What accounting issues should a grantee take into consideration?
Financial transactions associated with these grant funds should be easily identifiable in a school districts accounting system. Specify a code in the accounting system to show the receipt an expenditure of the grant funds. Traditionally, schools have used numbers in the 4320 series to track funds from this type of program. We prefer to disperse grant funds on a reimbursement basis. For example, the school district would pay for the items or services and then request reimbursement for those expenditures when all project transactions are complete. If it isnt possible to do that, school districts can request cash advances using the form numbered NDE 28-003. Expenditure payments should occur in such a way so as to use available grant funds in a 30 to 60 day period. Cash management directives from the United States Department of Education restrict the amount of money school districts can keep on hand.
