Federal Program Cash Management
School Advisor, 2006 Issue No. 1

As you are all well aware, certain federal program policies and procedures come under additional scrutiny from time to time as part of the normal ongoing process of auditing federal funds. We all remember the “certification” issue a couple of years ago. One of the items currently receiving increased attention by the state and federal government is cash management compliance.

You’ll recall that proper monitoring of federal cash management requires that cash not exceed the amount required for the next thirty calendar days. In recent years a competing issue has arisen with the implementation of GASB No. 33, which requires cash to be received within sixty days of June 30 to be considered current year revenue. So obviously there is a tendency to want to request as much of a grant as possible prior to June 30 in order to insure payment is received by August 31.

As we approach this June 30 year end, please be aware of these competing requirements and take the necessary steps to insure your grant coordinators have not been requesting cash significantly in excess of expenditures. This will avoid any potential cash management finding in your federal awards report.