The University Letter of Credit (LOC) Group is responsible for requesting, receiving, and reconciling federal funds drawn under letter of credit payment mechanisms for sponsored awards. The group plays a critical role in ensuring the timely availability of cash to support research and program activities while maintaining strict compliance with sponsor requirements and federal regulations.
Key responsibilities include preparing and submitting draw requests to federal payment systems in accordance with award terms, allowable cost principles, and cash management regulations; monitoring expenditures to ensure draws are accurate and supported; and reconciling LOC draws to the university’s financial system and bank activity. The group works closely with post-award teams, and departmental units to resolve discrepancies, address timing differences, and ensure alignment between expenditures and cash received.
The LOC Group also supports compliance and audit activities by maintaining detailed documentation, performing regular reconciliations, and responding to sponsor or auditor inquiries. Through careful oversight, attention to detail, and coordination across campus, the group works to safeguard federal funds, minimize financial risk, and ensure the university remains in good standing with its sponsors.