04 NCAC 19L .0906. FINANCIAL MANAGEMENT SYSTEMS

Recipient financial management systems shall provide for accurate, current and complete disclosure of the financial results of each grant program in accordance with fiscal control and reporting requirements set forth in G.S. 159, Article III, the Local Government Budget and Fiscal Control Act.  Recipients shall meet the following requirements:

(1)           All grant funds shall be expended in accordance with a budget ordinance or project ordinance adopted under G.S. 159‑8 and G.S. 159‑13.2 respectively;

(2)           A recipient may deposit or invest all or part of the cash balance of any grant fund; however, all interest earned shall be returned to the Department in accordance with Rule .0907(c) of this Section;

(3)           Investment deposits shall be secured as provided in G.S. 159‑31(b);

(4)           The recipient shall designate as its official depositories one or more banks or trust companies in the State in accordance with G.S. 159‑31(a);

(5)           All budgetary accounting for appropriations of grant funds shall be in accordance with the procedures for incurring obligations and disbursements as set forth in G.S. 159‑28;

(6)           Each recipient shall establish an accounting system in accordance with G.S. 159‑26;

(7)           The recipient's finance officer, and each officer, employee, or agent who handles or has in his custody more than one hundred dollars ($100.00) of grant funds at any time, or who handles or has access to the recipient's inventories, shall be bonded in accordance with G.S. 159‑29;

(8)           Each recipient shall maintain records that identify adequately the source and application of funds for grant‑supported activities.  These records shall contain information pertaining to federal awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays, and income;

(9)           A system for procedures for procurement and property management shall be provided in accordance with Rule .0908 and Rule .0909 of this Section;

(10)         All cash receipts must be deposited with, or to the credit of, the finance officer.  This includes program revenues, reimbursements of travel, vendor payments or other items previously recorded as expenditures, and all other grant monies from the Department;

(11)         Recipients must develop a systematic method to assure timely and appropriate resolution of audit findings and recommendations;

(12)         Recipients shall require subgrantees to adopt the standards set forth in this Rule;

(13)         Recipients shall comply with the Office of Management and Budget Circular A‑87, entitled Cost Principles for State and Local government, which is incorporated in these Rules by reference including subsequent amendments and editions.  A copy of this circular is available from the Division of Community Assistance, Raleigh, North Carolina.  In applying OMB A‑87 the term "federal agency" shall mean the Department;

(14)         Recipients shall record the receipt and expenditure of project revenues from taxes, special assessments, evies, fines, etc., in accordance with generally accepted accounting principles;

(15)         Subrecipients shall comply with the Office of Management and Budget Circular A‑110, entitled Uniform Administrative Requirements for Grants and other Agreements with Institutions of Higher Education, Hospitals, and other Nonprofit Organizations which is incorporated in these Rules by reference including subsequent amendments and editions.  A copy of this circular is available from the Division of Community Assistance, Raleigh, North Carolina.

 

History Note:        Authority G.S. 14‑234; 143B‑10; 143B‑431; 24 C.F.R. 570.489; 24 C.F.R. 570.496; 42 U.S.C.A. 5304(b),(d),(e);

Eff. July 1, 1982;

Amended Eff. August 1, 1998; June 1, 1994; June 1, 1993; September 1, 1991; September 1, 1990.