The following accounting procedures are necessary for state and
local accountability in the allocation of federal and state funds.
(A) Financing
The total cash payments to the public assistance (PA) fund are
disbursed weekly to the county department of job and family services (CDJFS),
upon receipt of the CDJFS draw request for funds. Available funds are limited
by state appropriations and federal grant awards. All payments are issued via
electronic funds transfer (EFT).
(B) Cash management
When a CDJFS is funded on a reimbursement basis, program costs
are paid by local funds before reimbursement is requested. When funds are drawn
in advance, the CDJFS shall follow procedures to minimize the time elapsing
between the transfer of funds from the state and local disbursement.
Disbursements to a CDJFS administering federal programs shall cover allowable
expenditures consistent with federal and state regulations.
(1) Requests for cash draws may be submitted
weekly and are processed by the Ohio department of job and family services
(ODJFS) in six working days. In accordance with 45 C.F.R. part
75
and transmittal number TANF-ACF-PI-01-02 issued by
the United States department of health and human services (DHHS)
subpart D, section 75.305, cash drawn in advance must
be limited to the minimum amount needed for actual, immediate requirements. The
CDJFS shall have 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
sufficient 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 CDJFS shall support internal controls necessary to
insure 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 average number of
days'
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 in the CFIS over/ under report. The
average number of
days'
days of cash on hand is calculated as follows:
(a) The cash on hand amount is calculated by
deducting the 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'
days of
cash on hand is calculated by dividing the cash on hand from paragraph
(C)(1)(a) of this rule by the average daily expenditures in paragraph (C)(1)(b)
of this rule.
(2) At the
end of each quarter, the CDJFS 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 CDJFS, results in noncompliance with the cash management
requirements, the CDJFS shall document the event.
(b) If circumstances resulting in the
noncompliance are caused by internal control deficiencies or operational
processes, the CDJFS 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 of the CDJFS are in compliance with
paragraph (B)(1) of this rule.
(D) Quarterly interest calculation and
reconciliation liability
An interest liability accrues if federal funds are received
prior to the day the funds are paid. A CDJFS shall calculate and report earned
interest quarterly as a receipt, in accordance with paragraph (D)(1) of this
rule. Earned interest can only be used for the intended program and held in the
local account.
(1) For each applicable
federal program allocation with a total net interest liability in excess of
five hundred dollars for
each federal fiscal year
(FFY)
the life of the grant, the CDJFS
shall report the net interest liability as a reduction to expenditures on the
subsequent quarterly expenditure report.
(2) For each applicable federal program
allocation with a negative total net offsetting interest liability, no
adjustment to program income will be necessary. The ODJFS will not be liable to
the CDJFS for any interest liability based upon the CDJFS using local funds for
program purposes.
(3) The CDJFS
shall maintain documentation in accordance with the records retention
requirements outlined in rule
5101:9-9-21
of the Administrative Code. This documentation may be subject to inspection,
monitoring, and audit by the ODJFS and the Ohio auditor of state.
Notes
Ohio Admin. Code 5101:9-7-03
Effective:
12/23/2021
Promulgated Under:
111.15
Statutory Authority:
5101.02
Rule Amplifies:
5101.02
Prior Effective Dates: 09/12/2009, 11/05/2010, 12/18/2011,
12/10/2016
