Mississippi Administrative Code › Title 18 - HUMAN SERVICES › Part 8 - MDHS Subgrant Manual › Chapter 1 - Introduction › Rule 18-8-1.1 - Repeal Prior Rules/Manuals › Section 18-8-1.1-2 - Definitions

Current through June 25, 2024
The terms and definitions included in this chapter are used
					 by MDHS. The sources of these terms include
					 45 C.F.R. §
											75.2, documents issued by the State Auditor's
					 Office, the U.S. Office of Management and Budgets (OMB's) Uniform
					 Administrative Requirements, Cost Principles, and Audit Requirements for
					 Federal awards, which has been codified at
					 2 C.F.R. §
											200, et seq., and applicable OMB
					 circulars.
1. Accounting Procedures:
				  Methods implemented to ensure that financial information is reflected in
				  accounting records in a consistent, proper, and orderly manner.
2. Accounting System: All records, formal and
				  informal, together with the procedures related to the assembling, classifying,
				  recording and reporting of information concerning the financial operations and
				  conditions of a fiscal entity.
3.
				  Accounts Payable: Liabilities of the subgrantee owed to persons, firms, or
				  corporations for goods and services received. Obligations of subgrant funds
				  must be liquidated no later than forty-five (45) days from the end of the
				  subgrant period.
4. Accounts
				  Receivable: Amounts due to the subgrantee from persons, firms, or corporations
				  for goods and services.
5. Accrual
				  Basis Accounting: The basis of accounting under which revenues are recorded in
				  the fiscal year they are earned, and expenditures recorded in the fiscal year
				  they are incurred. Obligations of subgrant funds must be liquidated no later
				  than forty-five (45) days from the end of the subgrant period.
6. Accrued Expenditure: An expense incurred
				  for goods and services received during a given period which has not been paid.
				  Accrued expenses cannot be reported on the Final Claim Support Form.
7. Acquisition Cost: The net invoice unit
				  price of the equipment, including the cost of modifications, shipping,
				  attachments, and accessories, necessary to make the property usable for the
				  purpose for which it was acquired.
8. Administrative Cost: Any expenditure for
				  governmental functions normally associated with administration of a public
				  assistance program. The cost must be included in determining administrative
				  costs subject to the statutory limitation on administrative costs, regardless
				  of whether the expenditure is incurred by the State, a subrecipient, a grantee,
				  or a contractor of the State.
9.
				  Administrative Closeout: The process by which MDHS administratively performs
				  subgrant closeout procedures upon determining that the subgrantee failed to
				  close out a program year within the specified amount of time or failed to
				  properly adhere to established closeout policies and regulations.
10. Allocation: The amount of funds provided
				  by the funding division to a subgrantee to incur obligations and expenditures
				  over certain period of time.
11.
				  Appropriated Funds: A sum set aside by formal legislative action for a
				  particular purpose for specific use during a specified period of
				  time.
12. Assets: The entire
				  recourse of the subgrantee fund, including any property (tangible or
				  intangible) of monetary value.
13.
				  Audit: The process by which a MDHS and/or any other federal entity auditor
				  examines, reviews, and assesses the financial records with supporting
				  documentation of subgrantees to evaluate the overall financial statements
				  and/or to review and evaluate the programmatic measures.
14. Award: Grants and other agreements in the
				  form of money or property, in lieu of money, by the Federal/State Government to
				  an eligible recipient.
15. Bond: A
				  form of money guarantee which protects against loss caused by another party or
				  by some contingency over which that party may have no control. Any bond, in
				  which may be required by MDHS, shall be obtained from companies holding
				  certificates of authority as acceptable sureties, according to
				  31 C.F.R. §
											223. A list of these companies is published
				  annually by the U.S. Department of the Treasury in its Circular 570.
16. Bond, Bid Guarantee: A firm commitment
				  such as a bid bond, certified check, or other negotiable instrument
				  accompanying a bid as assurance that the bidder will, upon acceptance of the
				  bid, execute such contractual documents as may be required within the time
				  specified. This bond must be equivalent to five percent (5%) of the bid
				  price.
