006.09.1 R1-19-4-1904. Federal Grants and Aid
AR ADC 006.09.1 R1-19-4-1904Arkansas Administrative Code
Ark. Admin. Code 006.09.1 R1-19-4-1904
006.09.1 R1-19-4-1904. Federal Grants and Aid
General Policies and Procedures
From time to time State agencies may request or receive federal funds in the form of grants or other aid. By nature, federal grants are subject to a full range of varying, yet specific, post award administrative requirements. To reasonably assure compliance with State and federal law as well as accurately report financial information, State agencies should maintain effective internal control over the financial administration of federal programs consistent with the following requirements:
U.S. Office of Management and Budget (OMB) Circulars A-87 Cost Principles for State, Local, and Indian Tribal Governments, A-102 Grants and Cooperative Agreements With State and Local Governments, A-133 Audits of States, Local Governments, and Non-Profit Organizations, the recommendations and requirements contained in the A-133 Compliance Supplement (current edition), the Cash Management Improvement Act of 1990, the regulations promulgated pursuant thereto at 31 CFR Part 205, and other relevant grants management provisions applicable to the federal program in question, as announced in the Catalog of Federal Domestic Assistance and in The Federal Register.
These essential documents can be found within the following five (5) links:
http://www.whitehouse.gov/omb/grants/grants_circulars.html
http://www.fms.treas.gov/cmia/statute.html
http://www.fms.treas.gov/fedreg/31cfr205final.pdf
http://12.46.245.173/cfda/cfda.html
http://www.gpoaccess.gov/fr/index.html
Grant or Aid Preapplication
All preliminary, preapplication or informal proposals which may result in the commitment of personnel, space, facilities, equipment or State funds shall be submitted to the Department of Finance and Administration-Intergovernmental Services (DFA-IGS) with an Evaluation Report at the time it is submitted to the federal granting agency. DFA-IGS shall coordinate the review of any proposed program to prevent overlap, inefficiency or violation of legislative intent. (ACA § 19-4-1902, ACA § 19-4-1903)
State institutions of higher education should submit preliminary proposals to DFA-IGS at <http://www.state.ar.us/dfa/igs/igs_clearinghouse.html>as informational only. (ACA § 19-7-604(b)(3))
Grant or Aid Application
All formal proposals or other applications for federal funds in the form of grants, aids and reimbursements, except research grants or requests originating from a State institution of higher education, are to be submitted to DFA-IGS and the Governor's Office prior to submission to the granting source. The submission should include a summary of the application with the indirect cost rate of the applicant agency and a projection of the amount to be received as indirect cost reimbursement, if applicable. DFA-IGS is to file a summary of this submission with the Bureau of Legislative Research of the Legislative Council quarterly for review. (ACA § 19-4-1901, ACA § 19-7-604)
MFG Requirements for New or Additional Federal Funds
When new federal programs or new Comprehensive Employment and Training Act programs become available which require the benefiting State agency to employ additional personnel or require the benefiting State agency to obtain additional appropriations so that the program meets the requirements of or performs the objectives of the program, the head of the affected agency may request additional appropriations from the Governor and the Chief Fiscal Officer of the State. The agency's request must be on a “Miscellaneous Federal Grant” Form (MFG) and include supporting documentation, if applicable. The completed MFG and supporting documentation should be submitted to the agency's Budget Analyst at the Department of Finance and Administration-Office of Budget. After consulting the Legislative Council or the Joint Budget Committee, the Governor may approve or modify the requests. (ACA § 19-7-502)
MFG documents can be found within the following two (2) links:
http://www.state.ar.us/dfa/budget/documents/mfg_form_page1_0206_001.xls
http://www.state.ar.us/dfa/budget/documents/mfg_form_page2_0206_000.xls
Quarterly Reporting Requirements
Information on all grants, aids, reimbursements and reimbursement plans, including research grants and those originating from a State institution of higher education, is to be reported to DFA-IGS quarterly. These reports shall be filed with respect to new federal programs or expansions of existing federal programs which were not in existence or which were not implemented by State participation at the time of the adjournment of the regular session of the General Assembly and entered into prior to the convening of the next regular session of the General Assembly. The DFA Director is to report to the Legislative Council on federal funds quarterly. The report is to summarize and itemize all programs which involve the expenditure of federal funds and is to include the following:
• a brief purpose of the agreement,
• the amount of federal funds to be expended,
• the amount of State matching funds, if required,
• the name of the administering agency or department, as well as any additional information that would assist the Legislative Council in determining the nature and purpose of the agreement.
