This message is going out to both SECA and RESADM list-serves.  I
apologize to those of you who receive duplicates.

The University of Minnesota is a state, land-grant institution with
sponsored expenditures of approximately $345 million per year.  We are
looking for ways to maximize our cash flow and I would like some
information from those institutions that receive advance payments on
federally funded projects.

(1)  Does your institution accept advanced payments on federally funded
projects?  If not, why not?  If so, is it all projects or just specific
agencies?  What is the total number and amount of your awards that
currently receive advance payments?

(2)  How is the interest calculated on these balances (i.e., daily,
weekly, monthly on all balances or balances over a certain threshold,
etc.)?  Please provide a web-site if one is available.

(3)  OMB Circular states that “the timing and amount of cash advances
shall be as close as is administratively feasible to the actual
disbursements by the recipient organization…”  (Section C.22 – Payment)
Consequently, how often do you ask for funds?

(4)  A-110 also states that “Interest amounts up to $250 per year may be
retained by the recipient for administrative expenses.”  Does this mean
a total of $250 for all federally funded projects, $250 for projects for
each agency, or $250 per award?

(5)  What oversight mechanisms or analytical processes do you have in
place to ensure that your balances remain reasonable?

(6)  Have you found that the increased cash flow outweighs the
administrative costs of accepting advanced payments?

Please provide any other information that you think would be helpful.
Thanks for your assistance.

Joan Donaldson

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