17. Bond, Fidelity: A bond
				  against any loss resulting from fraud or lack of integrity, honesty, or
				  fidelity of one (1) or more employees, officers, or other persons holding a
				  position of trust with the subgrantee, which must be payable to MDHS. This bond
				  must be equivalent to twenty-five percent (25%) of the total subgrant
				  amount.
18. Bond, Payment: A bond
				  executed in connection with a contract to assure payment, as required by law,
				  of all persons supplying labor and materials in the execution of the work
				  provided for the subgrant.
19.
				  Bond, Performance: A bond executed in connection with a subgrant to secure
				  fulfillment of all the subgrantee's obligations amount within a specified
				  period of time.
20. Budget: An
				  authorized plan of proposed expenditures and the means of financing them with
				  respect to an allocated amount within a specific period of time.
21. Budgetary Accounting: A method of
				  accounting, which allows for the comparison of actual revenues and expenditures
				  to budget figures. In many cases, budgetary accounting applies to allocations
				  and the expenditures authorized thereby.
22. Budget Narrative: A written justification
				  adequately explaining the subgrantee's funding needs.
23. Budget Summary: A compilation of the
				  detailed data contained in the Cost Summary Support Sheet
				  (MDHS-BS-1006).
24. Capital
				  Improvement: Expenditures made by the subgrantee that either increase the value
				  of real property or extend its useful life. Examples may include fences,
				  outdoor lighting, heating/cooling systems, plumbing and minor renovations.
				  Capital improvements are permissible only as allowed by programmatic
				  regulations and approved through the programmatic division.
25. Cash: Currency, checks, money orders, or
				  bank drafts on deposit in the account of the subgrantee agency.
26. Cash Balance: Currency, checks, money
				  orders, or bank drafts on deposit in the account of the subgrantee agency less
				  any checks written against these receipts.
27. Cash Basis Accounting: The basis of
				  accounting under which revenues are recorded when received and expenditures are
				  recorded when paid.
28. Cash
				  Disbursement Journal: A journal kept to record in sequential order the
				  expenditures of funds whether by check or other method of payment.
29. Cash Federal/State: Cash held by the
				  subgrantee which has been received from the grantor agency and becomes a part
				  of the total cash balance.
30. Cash
				  Local: Cash held by the subgrantee which has been received from sources at the
				  local level including private, county and/or municipal government
				  sources.
31. Cash Outlay: Total
				  amount of cash spent by a subgrantee during a specific period of time either
				  for expenditures, transfers between funds or refunds of unexpended cash to the
				  grantor agency.
32. Cash Payment:
				  The payment of cash for expenditures. Such payments may precede the expenditure
				  (an advance), coincide with the expenditure (a direct payment), or follow the
				  expenditure (the payment of a liability).
33. Cash Program Income: Cash held by the
				  subgrantee that is directly generated by a supported activity or earned as a
				  result of the subgrant.
34. Cash
				  Receipt: Cash received by a subgrantee for which it acknowledges
				  accountability.
35. Cash Receipts
				  Journal: A journal kept to record in sequential order, the receipt of all
				  funds.
36. Certification of
				  Subgrant Compliance: A form by which the subgrantee releases the unexpended
				  and/or unobligated balance of the subgrant/agreement to MDHS
				  (MDHS-SGCC-1012).
37. Claim Support
				  Form: The form used to report monthly costs incurred under MDHS subgrants and
				  to request funds on a cost reimbursement or cash advances basis (MDHS-BA-CS-001
				  and MDHS-BA-CS-002).
38. Closeout:
				  The process by which MDHS determines that all applicable administrative actions
				  and all required work elements of the subgrant/agreement have been
				  completed.
39. Closeout Form: A
				  checklist used by the subgrantee to ensure that all closeout documents are
				  included as a part of the subgrantee closeout package
				  (MDHS-SGCC-1011).
