Grant with Accrual and Offset

080.FFM.L2.01 Grant with Accrual and Offset
End-to-End Business Process: 080 Apply-to-Perform
Business Scenario(s) Covered
  • Accruals for Grants
  • Grant Disbursement Offsets
Business Actor(s)
Program Office; Finance Office; Award Recipient
Synopsis
A discretionary award (i.e., grant) is issued by a federal agency to the Award Recipient. The Award Recipient was overpaid for a previous award from the same grant program. The award is a significant percentage of the program budget. The Award Recipient's progress is monitored and financial and performance reports are received. The Award Recipient submits an invoice to request payment. Disbursement is made with a partial offset to recover the previous overpayment.
Assumptions and Dependencies
  1. There may or may not be automated (near/real-time or batch) interfaces between service areas/functions/activities or between provider solutions/systems.
  2. There is no presumption as to which activities are executed by which actor, or which activities are automated, semi-automated, or manual.
  3. Supporting information for general ledger transactions includes sub-ledger entries when sub-ledgers are used.
  4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string.
  5. Relationships between use cases are described in the Framework for Federal Financial Management Use Cases found in the related overview document.
  6. All predecessor activities required to trigger the Initiating Event have been completed.
  7. Funds availability checks are performed against appropriations/fund accounts for obligating funds, and against obligations for disbursing funds in accordance with OMB A-11, Section 150.2.
  8. Funds have been committed for the grants program.
  9. The agency has and uses a process for estimating accrual liability amounts.
  10. The Award Recipient has had awards with the federal agency and is set up in the FM system.
  11. Grant award transactions are provided to the FM system on a per award basis (i.e., not aggregated across awards).
  12. The Award Recipient sends invoices to the program office and does not receive any payments in advance.
  13. The overpayment from a previous grant was drawn from the same fund as the newly awarded grant and an associated receivable has been established.
FFMSR ID Reference(s) 1.1.2; 1.1.4; 2.1.2; 2.2.1; 2.2.2
Initiating Event

A federal agency selects an Award Recipient for a discretionary grant.


USE CASE 080.FFM.L2.01 GRANT WITH ACCRUAL AND OFFSET
Typical Flow of Events
FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)
1
  1. Prepare grant award documentation
  2. Request funds availability check (GRM.030.010 Grant Award Issuance)
  • Grantee information
  • Grant award decision information
  • Agency historical data and informed opinion
  • Award information
  • Award budget
  • Request for funds availability check
2

Receive and process request for funds availability check (FFM.010.020 Fund Allocation and Control)

  • Request for funds availability check
  • Funds availability response
3

Approve and issue grant award (GRM.030.010 Grant Award Issuance)

  • Funds availability response
  • Award information
  • Approved award information
4
  1. Receive approved award information, liquidate grant program commitment, and obligate funds for grant award (FFM.030.020 Obligation Management)
  2. Process estimated grant accrual liability using approved award information (FFM.090.030 Accrual and Liability Processing)
  • Approved award information
  • Estimated grant accrual liability information
  • Appropriate commitment liquidation entry created with reference to source information
  • Appropriate obligation entry created with reference to source information
  • Appropriate accrual liability entry created with reference to source information
5

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)

  • GL entries
  • Appropriate GL accounts updated
6

Receive grant performance and financial reports and determine grant accrual liability adjustment (GRM.040.020 Grant Performance Review)

  • Grant performance and financial reports
  • Estimate of Award Recipient expenses incurred but not yet invoiced
  • Grant accrual liability adjustment information
7

Receive and process grant accrual liability adjustment information (FFM.090.030 Accrual and Liability Processing)

  • Grant accrual liability adjustment information
  • Appropriate accrual liability adjustment entry made with reference to supporting information
8

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)

  • GL entries
  • Appropriate GL accounts updated
9
  1. Receive and review Award Recipient invoice (payment request)
  2. Determine adjusted disbursement amount due to previous overpayment (payable offset)
  3. Request funds availability check (GRM.030.020 Grant Award Payment Processing)
  • Award Recipient invoice
  • Award Recipient award history information
  • Grant payable offset information
  • Request for funds availability check
10

Receive and process request for funds availability check (FFM.010.020 Fund Allocation and Control)

  • Request for funds availability check
  • Funds availability response
11

Approve Award Recipient invoice (GRM.030.020 Grant Award Payment Processing)

  • Funds availability response
  • Award Recipient invoice
  • Approved Award Recipient invoice
  • Request for processing of approved Award Recipient invoice
12
  1. Receive and process approved Award Recipient invoice
  2. Liquidate obligation (FFM.030.020 Obligation Management)
  3. Receive grant payable offset information and process receivable adjustment (FFM.060.030 Public Receivable Credit Memo and Adjustment Processing)
  • Approved Award Recipient Invoice
  • Request for processing of approved Award Recipient invoice
  • Appropriate payable entry created with reference to source information
  • Appropriate obligation liquidation entry created with reference to source information
  • Appropriate accrual reversal entry created with reference to source information
  • Appropriate receivable liquidation entry created with reference to source information
13

Request disbursement (GRM.030.020 Grant Award Payment Processing)

  • Approved Award Recipient invoice
  • Request for disbursement
14
  1. Receive and process disbursement request (FFM.030.080 Payment Processing - Grant Payments)
  2. Generate disbursement schedule (FFM.030.110 Payment Disbursement)
  3. Certify payment of disbursement schedule (FFM.030.110 Payment Disbursement)
  4. Receive confirmation of disbursement (FFM.030.120 Payment Confirmation)
  • Request for disbursement
  • Certified disbursement schedule
  • Appropriate disbursement-in-transit entry created with reference to source information
  • Disbursement confirmation information
  • Appropriate disbursement-in-transit liquidation entry created with reference to source information
  • Appropriate disbursement entry created with reference to source information
  • Award Recipient receives payment
15

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)

  • GL entries
  • Appropriate GL accounts updated

This page was last updated on September 01, 2021.