All Federal grants must follow Cash Management guidelines. In an On-line or Hardcopy Federal grant Application the LEA is to place the amount for their fist months 30-day needs (encumbrances) in that given month. Then place the remaining amount in RSP (Remaining Schedule Payment). The remaining amount is placed in RSP because it acts as a “bank”; to hold the rest of the projects funds until a compliant Cash Management report is submitted showing a needed disbursement.
See the Cash Management FAQ section for more information.