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Understanding the Withholding of Funds

Under certain circumstances, the recipient may not be able to access or draw down funds on an award. The awarding agency may withhold funds from your organization if any of the following conditions exist:

  • Program or project goals and timelines have not been met.
  • You have drawn down cash in excess of immediate needs for disbursement.
  • Award special conditions or guidelines have not been met.
  • Program/financial monitoring or Office of the Inspector General or single audits reveal serious concerns regarding the administration of the award, subawards, or contracts.
  • FFRs, Progress Reports, and/or Audit Reports have not been submitted by the due date.
  • You have not initiated closeout of the award within 90 days of the end of the project period.
  • You have been designated as a DOJ high-risk grantee.