Grant Accounting and Financial Reporting

Idaho
Department of
Correction

Standard
Operating
Procedure

Management
Services
Division

General
Administration
Control Number:
114.03.06.001
Version:
1.0
Page Number:
1 of 8
Adopted:
3-20-2012
Reviewed:
3-20-2012

Title:
Grant Accounting and Financial
Reporting

This document was approved by Tony Meatte, chief of the Management Services
Division, on 3/20/12 (signature on file).
Open to the public: Yes
BOARD OF CORRECTION IDAPA RULE NUMBER
None
POLICY CONTROL NUMBER 114
Fiscal Policy
DEFINITIONS
Standardized Terms and Definitions List
Division of Financial Management (DFM): The state of Idaho governor’s budget and
policy office.
Grant: A conveyance of funds or services to the Idaho Department of Correction (IDOC) to
subsidize an IDOC program or project.
Grant Manager: The Idaho Department of Correction (IDOC) employee who is primarily
responsible for (1) drafting the application documents (in conjunction with the grant officer),
and (2) being in direct operational charge of the grant or project, if funded.
Grant Officer: The Idaho Department of Correction (IDOC) employee who is primarily
responsible for overall administrative grant-related duties and responsibilities.
Grantor: An individual or organization that makes a grant or contribution to a grantee.
Match Dollars: A contribution of services, items, staff time and/or money (always stated in
terms of dollars) that the grantee or other party agrees to contribute to the overall cost of the
project being funded.
Non-cognizable Funds: In general, funds which are not state of Idaho funds, or funds in
which there was no knowledge of the availability of the funds at the time of the legislative
appropriation process, or funds in which there was incomplete knowledge of the level of
revenues available and expenditures required at the time of the legislative appropriation
process.
Program Cost Account (PCA) Code: A five character alphanumeric code entered in the
Statewide Accounting and Reporting System (STARS) that is used to identify a specific
program structure.
Control Number:
114.03.06.001
Version:
1.0
Title:
Grant Accounting and Financial
Reporting
Page Number:
2 of 8

