Agreements with certain federal agencies allow the university to drawdown funds as needed to cover actual expenditures incurred on a given award. After work on the award has commenced and expenditures are recorded, the university accounting office may process a cash drawdown to cover such expenses.

Cash drawdowns should not be processed in advance of actual expenditures, and the amount of the drawdown should not exceed the actual expenditures for the applicable grant or contract on the funds transfer date. Granting agencies have individual rules pertaining to excessive cash transfers, and personnel responsible for processing drawdowns should be familiar and comply with applicable regulations.