[Code of Federal Regulations]

[Title 42, Volume 4]

[Revised as of October 1, 2006]

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

[CITE: 42CFR430.30]



[Page 10]

 

                         TITLE 42--PUBLIC HEALTH

 

  CHAPTER IV--CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF 

                  HEALTH AND HUMAN SERVICES (CONTINUED)

 

PART 430_GRANTS TO STATES FOR MEDICAL ASSISTANCE PROGRAMS--Table of 

 

Subpart C_Grants; Reviews and Audits; Withholding for Failure To Comply; 

   Deferral and Disallowance of Claims; Reduction of Federal Medicaid 

                                Payments

 

Sec.  430.30  Grants procedures.





    (a) General provisions. (1) Once CMS has approved a State plan, it 

makes quarterly grant awards to the State to cover the Federal share of 

expenditures for services, training, and administration.

    (2) The amount of the quarterly grant is determined on the basis of 

information submitted by the State agency (in quarterly estimate and 

quarterly expenditure reports) and other pertinent documents.

    (b) Quarterly estimates. The Medicaid agency must submit Form CMS-25 

(Medicaid Program Budget Report; Quarterly Distribution of Funding 

Requirements) to the central office (with a copy to the regional office) 

45 days before the beginning of each quarter.

    (c) Expenditure reports. (1) The State must submit Form CMS-64 

(Quarterly Medicaid Statement of Expenditures for the Medical Assistance 

Program) to the central office (with a copy to the regional office) not 

later than 30 days after the end of each quarter.

    (2) This report is the State's accounting of actual recorded 

expenditures. The disposition of Federal funds may not be reported on 

the basis of estimates.

    (d) Grant award--(1) Computation by CMS. Regional office staff 

analyzes the State's estimates and sends a recommendation to the central 

office. Central office staff considers the State's estimates, the 

regional office recommendations and any other relevant information, 

including any adjustments to be made under paragraph (d)(2) of this 

section, and computes the grant.

    (2) Content of award. The grant award computation form shows the 

estimate of expenditures for the ensuring quarter, and the amounts by 

which that estimate is increased or decreased because of an 

underestimate or overestimate for prior quarters, or for any of the 

following reasons:

    (i) Penalty reductions imposed by law.

    (ii) Accounting adjustments.

    (iii) Deferrals or disallowances.

    (iv) Interest assessments.

    (v) Mandated adjustments such as those required by section 1914 of 

the Act.

    (3) Effect of award. The grant award authorizes the State to draw 

Federal funds as needed to pay the Federal share of disbursements.

    (4) Drawing procedure. The draw is through a commercial bank and the 

Federal Reserve system against a continuing letter of credit certified 

to the Secretary of the Treasury in favor of the State payee. (The 

letter of credit payment system was established in accordance with 

Treasury Department regulations--Circular No. 1075.)

    (e) General administrative requirements. With the following 

exceptions, the provisions of 45 CFR part 74, which establish uniform 

administrative requirements and cost principles, apply to all grants 

made to States under this subpart:



45 CFR part 74

Subpart G--Matching and Cost Sharing

Subpart I--Financial Report Requirements