[Code of Federal Regulations]

[Title 7, Volume 15]

[Revised as of January 1, 2006]

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

[CITE: 7CFR3015.61]



[Page 115]

 

                          TITLE 7--AGRICULTURE

 

                         CHAPTER XXX--OFFICE OF

                      THE CHIEF FINANCIAL OFFICER,

                        DEPARTMENT OF AGRICULTURE

 

PART 3015_UNIFORM FEDERAL ASSISTANCE REGULATIONS--Table of Contents

 

          Subpart H_Standards for Financial Management Systems

 

Sec. 3015.61  Financial management standards.



    The following standards shall be met by recipients and subrecipients 

in managing their financial management system.

    (a) Financial reporting. Complete, accurate, and current disclosure 

of the financial results of each USDA sponsored project or program shall 

be made in accordance with the financial reporting requirements set 

forth in the grant or subgrant. When a USDA awarding agency requires 

reporting on an accrual basis, the recipient shall not be required to 

establish an accrual accounting system, but shall develop such accrual 

data for its reports on the basis of an analysis of the documentation on 

hand.

    (b) Accounting records. The source and application of funds shall be 

readily identified by the continuous maintenance of updated records. 

Records, as such, shall contain information pertaining to grant or 

subgrant awards, authorizations, obligations, unobligated balances, 

assets, outlays, and income. When the recipient is a governmental 

entity, the records shall also contain liabilities.

    (c) Internal control. Effective control over and accountability for 

all USDA grant or subgrant funds, real and personal property assets 

shall be maintained. Recipients shall adequately safeguard all such 

property and shall ensure that it is used solely for authorized 

purposes. In cases where projects are not 100 percent Federally funded, 

recipients must have effective internal controls to assure that 

expenditures financed with Federal funds are properly chargeable to the 

grant supported project.

    (d) Budgetary control. The actual and budgeted amounts for each 

grant or subgrant shall be compared. If appropriate, or required by the 

awarding agency, financial information shall be related to performance 

and unit cost data. When unit cost data is required, estimates based on 

available documentation may be accepted whenever possible.

    (e) Advance payments. There shall be specific procedures established 

to minimize the time elapsing between the advance of Federal grant or 

subgrant funds and their subsequent disbursement by the recipient. When 

advances are made by a letter of credit method, the recipients shall 

make drawdowns as close as possible to the time of making the 

disbursements. This same procedure shall be followed by recipients who 

advance cash to subrecipients to ensure that timely fiscal transactions 

and reporting requirements are conducted.

    (f) Allowable costs. Established procedures shall be used for 

determining the reasonableness, allowability, and allocability of costs 

in accordance with the cost principles prescribed by Subpart T of this 

part and the provisions of the grant award.

    (g) Source documentation. Accounting records shall be supported by 

source documentation. These documentations include, but are not limited 

to, cancelled checks, paid bills, payrolls, contract and subgrant award 

documents.

    (h) Audit resolution. A systematic method shall be employed by each 

recipient to assure timely and appropriate resolution of audit findings 

and recommendations.



Subpart I [Reserved]