Maine Center for Disease Control and Prevention WIC Nutrition Program Effective: October 1, 2012 Policy No. FM-1 Revised: October 1, 2024

State Agency Financial Management System Authority 7 CFR §246.13 Policy 1. The State Agency in conjunction with DHHS Financial Service Center shall maintain a Financial Management System that provides accurate, current and complete disclosure of the financial status of the Maine CDC WIC Nutrition Program. This shall include the following: 1.1 Records shall be maintained that adequately identify the source and use of funds expended for Program activities. 1.2 It provides the State Agency with a means to track and manage food grant expenditures and administrative costs. 1.3 It allows State Agency staff to record budget information, track administrative and program fund expenditures, monitor actual cash flows, and calculate rebates due from manufacturers on approved products (e.g. infant formula). Procedures 1. The Financial Manager in conjunction with DHHS Financial Service Center shall utilize the State of Maine AMS Advantage ME accounting software, DocuWare, and Excel Cubes based upon SQL Server data to maintain a complete and accurate set of records for each unique grant. 2. The Financial Manager in conjunction with DHHS Financial Service Center shall maintain paper and or electronic records for a minimum of 7 years that adequately identify the source and use of funds expended for program activities. The information in these records includes, but is not limited to:

2.1 Sources of revenue 2.2 Grant expenditures 2.3 Assets and liabilities

3. The State Agency shall ensure prompt and accurate payment of allowable costs by processing invoices within three (3) days of receipt of invoice or receipt of goods.

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4. Expenditures shall be reviewed at least monthly by the Financial Manager in conjunction with DHHS Financial Service Center to ensure that all program expenditures are allowable and properly allocated. 5. The State Agency shall accurately identify obligated Program funds at the time the obligations are made by ensuring that appropriate coding is used for all purchase orders, delivery orders, requisitions, invoices and journal entries. 6. The State Agency’s financial management system shall maintain fiscal-year integrity through the use of unique account codes for each federal fiscal year (Program and Program Period Codes) 7. The State Agency through the use of the financial management evaluation shall ensure that:

7.1 Local agency records indicate appropriate financial management practices 7.2 Expenditures are reasonable and necessary to run an effective WIC program 7.3 Processes are in place to ensure fiscal program integrity 7.4 There is an effective property management system

Financial Management (FM) FM-1 State Agency Financial Management System 2