6101 Procedure – Federal Cash and Financial Management

The district may draw federal funds using a reimbursement or advance payment method.

Reimbursement Payment Method

For reimbursements of federal funds, the district will:

A.    Monitor the fiscal activity (payments and reimbursements) under each grant on a continuous basis, and request timely reimbursement only for expenditures that have already been disbursed and comply with all applicable award requirements.

B.     Maintain source documentation/accounting records that reconcile to the reimbursement request at a level adequate to establish that funds have not been used in violation of any applicable statutory restrictions or prohibitions.

C.     If the district transfers expenditures previously charged to a federal award for which reimbursement has been claimed to a non-federal fund source, the district will calculate the interest earned on the federal funds pursuant to possible submittal – refer to Interest Earned section below.

Interest Earned

A.    The district will retain interest earned amounts up to $500 per year for administrative expenses.

B.     Any additional interest earned on those funds will be remitted annually to the Department of Health and Human Services (HHS) Payment Management System (PMS) through an electronic medium or by check to the HHS Program Support Center.  The district will refer to the federal or pass-through agency for pertinent information about the remittance.

 

Adopted: 11/9/15
Revised: 11/9/15