The following accounting procedures are necessary for local
accountability in the financing and cash management of federal and state
funds.
(A) Financing.
The total cash payments to the WIOA local area are disbursed
weekly to the area's designated fiscal agent, upon receipt of the draw request
for funds. Each WIOA local area and subrecipients
of the WIOA local area shall establish and
maintain a workforce development fund to be used for all deposits and
disbursements of funds for all WIOA activities. Available funds are limited by
state appropriation and federal award. All payments are issued via electronic
funds transfer (EFT) to the fiscal agent.
(B) Cash management.
When a WIOA local area is funded
on a reimbursement basis, program costs are paid with local funds before
reimbursement is requested. When funds are drawn in advance, the
WIOA local area shall follow procedures to
minimize the time elapsing between the transfer of funds from the state and
local disbursement. Disbursements to a WIOA local
area administering federal programs shall cover allowable expenditures
consistent with federal and state regulations.
(1) A
WIOA
local area may submit requests for cash draws weekly. Requests are processed by
ODJFS within six
working
business days. In accordance with the Cash Management
Improvement Act and Title
29 C.F.R.
97.20, cash drawn in advance must be limited
to the minimum amount needed for actual, immediate requirements. The
WIOA local area shall have written cash
management procedures in place to ensure the time elapsing between the receipt
of funds and the disbursement of funds does not exceed a ten-day average for
all federal funding.
(2) Cash drawn
shall be traceable to a level of program expenditures adequate to establish
that such funds have not been used in
violation of the restrictions and prohibitions of applicable rules and
regulations. The accounting systems of the WIOA
local area shall support internal controls necessary to
insure
ensure
the reporting of activity affiliated with federal grants and state funds remain
separated on a grant, program, or project basis.
(C) Quarterly cash on hand calculation.
(1) The county finance information system
(CFIS) calculates the
WIOA local area's average
number of days of cash on hand on an individual grant basis. This information
is based on expenditures and cash draws reported in CFIS in accordance with
rule
5101:9-7-29 of the
Administrative Code and reflected on the CFIS over/under report. The average
number of days of cash on hand is calculated as follows:
(a) The cash on hand amount is calculated by
deducting the total reported expenditures over the lifetime of the funding
source, up to the budgeted amount, from the total amount of cash draws over the
lifetime of the funding source.
(b)
The daily average expenditure amount is calculated by dividing the total
reported expenditures by the number of calendar days the funding has been
available; and
(c) The average
number of days of cash on hand is calculated by dividing the cash on hand
amount calculated in paragraph (C)(1)(a) of this rule by the average daily
expenditures amount calculated in paragraph (C)(1)(b) of this rule.
(2) At the end of each quarter,
the WIOA local area shall review the CFIS cash on hand report to ensure
compliance with paragraph (B)(1) of this rule.
(a) If an event, beyond the reasonable
control of the WIOA local area, results in
non-compliance with the cash management requirements, the
WIOA local area shall document the
event.
(b) If circumstances
resulting in the non-compliance are caused by internal control deficiencies or
operational processes, the WIOA local area shall
document the steps implemented to avoid a reoccurrence.
(3) Continued non-compliance may result in
ODJFS restricting the agency's draws to ensure the cash management practices
are in compliance with paragraph (B) (1) of this rule.
(D) Quarterly interest liability/program
income.
An interest liability accrues if federal funds are received
prior to the day the funds are paid. In accordance with
2
C.F.R. 200.305(b)(9), up to
five hundred dollars per year of interest earned may be retained by the
WIOA local area for administrative purposes. Any
additional interest earned on WIOA funds must be treated as program income and
must be used before the WIOA local area requests
additional WIOA draws. Reported earned interest must be expended before the end
of the quarter in which it was received. A WIOA
local area shall calculate, and report earned
interest as a receipt in accordance with this rule. Earned interest can only be
used for the intended program and shall be held in the local account.
(E)
WIOA
Local
local area accruals and liquidations of accruals.
As expenditures are incurred, they become accrued expenses and
shall be reported as accruals. At the time the accrual is liquidated
(disbursed), the WIOA local area may draw down
funds and shall report the disbursement of the accrual as expenditure for that
quarter. All accruals shall be liquidated by the end of the period of
availability.
(F) The
WIOA local area shall maintain documentation in
accordance with the records retention requirements in rule
5101:9-9-21 of the
Administrative Code. This documentation may be subject to inspection,
monitoring, and audit by ODJFS and the Ohio auditor of state.
Notes
Ohio Admin. Code
5101:9-7-04
Effective:
3/14/2022
Promulgated Under:
111.15
Statutory
Authority: 5101.02,
6301.03
Rule
Amplifies: 5101.02,
6301.03
Prior
Effective Dates: 08/31/2007, 11/07/2009, 12/01/2010, 07/18/2011, 12/02/2011,
02/25/2017
