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Federal/State Grant Compliance Requirements

Federal/State Grant Compliance Requirements

Determining when to apply Federal/state grant compliance requirements can sometimes be tricky.  A common misunderstanding of the cash management compliance requirement is that it only applies when grant funds are advanced prior to incurring the costs. However, Federal/state grant recipients with cost reimbursement grant contracts must also comply with this requirement.

This compliance requirement states that the costs for which reimbursement is being requested must be paid prior to the date of the reimbursement request. All too often organizations request reimbursement prior to paying their vendors…or worse, use these funds to pay obligations unrelated to the Federal/state contract.

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