Grant Accounting

Policy

FIACCT 14-06_10 Grant Accounting – CMIA – Major Federal Assistance Program

Effective: July 1, 1994
Revised: February 2, 2018
Reviewed: February 2, 2018

Purpose

This policy defines what constitutes a major federal assistance program under the Cash Management Improvement Act (CMIA).


Definitions

Major Federal Assistance
Program

For state governments having total annual federal financial assistance
expenditures (for all programs) of more than $100 million, but less than $10 billion, any program that exceeds $0.60percent of the total
expenditures in the applicable year is a major federal assistance program. Utah falls in this category.

Program

The range of activities encompassed under, and classified by, a Catalog of Federal Domestic Assistance number (CFDA #). Thus, a program may be made up by one or more grants. Funding from a federal letter of credit may make up all or only a portion of a program’s revenue source, or a single letter of credit may cover more than one program. All reporting to the federal government for the Cash Management Improvement Act is done at the program level; however, in FINET, revenues and expenditures will be tracked at both the individual grant level using reporting categories and at the letter of credit level using provider codes.


Policy

A. The Cash Management Improvement Act applies to all major federal assistance programs except the following:

1. Direct loans from the federal government to states.

2. Payments made to states acting as vendors on federal contracts, which are subject to the Prompt Payment Act of 1982.

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