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Federal Transit Administration
Financial Management Oversight Seminar 2005

Page 57 - Common Rule - Cash Management

18.20(b)(7) Cash Management. "Procedures for minimizing the time elapsing between the transfer of funds from the U.S. Treasury and disbursement by grantees must be followed whenever advance payment procedures are used. Grantees must establish reasonable procedures to ensure the receipt of reports on subgrantee’s cash balances and cash disbursements in sufficient time to enable them to prepare complete and accurate cash transactions reports to the awarding agency. When advances are made by letter-of-credit or electronic transfer of funds methods, the grantee must make draw downs as close as possible to the time of making disbursements. Grantees must monitor cash draw downs by their subgrantees to assure that they conform substantially to the same standards of timing and amount as apply to advances to the grantees."

Condition: Inadequate segregation of duties related to farebox collections.

Condition: Grantee drew down federal funds in excess of need and did not remit overdraw to FTA.

Condition: Employees handling cash are not bonded.


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2005 - Federal Transit Administration