40. Cognizant
				  Agency: The Federal agency responsible for negotiating and approving indirect
				  cost rates for the subgrantee.
41.
				  Commodities: Budget category that includes various consumable supplies, goods,
				  or merchandise of every kind purchased by a subgrantee or lower tier
				  sub-recipient.
42. Contract: A
				  legal instrument by which a non-Federal entity purchases property or services
				  needed to carry out the project or program under a Federal award. The term
				  contract as used in this manual does not include legal instruments that are
				  considered Federal grants or subgrants. The nature of the relationship between
				  the parties will determine whether the instrument is a contract or a
				  subgrant.
43. Corrective Action: An
				  action or additional information from the subgrantee that is required for the
				  subgrantee to be considered meeting a requirement.
44. Cost Reimbursement: A method of funding
				  subgrants under which the subgrantee receives funds the following month for
				  actual expenses incurred during the previous month. The subgrantee is
				  reimbursed for the Federal and/or State portion of cash payments reported on
				  the monthly Claim Support Form: Advanced (MDHS-BA-CS-001).
45. Cost Summary Support Sheet: A budget form
				  used to describe the basis for determining the cost for the various activities
				  on the Budget Summary (MDHS-CSSS-1007).
46. Cumulative Cost: Total cost incurred for
				  a specific grant from the beginning date through the current period.
47. Current Needs: A method of funding a
				  subgrant where the subgrantee evaluates its cash needs for sixty (60) days and
				  submits a request for these funds thirty (30) days prior to the period funds
				  will be needed. Pending receipt of federal funding, the subgrantee may request
				  payment for the Federal and/or State portion of expenses expected to be paid
				  during the sixty (60) day period of projected cash needs once the subgrant
				  agreement becomes effective. A Cash Advance Claim Support Form'
				  (MDHS-BA-CS-002) and Supplemental Form are required under the current
				  needs/cash advance method to initiate the payment process. A monthly Claim
				  Support Form' (MDHS-BA-CS001) is also required to report costs
				  incurred.
48. Debarment: An action
				  taken by a debarring official in accordance with Federal regulations and
				  established procedures to exclude a legal entity or a participant from
				  participating in covered transactions. A participant so excluded is
				  debarred.
49. Direct Cost: Cost
				  immediately identifiable with specific subgrant activities that is recorded as
				  a subgrant expenditure when incurred.
50. Encumbrances: Commodities and services
				  which have been ordered but the goods have not been received or the service has
				  not been rendered for funds committed during current subgrant period.
51. Equipment/Property: Tangible personal
				  equipment/property of a non-consumable nature with a useful life of one (1)
				  year or more. See also definitions provided in
				  2 C.F.R. §
											200 for capital assets, computing devices,
				  general purpose equipment, information technology systems, special purpose
				  equipment, and supplies. (See the Property Management chapter of this manual
				  for items that are classified as equipment, regardless of costs).
52. Expenditure: Exchange of an asset or
				  incurrence of a liability for an asset, goods received, or services rendered
				  after a voucher for goods and/or services is approved.
53. E-verify: An internet-based system that
				  compares information from an employee's Form I-9, Employment Eligibility
				  Verification, to date from U.S. Department of Homeland Security and Social
				  Security Administration records to confirm employment eligibility. (
https://www.e-verify.gov/
)
54. Expense: Cost incurred (cash or noncash)
				  which is presumed to benefit operations of the current fiscal period.
55. Financial Statements: Presentations of
				  financial data that shows the financial position and the results of financial
				  operations of a fund, a group of accounts, or an entire subgrantee unit for a
				  particular accounting period.
56.
				  Finding: An item that is a requirement of the subgrantee that has been
				  identified by MDHS that requires additional action or information in order to
				  be considered met.
57. Fiscal Year:
				  The twelve (12) month period that is the legal period for budgeting and
				  accounting for the subgrantee.
58.
