§ 200.302 - Financial management.

§ 200.302 Financial management.

(a) Each state State must expend and account for the Federal award in accordance with state State laws and procedures for expending and accounting for the stateState's own funds. In addition, the state's and the other non-Federal entity's All recipient and subrecipient financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific the terms and conditions; and the tracing of funds to a level of expenditures adequate tracking expenditures to establish that such funds have been used according to the in accordance with Federal statutes, regulations, and the terms and conditions of the Federal award. See also § 200.450.

(b) The recipient's and subrecipient's financial management system of each non-Federal entity must provide for the following (see also §§ 200.334, 200.335, 200.336, and 200.337):

(1) Identification , in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the Assistance Listings title and number, Federal award identification number and , year , name of the Federal agencyaward was issued, and name of the Federal agency or pass-through entity, if any.

(2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 and 200.329. If When a Federal awarding agency or pass-through entity requires reporting on an accrual basis from a recipient or subrecipient that maintains its records on other than on an accrual basis, the recipient or subrecipient must not be required to establish an accrual accounting system. This recipient or subrecipient may develop accrual data for its reports based on the basis of an analysis of the documentation on hand. Similarly, a pass-through entity must not require a subrecipient to establish an accrual accounting system and must allow the subrecipient to develop accrual data for its reports on the basis of an analysis of the documentation on hand.

(3) Records Maintaining records that sufficiently identify adequately the amount, source, and application expenditure of Federal funds for federally-funded activitiesFederal awards. These records must contain information pertaining necessary to identify Federal awards, authorizations, financial obligations, unobligated balances, as well as assets, expenditures, income, and interest and . All records must be supported by source documentation.

(4) Effective control over , and accountability for , all funds, property, and other assets. The non-Federal entity must adequately recipient or subrecipient must safeguard all assets and assure that ensure they are used solely for authorized purposes. See § 200.303.

(5) Comparison of expenditures with budget amounts for each Federal award.

(6) Written procedures to implement the requirements of § 200.305.

(7) Written procedures for determining the allowability of costs in accordance with subpart E of this part and the terms and conditions of the Federal award.