Office of Federal Awards Management

APPROPRIATED FEDERAL FUND PROCEDURES

Appropriation must be sought in the Executive Budget through the budget process for all federal awards on the “List of Major, Recurring Federal Awards” by the State Department or Entity authorized to receive the award as the prime recipient using MOF (Means of Financing) “N”.  Appropriation shall be sought in the Executive Budget for all other recurring federal awards using MOF (Means of Financing) “P”.

1. Appropriated Federal Funds Procedures
   Following are the procedures to request appropriation, establish an appropriation account, and request an allotment.
   1. Chart
   2. Narrative
   3. Form FF-Executive Budget Request Submittal Instructions in FAMS
   4. Form FF-Executive Budget Execution Submittal Instructions in FAMS
2. Forms
   The following E forms must be submitted electronically to request the Governor’s approval via the SharePoint Federal Award Forms Workflow.
   1.  Form E-1 (Request Approval to Increase Expenditure Level for Federal Fund)
   To increase the ceiling for an Appropriation Account, the Governor’s approval shall be requested by submitting Form E-1.
   2. Form E-4 (Request to Extend Lapse Date of Federal Fund or Other Federal Funds and Non-General Matching Funds)
   If the Appropriation Account lapse date precedes the performance period end date, the Governor’s approval shall be requested to extend the lapse date by submitting Form E-4.
   3. Form E-5 (Pursuant to Act 049/SLH 2017, notification to the Legislature is no longer required)
3. List of Major, Recurring Federal Awards
   1. State Fiscal Year 2014
   2. State Fiscal Year 2015
   3. State Fiscal Biennium 2015-2017
   4. State Fiscal Biennium 2017-2019
   5. State Fiscal Biennium 2019-2021

NON-APPROPRIATED FEDERAL FUND PROCEDURES

• Non-Appropriated Federal Funds Procedures
  Federal awards that did not receive appropriation through the budget process shall use the following procedures to request appropriation, establish an appropriation account, and request an allotment.
  1.  Chart
  2.  Narrative
• Forms
  The following E forms must be submitted electronically to request Governor’s approval via the SharePoint Federal Award Forms Workflow.
  1.  Form E-1 (Request Approval to Increase Expenditure Level for Federal Fund)
  To increase the ceiling for an Appropriation Account, the Governor’s approval shall be requested by submitting Form E-1.
  2.  Form E-2 (Request Approval to Expend Non-Appropriated Federal Funds)
  To request Governor’s approval to expend non-appropriated federal funds, Form E-2 shall be submitted.
  3.  Form E-3 (Pursuant to Act 049/SLH 2017, notification to the Legislature is no longer required)
  4. Form E-4 (Request to Extend Lapse Date of Federal Fund or Other Federal Funds and Non-General Matching Funds)
  If the Appropriation Account lapse date precedes the performance period end date, the Governor’s approval shall be requested to extend the lapse date by submitting Form E-4.
  5. Form E-5 (Pursuant to Act 049/SLH 2017, notification to the Legislature is no longer required)

SAMPLES

 Preparation of Federal Fund Allotments-June 27, 2014:  (Samples below)

1. Journal Voucher (JV) To Allocate Authorized Ceiling From Parent to Subaccounts
2.  Request for Allotment (A-19)-Parent Account (Initial)
3.  Request for Allotment (A-19)-Subaccount (Initial)
4.  Request for Allotment (A-19)-Non-appropriated Federal Award
5.  Request for Allotment (A-19)-Parent Account (2nd Year)
6.  Request for Allotment (A-19) -Subaccount (2nd Year)

FAMS (FEDERAL AWARDS MANAGEMENT SYSTEM) REPORTING REQUIREMENT

State Executive Departments and agencies, excluding UH, must notify Budget and Finance within fourteen (14) calendar days of receipt of a federal award notice. State agencies must use the Federal Awards Management System (FAMS) to notify B&F of the receipt of a federal award.

• FAMS User Guide
• FAMS FAQS
• FAMS Data Field Definitions
• Memorandum: Access to FAMS, a New Feature of Datamart
• Datamart FAMS Access Request Form

MEMORANDA:

