Revenues
Policy
FIACCT 07-02_17 Federal Revenues- Refund of Federal Funds
Effective: July 1, 1994
Revised: April 1, 2013
Purpose
This policy explains the procedures that are necessary to properly record refunds of funds
previously paid out for federal program purposes.
Procedures
NOTE: For more specific instructions on the following processes in FINET, either go to the State
Finance web site (www.finance.utah.gov) and select FINET: FINET HELP or log into the FINET
system and select the HELP link located on the primary navigation panel. Use the online search
function to find instructions for a specific process.
Responsibility
Action
Refund of Federal Funds
Departments
- Enter refunds from payees (overpayments, duplicate payments, checks recovered from ineligible recipients, etc.) on a Cash Receipts (CR) transaction as a refund of expenditure. For instructions on how to enter a Cash Receipts transaction, follow the steps in the FINET: FINET HELP: REVENUES: CASH RECEIPTS: REFUND FROM VENDOR.
- For FINET Checks/Warrants that are canceled or returned see FIACCT 05-24.30 Checks/Warrants – Cancelling and Replacing FINET, State Tax, and Payroll Warrants
- Refunds in a single transaction (deposit) of $50,000 or more are subject to the interest liability provisions under the Cash Management Improvement Act (CMIA). All refunds must be credited back to the same grant, using the same program coding, except object code, so that the total grant expenditures-to-date will be reduced. Use object code 7120 for refunds of $50,000 or more or object code 7121 for refunds less than $50,000.
- Reduce the amount of the next federal drawdown by the amount of any refunds of federal funds.
Division of Finance
Process the Cash Receipts transaction or the FINET check/warrant
cancellation to the FINET system overnight processing cycle.