				  Fixed Assets: Assets of a long-term character and non-consumable in nature
				  which are intended to be held or used for a period exceeding one (1) year. This
				  includes land, buildings, improvements, machinery, furniture and other
				  equipment See Chapter 5. Some exclusions apply.
59. Fixed Price Contract: Contractual
				  agreement whereby payments to the subgrantee are contingent on the subgrantee
				  fulfilling the agreement terms.
60.
				  Fixed Unit Price: Method of funding subgrants under which the subgrantee is
				  paid a predetermined fixed price for services performed.
61. Funding Division: A MDHS Division that
				  provides monies from State and/or Federal sources to fund State and/or Federal
				  contracts or subgrants for the provision of services for or on behalf of
				  MDHS.
62. Funding Source: A source
				  from which funds are derived.
63.
				  General Journal: A journal or book of original entry that requires both the
				  credited and debited amounts to be listed, along with respective amounts being
				  credited or debited. Specifically, a journal consists of a chronological record
				  of the transactions showing an explanation of each transaction, the accounts
				  affected, whether those accounts are increased or decreased, and by what
				  amount. It may also be known as a General Ledger.
64. Generally Accepted Accounting Principles
				  (GAAP): A set rules and regulations that represent the accepted accounting
				  principles and practices.
65.
				  Indirect Cost: Costs incurred for common or joint objectives, and therefore,
				  cannot be readily and specifically identified with a particular project or
				  activity.
66. Indirect Cost Plan:
				  The documentation prepared by an organization to substantiate its claim for
				  reimbursement of indirect cost. The plan provides the basis for review and
				  negotiations leading to the establishment of an organization's indirect cost
				  rate.
67. Indirect Cost Rate:
				  Expressed as a percentage of the indirect costs to a direct cost base pending
				  prior approval by the appropriate authority.
68. In-Kind Contributions: The value of
				  non-cash contributions provided by the subgrantee or non-federal parties.
				  Contributions may be in the form of charges for real property and nonexpendable
				  personal property or the value of goods or services directly benefitting and
				  specifically identifiable to the project or program.
69. Internal Control: The plan of
				  organization and all of the methods and measures adopted within a fund or
				  agency to safeguard its assets, check the accuracy and reliability of the
				  accounting data, promote operational efficiency, and encourage adherence to
				  prescribed managerial policies.
70.
				  Invoice: The original bill from the vendor indicating the price, description of
				  goods or services sold and terms of the sale. This is used as documentary
				  evidence that the service has been performed or the material received. If not
				  an original, the invoice must read "customer copy."
71. Lower-Tier Agreement: A legally binding
				  document between a MDHS subgrantee and another entity to provide a service
				  required under the MDHS subgrant, rather than the direct delivery of the
				  services by the MDHS subgrantee. Lower-tier agreements must be approved by
				  MDHS. All lower-tier sub-recipients must comply with the requirements specified
				  in the MDHS Subgrant Manual.
72.
				  Matching Contributions Local Cash, Local In-Kind Program Income: The
				  subgrantee's non-federal cash, in-kind contributions program income used to
				  meet federal matching requirements, including the outlay of other non-federal
				  monies contributed to the subgrantee by other public agencies, institutions,
				  private organizations, and individuals.
73. MDHS Subgrant Manual: A policy manual
				  developed by MDHS that implements the agency's policies and procedures that are
				  applicable to MDHS subgrantees, agreements, and any lower-tier
				  agreements.
74. NonExpendable
				  Equipment/ Property: Equipment or property that has a continuing use and an
				  expected useful life of one (1) year or more. The equipment/property shall be
				  tagged and placed on the Property Control List.
75. Obligations: Amounts which a subgrantee
				  may be legally required to pay out of its resources including encumbrances, as
				  well as, accounts payable and accrued liabilities.
76. Outstanding Claimants: A list of all
				  possible claimants to MDHS funds. See the Closeout Procedures chapter of this
				  manual (MDHS-SGOCL-1013).
77.
