[Code of Federal Regulations]

[Title 40, Volume 1]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 40CFR30.21]



[Page 323-324]

 

                   TITLE 40--PROTECTION OF ENVIRONMENT

 

               CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY

 

PART 30_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS 

 

                    Subpart C_Post-Award Requirements

 

Sec. 30.21  Standards for financial management systems.



    (a) EPA shall require recipients to relate financial data to 

performance data and develop unit cost information whenever practical.

    (b) Recipients' financial management systems shall provide for the 

following.

    (1) Accurate, current and complete disclosure of the financial 

results of each federally-sponsored project or program in accordance 

with the reporting requirements set forth in Sec. 30.52. If EPA 

requires reporting on an accrual basis from a recipient that maintains 

its records on other than an accrual basis, the recipient shall not be 

required to establish an accrual accounting system. These recipients may 

develop such accrual data for its reports on the basis of an analysis of 

the documentation on hand.

    (2) Records that identify adequately the source and application of 

funds for federally-sponsored activities. These records shall contain 

information pertaining to Federal awards, authorizations, obligations, 

unobligated balances, assets, outlays, income and interest.

    (3) Effective control over and accountability for all funds, 

property and other assets. Recipients shall adequately safeguard all 

such assets and assure they are used solely for authorized purposes.

    (4) Comparison of outlays with budget amounts for each award. 

Whenever appropriate, financial information should be related to 

performance and unit cost data.

    (5) Written procedures to minimize the time elapsing between the 

transfer of funds to the recipient from the U.S. Treasury and the 

issuance or redemption of checks, warrants or payments by other means 

for program purposes by the recipient. To the extent that the provisions 

of the Cash Management Improvement Act (CMIA) (Pub. L. 101-453) govern, 

payment methods of State



[[Page 324]]



agencies, instrumentalities, and fiscal agents shall be consistent with 

CMIA Treasury-State Agreements or the CMIA default procedures codified 

at 31 CFR part 205, ``Withdrawal of Cash from the Treasury for Advances 

under Federal Grant and Other Programs.''

    (6) Written procedures for determining the reasonableness, 

allocability and allowability of costs in accordance with the provisions 

of the applicable Federal cost principles and the terms and conditions 

of the award.

    (7) Accounting records including cost accounting records that are 

supported by source documentation.

    (c) Where the EPA guarantees or insures the repayment of money 

borrowed by the recipient, the recipient shall provide adequate bonding 

and insurance if the bonding and insurance requirements of the recipient 

are not deemed adequate to protect the interest of the Federal 

Government.

    (d) Recipients shall obtain adequate fidelity bond coverage where 

coverage to protect the Federal Government's interest is insufficient.

    (e) Where bonds are required in the situations described above, the 

bonds shall be obtained from companies holding certificates of authority 

as acceptable sureties, as prescribed in 31 CFR part 223, ``Surety 

Companies Doing Business with the United States.''