Grant Accounting

Policy

FIACCT 14-06_12 Grant Accounting – CMIA – U.S. Treasury-State Agreement

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

Purpose

This policy describes the treasury-state agreement into which a state may enter with the Bureau of the Fiscal Service of the U.S. Treasury to set forth the terms and conditions for implementing the Cash Management Improvement Act (CMIA) in Utah. (If Utah does not enter into this type of agreement, then default provisions take effect. The Bureau of the Fiscal Service would prescribe funds transfer procedures and the method for calculating interest liabilities.)


Policy

A. Components. The treasury-state agreement must include at a minimum the following items:

1. A list of all federal programs for the state of Utah which are subject to CMIA.

2. The funding technique to be applied to each program or portion of a program subject to CMIA. (See the CMIA – Funding Techniques policy in this section of this manual for descriptions of each allowable funds transfer method.)

3. Interest calculation. The methodology Utah will use to calculate and document interest liabilities on federal funds transfers.

4. The method and standards Utah will use to develop and maintain check clearance patterns.

B. Because Utah may enter into only one treasury-state agreement which includes all entities of the State, the Division of Finance will negotiate that treasury-state agreement with the Bureau of the Fiscal Service. The Division of Finance is responsible to coordinate the collection and reporting of data to the federal government under the Cash Management Improvement Act, including those entities not included in the FINET accounting system. The Division of Finance may enter into separate agreements with entities not included in the FINET accounting system to describe relationships and facilitate the collection and monitoring of information concerning federal funds transfers.

C. The director of the Division of Finance shall be the authorized state official to sign the treasury-state agreement. He is also the one who certifies check clearance patterns, direct cost claims, and any other reports pertaining to the Cash Management Improvement Act.

D. A treasury-state agreement may be amended by the mutual written consent of the State and the Bureau of the Fiscal Service at any time.

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