WELCOME TO WASHINGTON, DC

Seminar on Financial Management OFFICE OF JUSTICE PROGRAMS OFFICE OF THE CHIEF FINANCIAL OFFICER 2

FINANCIAL LIFE CYCLE OF GRANTS 3

Eric H. Holder, Jr. Office Of Justice Programs Community Oriented Policing Services Office on Violence Against Women 4

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Federal Budget Process Authorization Appropriation Apportionment Authorization: Defines the programs, policies, and the intent of Congress. Appropriation: The actual dollars Congress has provided to agency or department. Apportionment: A proportional division of funds made by Office of Management and Budget (OMB). 7

Federal Budget Process Allotment Obligation Expenditures Disbursements Allotment: Authorization by the head of the agency (OPP) to incur obligations (make awards) Obligation: An order placed, contract awarded and/or service received Expenditures: Funds spent by grant recipients Disbursements: Payments made by Treasury to liquidate obligations 8

Financial Management Systems All recipients are required to : –Establish/maintain auditable accounting records; –Accurately account for funds awarded; and –Funds for each award must be accounted for separately from other grants and other funding sources. Records shall include Federal, matching, and program income 9

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Financial Management Systems States and locals shall expend/account for grant funds per Federal or State laws & procedures for their funds. (whichever are more restrictive) 11

Financial Management Systems Accounting and Internal Controls : –Proper stewardship of federal resources is an essential responsibility of the grantee organization. –Grantees must ensure that Federal programs and resources are used efficiently and effectively to achieve desired objectives. 12

Financial Management Systems Internal Controls and Segregation of Duties : –Strong internal controls ensure effective and efficient operations, reliable financial reporting, and compliance with applicable laws and regulations. –Proper segregation of duties is a critical element of adequate internal control. 13

Financial Management Systems Adequate Accounting System : –Grantee must maintain an adequate system of accounting and internal controls and ensure that an adequate system exists for each of its subrecipients. 14

Financial Management Systems Adequate Accounting System : –Present and classifies costs, as required for budgetary and evaluation purposes. –Provides cost and property control to ensure optimal use of funds. –Controls funds/resources to assure conformance with general or special conditions. 15

Financial Management Systems An Adequate Accounting System : –Meets requirements for periodic reporting. –Provides financial data for planning, control, measurement, and evaluation of direct and indirect costs. 16

Financial Management Systems In summary, a Financial Management System must be able to record and report on the : –Receipt; –Obligation; and –Expenditures of grant funds. 17