1. 1 On-Line Financial Management Workshops Cash Management June 2009

2. 2 Financial Management Workshop: Cash Management Cash Management

3. 3 Cash Management Requirements  Non-Governmental – 29 CFR Part 95.21 & 22  Governmental – 29 CFR Part 97.20 & 21 Applicable to Both Direct Grantees and Subgrantees

4. 4 The Basic Rules  Minimize Time Between Receipt and Disbursement of Cash  Written Procedures  Cash on Hand Should Equal Immediate Disbursement Needs

5. 5 Internal Control Requirements  Written Procedures  Safeguarding and Securing Assets

6. 6 Internal Control Procedures  Segregation of Duties  Reconciliation

7. 7 Internal Control Measures  Training Existing and New Staff  Policy and Procedures Updates  Review and Monitoring

8. 8 Cash-on-Hand Control  Spend the Cash You Have  Disbursement Pattern  Cash Control Ledger

9. 9 Cash Forecasting Considerations  Payroll – Fringe Benefits  Accrued Expenditures  Obligations

10. 10  31 CFR Part 205  Applicable to States  Provides Funding Techniques Cash Management Improvement Act (CMIA) Cash Management Improvement Act (CMIA)

11. 11 Funding Techniques  Zero Balance Accounting  Estimated Clearance  Average Clearance  Pre-Issuance Funding

12. 12 Payment Methods  Advance Method  Reimbursement Method  Working Capital Advance Method

13. 13 Accessing Funds  Payment Management System  Electronic Funds Transfer

14. 14 Accessing Funds  Direct Deposit Sign Up Form –SF – 1199A  Accounting Contact Information Document –For Access to PMS  Website for Payment Information –www.doleta.gov/grants

15. 15 Cash Link to Financial Report  ETA 9130 –Copy of Form at www.doleta.gov/grants  Cash Section  Linked to PMS

16. 16 Other Requirements  Utilize Minority or Women-Owned Banks –Listing of Banks Available at Department of Commerce  No Separate Bank Account Required –Separate Accounting Required for Receipt, Obligation and Expenditure of Funds for Each Grant Award

17. 17 Earning Interest  Interest Earned on Advances  Use of Interest-Bearing Accounts

18. 18 Use or Disposition of Interest Earned  WIA Title I Grantees –It is Program Income  Non-WIA Grantees –Specific Rules Based on Type of Grantee

19. 19 Insured Bank Accounts  FDIC Coverage –New Limit - $250,000 –Effective through December 31, 2009  Options to Ensure Complete Coverage

20. 20 Common Compliance Findings Associated with …  Recording Cash Deposits  Misuse of Grant Funds  Earning Excessive Interest  Use of Temporary Checks

21. 21 Possible Solutions  Be Familiar with the Uniform Administrative Requirements  Be Familiar with Cost Principles  Monitor Daily Cash Balances  Review Cash Section of Quarterly Financial Report

22. 22 Test Your Knowledge – Part I  Question 1. Where in the Code of Federal Regulations can you find cash management requirements for governmental and non- governmental grantees and sub- grantees?

23. 23 Answer Key  Answer 1 Cash management rules are codified at 29 CFR Part 95.21 and.22 and at 29CFR Part 97.20 and.21.

24. 24 Test Your Knowledge – Part III  Question 2 In a small grantee organization, is it allowable for one person to routinely perform multiple financial duties?

25. 25 Answer Key  Answer 2No.

26. 26 Website Addresses  One Stop Comprehensive Financial Management Technical Assistance Guide –www.doleta.gov/sga/pdf/FinalTAG_August_02.pdf  OMB Circulars –www.whitehouse.gov/omb/circulars/  DOL Regulations –www.access.gpo.gov/nara/cfr/waisidx/  Cash Management Improvement Act –www.fms.treas.gov/  Payment Information & Financial Reporting –www.doleta.gov/grants/

27. 27Questions? If you have questions, please contact you Federal Project Officer