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D.AdvancePayments TheCityofSanMarcosdoesnotanticipaterequestingadvancedfundingfrom <br />HUD.Alldrawdownrequestswillbeonareimbursementbasisonly.IntheeventtheCityor <br />subrecipientsobtainadvancefundingtheCitywilldeveloppoliciesandprocedurestocomplywiththe <br />requirementsof2CFR§200.305(b)(1)regardingadvancepayments. <br />§200.305Payment <br />(b)FornonFederalentitiesotherthanstates,paymentsmethodsmustminimizethetimeelapsing <br />betweenthetransferoffundsfromtheUnitedStatesTreasuryorthepassthroughentityandthe <br />disbursementbythenonFederalentitywhetherthepaymentismadebyelectronicfundstransfer, <br />orissuanceorredemptionofchecks,warrants,orpaymentbyothermeans.(Seealso§200.302 <br />FinancialManagementparagraph(b)(6) <br /> requiring written procedures to implement the requirements <br />§200.305Payment). <br />of <br />Exceptasnotedelsewhereinthispart,FederalagenciesmustrequirerecipientstouseonlyOMB <br />approvedstandardgovernmentwideinformationcollectionrequeststorequestpayment. <br />(1)ThenonFederalentitymustbepaidinadvance,provideditmaintainsordemonstratesthe <br />willingnesstomaintainbothwrittenproceduresthatminimizethetimeelapsingbetweenthe <br />transferoffundsanddisbursementbythenonFederalentity,andfinancialmanagementsystems <br />thatmeetthestandardsforfundcontrolandaccountabilityasestablishedinthispart.Advance <br />paymentstoanonFederalentitymustbelimitedtotheminimumamountsneededandbetimed <br />tobeinaccordancewiththeactual,immediatecashrequirementsofthenonFederalentityin <br />carryingoutthepurposeoftheapprovedprogramorproject.Thetimingandamountofadvance <br />paymentsmustbeascloseasisadministrativelyfeasibletotheactualdisbursementsbythenon <br />Federalentityfordirectprogramorprojectcostsandtheproportionateshareofanyallowable <br />indirectcosts.ThenonFederalentitymustmaketimelypaymenttocontractorsinaccordancewith <br />thecontractprovisions. <br />TheCitywillstrivetoensurethetimingandamountofanyadvancepaymentswillbeascloseasfeasible <br />totheactualdisbursementsbytheCityoritssubrecipientsforprogramorprojectcostsandanyallowable <br />indirectcosts.TheCitywillattempttominimizetheholdingperiodforcashadvancesbyrequiringrequire <br />writtenjustification,foranycashadvancesheldinexcessofthreebusinessdaysafterreceipt.The/źƷǤ͸ƭ <br />HousingandCommunityDevelopmentManager,overseeingProjectManagersandsubrecipients,willbe <br />responsibleforensuringthetimelyexpenditureofanycashadvancesreceived. <br />Inaccordancewith§200.305(b)(9),interestearnedamountsupto$500peryearmayberetainedbythe <br />Cityoritssubrecipientsforadministrativeexpenses.AnyadditionalinterestearnedonFederaladvance <br />paymentsdepositedininterestbearingaccountswillberemittedannuallytotheDepartmentofHealth <br />andHumanServicesPaymentManagementSystem(PMS)throughanelectronicmediumusingeither <br />AutomatedClearingHouse(ACH)networkoraFedwireFundsServicepayment.Instructionsforremittance <br />areprovidedinthissectionoftheUniformGuidance. <br />SECTION4:PROGRAMINCOME <br />PerFederalRegisterNoticeFR5938N01,ProgramIncomeisdefinedasgrossincomegeneratedfrom <br />theuseof/5.DΑ5wfunds,exceptasprovidedinsubparagraphDofthisparagraph,andreceivedbya <br />State,UGLG,tribeorasubrecipientofaState,UGLG,ortribe.Whenincomeisgeneratedbyanactivity <br />thatisonlypartiallyassistedwith/5.DΑ5wfunds,theincomeshallbeproratedtoreflectthepercentage <br />of/5.DΑ5wfundsused(e.g.,asingleloansupportedby/5.DΑ5wfundsandotherfunds;asingleparcel <br />oflandpurchasedwithCDBGfundsandotherfunds). <br />CITYOFSANMARCOSCDBGDRFINANCIALPOLICIES&PROCEDURESMANAUAL11|P <br />AGE <br /> <br />