State Guidance

APPROPRIATED FEDERAL FUND PROCEDURES

Appropriation must be sought in the Executive Budget Bill 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 Bill for all other recurring federal awards using MOF (Means of Financing) “P”.  Following are procedures to request appropriation, establish an appropriation account, and request an allotment.

NON-APPROPRIATED FEDERAL FUND PROCEDURES

For federal awards not appropriated in the budget bill, the following procedures must be used to request appropriation, establish an appropriation account, and request an allotment.

  • Non- Appropriated Federal Funds Process
    1.  Chart
    2.  Narrative
  • Forms
    1.  Form E-1 (Request Approval to Increase Expenditure Level for Federal Fund)
    To increase the ceiling, the Governor’s approval shall be requested by submitting Form E-1 via the SharePoint “Federal Form Awards Workflow.”
    2.  Form E-2 (Request Approval to Expend Non-Appropriated Federal Funds)
    The Governor’s approval shall be requested to expend non-appropriated federal funds by submitting Form E-2 via the SharePoint “Federal Form Awards Workflow.”
    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 performance period for an award will end after the Appropriation Account lapse date, the Governor’s approval shall be requested to extend the lapse date by submitting Form E-4 via the SharePoint “Federal Form Awards Workflow.”
    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.

MEMORANDA:

LEGISLATION

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.

CMIA (Cash Management Improvement Act) Agreements

Rules for transferring funds between the Federal government and States for Federal assistance programs are governed by Treasury-State CMIA agreements and default procedures codified at 31 CFR Part 205 “Rules and Procedures for Efficient Federal-State Funds Transfers” and TFM 4A-2000 Overall Disbursing Rules for All Federal Agencies.

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)