A Microsoft Word version of this letter is available for download and PRINTING.

September 27, 2010

To The Administrator Addressed:

Subject: Cash Management Requirements and Interest Earned on Excess Cash on Hand

State educational agencies (SEAs), including the Texas Education Agency (TEA), recently received a memorandum from the Office of the Chief Financial Officer at the U.S. Department of Education (USDE) reminding grant recipients of the existing requirements pertaining to cash management and returning interest earned on excess cash on hand to specified federal agencies. The USDE requested that SEAs remind subgrantees of the requirements and forward a copy of the memorandum to them. A copy of the memorandum is attached.

Also attached is TEA’s guidance related to cash management and interest earned on excess cash on hand (Attachment A). Beginning October 1, 2010, this guidance will be included in each subsequent Request for Application (RFA), Part 1: General and Fiscal Guidelines. It will also be referenced in the applicable Notice of Grant Award (NOGA) transmittal letters for grants that have a begin date on or after October 1, 2010.

The requirements related to cash management and return of interest earned on excess cash are not new. These requirements stem from Title 34 of the Code of Federal Regulations (CFR), Parts 74 and 80. Please refer to Attachment A for more detail on these requirements. Follow the requirements pertaining to your entity type and take immediate action where necessary.

If you have any questions about these requirements, please contact the Division of Formula Funding at 512-463-8525 or the Division of Discretionary Grants at 512-463-9269.

Sincerely,

Earin Martin, Ed.D.
Chief Grants Administrator, TEA

Attachments

Cash Management Requirements and Return of Interest Earned from Excess Cash on Hand

Department of Education Cash Management Policies for Grants and Cooperative Agreements