6002 - Cash Management

#6002 - Cash Management

Cash Management for Federal Awards

Purpose:

To establish cash management procedures for federal awards.

Procedure:

Cash management options defined for federal awards:

1. Advanced Payments - Amount requested to be paid limited to minimum amounts needed to meet immediate cash needs.
2. Reimbursement - Amount requested to be paid was previously paid by the District (generally within 30 days of initial payment.)
3. Working Capital Advance – Amount requested to be paid is based upon estimated disbursement needs for a period of time.

The District generally draws Federal funds from either the Federal government or from the State (Utah Grants system) on a reimbursement basis.

Costs may be directly charged to a sponsored award only when the cost is allowable, allocable, and reasonable to the award. The responsibility for cash management is shared by the Director or Supervisor and the Business Administrator or his/her designee(s).

Cash management procedures:

1. Project directors, and supervisors approve all allowable grant expenditures. All expenditures exceeding $10,000 are also submitted to the Business Administrator or Superintendent for approval. All approval and payment processes follow the District’s established policies and procedures.
2. Grant funds are coded to unique programs that specify the relevant Federal Program (including as applicable, the Assistance Listings title and number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any). Restricted Federal Grant funds are separate from other District funds.
3. The District Business Administrator or Superintendent maintains the official budget identifying, drawdowns, expenditures, and balances in the Utah Grants System. Approved personnel including the project director or supervisor have 24- hour access to the budget information via the Utah Grants System and Alio, the District’s accounting information system.
4. The drawdown total is calculated based on the actual expenditures identified. The Business Administrator reviews the support for cash reimbursement to ensure the accuracy of calculation, completeness, and general adherence to award terms and conditions. Upon satisfactory budget review, the Business Administrator submits the request for reimbursement via the appropriate drawdown system.

Other Cash Management Requirements:

1. The District will use existing resources before requesting an advance; e.g., program income, refunds, rebates, or interest earned.
2. The District will minimize the time elapsing between the transfer of funds and the disbursement of those funds for grant-related expenditures. 
3. The District will maintain all Federal funds in insured accounts whenever possible.
4. The District will deposit all advances of Federal funds into interest-bearing accounts unless:
   1. Aggregate federal awards are under $250,000
   2. Account is not expected to earn in excess of $500 per year
   3. Bank requires minimum balance so high that such an account is not feasible
5. The District will retain interest amounts up to $500 for administrative purposes.
6. The District will return interest on Federal grants earned exceeding $500 annually to the U.S. Department of Health and Human Services.

References Code of Federal Regulations (CFR) §200.302 Financial management and §200.305 Federal payment.

Adopted 4/18/23