[Code of Federal Regulations]
[Title 7, Volume 6]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR634.40]

[Page 452]
 
                          TITLE 7--AGRICULTURE
 
   CHAPTER VI--NATURAL RESOURCES CONSERVATION SERVICE, DEPARTMENT OF 
                               AGRICULTURE
 
PART 634_RURAL CLEAN WATER PROGRAM--Table of Contents
 
                     Subpart D_Financial Management
 
Sec. 634.40  Financial management.


    (a)(1) Finance and accounting will be in conformance with Office of 
Management & Budget Circular A-102, (Rev.); U.S. Department of Health, 
Education & Welfare Brochure OASC-10, Federal Management Circular FMC 
74-4, ``Cost Principles Applicable to Grants and Contracts with State 
and Local Government''; Department of the Treasury, Department Circular 
No. 1075 (4th Rev.), ``Withdrawal of Cash from the Treasury for Advances 
under Federal Grant and other Programs''; Office of Management & Budget 
Circular No. A-34, ``Instruction on Budget Execution''; U.S. Treasury 
Requirements Manual for Guidance of Departments and Agencies; and 
General Accounting Office Policy & Procedures Manual for Guidance of 
Federal Agencies.
    (2) Administering agency RCWP grants will be funded under Letter-of-
Credit serviced by the U.S. Treasury Regional Disbursing Office (RCO), 
subject to the terms and conditions of the grant agreement or by NRCS 
approved advance/reimbursement financing agreements.
    (3) The State of local administering agency shall maintain a 
financial management system which provides accurate and complete 
disclosure of the financial status of the RCWP grant in accordance with 
prescribed reporting requirements.
    (4) The State or local administering agency shall upon request make 
its financial management system records available to NRCS, USDA Office 
of Inspector General, and the General Accounting Office.
    (5) Participation in comprehensive USDA/EPA joint water quality 
monitoring, evaluating, and analysis will be funded according to the 
plan approved in Sec. 634.50(a)(3).
    (b)(1) The carrying out of RCWP will require both financial and 
performance reporting to the Natural Resources Conservation Service by 
participating USDA and State or local agencies.
    (2) USDA participating agencies shall furnish NRCS with reports 
prescribed by the U.S. Treasury Department; Office of Management and 
Budget; Administrative Regulations of the U.S. Department of 
Agriculture; and other reports required by law, regulation, or 
agreement.
    (3) State or local administering agencies shall furnish financial 
status reports to NRCS on a quarterly basis as required by the grant 
agreement. The administering agency is also to provide an audit report 
upon request. The audit report is to be prepared in sufficient detail to 
allow NRCS to determine that funds have been used in compliance with 
applicable laws, regulations, and the grant agreement.