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Chapters:

3.1 Payments

Understanding the Withholding of Funds

Under certain circumstances, a grant recipient may be unable to access or draw down funds on an award. The awarding agency may withhold funds from the organization if any of the following conditions exist:

  • Program or project goals have not been timely met.
  • Cash has been drawn down in excess of immediate needs for disbursement.
  • Award special conditions or guidelines have not been met.
  • Programmatic/financial monitoring, Office of the Inspector General Audits, or single audits revealed 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.
  • A closeout of the award has not been initiated within 90 days of the end of the project period.
  • The recipient has been designated as a DOJ high-risk grantee.