Federal Awards: Payment and Cash Management

1.0    Purpose

This policy establishes guidelines for payment and cash managing of federal awards.

2.0    Revision History

3.0    Persons Affected

3.1    All employees

4.0    Policy

The policy of Casper College is to ensure the following.

4.1    The college complies with federal regulations and requirements regarding payments and cash management of federal awards.

4.2    The college receives funding due per the award agreement.

5.0    Definitions

5.1    Federal Award. Federal funding provided to support a specified project or goals. The award can be in the form of a grant, contract, cooperative agreement, or pass through federal funding from another entity.

5.2    Uniform Grant Guidance (UGG). A governmental-wide framework for grants management. An authoritative set of rules and requirements for federal awards that synthesizes and supersedes guidance from earlier OMB circulars.

5.3    Payment Types. There are three acceptable payment types for grant recipients: reimbursed, advanced, and fixed amount. The college applies the payment type prescribed by the federal awarding agency.

6.0    Responsibilities

6.1    The associate controller is responsible for following and applying the payment method stipulated in the award agreement.

6.2    The vice president of administrative services is responsible for maintaining compliance with this policy.

7.0    Procedures

7.1    Reimbursement Method

7.1.1    The associate controller submits request for reimbursement for individual awards using the specific agency payment process. Only one reimbursement request per federal award may be submitted either monthly or quarterly, depending on the agency’s processes. Reimbursement requests must be for expenditures that have already occurred. By submitting the reimbursement request, Casper College is certifying the expenditures are allowable and appropriate to the cost objectives of the federal award.

7.2    Advanced Payment Method

7.2.1    The college may only use the advanced payment method if the awarding agency specifically stipulates the use of the method and when the following conditions are met.

7.2.1.1    There are written procedures that minimize the time that elapses between the transfer of funds and disbursement;

7.2.1.2    The college uses a financial management system that meets Office of Management and Budget standards for fund control and accountability; and  

7.2.1.3    The capability to transfer the funds is available.

Advance payment requests are limited to the minimum amount needed and are timed to meet only the actual, immediate cash requirement. The drawdown time to disbursement should be less than 24 hours.

7.2.2    The associate controller draws down the funds using a federal payment system applicable to the federal program providing the reimbursement and in accordance with the federal agency’s cut-off time.

7.2.3    The college must deposit and maintain the funds in an interest bearing account. The college may retain interest earned up to $500 per year for administrative expenses. The college must remit any additional interest earned on advance payments to the Department of Health and Human Services.

7.3    Fixed Amount Method

7.3.1    The awarding agency or pass-through entity provides a fixed amount of funding to support a program. Accountability is based on performance and results rather than the actual incurred costs. The college accepts funding for the federal award and applies it towards expenditures of the program. The college returns any excess funds to the agency unless the award agreement stipulates other arrangements.