FINANCIAL SERVICES
FREQUENTLY ASKED QUESTIONS
The Frequently Asked Questions section is designed to present the questions that we hear most frequently from the field. It will be updated periodically as new questions arise.
1. How do I get my money?
There are two ways of receiving funds; advance or reimbursement.
In order to obtain an advance, the NHAC Audit Unit needs a Detailed Expenditure Worksheet (DEW) indicating how the funds will be spent. The DEW must indicate the object code and the amount of funds. The NHAC Audit Unit will review your budget and FMS automatically will determine if your budget and appropriate guidelines allow the proposed expenditure. (Red cells may indicate errors and need for reprogramming of funds.)
It is very important to understand that advanced funds must be disbursed within 3 working days of receipt! Agencies are not allowed to keep Federal funds for long period of time.
A reimbursement can be obtained by submitting Expenditures Worksheet, and copies of invoices and payroll registers. These documents must support the reimbursement request. The NHAC Audit Unit will review the documentation. If the documentation is correct and complete having all backup documentation justifying the claim, we will continue processing. If not, we will contact you in an effort to resolve the discrepancy.
Please be aware that all disbursements must be entered in Financial Management Systems (FMS).
2. Where is my money?
There are several stops during the process. After the NHAC Audit Unit receives your batch for reimbursement, it will be reviewed by the designated NHAC Auditor. If everything is OK it will be passed to the NHAC Audit Unit Manager for final audit review and payment approval through PMS (Payment Management System) and FMS.
3. How is money moved between the Federal and the State & Local agencies?
Initially, all funds are place with one of the three levels of government: Federal, State, or Local. During the fiscal year, occasions arise when funds need to be transferred.
In order to move funds from a Federal Agency to a State or Local Agency, the following must occur:
- Your HIDTA director must request the change in FMS system.
- ONDCP will approve it in FMS approval to move the funds from the Federal Agency.
- ONDCP will initiate an Award Letter supplement to increase the award to the State or Local Agency.
In order to move funds from a State or Local Agency to a Federal Agency, the following must occur:
- Your HIDTA director must request the change in FMS system.
- ONDCP will initiate an Award Letter supplement to decrease the funds to the State or Local Agency.
- ONDCP will approve it in FMS to move the funds to the Federal Agency.
4. When is Federal Financial Report (FFR) Quarterly Report due?
The quarterly report is due every quarter in the budget period. The quarter is based upon the budget period for your particular initiative. These quarters can vary from initiative to initiative, so review your Award Letter. It will indicate the budget period.
Also, if your initiative is extended, you must continue to submit quarterly reports until the end of the budget period.
5. How do I extend the budget period of my initiative?
State and Local initiatives can have their budget periods extended. Federal agencies have two years to spend their funds. No extension is allowed to federal agencies.
Extensions are submitted through FMS in increments of 6 months to a year. A description must have a spending plan.
Approval of extension will be done on-line through PMS.
6. What items can my agency purchase?
The HIDTA program utilizes Program Policy and Budget Guidance and Code of Federal Regulations Part 200 (Cost Principles) as the guide for allowable costs. In addition, we have a Chart of Accounts, which indicates the types of expenditures and where to place them in the accounting scheme.
7. What is FMS?
The Financial Management System (FMS) is a collection of programs and tools used specifically by HIDTA participants to manage program documents and grant data. NHAC provides consistant trainings for FMS. Please contact our Training Unit for FMS training schedule.
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