[Rev. 4/30/2012 9:36:03 AM]
227.010 Receipt of federal assistance.
1. A state agency which is a recipient or a subrecipient of federal assistance shall identify the receipt and expenditure of the assistance using the appropriate number set forth in the “Catalog of Federal Domestic Assistance.” That identification number must be used to record the assistance in the records of the central accounting system of this state or any other system of accounting which the State Controller may approve.
2. A state agency shall use the appropriate account to record the transfer of any federal assistance from that agency to another state agency.
3. If federal assistance is being transferred from a recipient to a subrecipient, the recipient and subrecipient shall:
(a) Use a transfer ledger account to record the transfer of the assistance; and
(b) Identify the receipt, transfer and expenditure of the assistance using the appropriate number which is listed in the “Catalog of Federal Domestic Assistance” and designated with the original grant of assistance from the Federal Government.
4. If a state agency receiving federal assistance from another state agency is a vendor:
(a) The state agency transferring the assistance shall:
(1) Use an expenditure ledger account to record all charges for goods or services; and
(2) Identify the expenditure of the federal assistance with the appropriate number listed in the “Catalog of Federal Domestic Assistance.”
(b) The vendor shall use a revenue ledger account which is not a federal revenue ledger account to record all charges for goods or services. The vendor is not required to identify the transactions in order to comply with federal requirements related to tracking federal assistance granted to a state agency.
5. If a state agency receiving federal assistance from another state agency is a fiscal agent, the state agency transferring the assistance shall use an appropriate ledger account as identified by the State Controller when it transfers the assistance to the fiscal agent. An expenditure shall be deemed to occur if the assistance is paid out by a fiscal agent. The state agency transferring the assistance shall identify the transfer by the appropriate number listed in the “Catalog of Federal Domestic Assistance.”
6. A fiscal agent shall comply with the provisions of the Cash Management Improvement Act of 1990, Public Law 101-453, and the regulations adopted pursuant thereto.
7. For the purposes of this section, the “Catalog of Federal Domestic Assistance” is hereby adopted by reference. A copy of the catalog may be obtained by mail from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, or by toll-free telephone at (866) 512-1800, at a cost of $46.
8. As used in this section:
(a) “Fiscal agent” means any entity which pays, collects or holds federal assistance for a federal program on the behalf of this state. The term does not include a private nonprofit community organization.
(b) “Subrecipient” means a state agency which receives federal assistance from another state agency to carry out or administer a federal program. The term includes a state agency:
(1) That is authorized to determine the eligibility of the beneficiaries of the federal program or the activities needed to carry out the federal program, or both;
(2) Whose performance is measured against the objectives of the federal program;
(3) That is responsible for making decisions pursuant to the federal program;
(4) That is responsible for complying with all applicable requirements of the federal program; and
(5) That is authorized to use the money from the federal assistance to carry out the federal program.
Ę A vendor shall not be deemed to be a subrecipient for the sole reason that the vendor has entered into a contract to provide goods or services that are related to the administrative support of a federal program.
(c) “Vendor” means a state agency which has a contract to provide specific goods or services that are related to the administrative support of a federal program and are used by the state agency that is responsible for carrying out the federal program or for the beneficiaries of the federal program. The term includes a state agency that:
(1) Provides such goods or services during the course of its normal business operations;
(2) Provides similar goods or services to other purchasers;
(3) Is not responsible for complying with the requirements of the federal program; and
(4) Is responsible for complying with the specifications or the scope of the work as defined by the procurement contract.
(Added to NAC by St. Controller, eff. 12-17-93)