North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 19 - RURAL ECONOMIC DEVELOPMENT › Subchapter L - NORTH CAROLINA COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM › Section .0900 - GRANT ADMINISTRATION › Section 19L .0906 - FINANCIAL MANAGEMENT SYSTEMS

Current through Register Vol. 39, No. 2, July 15, 2024
Recipient financial management systems shall provide for
					 accurate, current and complete disclosure of the financial results of each
					 grant program in accordance with fiscal control and reporting requirements set
					 forth in G.S. 159, Article III, the Local Government Budget and Fiscal Control
					 Act. Recipients shall meet the following requirements:
(1) All grant funds shall be expended in
				  accordance with a budget ordinance or project ordinance adopted under
				  G.S.
				  159-8 and
				  G.S.
				  159-13.2 respectively;
(2) A recipient may deposit or invest all or
				  part of the cash balance of any grant fund; however, all interest earned shall
				  be returned to the Department in accordance with Rule .0907(c) of this
				  Section;
(3) Investment deposits
				  shall be secured as provided in
				  G.S.
				  159-31(b);
(4) The recipient shall designate as its
				  official depositories one or more banks or trust companies in the State in
				  accordance with
				  G.S.
				  159-31(a);
(5) All budgetary accounting for
				  appropriations of grant funds shall be in accordance with the procedures for
				  incurring obligations and disbursements as set forth in
				  G.S.
				  159-28;
(6) Each recipient shall establish an
				  accounting system in accordance with
				  G.S.
				  159-26;
(7) The recipient's finance officer, and each
				  officer, employee, or agent who handles or has in his custody more than one
				  hundred dollars ($100.00) of grant funds at any time, or who handles or has
				  access to the recipient's inventories, shall be bonded in accordance with
				  G.S.
				  159-29;
(8) Each recipient shall maintain records
				  that identify adequately the source and application of funds for
				  grant-supported activities. These records shall contain information pertaining
				  to federal awards and authorizations, obligations, unobligated balances,
				  assets, liabilities, outlays, and income;
(9) A system for procedures for procurement
				  and property management shall be provided in accordance with Rule .0908 and
				  Rule .0909 of this Section;
(10)
				  All cash receipts must be deposited with, or to the credit of, the finance
				  officer. This includes program revenues, reimbursements of travel, vendor
				  payments or other items previously recorded as expenditures, and all other
				  grant monies from the Department;
(11) Recipients must develop a systematic
				  method to assure timely and appropriate resolution of audit findings and
				  recommendations;
(12) Recipients
				  shall require subgrantees to adopt the standards set forth in this
				  Rule;
(13) Recipients shall comply
				  with the Office of Management and Budget Circular A-87, entitled Cost
				  Principles for State and Local government, which is incorporated in these Rules
				  by reference including subsequent amendments and editions. A copy of this
				  circular is available from the Division of Community Assistance, Raleigh, North
				  Carolina. In applying OMB A-87 the term "federal agency" shall mean the
				  Department;
(14) Recipients shall
				  record the receipt and expenditure of project revenues from taxes, special
				  assessments, evies, fines, etc., in accordance with generally accepted
				  accounting principles;
(15)
				  Subrecipients shall comply with the Office of Management and Budget Circular
				  A-110, entitled Uniform Administrative Requirements for Grants and other
				  Agreements with Institutions of Higher Education, Hospitals, and other
				  Nonprofit Organizations which is incorporated in these Rules by reference
				  including subsequent amendments and editions. A copy of this circular is
				  available from the Division of Community Assistance, Raleigh, North
				  Carolina.
Authority
					 G.S.
					 14-234;
					 143B-10;
					 143B-431;
					 24 C.F.R.
					 570.489;
					 24 C.F.R. 570.496;
					 42 U.S.C.A.
					 5304(b),(d),(e);
Eff. July 1, 1982;
Amended Eff. August 1, 1998; June 1, 1994; June
					 1, 1993; September 1, 1991; September 1, 1990;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. March 6,
					 2018.