1.0 General Information
1.1 Statutory Reference
See: CGS Sections 3-39a, 4-28, 4-29, 4-31, 4-31a, and 13a-166.
1.2 Fringe Benefits and Indirect Costs
Federal and Other Than Federal appropriations in the Grants and
Restricted Accounts Funds should be charged with their appropriate share
of fringe benefits and indirect costs. The procedures for determining and
applying overhead and fringe benefit rates are contained in the
Comptroller's Indirect Cost and Fringe Benefit Recovery Procedures Manual.
http://osc.ct.gov/manuals/IndirectCosts/index.html
Questions and requests for assistance should be addressed to the OSC/
Budget and Financial Analysis Division of the Comptroller's Office.
2.0 Grant Types and Coding
2.1 Unrestricted Private Grants
All grants from private sources received without restriction become
General Fund revenue unless there is specific statutory authority to the
contrary. This is true whether the sums are to promote special activities
or for the general benefit of the state. All such grants received are to
be deposited in the General Fund using Revenue Account 45620.
2.2 Federal Grant General Information
Federal grants, whether to reimburse the State for specific
expenditures that were made from budgeted General Fund appropriations,
or to encourage specific programs or projects, become General Fund
revenue unless there is specific statutory authority to the contrary.
The federal government awards grants to the state for a particular
purpose or for a specific project. When received, Federal grant funds are
appropriated and allotted by the Office of Policy and Management, and then may be expended by the
receiving agency for the purpose of the grant or contract.
In order to insure accurate reporting of federal grant expenditures by
the Comptroller, and to facilitate compliance with the Federal Single
Audit Act and the Federal Cash Management Improvement Act, separate
appropriation SIDs must be maintained for each federal grant or federal
program. Federal programs are identified by the Catalog of Federal
Domestic Assistance (CFDA) number assigned to each grant award. Multiple
year grants do not require a separate SID for each year, yearly awards may
be commingled in a single SID. A separate budget reference may be used to
distinguish between grant periods.
It is the responsibility of the receiving agency to comply with all
grant terms and conditions and to file any necessary program or fiscal
reports.
2.2.1 Discretionary or Competitive Federal and Private Grants
Agencies are required to notify the Office of Policy and Management of
their intent to apply for such funds. Notification must be provided
using the automated system. Paper "Notification of Intent" forms will
not be accepted.
See
http://www.ct.gov/opm/cwp/view.asp?a=2965&Q=508082&&opmNav_GID=1793
for further instructions.
2.3 Federal Funding Types
2.3.1 Advance Funding by Federal Government
For many grants the federal government advances funds on a monthly,
quarterly, or annual basis to finance the grant activities.
The procedures required are as follows:
A. Request a Grant Appropriation Code (SID) from OSC/ Budget and
Financial Analysis Division of the Comptroller's Office. The SID will be in the
20050 series. See Paragraph 5.0 for instructions. Each SID should contain
only one federal program as identified by the CFDA number.
B. Deposit federal funds to Revenue Account 45020.
C. Process encumbrances and expenditures for grant funds in the same
manner as other appropriations. For further instructions:
http://www.core-ct.state.ct.us/financials/bi/doc/3agcy_drct_fdrl_advncd_prvt_adv_fndg.doc
2.3.2 Federal Receivables
When the federal grant or contract provides for reimbursement after
expenditures, CGS 3-39a and 13a-166 provide for the establishment and
allotment of appropriations prior to receipt of federal funds.
The procedures required are as follows:
A. Request a Grant Appropriation (SID) code from OSC/ Budget and
Financial Analysis Division of the Comptroller's Office. The SID will be in the
20050 series. See paragraph 5.0 for instructions. Each SID should contain
only one federal program as identified by the CFDA number.
B. Secure Office of Policy and Management (OPM) approval for the receivable.
Prepare a "Grant Award Report", and forward to OPM along with the grant
award (or other written commitment) for their approval.
http://osc.ct.gov/agencies/forms/word/GrantAwardReportForm.doc
If approved by OPM, the Grant Award Report and grant award will be
forwarded to OSC/ Budget and Financial Analysis Division of the
Comptroller's Office where the award will be appropriated and allotted.