• FM 98-01: Implementation of the State Treasury Investment Pool System (November 12, 1998)
• Federal ASAP System (October 27, 2010)
• Management of Federal Funds  (November 14, 2011)
• House Approved DATA Act with New Reporting Requirements for States  (April 3, 2012)
• OMB Major Grant Reform Ideas  (April 11, 2012)
• Managment of Federal Awards   (May 11, 2012)
• FFATA Sub-award Reporting Requirements for Prime Awardees  (May 25, 2012)
• Federal Fund Information for States (FFIS) Access for State Employees (July 20, 2012)
• Federal Award Management  (November 15, 2012)
• FM 12-20: Federal Budget Control Act Sequester  (December 6, 2012)
• Impact of the Budget Control Act Sequestration on State Programs  (February 25, 2013)
• CM 13-09: Closing of Inactive Appropriation Accounts (April 26, 2013)
• Closing Inactive Federal Fund Appropriation Accounts  (May 7, 2013)
• FM 13-05: New Methodology for Assignment of Appropriation Symbols for Federal Awards  (May 16, 2013)
• Major, Recurring Federal Awards for FY 2014  (May 28, 2013)
• UOH Request for Exemption from FM No. 13-05 (August 12, 2013)
• Major, Recurring Federal Awards for FY 2015  (September 20, 2013)
• DOT-HWY Request for Exemption from FM No. 13-05 (October 1, 2013)
• DOE-Request for Exemption from FM No. 13-05 (October 24, 2013)
• FM 13-16: Procedures to Request Appropriation for Federal Funds, Establish Appropriation Accounts and Allot Federal Funds for Operating Funds (December 11, 2013)
• FM 14-01: Procedures to Request Appropriation for Non-Appropriated Federal Funds, Establish Appropriation Accounts and Allot Federal Funds (January 6, 2014)
• EM 14-02: Delegation of Authority to Apply for and Submit Applications for Non-Appropriated Federal Awards to Dept. Heads
• FM 14-07: Federal Awards Management System (FAMS)
• CM 14-15: New Encumbrance Codes for Payroll Change Schedule
• Access to Federal Awards Management System (FAMS), a New Feature of Datamart  (July 10, 2014)
• FM 14-11: Preliminary FY15 Budget Allocations, Impact on Grants
• FM 14-15: Revised Procedures to Request Appropriation and Establish Appropriation Accounts and Allotments for Appropriated and Non-Appropriated Federal Funds
• FM 15-05: Closing Federal Fund Appropriation Accounts with Cash Balances
• FM 15-07: Closing Federal Fund Appropriation Accounts with Cash Balances
• FM 15-08: Interim Fringe Benefit Rates for FY 16
• Uniform Guidance Implementation Working Group
• FM 16-02: Approved Fringe Benefit Rate for FY15 Revised Interim Fringe Benefit Rate for FY16
• FM 16-03: Approved Fringe Benefit Rates for FY 16
• FM 16-04: Negotiation Agreement Approving Central Services Costs and Fringe Benefit Rates for FY 15
• FM 16-05: Negotiation Agreement Approving Central Services Costs and Fringe Benefit Rates for FY 16
• FM 16-06: Extending the Lapse Dates of the Appropriation Accounts for Federal Funds, Other Federal Funds or Non-General Matching Funds Pursuant to Section 103 of Act 119, SLH 2015
• CM 16-09: pCard Transactions in DataMart
• FM 17-02 Lapsed Federal Fund Appropriation Accounts with Cash or Encumbrance Balances
• FM 17-05 Interim Fringe Benefit Rates for FY 18
• FM 17-08 Federal Funds-Cash Management Improvement Act (CMIA)
• FM 17-10 Lapsed Federal Fund Appropriation Accounts with Cash Balances
• FM 17-11  “Federal Award Forms Workflow” for Federal Funds Forms E-1, E-2, E-4
• FM 17-14 Approved Fringe Benefit Rate for FY17 and Revised Interim Fringe Benefit Rate for FY 18
• FM 17-17 Negotiation Agreement Approving Central Services Cost and Fringe Benefit Rates for FY 17
• FM 17-21 Closing FAMS (Federal Award Management System) Records
• FM 18-01 Cash Management Policy for Federal Funds
• FM 18-03 Revised Procedures to Request Appropriation and Establish Appropriation Accounts and Allotment for Appropriated and Non-Appropriated Federal Funds 
• CM 18-03 CIP Appropriations
• FM 18-06 CMIA Annual Interest Exchange Procedures
• FM 18-08 Extending the Lapse Dates of the Appropriation Accounts for Federal Funds, Other Federal Funds or Non-General Fund Matching Funds Scheduled to Lapse on June 30, 2018
• FM 18-10 Interim Fringe Benefit Rates for FY19
• FM 18-12 Approved Fringe Benefit Rate for FY 18 and Revised Interim Fringe Benefit Rate for FY 19
• FM 18-13 Negotiation Agreement Approving Central Services Costs and Fringe Benefit Rates for FY 18
• FM 18-21 Priority Processing of Treasury Deposit Receipts (TDR) for “Major Assistance Programs” Identified in the Annual Treasury-State CMIA Agreement
• FM 18-22 Availability of Federal Funds in State Appropriation Accounts Following a Drawdown Request for Federal Assistance Programs Subject to 31 CFR 205, Subpart B
• FM 19-02 Lapsed Federal Fund Appropriation Accounts with Cash Balances
• FM 19-05 Participation of Federal Appropriation Accounts in the State Treasury Investment Pool System (TIP)
• FM 19-07 Interim Fringe Benefit Rates for FY 20

