C. Cash Management Addressed in the NC Department of Public Instruction Cross-Cutting Requirements. E. Eligibility Eligibility for Subrecipients No testing is required. The Department of Public Instruction – program consultant determines if the eligibility requirements are met when the project is approved. Eligibility for Individuals This compliance requirement does not apply at the local level. No – testing is required. F. Equipment and Real Property Management Addressed in the NC Department of Public Instruction Cross-Cutting Requirements G. Matching, Level of Effort, Earmarking 1. Matching This compliance requirement does not apply at the local level. No testing is required. 2. Level of Effort This compliance requirement does not apply at the local level. No testing is required. 3. Earmarking Compliance Requirement - Federal legislation limits PRC 104 Language Acquisition expenditure for Administration to 2% of total funds. Audit Objective To determine that the sub recipient did not spend more than 2% of its funds for – administration. Suggested Audit Procedures - Ascertain the amount of PRC 104 expenditures. Review expenditure records and supporting documentation for administrative costs. Ascertain that the administrative cost is within the 2% requirement following the outlined formula: Include any account with the following Purpose. Purpose Codes Object Codes 6200 General Administration Any object associated with this purpose 8100 Indirect Cost 392 The 6200 benefit codes associated with the salary codes will be included in the Administrative Cost. To Calculate: Determine the Allotment amount for the current fiscal year. (Do not include carryover) Example: FY 2010-11 Allotment $150,000.00
C. Cash Management Addressed in the NC Department of Public Instruction Cross-Cutting Requirements. E. Eligibility Eligibility for Subrecipients – No testing is required. The Department of Public Instruction program consultant determines if the eligibility requirements are met when the project is approved. Eligibility for Individuals – This compliance requirement does not apply at the local level. No testing is required. F. Equipment and Real Property Management Addressed in the NC Department of Public Instruction Cross-Cutting Requirements G. Matching, Level of Effort, Earmarking 1. Matching This compliance requirement does not apply at the local level. No testing is required. 2. Level of Effort This compliance requirement does not apply at the local level. No testing is required. 3. Earmarking Compliance Requirement - Federal legislation limits PRC 104 Language Acquisition expenditure for Administration to 2% of total funds. Audit Objective – To determine that the sub recipient did not spend more than 2% of its funds for administration. Suggested Audit Procedures - Ascertain the amount of PRC 104 expenditures. Review expenditure records and supporting documentation for administrative costs. Ascertain that the administrative cost is within the 2% requirement following the outlined formula: Include any account with the following Purpose. Purpose Codes Object Codes 6200 General Administration Any object associated with this purpose 8100 Indirect Cost 392 The 6200 benefit codes associated with the salary codes will be included in the Administrative Cost. To Calculate: Determine the Allotment amount for the current fiscal year. (Do not include carryover) Example: FY 2010-11 Allotment $150,000.00
84.365-2016.docx