The grantor commitment must be in a "form acceptable to the
Comptroller" (CGS Sec. 3-39a).
C. Process encumbrances and expenditures
Once an award is allotted, encumbrances and expenditures are processed
in the normal manner.
For more instructions:
http://www.core-ct.state.ct.us/financials/bi/doc/2agcy_drct_fdr_pvt_rcvbl_fndg.doc
2.3.2.1 Receivable Record
Upon approval of a receivable, agencies should establish a receivable
record to track both receipts and expenditures (this may be a monthly
summary entry). This record will indicate both the remaining receivable
(original receivable less cumulative deposits) and the amount of the
receivable which is currently collectible (cumulative expenditures less
cumulative deposits).
2.3.2.2 Deposit of Receipts Against Receivables
Agencies should request reimbursement by the federal government for
expenditures as frequently as allowable. The Comptroller monitors
collections versus expenditures on receivables and will contact any agency
which appears to be lax in securing federal reimbursement
Agencies should not record grant receipts with the Revenue Account
46200 (Other Refunds). This understates state grant receipts and
expenditures. The use of this coding for grant receipts negatively impacts
statewide reporting. The OSC/ Budget and Financial Analysis Division of
the Comptroller's Office periodically reviews the grant refunds; agencies who are
coding these refunds incorrectly will be notified to correct the posting.
The following link provides additional information on grant processing.
http://www.core-ct.state.ct.us/financials/bi/doc/grants_matrix.doc
2.3.3 Letter of Credit Grants
A federal letter of credit is a commitment certified by an authorized
official of a federal program agency, specifying a dollar limit available
to a designated grantee (i.e., state agency). It is used in federal
programs requiring large advances of cash to state agencies, enabling the
agency to withdraw cash from the U. S. Treasury concurrently with
disbursements and as frequently as such disbursements are made by the
agency.
The grantor federal agency is responsible for developing instructions
and reporting and internal operating procedures for state agencies
relating to letters of credit and will monitor the state agency's use of
the funds. State agencies will be advised of and shall comply with the
federal agency's requirements in connection with advance funding.
Generally, the state agency commits itself to:
(l) initiating cash drawdowns only when needed to meet actual
disbursements and in minimum amounts necessary for immediate disbursement
needs;
(2) the timely reporting of cash disbursements and balances as required
by the federal program agency; and
(3) the imposition of these same standards upon any secondary
recipients (entities receiving federal funds advances from the state
agency�commonly local governments).
The procedures required are as follows:
A. Request a Grant Appropriation (SID) code from OSC/ Budget and
Financial Analysis Division of the Comptroller's Office. The SID will be in the
20050 series. The grant title and appropriation code (through SID) should
be placed on all "Grant Awards" and "Letters of Credit" processed under
the following paragraphs. Each SID should contain only one federal program
as identified by the CFDA number.
B. Send the original copy of the letter of credit and one copy of the
grant award to the State Treasurer.
C. Secure an appropriation and allotment
Send two copies of the grant award and/or letter of credit to the
Office of Policy and Management (Budget and Management Division) along
with an Allotment Request (B-107). The agency must request an allotment
for the entire grant. The Office of Policy and Management (if acceptable
to them) will approve the grant award and process the B-107.
When approved, the B-107 will be forwarded to OSC/ Budget and Financial
Analysis Division along with the approved grant award and/or letter of
credit. OSC/ Budget and Financial Analysis Division of the Comptroller's
Office
will establish an appropriation, allotment and a grants receivable for the
amount of the award.
D. Process encumbrances and expenditures
Once the allotment is posted, encumbrances and expenditures may be
processed in the usual manner.
