WHATS NEW Cash Management

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WHATS NEW?Cash Management Carryover

• Presented by
• Craig Thurman
• Office of Financial Management
• Margaret Madigan Mike Radke
• Office of School Improvement

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Cash Management
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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.

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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.

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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.

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Cash Management Funding Techniques
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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.

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Penalties for violating CMIA
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Penalties for violating CMIA

• Interest
• High Risk Determination
• Loss of Federal Funds

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CMS What and Why?
Cash Management System (CMS)
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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

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CMS What and Why? (cont.)

• Functions for Recipients
• Request funds and certify fund
• requests
• Report and certify final
• expenditures
• View data
• Control access

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CMS What and Why? (cont.)

• Functions for MDE
• Monitor and control cash
• disbursements
• Authorize disbursements to
• recipients via MAIN

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Using CMS Accessing the Website

• https//mdoe.state.mi.us/cms

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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

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3 Access Levels

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

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3 Access Levels

• Number 3-Recipient View
• View data
• Maintain business contact

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Viewing Data

• View your CMS data

• Export to spreadsheet

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Controlling Access

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

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Controlling Access (cont.) Maintaining Business
Contact

• Business Contact will receive CMS automated
  e-mail notices

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Controlling Access (cont.)Maintaining Business
Contact

• Final Expenditure Report due
• Final Expenditure Report delinquent
• Overpayment
• Reopened Final Expenditure Report
• Disbursements

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Contact Information

• If you experience any problems or have
• questions concerning,
• Grants call Debby Roberts at [phone].
• CMS Security call Janet Brown at [phone].
• or
• E-mail MDE-cms_at_michigan.gov

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Carryover
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Carryover Funds

• Programs included in the
• Consolidated Application

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Allowable Carryover

• All programs allow carryover with
• two variations
• Title I, Part A
• Title I, Part C
• (Migrant Education Program)

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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

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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

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Applying for Carryover

• Carryover will be available in MEGS
• Fund Requested
• Final Expenditure Report is certified
• Balance appears as carryover in the
• Consolidated Application

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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

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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

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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

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Questions???

• Mike Radke
• radkem_at_michigan.gov
• Margaret Madigan
• madiganm_at_michigan.gov
• Or call the Office of School Improvement at
  517-373-3921