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Article: New rules ease states' cash-flow burden, though wrinkles remain. (John McGuire of the Financial Management Service, U.S. Treasury) (Interview)
- Article from:
- The Bond Buyer
- Article date:
- December 24, 1992
CopyrightCOPYRIGHT 1992 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Q: What must states do to comply with the Treasury's new regulations on cash flow?
A: States comply with the regulations primarily by signing a Treasury-state agreement. The agreement stipulates how a state receives federal funds and how it tracks and reports interest liability for those funds to the financial management service of the Treasury. The agreement also specifies which federal programs will be included and their funding technique.
States have some latitude to include programs other than the major federal assistance programs that must be covered by the agreement. They can lower the dollar threshold for determining what is a major program for ...