2.3.3.1 Drawdowns Against the Letter of Credit (45020)
Federal programs subject to the Cash Management Improvement Act of 1990
(CMIA) have funding techniques set by the Treasury-State Agreement. The
funding technique described in that agreement defines when the drawdown is
to take place. All drawdowns for CMIA covered programs must be in
compliance with the funding technique outlined in the agreement to avoid
payment of interest to the federal government. If there is any question
regarding compliance with CMIA please call OSC/ Budget and Financial
Analysis Division at 860-702-3352.
Programs below the state's threshold are not subject to the interest
provisions of CMIA and are not included in the Treasury-State Agreement.
Under CMIA regulations, cash advances for these programs are limited to
the actual, immediate cash requirements of the state.
Note: For assistance with Fund, SID, and Revenue Account information,
please contact the OSC/ Budget and Financial Analysis Division at
860-702-3352.
For assistance with Bank information, please call the Office of the
Treasurer, Cash Management Division, 860-702-3130.
2.4 Other than Federal Grants - Restricted
2.4.1 General information
This section covers gifts, donations, grants, and contracts restricted
to a particular purpose or project from sources other than the federal
government. It also covers restricted accounts funded by receipts, the use
of which is limited by law or otherwise to a particular purpose, and where
use of a special fund is not required.
2.4.2 Procedures
The procedures for private grants or accounts are identical to those
outlined in paragraph 2.3.2 for federal grants with one exception:
A. Receipts should be coded to revenue account 45500.
2.5 Other Than Federal Receivables
When necessary, and subject to the approval of the Office of Policy and
Management and acceptance by the Comptroller, receivables may be
established for non-federal grants in the same manner as for federal
grants. These grants will follow the same procedures as outlined in
paragraph 4.4 for federal receivables with one exception:
A. Receipts must be coded to Revenue Account 45500.
3.0 Transfers of Grants Between State Agencies
3.1 Definition
Transfers of grants refer to the giving of a grant to another state
agency or between two appropriations of a single agency similar to giving
a grant to an outside agency. This involves the passing of authority to
make expenditures as contrasted with the payment to another for goods and
services (purchase and sale) or an inter-agency rearrangement of
expenditures (corrections or temporary financing).
Grants between agencies will normally be evidenced by the same
documents or items as any grant:
A. Grant award
B. Program and fiscal reports
C. Return of unexpended
balances
3.2 Grant Transfer Coding
Grant transfers (GT's) as defined in this section occur only in funds
12060 and 12062 (other transfers may occur, but the procedures in this
section apply exclusively to transfers within either Fund 12060 or Fund
12062).
The agency receiving the transfer of funds uses one of two revenue
codes: 47100 for federal grant transfers and 47200 for non-federal grant
transfers. For grant transfer receipts that are not within Fund 12060 or
12062, Account 47300 may be used.
The agency executing the payment of the transfer within Fund 12060 or
12062 should always use expenditure Account 55110 on the voucher side when
they process the transfer of federal or non-federal grants. Use of the
correct revenue and expenditure coding will prevent the double counting of
funds in statewide reporting.
If the grant transfer is not within Funds 12060 and 12062 the
expenditure Account 55120 should be used. This is not considered to be a
grant transfer for central accounting purposes. OSC monitors the use of
Account 55120 and if used improperly the agency will have to make the
correction with a journal voucher or spreadsheet journal. For pass thru
grants to higher educational agencies use account 55120 on the payment
side and account 55120 for the return of unspent grants on the deposit
side by the receiving department.
For unspent grant transfer dollars that are being returned to a
department within the restricted grant funds (12060 and 12062), the bill
type for the return of such unspent grant funds will be "ET" (remember
this applies only to dollars that were initially received as intra-fund
--12060 and 12062-- grant transfers as described above):
1.) On the payment side, the expending department must use Expenditure
Account 55040 "Grant Funds Returned/Grant Refunds". The receiving
department must take the credit to Account 55110 "Transfer Grant State
Agency".
