La. Admin. Code tit. 67 § VII-1713

Current through Register Vol. 50, No. 9, September 20, 2024

Section VII-1713 - Financial Administration

A. Standards for Financial Management Systems. A grantee must expand and account for grant funds in accordance with state laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures must be sufficient to:

1. permit preparation of reports required by LRS and the statutes authorizing the grant;

2. permit the tracing of funds to a level of expenditures adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes;

3. the financial management system of the grantee must also meet the following standards:

a. Financial Reporting. Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant;

b. Accounting Records. Grantees must maintain records which adequately identify the source and application of funds provided for financially-assisted activities. These records must contain information pertaining to grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income;

c. Internal Control. Effective control and accountability must be maintained for all grant cash, real and personal property, and other assets. Grantees must adequately safeguard all such property and must assure that it is used solely for authorized purposes;

d. Budget Control. Actual expenditures or outlays must be compared with budgeted amounts for each grant. Financial information must be related to performance or productivity data, including the development of unit cost information whenever appropriate or specifically required in the grant agreement. If unit cost data are required, estimates based on available documentation will be accepted whenever possible;

e. Allowable Cost. Applicable cost principles, applicable state laws and regulations, agency program regulations, and the terms of grant agreement will be followed in determining the reasonableness, allowability and allocability of costs;

f. Source Documentation. Accounting records must be supported by such source documentation as canceled checks, paid bills, payrolls, time and attendance records, contract and grant award documents, etc.;

g. Cash Management. Procedures for minimizing the time elapsing between the transfer of funds from the state treasury and disbursement by grantees must be followed whenever advance payment procedures are used;

4. LRS may review the adequacy of the financial management system of any applicant for financial assistance as part of a pre-award review or at any time subsequent to award.

La. Admin. Code tit. 67, § VII-1713

Promulgated by the Department of Social Services, Office of Rehabilitation Services, LR 21:585 (June 1995), Amended by the Workforce Commission, Rehabilitation Services, LR 48309 (2/1/2022).

AUTHORITY NOTE: Promulgated in accordance with R.S. 49:664.6 and R.S. 36.477.