Ohio Administrative Code|Rule 5101:9-7-02 | Child support enforcement agency (CSEA) financing and cash management.

                                                
The following accounting procedures are necessary
		for local accountability in the allocation of federal and state funds.
(A) Financing.
The total cash payments made by the Ohio
		  department of job and family services (ODJFS) to the CSEA administrative fund
		  are disbursed weekly upon receipt of the CSEA cash draw request for funds.
		  Available funds are limited by the state appropriations and federal grant
		  awards. All payments are issued via electronic funds transfer (EFT).
(B) Cash management.
When a CSEA is funded on a reimbursement basis,
		  program costs are paid by local funds before reimbursement is requested. When
		  funds are drawn in advance, the CSEA shall follow procedures to minimize the
		  time elapsing between the transfer of funds from the state and local
		  disbursement. Disbursements to a CSEA administering federal programs shall
		  cover allowable expenditures consistent with federal and state
		  regulation.
(1) Requests for cash
			 draws may be submitted weekly and are normally processed by ODJFS in six
			 business days. In accordance with 2 C.F.R. 200.305 (b)(1), as in effect on
			 November 1, 2019, cash drawn in advance must be limited to the minimum amount
			 needed for actual, immediate requirements. The CSEA shall have cash management
			 procedures in place to ensure the time elapsing between the receipt of funds
			 and the disbursement of funds does not exceed a ten-day average for all federal
			 funding.
(2) Cash drawn shall be
			 traceable to a level of program expenditures adequate to establish that such
			 funds have not been used in violation of the restrictions and prohibitions of
			 applicable rules and regulations. The accounting systems of the CSEA shall
			 support internal controls necessary to insure federal grants and state funds
			 remain separated on a grant, program, or project basis
(C) Quarterly cash on hand.
(1) At the end of each
			 quarter, the CSEA reviews the county finance information system (CFIS) cash on
			 hand report that calculates each CSEA's average days' cash on hand
			 for all federal funding on an individual grant basis. This information is based
			 on expenditures and cash draws reported in CFIS in accordance with rule
			 5101:9-7-29 of the Administrative Code.
(2) At the end of each
			 quarter, CFIS calculates the average days' cash on hand on an individual
			 grant basis as follows:
(a) The excess cash on hand is calculated by deducting reported
				expenditures over the lifetime of the funding source, up to the budgeted
				amount, from the total amount of cash draws over the lifetime of the funding
				source;
(i) The CSEA will have
				  excess cash on hand when the calculation in paragraph (C)(2) of this rule
				  results in a positive number.
(ii) The CSEA operates on
				  a reimbursement basis as stated in paragraph (C)(2) of this rule when the
				  calculation results in a negative number.
(b) The average expenditures is calculated by dividing the total
				reported expenditures by the number of calendar days the funding has been
				available; and
(c) The average days' cash on hand is calculated by dividing
				the excess cash on hand from paragraph (C)(2)(a)(i) of this rule by the average
				daily expenditures in paragraph (C)(2)(b) of this rule.
(3) ODJFS will monitor quarterly average
			 days' cash on hand results and notify the CSEA if the average days'
			 cash on hand calculation results in noncompliance of cash management
			 requirements.
(a) If an event, beyond the reasonable control of the CSEA,
				results in noncompliance of the cash management requirements, the CSEA shall
				document the event and, upon request of ODJFS, provide the documentation to the
				ODJFS office of fiscal and monitoring services.
(b) If circumstances resulting in the noncompliance are caused by
				internal control deficiencies or operational processes, the CSEA shall document
				the steps implemented to avoid a reoccurrence and, upon request of ODJFS,
				provide the documentation to the ODJFS office of fiscal and monitoring
				services.
(c) ODJFS may take additional action to ensure the cash
				management practices of the CSEA are in compliance with paragraph (B)(1) of
				this rule.
(D)  Quarterly interest calculation and
		  reconciliation.
An interest liability accrues if federal funds
		  are received prior to the day the funds are paid. A CSEA shall calculate and
		  report earned interest quarterly as a receipt. Earned interest can only be used
		  for the intended program and is held in the local account.
(1) Interest on excess cash on hand shall
			 be compounded daily and calculated by the CSEA using either the average monthly
			 interest rate earned or "State Treasury Asset Reserve of Ohio" (STAR
			 Ohio) rates found at www.STAROhio.com.
(2) As part of the quarterly interest
			 reconciliation, the CSEA may take into consideration the months in which the
			 CSEA used local funds for program purposes other than for local match and
			 therefore operated on a reimbursement basis, providing the CSEA requests funds
			 timely as set forth in this rule. When the monthly interest liability is a
			 negative number and the CSEA has documentation identifying the funds used as
			 local funds, the resulting negative number may be used to offset any interest
			 liability from other months during the quarter. The format of the quarterly
			 reconciliation will include, at a minimum, the following:
(a) The monthly interest liability owed by the CSEA or the
				monthly offsetting interest liability based upon the CSEA using local funds for
				program purposes for each applicable federal program allocation.
(b) The total net interest liability owed by the CSEA or the
				total net offsetting interest liability based upon the CSEA using local funds
				for program purposes for each applicable federal program allocation for the
				quarter.
(c) The total net interest liability owed by the CSEA or the
				total net offsetting interest liability based upon the CSEA using local funds
				for program purposes for each applicable federal program allocation for the
				federal fiscal year (FFY). In accordance with 45 C.F.R. 200.305 (b)(9), as in
				effect on November 1, 2019, a CSEA, as subgrantee, may keep interest amounts up
				to five hundred dollars per year for administrative expenses.
(3) For each applicable federal program
			 allocation with a total net interest liability in excess of five hundred
			 dollars for each FFY, the CSEA shall report the net interest liability as a
			 reduction to expenditures in the subsequent quarterly expenditure
			 report.
The "net interest liability" is
			 defined as a positive number calculated in the quarterly reconciliation.
(4) For each applicable federal program
			 allocation with a negative total net offsetting interest liability (a negative
			 number calculated in the quarterly reconciliation), no adjustment to program
			 income will be necessary. ODJFS shall not be liable to the CSEA for any
			 interest liability based upon the CSEA using local funds for program
			 purposes.
(5) The CSEA shall maintain quarterly
			 interest reconciliation documentation in accordance with the records retention
			 requirements in rule 5101:9-9-21 of the Administrative Code. This documentation
			 may be subject to inspection, monitoring, and audit by ODJFS and the Ohio
			 auditor of state.