CDBG Entitlement FAQ
Q

We have an activity where there's been a slight delay in completing construction and submission of final invoices. We were counting on these funds to be drawn before our timeliness measurement date. CDBG funds are under contract where the final draws will occur 2-3 weeks after the measurement date, can we go ahead and draw the funds down before our measurement date so that we meet the 1.50 ratio?

Date Published: March 2019

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A

No. Doing so violates the 2 CFR Part 200 cash management requirements regarding drawing funds in advance of cash needs [2 CFR 200.305(b)(1)]. Any funds drawn in such a manner will be included by HUD in computing your timeliness ratio anyway. The grantee must return the funds to the LOC unless it can revise the draws to another activity that has immediate cash needs. In addition, the grantee may owe interest to the U.S. Treasury.


Tags: CDBG Entitlement Program Timeliness

FAQ ID:

3614