[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2005]

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

[CITE: 45CFR74.21]



[Page 215]

 

                        TITLE 45--PUBLIC WELFARE

 

           SUBTITLE A--DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

    PART 74_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR AWARDS AND SUBAWARDS TO INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, OTHER NONPROFIT ORGANIZATIONS, AND 

COMMERCIAL ORGANIZATIONS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec. 74.21  Standards for financial management systems.



    (a) Recipients shall relate financial data to performance data and 

develop unit cost information whenever practical. For awards that 

support research, unit cost information is usually not appropriate.

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

following:

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

results of each HHS-sponsored project or program in accordance with the 

reporting requirements set forth in Sec. 74.52. If the HHS awarding 

agency 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 their reports on the basis 

of an analysis of the documentation on hand.

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

funds for HHS-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. (Unit cost data are usually not 

appropriate for awards that support research.)

    (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) and its 

implementing regulations, ``Rules and Procedures for Funds Transfers,'' 

(31 CFR part 205) apply, payment methods of State agencies, 

instrumentalities, and fiscal agents shall be consistent with CMIA 

Treasury-State Agreements, or the CMIA default procedures codified at 31 

CFR 205.9(f).

    (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 Federal Government guarantees or insures the repayment 

of money borrowed by the recipient, the HHS awarding agency, at its 

discretion, may require 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) The HHS awarding agency may require adequate fidelity bond 

coverage where the recipient lacks sufficient coverage to protect the 

Federal Government's interest.

    (e) Where bonds are required in the situations described in Sec. 

74.21 (c) and (d), 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.''



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