Statewide Accounting and Reporting System (STARS): The state of Idaho’s Office of the
State Controller’s computer system that is used for processing and reporting accounting
transactions.
PURPOSE
The purpose of this standard operating procedure (SOP) is to develop procedures to ensure
adequate internal control mechanisms are in place for grant financial processes.
SCOPE
This SOP applies to any Idaho Department of Correction (IDOC) employee or contractor
who participates in the grant process or manages the processes described herein.
RESPONSIBILITY
Chief of the Management Services Division
The chief of the Management Services Division (or designee) is responsible for
overseeing and monitoring the provisions provided herein.
Deputy Chief of the Contract Services Bureau
In conjunction with the executive financial officer (or designee), the deputy chief of the
Contract Services Bureau (or designee) shall be responsible for implementing this SOP
and for ensuring IDOC employees are practicing the guidelines, standards, and
procedures provided herein.
Executive Financial Officer
In conjunction with the deputy chief of the Contract Services Bureau (or designee), the
executive financial officer (or designee) shall be responsible for implementing this SOP
and for ensuring IDOC employees and contractors are practicing the guidelines,
standards, and procedures provided herein.
Fiscal Unit Financial Specialist
The designated financial specialist(s) (located in the Fiscal Unit at Central Office) shall
be responsible for grant accounting and fiscal reporting.
Financial Technician(s)
The designated financial technician(s) (located in the Fiscal Unit at Central Office) shall
be responsible for entering grant batches into the Statewide Accounting and Reporting
System (STARS), and processing encumbered grant invoices.
Table of Contents
General Requirements ......................................................................................................... 3
1. Overview ........................................................................................................................ 3
2. Upon Receipt of Award Documents ................................................................................ 3
3. During Grant Award Period ............................................................................................. 4
4. Grant Fiscal Reporting: Monthly and Quarterly ............................................................... 5
Control Number:
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Title:
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Reporting
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5. Indirect Cost Plan and Yearly Reconciliation .................................................................. 6
6. Grant Year-end Closing .................................................................................................. 6
References ........................................................................................................................... 7
GENERAL REQUIREMENTS
1. Overview
The nature of grant fiscal management requires knowledge of grant budgetary rules and
regulations, understanding of the scope of work for the grant contract, full understanding of
the grant budget, comprehension of the level of risk, and the experience and commitment of
personnel involved. The resources allocated for the fiscal administration and monitoring of
an individual grant shall be commensurate with the scope of work of the grant contract,
complexity of the project, and level of risk.
• Grant expenditures must be within approved grant budget categories.
• Fiscal grant draw downs and reports, including match dollars, must be completed per
the grantor’s specifications.
• There must be collaboration between the grant manager and the designated Fiscal
Unit financial specialist for compliance with grant fiscal requirements, including fiscal
reporting requirements.
• For internal and external audit purposes, a centralized official grant file must be
maintained for each grant. The file will be located in the Fiscal Unit, but will be
maintained by the designated Fiscal Unit financial specialist.
• Adjustments must be made for unallowable transactions posted to the grant program
cost account (PCA).
Note: The procedures for the completion, submission, and program management of grant
applications can be found in SOP 126.03.06.001, Grant Management.
2. Upon Receipt of Award Documents
Grant award documents will be provided by the funding agency. In most instances, the
director of the IDOC will be required to sign the award documents and agree to any and all
special conditions required by the grant. Grant awards are legally binding contracts that
have specific accounting requirements.
Functional Roles and
Responsibilities Step Tasks
Budget Unit (located
at Central Office) 1
Work with the Division of Financial Management (DFM) on
non-cognizable fund appropriation for new grants that have
not received prior spending authority through the
appropriation process.
Fiscal Unit Financial
Specialist 2
• Request a PCA for new grant awards; and
• Set up the grant in the Statewide Accounting and
Reporting System (STARS).
Control Number:
114.03.06.001
Version:
1.0
Title:
Grant Accounting and Financial
Reporting
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Functional Roles and
Responsibilities Step Tasks
Fiscal Unit Financial
Specialist 3 Post the financial plan and revenue plan at the object level.
Grant Officer 4
Distribute copies of the approved budget (by spending
category) to Budget Unit staff, the grant officer, and the
grant manager.
Fiscal Unit Financial
Specialist 5 Place all grant documentation into the official grant binder.
Fiscal Unit Financial
Specialist 6 Assist in establishing grant manager spending authority for
grant funds.
3. During Grant Award Period
Each grant award has a set of rules and regulations defining fiscal and budgetary
requirements established by the funder as well as requirements established by the federal
Office of Management and Budget.
Functional Roles and
Responsibilities Step Tasks
Grant Manager 1
• Ensure that all grant expenditures are necessary,
reasonable, and allowable under federal, state, and
local laws and regulations and the grant agreement;
• Stay within grant expenditure categories and line
items, or work with the grant officer and the
designated Fiscal Unit financial specialist to obtain a
grant adjustment; and
• Approve all grant expenditures.
Grant Manager 2
• Ensure all purchase orders for equipment, services,
and so forth intended to be used as match dollars are
marked accordingly; and
• Provide a copy to the designated Fiscal Unit financial
specialist to include in the official grant binder.
Fiscal Unit Financial
Specialist 3
Prior to releasing any payments, ensure all expenditures
are within the grant expenditure categories and amounts
according to the grant budget and all payment documents
include adequate documentation.
Fiscal Unit Financial
Specialist 4
Review all grant expenditures for compliance with IDOC
policy, state of Idaho policy, and federal grant regulations
and requirements.
Fiscal Unit Financial
Specialist 5
If any budget category is within ten percent (10%) of the
approved grant budget limit, notify the grant manager and
grant officer.
Control Number:
114.03.06.001
Version:
1.0
Title:
Grant Accounting and Financial
Reporting
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Functional Roles and
Responsibilities Step Tasks
Grant Officer
and
Grant Manager 6
Grant Officer
• Coordinate with the grant manager on any budget or
timeline adjustments that may need to be submitted to
grantor;
• When a budget or timeline adjustment has been
approved, submit it to the designated Fiscal Unit
financial specialist and Budget Unit staff for inclusion
into the official grant binder; and
• If the adjustment is denied, work together as a team
to arrive at an alternate plan.
Grant Manager
• Facilitate any financial plan adjustments with the
designated Fiscal Unit financial specialist.
4. Grant Fiscal Reporting: Monthly and Quarterly
Each grant award has specific reporting requirements stipulated by the funder. All grants
require fiscal responsibility and adherence to basic accounting principles.
Functional Roles and
Responsibilities Step Tasks
Fiscal Unit Financial
Specialist 1
Complete a monthly reconciliation of the expenditures from
the DAFR7850 and DAFR6850 reports (downloaded from
the STARS) to process monthly draws.
Fiscal Unit Financial
Specialist 2
• Reconcile each active grant (expenditures and
revenues) at the summary and detail level on a
monthly basis using DAFR 8180 report (downloaded
from the STARS); and
• Review all transactions posted to the grant to verify
accurate coding.
Fiscal Unit Financial
Specialist 3
• Perform any adjustments for unallowable charges
against the grant PCA and process them accordingly;
and
• Submit the adjustments to the designated Fiscal Unit
financial specialist principle for revision.
Fiscal Unit Financial
Specialist Principle 4
• Revise the adjustments as needed, and
• Submit them to the designated Fiscal Unit financial
technician for processing.
Fiscal Unit Financial
Technician 5
• Enter the grant batches into the STARS; and
• Forward the batches to the designated Fiscal Unit
financial specialist.
Fiscal Unit Financial
Specialist 6 Audit the grant reconciliation, reports, and monthly draw to
ensure correct amounts, PCA, and documentation.
Control Number:
114.03.06.001
Version:
1.0
Title:
Grant Accounting and Financial
Reporting
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Functional Roles and
Responsibilities Step Tasks
Fiscal Unit Financial
Specialist 7
If there is any appearance of discrepancies or inappropriate
uses of grant funds (including match dollars recorded),
notify the grant manager and grant officer.
Fiscal Unit Financial
Specialist 8
On a monthly basis, submit an expenditure spreadsheet
(i.e., a Budget Unit internal tracking sheet) to the grant
manager and grant officer.
Fiscal Unit Financial
Specialist 9
• Complete an expenditure reimbursement request
(draw) according to the grantor’s specification; and
• Get approval from the designated Fiscal Unit financial
specialist principle or the executive financial officer to
submit the ‘draw’.
Fiscal Unit Financial
Specialist 10 File the financial reports (including match dollars) as
requested by the grantor.
Fiscal Unit Financial
Specialist 11 Submit a match report as designated by the grantor.
Fiscal Unit Financial
Specialist 12
Reconcile all grant funds at the aggregate level to ensure
accurate posting of all grant revenue and expenditure
transactions.
Fiscal Unit Financial
Specialist 13 Reconcile each active grant (expenditures and revenues) at
the summary and detail level.
5. Indirect Cost Plan and Yearly Reconciliation
The IDOC’s Indirect Cost Plan and yearly reconciliation should be done in line with the state
of Idaho’s fiscal year.
Functional Roles and
Responsibilities Step Tasks
Budget Unit (located
at Central Office) 1
• Develop and submit the IDOC’s Indirect Cost Plan to
the appropriate federal agency; and
• Provide a copy of approval letter to the grant officer
for submission into grant applications.
Fiscal Unit Financial
Specialist 2
• Reconcile grant cash accounts at the aggregate and
grant level;
• Post any adjustments before fiscal year-end close;
and
• Have the designated Fiscal Unit financial specialist
principle review the adjustments.
6. Grant Year-end Closing
Grants must be closed out within a time frame mandated by the funder. All encumbered
costs must be paid for and the final drawdown submitted.

