Short Paper

3201 Words13 Pages
FINANCIAL MANAGEMENT GUIDE FOR NON-PROFIT ORGANIZATIONS
NATIONAL ENDOWMENT FOR THE ARTS OFFICE OF INSPECTOR GENERAL SEPTEMBER 2008

Questions about this guide may be directed to the National Endowment for the Arts, Office of Inspector General, Room 601, 1100 Pennsylvania Avenue, NW, Washington, DC 20506, Telephone (202) 682-5402. Questions about the terms and conditions of grants and cooperative agreements may be directed to the Office of Grants and Contracts, Room 618, Telephone (202) 6825403.

Table of Contents

Page Use of the Guide .................................................................................................................................... 1 Accountability Requirements
…show more content…
Acceptance of a grant from the NEA creates a legal obligation on the part of the grantee to use the funds in accordance with the terms of the grant and to comply with the grant's provisions and conditions. The grantee thus assumes full responsibility for the conduct of project activities and becomes accountable for meeting Federal standards in the areas of financial management, internal control, audit and reporting to the NEA.

Financial Management Standards
Many alternative methods exist for implementing financial management systems, and the organization should choose methods appropriate for its particular scale of operations. If the grantee organization is unable to meet the standards that are covered here, NEA funding may be terminated and the organization may be deemed ineligible to receive subsequent financial assistance or may be placed on an alternative method of funding.  Recipients must have accounting structures that provide accurate and complete information about all financial transactions related to each Federally-supported project.  Grant expenditure records must be at least as detailed as the cost categories indicated in the approved budget (including indirect costs that are charged to the project). Actual expenditures are to be compared with budgeted amounts.  Accounting records are to be maintained on a current basis and balanced monthly.  Costs may be incurred only during the grant
Get Access