Jerome Joint School District No. 261

FINANCIAL MANAGEMENT 7450

Federal Cash Management

All Responsible District employees shall comply with applicable methods and procedures for payment that

minimize the time elapsing between the District’s receipt of federal funds and their disbursement by the District,

as required by and in accordance with the Cash Management Improvement Act of 1990. Generally, the District

receives payment of federal funds from the State Department of Education on a reimbursement basis.

According to guidance from the U.S. Department of Education (USDE), when calculating the interest earned on

USDE 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 District.

Payment Methods

1. Reimbursements: The District shall initially charge federal grant expenditures to nonfederal funds.

a. The District Grant Accountant or Business Manager shall request reimbursement for actual

expenditures incurred under the federal grants monthly. All reimbursements are based on actual

disbursements, not on obligations. Reimbursement requests shall be submitted on a District

form to the State Department of Education.

b. The Superintendent or his or her designee shall promulgate a procedure specifying any further

requirements.

c. Consistent with state and federal requirements, the District shall maintain source documentation

supporting the federal expenditures; such as invoices, time sheets, and payroll stubs; and will

make such documentation available for the State Department of Education to review upon

request.

d. Reimbursements of actual expenditures do not require interest calculations.

2. Advances: To the extent the District receives advance payments of federal grant funds; the District shall strive to expend the federal funds on allowable expenditures as expeditiously as possible. Specifically, the District shall attempt to expend all drawn downs of federal funds within 72 hours of receipt.

a. The District shall hold federal advance payments in interest-bearing accounts, unless an

allowable exception applies. The District shall begin to calculate interest earned on cash balances once funds are deposited into the District’s account.

b. Interest shall be calculated quarterly. Total federal grant cash balances shall be calculated on

cash balances per grant and applying the District’s actual interest rate. Within 30 days of the end of the quarter, the District shall remit interest earned. The District may retain up to $500 of

interest earned per year.

c. The Superintendent or his or her designee shall promulgate a procedure specifying the process

for remitting interest.

Legal Reference: 2 CFR § 200.305 Payment

31 CFR § 205 Rules and Procedures for Efficient Federal-State Funds Transfers

31 U.S.C. § 6503 Intergovernmental financing (Cash Management

Improvement Act of 1990)

Policy History:

Adopted on: 07/26/2016

Revised on: 06/25/2019

Revised on: 05/28/2024