California Code of Regulations
Title 14 - Natural Resources
Division 8 - Environmental Affairs Agency
Chapter 1 - Final Application Procedures: Local Government Coastal Management Improvement Program
Section 19007 - Fiscal Requirements for Grants

Universal Citation: 14 CA Code of Regs 19007

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) Standards for Accounting and Financial Systems.

(1) The grantee shall establish a separate ledger account for receipt and expenditures of grant funds. The expenditures will be for items contained in the approved budget.

(2) Grantee financial management systems shall:
(A) Provide separate accountability for grant activities;

(B) Ensure that grant funds are not commingled with other funds;

(C) Include cash flow management procedures to minimize cash balances; and

(D) Feature accounting records that are supported by source documents.

(b) Budget Revisions.

The grantee may revise and expend original line item allotments up to 10 percent without approval of SEA. The grantee must request prior approval in writing from SEA for budget revisions in excess of 10 percent of any line item. Petition for variance to this requirement may be approved when it is submitted with the application package. Budget revisions include transfer of funds between line items or an increase or decrease in expenditures within a line item. When requesting approval for a budget revision, the grantee shall use the budget format used in the original grant application and attach a description of the proposed change, including reasons for the charge, and references to specific sections of the original grant agreement impacted by the change. Requests for budget revisions must be sent under a separate cover to SEA. SEA will respond in writing to such requests within 30 days.

(c) Retention of Records.

Grant records, including financial records, performance reports, and requests for advance payments, shall be retained for a period of four years after the date of the final financial status report unless otherwise specified in the grant agreement.

(d) Audits.

SEA or authorized designee reserves the right to make on-site inspections and audits of the grantee's records. Further, the grantee agrees to incorporate an audit of this program within their scheduled agency audits when requested by SEA. The grantee will inform SEA when audits are scheduled. Upon written request from SEA, the grantee shall provide detailed documentation of all expenses any time during the project.

(e) Financial Reports.

The grantee shall submit to SEA a quarterly financial report including a narrative of the status and a completed financial status form (Exhibit 3). The report shall contain projected and/or actual expenditures and receipts, and a payment request. This report shall also be submitted as a part of the semi-annual progress reports and grant closeout.

(f) Program Income.

(1) Interest earned on advances must be reported on the financial status report. Interest income must be disposed of in one of the following manners:
(A) With prior approval from SEA, use to supplement grant funds to offset eligible grant expenditures;

(B) With prior approval from SEA, use to offset grant funds required, or;

(C) Submit a check payable to SEA for the full amount of the interest.

(2) All other income earned during the grant period shall be subject to the same procedures used for interest income.

(g) Revisions.

These fiscal requirements are subject to revision as a result of changes in state grant procedures. The grantee will be sent copies of revisions.

1. New section filed 7-22-86 as an emergency; effective upon filing (Register 86, No. 31). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 11-19-86.
2. Repealed by operation of Government Code Section 11346.1(g) (Register 87, No. 2).
3. New section filed 1-8-87; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 87, No. 2).

Note: Authority cited: Section 35041, Public Resources Code. Reference: Section 35041, Public Resources Code.

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