LEGISLATION

Act 005, SLH 2019 (General Appropriations Act of 2019) Federal Fund Provisos

• Section 16: Lapse Dates for Federal Fund Appropriations for Operating Cost
• Section 18: Governor May Approve Increase in Federal Funds Authorization Ceiling
• Section 19: Extending the Lapse Dates of the Appropriation Accounts for Federal Funds, Other Federal Funds or Non-General Matching Funds
• Section 22: Federal Fund Reimbursements Shall Be Returned to the General Fund or Fund of Originating Expenses

Act 049, SLH 2017 (General Appropriations Act of 2017) Federal Fund Provisos

• Section 59: Lapse Dates for Non-General Fund Appropriations for Capital Projects
• Section 69: Lapse Dates for Federal Fund Appropriations for Operating Cost
• Section 71: Governor May Approve Increase in Federal Funds Authorization Ceiling
• Section 72: Extending the Lapse Dates of the Appropriation Accounts for Federal Funds, Other Federal Funds or Non-General Matching Funds
• Section 75: Federal Fund Reimbursements Shall Be Returned to the General Fund or Fund of Originating Expenses

Act 119, SLH 2015 (General Appropriations Act of 2015) Federal Fund Provisos

• Section 90: Lapse Dates for Non-General Fund Appropriations for Capital Projects
• Section 100: Lapse Dates for Federal Fund Appropriations for Operating Costs
• Section 101: Unanticipated Federal Funding Cutbacks
• Section 102: Governor May Approve Increase in Federal Fund Authorization Ceiling
• Section 103: Governor May Approve Extension of Lapse Dates for Federal Fund Appropriations
• Section 106: Federal Fund Reimbursements Shall Be Returned to the General Fund or Fund of Originating Expense 

Act 122, SLH 2014 (Supplemental Appropriations Act of 2014) Federal Fund Provisos

• Section 29:Sequestration
• Section 88.1:Governor’s authority to approve the extension of the lapse date for federal funds

Act 134, SLH 2013 (General Appropriations Act of 2013) Federal Fund Provisos

• Section 2: Definitions
• Section 29: Sequestration
• Section 57, 58, 59: Lapse dates for non-general fund appropriations for capital improvement projects
• Section 76: Lapse dates for non-general fund appropriations for capital improvement projects under Act 134, SLH 2013
• Section 86: Lapse dates for federal fund appropriations made for operating costs under Act 134, SLH 2013
• Section 88: Governor’s authority to approve expenditure of federal funds in excess of levels authorized by the legislature

  SINGLE AUDIT

The Single Audit is a organization-wide audit or examination of an entity that expends $500,000 ($750,000 for audits of fiscal years beginning on or after December 26, 2014) or more of federal funds during the non-federal entity’s fiscal year.  Performed annually, the Single Audit’s objective is to provide assurance to the federal government as to the management and use of such funds by States organizations. The Single Audit is typically performed by an independent certified public accountant (CPA) and encompasses both financial and compliance components. The Single Audits must be submitted to the Federal Audit Clearinghouse.

• State of Hawaii Single Audit Reports
• CM 2002-17 Distribution of Audit Reports under Single Audit Act Amendments of 1996 (May 6, 2002)
• CM 2002-18 Funding of Audit Required Under Single Audit Act Amendments of 1996 (May 7, 2002)
• CM 2009-17 Single Audit Act of 1984  (July 17, 2009)
• CM 2011-34 State of Hawaii Single Audit Report  (December 22, 2011)

Federal-State Fund Transfers

Federal regulations for transferring funds between the Federal government and States for Federal Assistance Programs are codified in “31 CFR 205 – Rules and Procedures for Efficient Federal-State Funds Transfers”, Subpart A and B.

1. Subpart A describes “Rules Applicable to Federal Assistance Programs Included in a Treasury-State Agreement (TSA)”. The annual Treasury-State Agreement (TSA) between the State and the U.S. Treasury, Bureau of Fiscal Services (BFS) are posted below. Each annual agreement identifies the awards determined to be a “Major Assistance Program” and are listed in Section 4.2.

Cash Management Improvement Act Agreement (CMIA) 2010 (July 1, 2009-June 30, 2010)

Cash Management Improvement Act Agreement (CMIA) 2011 (July 1, 2010-June 30, 2011)

Cash Management Improvement Act Agreement (CMIA) 2012 (July 1, 2011-June 30, 2012)

Cash Management Improvement Act Agreement (CMIA) 2013 (July 1, 2012-June 30, 2013)

Cash Management Improvement Act Agreement (CMIA) 2014 (July 1, 2013-June 30, 2014)

Cash Management Improvement Act Agreement (CMIA) 2015 (July 1, 2014-June 30, 2015)

Cash Management Improvement Act Agreement (CMIA) 2016 (July 1, 2015-June 30, 2016)

Cash Management Improvement Act Agreement (CMIA) 2017 (July 1, 2016-June 30, 2017)

Cash Management Improvement Act Agreement (CMIA) 2018 (July 1, 2017-June 30, 2018)

Cash Management Improvement Act Agreement (CMIA) 2019 (July 1, 2018-June 30, 2019)

2. Subpart B describes “Rules Applicable to Federal Assistance Programs Not Included in a Treasury-State Agreement”.