Key Components of Financial Management for CPD Grants

Financial management is the systematic application of procedures, forms, rules of conduct, and standards. As a grantee or subrecipient in receipt of Federal funds, your financial management practices must comply with the cost principles established by the Office of Management and Budget (OMB). This Bulletin is intended to identify components of a sound financial management system and offer guidance on avoiding some of the common challenges grantees face when managing Federal funds. This Bulletin addresses five of the seven key components of financial management: 1. budgeting; 2. accounting and records; 3. cost principles; 4. reporting; and, 5. audits.