				  Outstanding Encumbrances: The portion of the total prospective expenditures
				  filed (such as purchase orders or executory contracts) that remain to be
				  liquidated.
78. Outlays: The
				  spending or disbursing of money.
79. Pass-through Entity; A non-Federal entity
				  that provides a subgrant to a subgrantee to carry out part of a Federal
				  program.
80. Performance Based
				  Subgrant Agreement: A Subgrant agreement whereby payments to the subgrantee or
				  lower-tier sub-recipient are performance based (contingent on the subgrantee or
				  lower-tier sub-grantee achieving specified elements of performance).
81. Program Budget: A budget in which
				  projected expenditures are assigned to specific activities.
82. Program Income: Gross income earned by
				  the subgrantee that is directly generated by a subgrant or agreement supported
				  activities.
83. Property Control:
				  List An updated list of all equipment purchased by the subgrantee with subgrant
				  funds, as required by the Property Management chapter of this manual.
84. Property Management Policy: Uniform
				  standards adopted by all divisions and the Property Unit within subgrant funds,
				  as required by the Property Management chapter of this manual.
85. Purchase Order: A document that
				  authorizes the purchase of specified merchandise or services and authorizes the
				  verification and holding of funds to cover the purchase.
86. Questioned Cost: Those funds questioned
				  by a MDHS state, federal or any other authorized auditor that are expended by a
				  subgrantee and are not in compliance with the terms and conditions of the
				  subgrant/agreement or with any other compliance or federal
				  requirements.
87. Record Retention
				  and Access Policy: Federal regulations that establish the requirements for
				  record retention and access to records of subgrantees and any lower tier
				  sub-recipients.
88. Service
				  Provider: A person or governmental department, agency, or other entity that
				  receives federal financial assistance to carry out a program through a state or
				  local government; but does not include an individual who is a beneficiary of
				  such a program.
89. Single Audit
				  Act Amendments: A federal act passed by Congress in October of 1984, and
				  amended in 1996, establishing audit requirements according to
				  2 C.F.R. §
											200, Subpart F, "Audit Requirements," for
				  subgrants that expend a total amount equal to or in excess of $750,000 in a
				  single year. The Single Audit Act requires the reporting entity to have its
				  federal financial assistance programs audited on an organization-wide basis by
				  an independent Certified Public Accountant.
90. Standard Assurance Policy: Assurances and
				  certifications by a subgrantee that they will comply with the regulations,
				  policies, guidelines, and requirements imposed by the federal sponsoring agency
				  and the grantor agency and ensure the compliance of any lower-tier
				  sub-recipients.
91.
				  Subgrant/Agreement: An award provided through a contractual arrangement by a
				  pass-through entity (MDHS) to a subgrantee for the subgrantee to carry out part
				  of a Federal award received by MDHS. It does not include payments to a
				  contractor or payments to an individual that is a beneficiary of a Federal
				  program.
92. Subgrant/Agreement
				  Modification: A contractual agreement that alters or amends any subgrant or
				  agreement that has been approved by appropriate MDHS personnel.
93. Subgrantee Travel Policy: Policy
				  concerning in-state and out-of-state travel that defines uniform guidelines for
				  the reimbursement of travel expenses of subgrantees.
94. Subsidiary Account: Group of related
				  accounts which support in detail the summary data recorded in a control
				  account.
95. Subsidiary Ledger: A
				  group of subsidiary accounts; the sum of the accounts should equal the balance
				  of the related control account.
96.
				  Trial Balance: A list of the debit and credit balances of the individual
				  accounts in a general ledger kept by double entry accounting.
97. Unallowable Cost: A cost that is:
(1) not allocable or beneficial to the
				  subgrant, either directly or indirectly;
(2) not treated consistently with costs
				  incurred with non-federal funds;
(3) lacking the necessary documentation
				  required by statute or regulation;
(4) not authorized under the subgrant
				  agreement: or,
(5) not allowable
				  under a specific statute, regulation, or policy.