10.1 - Applicable Federal Rules

The federal government imposes some rules regarding the methods that prime recipients and subrecipients may use to make payments (see Fig. 10-2). The timely disbursement of other grant-related revenue, such as program income and the like, figures into the discussion. Requirements also apply to funds control and accountability, which basically have to do with the custodial functions related to cash management. These rules identify eligible cash depositories, such as banks, where money can be held pending disbursement. How to provide prompt disbursement of federal drawdowns is another issue, one that attracts great interest in the audit community. Finally, the rules address how… Read More