Fiscal & Administrative Review Assistance for IDHS Providers: Accounting Policies

Grantees of the State of Illinois should have accounting policies and procedures that are documented, accurate, detailed and are regularly reviewed by the organization's board of directors. This is critical to the successful implementation of a grant program.

The following policies should be developed, along with other fiscal policies necessary for efficient operation and internal controls, and be available for IDHS review:

  • Maintenance of Accounting Records, Software Backup and Off-Site Storage Policy
  • Property Control Policy
  • Procurement Policy
  • Capitalization/Depreciation Policy
  • Record Retention Policy
  • Cash Management (Disbursement) Policy
  • Cash Receipts Policy
  • Petty Cash Policy
  • Credit Card Use Policy
  • Disposition of Grant Funded Assets Policy
  • Travel Policy
  • Purchase Policy
  • Interest on Grant Funds Policy
  • Cost Principles Policy
  • Payroll/Payroll Tax Policy
  • Personal Services Compensation Policy
  • Fringe Benefit Policy

Note - these may be stand-alone or bundled, but easily accessible to personnel.

Why does my organization need accounting policies and procedures?

  1. Increased visibility into grant operations with the ability to accurately track, segregate, and document grant funds.
  2. Strengthened internal controls to safeguards against fraud, waste, and abuse of grant funds.
  3. Maintain accountability and consistency in grant transaction reporting.
  4. Clear policies that are documented and available to your organization's team members create a roadmap for the effective use of grant funds.

Grantee reminders

  1. Policies should be easily accessible to organization personnel such as in an employee manual, grants manual, or other guiding documents.
  2. Personnel should be trained on accounting policies during onboarding and receive an annual refresher training, with documentation on file of participation.

Information:2 CFR 200.400