Control Number:
114.03.06.001
Version:
1.0
Title:
Grant Accounting and Financial
Reporting
Page Number:
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Functional Roles and
Responsibilities Step Tasks
Grant Manager 1
Submit the purchase orders to the appropriate Fiscal Unit
(located at Central Office) staff member at least 10
business days before the end of the grant so that the grant
funds can be encumbered by the designated Fiscal Unit
financial technician.
Note: See SOP 114.03.03.007, Purchasing and
Contracting, for procedures on submitting purchase orders.
Fiscal Unit Financial
Technician 2
Process all encumbered grant year-end invoices for
payment within 60 days after the end of the grant period.
Note: Any encumbered grant year-end invoices processed
for payment after the 60 day interim period will be
considered general fund expenditures.
Fiscal Unit Financial
Specialist 3
Submit the final financial reports, showing all cash received
and expenditures made, to the grantor after the 90 day
interim period (when all grant funds have been expended),
or the grant period has ended and all encumbrances have
been paid, whichever occurs first.
Fiscal Unit Financial
Specialist 4
• Request the grant/phase be inactivated by adjusting
the ‘end date’ in the STARS to prevent further
spending;
• Complete a final reconciliation of all revenues and
expenditures posted to the grant;
• Compare the total for each approved spending
category to ensure compliance with the approved
budget;
• Ensure the transactions comply with the grant awards
within allowed timeframes;
• Review the match expenditures to ensure compliance
with grant requirements;
• Prepare a detail report of all transactions posted to the
grant to document a final accounting of grant funds;
and
• Put the detail report in official grant binder.
REFERENCES
Idaho Code, Title 67, Chapter 23, Section 67-2302, Prompt Payment for Goods and
Services
Idaho Code, Title 67, Chapter 35, Section 67-3516, Appropriate Acts Deemed Fixed
Budgets – Rate of Expenditure
Idaho Code, Title 67, Chapter 35, Section 67-3519, Employee Positions – Procedure for
Filling
Standard Operating Procedure 114.03.03.007, Purchasing and Contracting
Standard Operating Procedure 126.03.06.001, Grant Management
Control Number:
114.03.06.001
Version:
1.0
Title:
Grant Accounting and Financial
Reporting
Page Number:
8 of 8

State of Idaho, Office of the State Controller
The White House, Office of Management and Budget
– End of Document –