May Newsletter

5/7/2024

The state’s accounting system will stop processing payments in mid-June for its annual fiscal year-end closing procedures. Therefore, the Ohio Department of Education and Workforce must adjust its timetable for approving project cash requests. To ensure timely payment, submit project cash requests to the Office of Grants Management by 12 p.m., Fri., June 14, 2024.  Funds can be requested to cover allowable expenses already incurred, as well as advance funds to cover FY24 expenses that will be paid through July 15, 2024. Cash management guidelines normally requiring advance funds to be liquidated within five business days of receipt are temporarily relaxed during this time frame. However, please note that advance funds must be fully liquidated in accordance with the dates indicated on the project cash request. Having unspent funds after the time frame specified on the cash request constitutes a violation of cash management guidelines and may result in an audit finding.   If a request contains an advance amount, please outline how the funds will be expended and the expected FY24 liquidation date in the Justification of Need section of the cash request. Payment cash requests for an advance amount must reflect a June or July advance period that corresponds with the liquidation date indicated on the request. To receive approval consideration, advances must be for immediate needs within the period specified above and the justification entered for advance funds must provide sufficient detail. If these guidelines are not met, the Office of Grants Management will delay or return the request unapproved, and it may not be paid until after July 1. Please note that advance funds should not be requested to cover FY25 expenses which are normally obligated on or after July 1.  Advances are permitted for FY24 expenses that, based on the grants period of availability, are properly obligated (normally prior to June 30) and will be liquidated by the date you specify on the PCR.   Advance funds are for expenses that will be reported on the FY24 Final Expenditure Report.

The Office of Grants Management will review project cash requests as quickly as possible and, in the order received. To expedite the process, please attach supporting documentation if the total reimbursement amount is greater than 10 percent of the allocation.  If the Office of Grants Management does not receive a cash request by the deadline, it cannot guarantee payment before the system closes for the current fiscal year. This means the payment will be issued when the state accounting system is back online. In addition, the large volume of requests received during this time may result in delays for some payments due to a shortage in state appropriation (spending authority). The Office of Grants Management will process payments that do not meet the deadline or cannot be issued due to lack of appropriation after July 1. In the rare case that you end the fiscal year with a deficit, please review ORC Section 3315.20| Deficits in special funds.