NASFAA is aware that schools are receiving “Dear Project/State Director” email notices reminding them that they should not draw down all of their HEERF II dollars at one time unless they are also paying obligations with (liquidating) those funds 15 calendar days (for grants to students) and within 3 calendar days (for all other uses). This guidance is not new and appeared in Q&A #17 of the Higher Education Emergency Relief Fund (HEERF) II Public and Private Nonprofit Institution (a)(1) Programs Frequently Asked Questions, first published on January 14, 2021.
The email informs the school that, “This activity is considered an Excessive Draw of Funds and will flag the institution as ‘high-risk.’ Moreover, the high-risk flag could impact future funding opportunities.” NASFAA has reached out to the Department of Education (ED) asking what schools should do if they receive an automatic email alert about excessive cash drawdowns because they drew down all their HEERF grant funds at one time. We understand that ED will be issuing guidance in the near future so stay tuned to Today’s News.
Publication Date: 5/10/2021