Agreement K2871 - Laserfiche WebLink

Home Browse Search

2.0 FINANCIAL MANAGEMENT Recipients are required to meet the standards and requirements for financial management systems set forth or referenced in 2 CFR § 200.302 . The adequacy of a recipient's financial management system is integral to their ability to account for grant expenditures and track matching resources (if applicable). The recipient must use Federal funds in a responsible manner and apply adequate internal controls and cash management practices consistent with the requirements outlined in 2 CFR § 200 .303 . Recipients must expend and account for funds under an award in accordance with their own State laws and procedures . Financial management systems and related records, of the grant recipient, and any other entity involved in the grant, must be sufficiently detailed to prepare reports, trace funds, and demonstrate that fund management complies with Federal statutes, regulations, and these general and other program-specific terms and conditions. A recipient's financial management system must include: 1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. This identification must include, as applicable: a. The CFDA title and number; b . The Grant Agreement Number/FAIN and Federal fiscal year awarded; c. The name of the Federal Agency; and d. The name of the pass-through entity, if applicable . 2) Accurate, current, and complete disclosure of the financial accounting of each Federal award or program. 3) Records that adequately identify the source and application of funds for Federally funded activities. These records must contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, expenditures, income, and i nterest. Accounting records must be supported by source documentation such as canceled checks, paid bills, payrolls, time and attendance records, contracts, and subaward documents. 4) Effective control over, and accountability for, all funds, property, and other assets . Recipients must adequately safeguard all assets and assure that they are used solely for authorized purposes . S) Comparison of expenditures with budget amounts for each Federal award. 6) Written procedures to implement the requirements of 2 CfR § 200 .305 Payment, which minimize the time elapsing between the transfer of Federal funds to any non-Federal entity and the disbursement of the funds for direct program costs and the proportionate share of any allowable indirect or facilities and administrative costs. 7) Written procedures for determining the allowability of costs in accordance with 2 CFR § 200 Subpart E-Cost Principles and the terms and conditions of this award. A recipient must notify the AMS representative immediately when they discover financial management problems. Deficiencies in the recipient's financial management system, whether reported by the recipient or identified by AMS, may result in AMS i mposing special award conditions, such as a high-risk designation or other requirements for increased monitoring. 2.1 Audit Requirements Recipients (other than Federal agencies and for-profit recipients) are responsible for obtaining audits in accordance with the 2. CFR § 200 Subpart F -Audit Requ irements . These standards require any non-Federal entity that expends $750,000 or more in Federal awards during its fiscal year to have a single or program-specific audit conducted for that year. The audit must meet the standards specified in GAGAS . Recipients must follow a systematic method to ensure timely and appropriate resolution of audit findings and recommendations, whether discovered because of a Federal audit or an audit initiated by the pass-through entity. 5