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Consent-General Government # 12.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Adopt Federal Grant Cash Management Policy. (No general fund impact) (Newens/Rinde) |
| Recommended Action |
| Adopt Federal Grant Cash Management Policy. |
| Strategic Plan Goal(s) |
Operational Excellence
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| Reason for Recommended Action/Background |
The rules pertaining to the administration of Federal Grants were consolidated into the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 C.F.R. Part 200) which was released in December, 2014. Time was given to local agencies to adapt to the new rules though federal agencies began incorporating the new rules into their grants earlier. The first year that the County was first audited under the new uniform guidance on federal grants was for the 2016-17 fiscal year.
As part of the Single Audit performed for the 2016-17 fiscal year, the County received a finding that the County had not yet adopted Cash Management Policies for Federal Grants in 2 C.F.R. § 200.302(b)(6). Therefore in the Corrective Action Plan to the County external auditors, the Department of Financial Services indicated that a Countywide policy on cash management of federal grants would be adopted prior to June 30, 2018.
The cash management policy (Att. A) includes federal rules and regulations necessary for performing advance payments or draw down of federal funds as well as when to utilize reimbursement based grants, if given an option. It also includes how to track and account for interest and generally when interest should be remitted back to a federal agency. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The policy was reviewed by the County Fiscal Officers, Department Leadership, County Administrator, and County Counsel prior to being considered by the Board of Supervisors. |
| Competitive Bid Process |
| Not Applicable. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| No significant fiscal impact is anticipated as this policy clarifies and brings a standard to the approach of the County toward Federal Grant Cash Management. There may be small amounts of interest earnings based on the policy that may require return to the federal government. |
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