FEDERAL AWARDS CASH MANAGEMENT
The Bossier Parish School Board is a “non-federal entity” as defined in 2 CFR 200.69. The Bossier Parish School Board carries out Federal awards as recipients or subrecipients through the State of Louisiana. Most often, the Bossier Parish School Board receives payment of Federal awards on a cost reimbursement basis. However, it is noted that the advance payment method is the preferred method of payment under the Code of Federal Regulations.
In the case where payments for Federal awards are made to the Bossier Parish School Board on an advance payment basis, the Bossier Parish School Board shall maintain such advances in an insured account.
This account will also be interest bearing unless:
The aggregate federal awards
are under $120,000;
The best reasonably available
interest-bearing account is not expected to earn in excess of $500
interest in a year on the federal award balance;
The bank requires an average
minimum balance that is so high that such an account is not feasible
with the expected federal award receipts; or
A foreign government or banking system prohibits or precludes interest bearing accounts.
Interest earned up to $500 per year may be retained by the Bossier Parish School Board for administrative expenses. Interest in excess of $500 shall be remitted annually to the Department of Health and Human Services Payment Management System in accordance with the requirements of 2 CFR 200.305 and its successors.
In the case where payments for Federal awards are made to the Bossier Parish School Board on an advance payment basis, the Bossier Parish School Board shall disburse such funds in accordance with the requirements of the Federal award as quickly as possible upon receipt of such advance payment.
Federal award payments may be made on a reimbursement method or a working capital advance basis if such payment is deemed proper pursuant to 2 CFR 200.305.
New policy: February 2, 2017
Ref: 2 CFR 200.302 (Financial Management)
2 CFR 200.305 (Payment)
Board minutes, 2-2-17
Bossier Parish School Board