Michigan Department of Education Changes Cash Management Rule
School Advisor, 2006 Issue No. 2
In the recently issued School Audit Manual, the Michigan Department of Education (MDE) added a change to the “30-day rule.” For many years, the 30-day rule said a school district could request up to 30 days future cash needs when submitting a reimbursement request for federal grant funds. This fact is still true. However, with the shortened turnaround time in funding district requests, MDE has added some additional parameters. They are:
- The future cash need should be less than $10,000 and will be used in the next 30 calendar days, or
- The future cash need is $10,000 or more and the excess over $10,000 will be used in the next 7 calendar days
We suspect that this information may not have been clearly communicated to school districts and wanted to ensure that school district administrators were aware of the change.
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