How would the principal recipient access federal funds? Via reimbursement?

Full Question:

How would the principal recipient access federal funds? Via reimbursement? We understand that the award is funded incrementally according to our submitted annual budget, but we are wondering if this is done through a reimbursement system or if the funds are distributed at the beginning of the fiscal year for us to use on administering the grants and distributing the subawards? 

Answer:

As required by 2 CFR 200.305(b), the recipient must draw funds from ASAP only for the minimum amounts needed for actual and immediate cash requirements to pay employees, contractors, subrecipients or to satisfy other obligations for allowable costs under this assistance agreement. The timing and amounts of the drawdowns must be as close as administratively feasible to actual disbursements of EPA funds. Disbursement within 5 business days of drawdown will comply with this requirement and the recipient agrees to meet this standard when performing this award. 

Recipients may not retain more than 5% of the amount drawn down, or $1,000 whichever is less, 5 business days after drawdown to materially comply with the standard. Any EPA funds subject to this paragraph that remain undisbursed after 5 business days must be fully disbursed within 15 business days of draw down or be returned to EPA.