[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

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

[CITE: 24CFR84.21]



[Page 482]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 84_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS 

WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT 

ORGANIZATIONS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec.  84.21  Standards for financial management systems.



    (a) HUD 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.  84.52. If a recipient 

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 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 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 Federal Government guarantees or insures the repayment 

of money borrowed by the recipient, HUD, 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) HUD 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 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.''