Office of Federal Awards Management

State Guidance

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”.

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
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)
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

6. State Fiscal Year 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.

MEMORANDA:

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: Governor May Approve the Extension of the Lapse Dates for Federal Fund or Other Federal Fund Appropriations and Appropriations of other Means of Financing, except General Funds, deemed necessary to qualify for Federal Aid Financing or Reimbursement
Section 22: Federal Fund Reimbursements Shall Be Returned to the General Fund or Fund of Originating Expenses

Act 040, SLH 2019 (General Improvement Act of 2019) Federal Fund Provisos

Section 21: Lapse Dates for Federal Fund Appropriations for Capital Improvement Projects
Section 32: Governor May approve Increase in Federal Funds Authorization Ceiling
Section 33: Governor May Approve the Extension of the Lapse Dates for Federal Fund or Other Federal Fund Appropriations and Appropriations of other Means of Financing, except General Funds, deemed necessary to qualify for Federal Aid Financing or Reimbursement

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.

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)

Cash Management Improvement Act Agreement (CMIA) 2020 (July 1, 2019-June 30, 2020)

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