For all other unspent grant funds that are not to and from Fund12060
or12062, use Account 55080 "State Aid Grants-State Agency on the payment
side and credit Account 55120 "Transfer Grant Expenditure State Agency" on
the deposit side. The state auditors will be monitoring agency grant
transfer transactions to ensure proper compliance with the provisions of
the memorandum.
3.3 Grant Transfers Financed From State Tax Exempt Bonds
To enable the State Treasurer to comply with Public Act 88-258 and the Federal
Tax Reform Act of 1986, all inter-agency and intra-agency grant transfers
that are financed by State of Connecticut Tax - Exempt Bonds (i.e. from the
fund giving the grant) are credited to the Grants - Tax-Exempt Proceeds
Fund 12021. These grants are not to be credited to the General Fund grant
accounts or any other fund.
The following procedures apply:
A. The receiving agency should request an appropriation account number
(SID) by memorandum to OSC/ Budget and Financial Analysis Division. The
memorandum should indicate the grantor agency and the source of funding.
Copies of the memorandum should be sent to State Treasurer and the Office
of Policy and Management (OPM).
B. Once an acknowledgment and the assigned
SID coding is received from OSC/ Budget and Financial Analysis Division,
the transfer may be made.
C. The transfer is made in the same manner as other grant transfers.
D. Once the grant is appropriated and allotted in the 12021 Fund by the
transfer, commitments and expenditures may be made in the normal manner.
4.0 Closing Grants
4.1 General information
Grants, whether federal or other than federal, must comply with
restrictions imposed by the grantor. Within these restrictions the agency
should monitor these grants so that they may be terminated when the goals
of the grant have been accomplished or the time limits of the grant have
expired. These grants are continuing appropriations and remaining balances
will remain on the state's books until positive action is taken by the
agency concerned.
4.2 Lapsing of Balances
If the terms of the grant permit, the remaining balance in a complete
grant should be lapsed. This is accomplished by sending a memorandum to
the OSC/ Budget and Financial Analysis Division stating that the grant has
been terminated and the balance of $ _____ may be lapsed into the
resources of the General Fund.
4.3 Return of Funds to Grantor
If the terms of the grant do not permit the lapsing of balances, then
any remaining balance in the grant should be returned to the grantor or
disposed of in accordance with the grant (some federal grants permit
balances in a terminated grant to be transferred to another federal
grant).
Funds are returned by processing a voucher payable to the grantor for
the balance to be returned. The expenditure should be coded to Expenditure
Account 55040, Grants Funds Returned.
4.4 Cancellation of Receivables
If a balance remains on a grant receivable at the end of the grant, an
adjustment of receivables should be processed cancelling the remainder of
the receivable.
4.5 Cancellation of Appropriation Code (SID)
Grant appropriation accounts which have all zero balances and no
activity for two fiscal years are deleted from the accounting system at
the end of the second year by OSC/ Budget and Financial Analysis Division.
5.0 Requesting Grant Appropriation Codes (SIDs)
5.1 General Information
All requests for a special identification code (SID) must be in
writing. The following specific instructions apply.
A. Submit a separate request for each grant or program in duplicate.
B. The name of the grant or program.
C. The description of the program should be as brief as possible.
Provide only as much information as necessary to determine the correct
code to be assigned.
D. All requests for federal awards must include the Catalog of Federal
Domestic Assistance number. This is a five digit code (XX.XXX) which
should appear on the grant award. Each SID should be for one federal
program with one CFDA number.
E. If the source of funding is another state agency you must enter that
agency's coding. The "another state agency" may be your own agency where
you are a "prime" grantor making grants to other state agencies as well as
to yourself.
Your request with the assigned code (s) will be returned.
5.2 Multiple Year Grants
A separate SID is not required for each year of a multiple-year award.
Agencies should separate grant years internally on their own records or
through chartfield coding whenever possible, resulting in less work and
increased flexibility for all concerned
6.0 Fiscal Year End Grant Procedures
Restricted grant accounts do not lapse at the end of the fiscal year.
On the appropriation account, the unallotted, unencumbered, and
unliquidated encumbrance's balances will be continued into the next fiscal
year.
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