Section

Advance grants should be handled as follows:

1. Where funds are “advanced” directly by the federal government for a specific purpose prior to making any disbursements, the money should be placed in a separate project fund and disbursements subsequently made from that fund. No appropriation of the federal funds is required.

2. Where federal funds are “advanced” through a state agency or department with no state funds added thereto prior to making any distributions, the money should be placed in a separate project fund and subsequent disbursements made from that fund. No appropriation of the federal funds is required.

3. Where federal funds are “advanced” by a state agency or department and state funds are included along with the federal funds in one check or voucher and the funds are for a specific purpose, the money should be placed in a separate project fund and disbursements made from that fund. Appropriation(s) must be obtained for the combined total (i.e., federal and state) prior to any disbursement being made from that project fund.