Title 35
Public Finance

Chapter 1.1
Office of Management and Budget

§ 35-1.1-5. Federal grants management.

(a) The controller shall be responsible for managing federal grant applications; providing administrative assistance to agencies regarding reporting requirements; providing technical assistance; and approving agreements with federal agencies pursuant to § 35-1-1. The controller shall:

(1) Establish state goals and objectives for maximizing the utilization of federal aid programs;

(2) Ensure that the state establishes and maintains statewide federally mandated grants management processes and procedures as mandated by the federal Office of Management and Budget;

(3) Promulgate procedures and guidelines for all state departments, agencies, advisory councils, instrumentalities of the state, and public higher education institutions covering applications for federal grants;

(4) Require, upon request, any state department, agency, advisory council, instrumentality of the state, or public higher education institution receiving a grant of money from the federal government to submit a report to the controller of expenditures and program measures for the fiscal period in question;

(5) Ensure state departments and agencies adhere to the requirements of § 42-41-5 regarding legislative appropriation authority and delegation thereof;

(6) Manage and oversee the disbursements of federal funds in accordance with § 35-6-42;

(7) Prepare the statewide cost allocation plan and serve as the monitoring agency to ensure that state departments and agencies are working within the guidelines contained in the plan; and

(8) Provide technical assistance to agencies to ensure resolution and closure of all single state audit findings and recommendations made by the auditor general related to federal funding.

(b) The division of accounts and control shall serve as the state clearinghouse for purposes of coordinating federal grants, aid, and assistance applied for and/or received by any state department, agency, advisory council, or instrumentality of the state. Any state department, agency, advisory council, or instrumentality of the state applying for federal funds, aids, loans, or grants shall file a summary notification of the intended application with the controller.

(1) When as a condition to receiving federal funds, the state is required to match the federal funds, a statement shall be filed with the notice of intent or summary of the application stating:

(i) The amount and source of state funds needed for matching purposes;

(ii) The length of time the matching funds shall be required;

(iii) The growth of the program;

(iv) How the program will be evaluated;

(v) What action will be necessary should the federal funds be canceled, curtailed, or restricted; and

(vi) Any other financial and program management data required by the office or by law.

(2) Except as otherwise required, any application submitted by an executive agency for federal funds, aids, loans, or grants which will require state matching or replacement funds at the time of application or at any time in the future, must be approved by the director of the office of management and budget, or his or her designated agents, prior to its filing with the appropriate federal agency. Any application submitted by an executive agency for federal funds, aids, loans, or grants which will require state matching or replacement funds at the time of application or at any time in the future, when funds have not been appropriated for that express purpose, must be approved by the general assembly in accordance with § 42-41-5. When the general assembly is not in session, the application shall be reported to and reviewed by the director pursuant to rules and regulations promulgated by the director.

(3) When any federal funds, aids, loans, or grants are received by any state department, agency, advisory council, or instrumentality of the state, a report of the amount of funds received shall be filed with the office; and this report shall specify the amount of funds that would reimburse an agency for indirect costs, as provided for under federal requirements.

(4) The controller may refuse to issue approval for the disbursement of any state or federal funds from the state treasury as the result of any application that is not approved as provided by this section, or in regard to which the statement or reports required by this section were not filed.

(5) The controller shall be responsible for the orderly administration of this section and for issuing the appropriate guidelines and regulations from each source of funds used.

(c) There is hereby created in the general fund and housed within the budget of the department of administration a restricted receipt account entitled “Grants Management Administration.” This account shall be used to fund centralized services relating to managing federal grant applications; providing administrative assistance to agencies regarding reporting requirements; providing technical assistance; approving agreements with federal agencies pursuant to § 35-1-1; and, may include costs associated with the development, implementation, and ongoing operation of a grants management information technology system. Every state department and agency, as defined in § 35-1-4, that receives federal assistance funds, excluding awards made directly to Rhode Island College, the Community College of Rhode Island, and the University of Rhode Island, shall set aside an amount of the funds received equal to a percentage as determined annually by the state controller multiplied by federal funds received. The state controller shall determine this rate annually in proportion with budgeted expenditures for uses consistent with the purpose of this subsection within the department of administration.

For federal awards in response to the COVID-19 pandemic and subsequent stimulus awards, there is hereby authorized an additional assessment that shall be deposited into the restricted receipt account established by this subsection and shall be equal to a uniform percentage of the amount of stimulus and other awards received, excluding Medicaid and all awards made directly to Rhode Island College, the Community College of Rhode Island, and the University of Rhode Island, associated with the COVID-19 pandemic and subsequent stimulus acts. The state controller shall calculate the rate of this additional assessment, not to exceed one percent (1%) of the total awards received during a fiscal year, in proportion with budgeted expenditures necessary to finance the planning, oversight, compliance, and reporting functions within the department of administration related to federal awards issued in response to the pandemic and subsequent stimulus awards in addition to the costs of planning, development, and implementation of a grants management information technology system. The Grants Management Administration account shall not include an allocation of the State Fiscal Recovery Fund or the Coronavirus Capital Projects Fund. For the additional assessment related to federal awards issued in response to the pandemic and subsequent stimulus awards no funds shall be deposited into the restricted receipt account after December 31, 2026, the federally determined end of performance period. All funds set aside and designated to be used for grants management shall be deposited into the restricted receipt account established in this subsection.

Prior to any deposits being made into the restricted receipt account established by this subsection and thereafter prior to the commencement of each fiscal year, the state controller shall provide a report to the director of administration and the chairpersons of the house and senate finance committees that includes the rate and calculation thereof for the following fiscal year.