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WHAT’S NEW? Cash Management & Carryover

WHAT’S NEW? Cash Management & Carryover. Presented by: Craig Thurman Office of Financial Management Margaret Madigan & Mike Radke Office of School Improvement. Cash Management. Cash Management Rules. States are governed by the Cash Management Improvement Act (CMIA)

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WHAT’S NEW? Cash Management & Carryover

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  1. WHAT’S NEW?Cash Management & Carryover Presented by: Craig Thurman Office of Financial Management Margaret Madigan & Mike Radke Office of School Improvement

  2. Cash Management

  3. Cash Management Rules States are governed by the Cash Management Improvement Act (CMIA) a law that regulates the transfer of funds between federal and state government.

  4. The CMIA was enacted primarily for two reasons: 1. To prevent states from drawing down federal funds before they were needed, thus “profiting”. • 2. To prevent the federal government • from making late payments to states, • requiring states to advance their own • funds, thus getting a free “loan”.

  5. Cash Management Rules (cont.) The CMIA is designed to reduce these problems by requiring states to draw down funds only when they have an immediate need for cash, while requiring the federal government to make prompt payments.

  6. Cash Management Funding Techniques

  7. Cash Management Funding Techniques • Cash advance. The state draws down funds no more that three days in advance of when it will spend the money. • Reimbursement. The state draws down funds after the state has already paid money for federal program purposes.

  8. Penalties for violating CMIA

  9. Penalties for violating CMIA • Interest • High Risk Determination • Loss of Federal Funds

  10. CMS: What and Why? Cash Management System (CMS)

  11. CMS: What and Why? CMS replaces Grants Cash Management and Reporting System (GCMRS) -New technology -Increased functionality -Better usability -Integration to Michigan Electronic Grants System (MEGS) -Improved security -Fiscal monitoring

  12. CMS: What and Why? (cont.) • Functions for Recipients • Request funds and certify fund requests • Report and certify final expenditures • View data • Control access

  13. CMS: What and Why? (cont.) • Functions for MDE • Monitor and control cash disbursements • Authorize disbursements to recipients via MAIN

  14. Using CMS: Accessing the Website https://mdoe.state.mi.us/cms

  15. Security Level Access and Options: 3 Access Levels: Number 1-Recipient Certify • Request funds for a project (DS-4492) • Certify funds requests • Report final expenditures (DS-4044) • View data • Control access • Maintain business contacts • Certify Final Expenditures • Maintain business contacts

  16. 3 Access Levels: Number 2-Recipient Enter • Request funds for a project (DS-4494) • Report final expenditures (DS-4044) • View data • Maintain business contact

  17. 3 Access Levels: Number 3-Recipient View • View data • Maintain business contact

  18. Viewing Data • View your CMS data • Export to spreadsheet

  19. Controlling Access • Control users with Recipient Enter and Recipient View access • E-mail Contact? Will also receive copies of automated CMS e-mails

  20. Controlling Access(cont.)Maintaining Business Contact • Business Contact will receive CMS automated e-mail notices:

  21. Controlling Access (cont.)Maintaining Business Contact • Final Expenditure Report due • Final Expenditure Report delinquent • Overpayment • Reopened Final Expenditure Report • Disbursements

  22. Contact Information If you experience any problems or have questions concerning, Grants call Debby Roberts at (517) 335-0534. CMS Security call Janet Brown at (517) 335-0550. or E-mail: MDE-cms@michigan.gov

  23. Carryover

  24. Carryover Funds Programs included in the Consolidated Application

  25. Allowable Carryover • All programs allow carryover with two variations: • Title I, Part A • Title I, Part C (Migrant Education Program)

  26. Title I, Part A • Title I, Part A • 15% carryover limit • Exception by waiver request once every 3 years Request must be reasonable and necessary and include information on why the carryover limit was exceeded

  27. Title I, Part C • Title I, Part C does not allow any carryover • The program requires that funding be used for services during the period that the funds are awarded

  28. Applying for Carryover Carryover will be available in MEGS • Fund Requested • Final Expenditure Report is certified • Balance appears as “carryover” in the Consolidated Application

  29. Applying for Carryover Application for carryover is made • By amending the 2007-08 Consolidated Application in MEGS • Carryover no longer requires separate budget or application

  30. Program Changes • Federal requirements state that program amendments are needed in the following situations: • Adding staff or changing FTEs • Adding a new function code to the budget • Moving an amount greater than 10% between approved function codes

  31. Program Changes (cont.) • Federal requirements state that program amendments are needed in the following situations: • Accessing total allocations when a lesser amount was applied for initially, or when the allocation is increased; or • Applying for an additional grant source

  32. Questions??? Mike Radke: radkem@michigan.gov Margaret Madigan: madiganm@michigan.gov Or call the Office of School Improvement at 517-373-3921

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