A drawdown - also called a voucher - is a record of payments made for specific activities. There are two fund types that can be included in a voucher: program funds (grants) and program income. The amount for each activity and fund type makes up a separate line item on the voucher.
For grants / program funds, a voucher line item is a request for payment against a grantee's line of credit for services performed in support of each activity. For program income, the Voucher line item represents a record of a payment that was made from the grantees’ other accounts. Program income line items do not get sent to LOCCS for payment.
Before a grantee can drawdown funds from a grant:
- The activity must have enough funds budgeted and obligated at the activity level. Funding sources can be program funds (grant funds) or program income.
- The grantee must have at least one user to create drawdowns and another user to approve drawdowns.
The process to drawdown grant funds or record a program income draw is summarized below:
- Using DRGR, a grantee obligates enough funds to each activity.
- A grantee creates a voucher in DRGR to drawdown funds for the correct fund types for one or more activities. Please note this can be performed through data field entries or using a Voucher upload. See additional FAQs for more information or “DRGR Fact Sheet Data Uploads Release 7.8”.
- When the drawdown request is generated, DRGR performs a preliminary validation of it to ensure the availability of grant/program funds and program income, and then generates a voucher number. The voucher will not be sent to LOCCS until it is approved (next step).
- The authorized person in the grantee's organization approves each voucher line item (or the entire voucher). If the voucher has multiple line items, the authorized person can approve some of the line items and leave the rest for a later date.
- DRGR sends the a request for grant fund totals under each voucher based on approved program fund line items to LOCCS that night (or on the future date that the approver specified). However, if the total amount for approved voucher line item exceeds a drawdown threshold for vouchers, it is forwarded to HUD for approval before being submitted to LOCCS.
- LOCCS processes the program fund portion of vouchers overnight from a daily batch file submitted by DRGR. LOCCS approves or rejects all program fund line items that were sent on one batch (this may not be all line items if the approver did not approve all line items on the voucher the same day). If approved by LOCCS, LOCCS sends total amount for all the approved program fund line items in each voucher to the U.S. Treasury for payment by grant. LOCCS also sends the status of the request back to DRGR. The drawdown results are reflected in DRGR the next day.
- Once received by Treasury, if Treasury accepts, electronic payment is made to the recipient. No status is sent back to DRGR. If rejected by Treasury, Treasury sends DRGR the rejection status and the grantee will have to create a new voucher for the rejected line items.
- If necessary, an authorized user can cancel a voucher line item that has not been sent to LOCCS; or once a voucher has been paid by Treasury, revise the activity number or drawdown amount.
The drawdown module follows a similar process to track the disbursement of program income received under grant program. The availability of grants and program funds is dependent on program income and the calculation of what funds are available also depends on whether the grantee has correctly performed some key program income management functions including (a) establishing Program Income Accounts and RLFs (optional); (b) recording receipts on the appropriate activities (previously recorded as program income received on QPRs); and (c) previously recorded program income draws for all activities. If any of these functions are not done correctly, the available amount calculations conducted by DRGR may show the wrong amount. There are now links and error messages on each voucher line item to display how DRGR has calculated the amounts of program funds and program income available for each activity. DRGR users can also examine a number of Microstrategy (Reports module) program income reports to troubleshoot issues with available amounts.