Findings and recommendations by the Legislative Council from review of the quarterly reports are to be reported to each subsequent regular session. (ACA § 19-4-1904; ACA § 19-7-101, ACA § 19-4-1907, ACA § 19-4-1908)
Funds Receipt
The DFA-IGS is to be notified when a State agency receives notification or obtains any federal funds, grants, aids or reimbursements, including unsolicited federal funds. Such notification shall include reporting federal funds received for indirect cost reimbursements resulting from overhead cost of the entity or overhead cost allocated to the entity through the Consolidated Statewide Cost Allocation Plan. A summary of the notifications will be provided by DFA-IGS to the Bureau of Legislative Research of the Legislative Council for review quarterly. (ACA § 19-7-604, ACA § 19-4-1904)
All such funds are to be deposited as all other State Treasury funds. Any federal funds received on behalf of public school districts shall be forwarded to the county treasurer or district treasurer as the district chooses. Federal funds received by the agencies set out in ACA § 19-5-205(b) shall be deposited in to the State Central Services Fund. (ACA § 19-3-501, ACA § 19-3-518, ACA § 19-4-408, ACA § 19-5-205)
CMIA and other Interest Earned on Federal Funds
Interest earned on federal funds received under the State and Local Fiscal Assistance Act of 1972 is to be transferred from the Securities Reserve Fund at the direction of the Chief Fiscal Officer of the State based upon the related portion of the average daily balance of the federal funds on a quarterly basis. (ACA § 19-3-521)
PLEASE NOTE: Refer to R1-19-4-1807.
Funds Disbursement
Disbursement made on specific funds receiving federal funding require the State Auditor to process warrants and the Treasurer of State to redeem the warrants presented for payment in accordance with the Federal Cash Management Improvement Act of 1990, Pub. L. 101-453, Oct. 24, 1990, 104 Stat. 1058, after the Chief Fiscal Officer of the State notifies them that the State agency director has certified that the Federal fund transfer request has been completed and accepted by the federal funding source and that the federal funds will be transferred for the benefit of the State fund to pay the warrants. (ACA § 19-4-1107)
In the event of actions that would adversely affect funds received or related estimates, each agency head administering federal funds is required to immediately notify the State's Chief Fiscal Officer. (ACA § 19-4-1306)
Recommendations of Governor
ACA § 19-7-504 states that the Governor will submit recommendations to the General Assembly at the beginning of each regular session of the Arkansas General Assembly for any federal programs during the following fiscal biennium. Such recommendation is to include a recommended appropriation of federal and State funds necessary for each program. In the event the General Assembly fails to appropriate the funds for any program, the State will no longer participate in such program effective June 30th following adjournment of the regular session.
Accounting
The Federal Grants & Reimbursements, general ledger account 4050004000, is the only account used to record federal grant revenue received directly from the federal grantor or sub grantor that is not another State of Arkansas agency. Grants and Aid from Other State Agencies, general ledger account 6060001000, is used to record grants received from other State agencies. The State agency disbursing grant funds to another agency should use Grants and Aid to Other State Agencies, general ledger account 6061001000. Each agency will be required to provide the Department of Finance and Administration-Office of Accounting-CAFR Section a list of all federal funds with CFDA numbers, the general ledger account the revenue was recorded to and the related amount. For additional information on recording and tracking Federal Grants and Aid see P1-19-5-101 and Project Accounting at http://www.aasis.state.ar.us/Training/CourseWare/CWarePRJACT.htm Tutorials on the AASIS web site.
PLEASE NOTE: Also refer to ACA § 19-4-2201 et seq. to review requirements for discretionary grants. Also refer to ACA § 19-7-101 et seq. for more information on Federal Funds.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.09.1 R1-19-4-1904, AR ADC 006.09.1 R1-19-4-1904
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