Page 124 - HCSD SOPandIC Manual

GENERAL FISCAL REQUIREMENTS

Obligation and Liquidation of Funds – P1

The DoFP and the Business Manager are ultimately responsible for the obligation and liquidation of
federal funds. Federal funds will be obligated when the awarding agency approves the application, or the
awarding agency determines that the application is “substantially approvable” (when the subgrantee can
obligate funds). Reimbursement, however, is subject to final approval. For discretionary grants, funds
may be obligated when the subgrant is made. There may also be some pre-agreement costs which are
permissible.

Obligations occur on the date of the binding written agreement/commitment for acquisition of property
and personal services by a contractor. Travel is obligated when the travel is taken.

The DoFP and the Business Manager are also responsible for the proper liquidation of funds as required
in the grant. The DoFP will manage and monitor the proper liquidation of funds within the specified
timeframes of the grant.

Draw Downs – Title Funds – P2, P3
The FPD will complete the monthly Draw Downs for all Title grants as follows:

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MCAPS – Prior to the 12 of the month or the designated due date, the FPD will calculate the year-to-
date expenses by fund year by function code by object code as follows:

1. The FPD prints the year-to-date (YTD) expense reports for all Title grants by funding year.

2. Expenses are entered into a spreadsheet by function and object code for each grant.

3. Expenses for travel (object code 580003) are not drawn down until travel is taken. Beginning in FY19
the Office of Federal Programs will implement a travel log with the date of expected travel and the cost of
the airline ticket as a reference to ensure funds are not prematurely drawdown.

4. The total amounts by function and object code are entered into MCAPS and submitted directly to
MDE.

5. A copy of funds drawn down report from MCAPS is provided to the Assistant Business Manager each
month.

All calculations/documentation including MUNIS and MCAPS reports will be kept on file for verification
of the draw down amounts.

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Grants Not in MCAPS – Prior to the 12 of the month the FPD will request funds via the Business Office
by completing the MDE Request for Funds Form. The draw down will be calculated using the current
dated MUNIS Expense report which indicates the revenue posted to date, expenses posted to date and the
difference, which shows the amount due from federal. If more funds were drawn down than expenses, the
FPD will not draw down any additional funds. Then, the FPD and Business Services will work to
determine why revenue exceeds expenses, i.e., journaling expenses to a previous year, posting revenue to
the correct year, etc.

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