Federal Cash Management Policy/Procedures

The College will comply with applicable methods and procedures for payment that minimize the time elapsing between the transfer of funds and disbursement by the College, in accordance with the Cash Management Improvement Act at 31 C.F.R. Part 205. Generally, the College receives payment from the Florida Department of Education on a reimbursement basis. 2 C.F.R. § 200.305 (b) (3)

Payment Methods

Reimbursements: The College will initially charge federal grant expenditures to nonfederal funds. The Office for Finance will request reimbursement for actual expenditures incurred under the federal grants. Reimbursement requests will be submitted on [State/LEA form] to the Florida Department of Education http://www.fldoe.org/. All reimbursements are based on actual disbursements, not on obligations.

Consistent with state and federal requirements, the College will maintain source documentation supporting the federal expenditures (invoices, time sheets, payroll stubs, etc.) and will make such documentation available for the Florida Department of Education’s review upon request. Reimbursements of actual expenditures do not require interest calculations.

Advances: To the extent the College receives advance payments of federal grant funds, the College will strive to expend the federal funds on allowable expenditures as expeditiously as possible. The College will hold federal advance payments in interest-bearing accounts, unless an allowable exception applies. The College will begin to calculate interest earned on cash balances once funds are deposited into the College’s account.

According to guidance from the U.S. Department of Education (ED), when calculating the interest earned on ED grant funds, regardless of the date of obligation, interest is calculated from the date that the federal funds are drawn down from the G5 system until the date on which those funds are disbursed by the LEA.

The College may retain up to $500 of interest earned per year for administrative expenses. Any additional interest earned will be annually remitted to the Department of Health and Human Services Payment Management System (PMS) through electronic medium using either Automated Clearing House (ACH) network or Fedwire Funds Service payment. 2 C.F.R. § 200.305(b)(9).

Period of Performance of Federal Funds

All obligations must occur on or between the beginning and ending dates of the grant project. 2 C.F.R.

§200.309. This period of time is known as the period of performance. 2 C.F.R. §200.1 definition. The period of

performance is dictated by statute and will be indicated in the GAN. Further, certain grants have specific requirements for carryover funds that must be adhered to.

Direct Grants: In general, the period of availability for funds authorized under direct grants is identified in the GAN.

The Sponsored Projects Office, with counsel from other appropriate administrators, determines the need and process for requesting and documenting prior approval.

Timely Obligation of Funds

Obligations are orders placed for property and services, contracts and subawards made, and similar transactions during a given period that require payment by the non-Federal entity during the same or a future period. 

Applicable to grants from the U. S. Department of Education only, the following table illustrates when funds are determined to be obligated under federal education regulations:

If the obligation is for:The obligation is made:
Acquisition of propertyOn the date which the College makes a binding written commitment to acquire the property
Personal services by an employee of the CollegeWhen the services are performed
Personal services by a contractor who is not an employee of the CollegeOn the date which the College makes a binding written commitment to obtain the services
Public utility servicesWhen the College receives the services
TravelWhen the travel is taken
Rental of propertyWhen the College uses the property
A pre-agreement cost that was properly approved by the Secretary under the cost principles in 2 C.F.R. part 200, Subpart E- Cost Principles.On the first day of the project period

(34 C.F.R. §75.707; 34 C.F.R. §76.707.)


Commitment to Equal Access and Equal Opportunity

Santa Fe College is committed to an environment that embraces diversity, respects the rights of all individuals, is open and accessible, and is free of harassment and discrimination. For more information, visit sfcollege.edu/eaeo.