draw and ”re-open” the award for late draws. UVM must also re-submit the financial report.
USDA Late draws need to be supported by copies of receipts and other appropriate documentation. USDA has indicated that UVM may be asked to refund the payments from late draws if the documentation is deemed unsatisfactory or the time lag is too great.
NIH Effective October 1, 2014, any draws done after 90 days will be put on hold until the awarding agency’s approval is obtained. Additional documentation will also need to be submitted.



Please contact your department's assigned SPA financial analyst if you have any questions.