Primary Department: Management and Budget
Primary Department Head/Elected Official: Daniel Ramos, Executive Director
Secondary Department: Choose an item.
Secondary Department Head/Elected Official:
Regular or Supplemental RCA: Regular RCA
Type of Request: Discussion Item
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): N/A
MWBE Contracted Goal (if applicable): N/A
MWBE Current Participation (if applicable): N/A
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable): N/A
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
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Request for discussion and possible action to provide a monthly update on the outstanding balance of Accounts Receivable (AR) for federal grants to help ensure compliance with the recommended $100M cap and include any suggested remediation actions for the court’s evaluation for any identified risk.
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Background and Discussion:
Per the Request of Commissioner Court, the Office of Management and Budget is providing a monthly update on its outstanding balance of Accounts Receivable (AR) for federal grants to ensure compliance with the recommended cap of $100M. This is to help ensure grant-funded programs affected by the federal funding freeze don’t have an adverse impact on Harris County’s Financials.
Original Context of the Financial Cap on 3/5/25 court: In FY24, Harris County held $1.2B in grant-funded support (Federal, State, Local, and Other); the majority of that support comes from reimbursement-based grants that require the County to incur the expense and submit for reimbursement. The County bears the burden of that expense until the reimbursement is deposited into County funds, which is a financial risk if the funding is in question.
Related to federal grants, Harris County averages about $70M of receivables on a monthly basis, of which $56M is CDBG funding. The $70M total represents amounts that have been billed to the grantors but not yet received by the County. If this amount rises significantly above the average, it has the potential to create a General Fund cash flow issue.
OMB recommends that no more than $100M in outstanding receivables accrue on a monthly basis, or $30M above the current monthly average. OMB will update Commissioners Court members on a monthly basis regarding the monthly outstanding receivables.
Expected Impact:
Setting and maintaining a limit on the County’s exposure to the loss of federal grant funds will protect the County’s fund balance.
Alternative Options:
County Strategic Plan Goal: N/A
County Strategic Plan Objective: N/A
Justice/Safety Initiative (Goal 1): Choose an item.
Infrastructure Initiative (Goal 2): Choose an item.
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Additional notes related to the Strategic Plan: This action supports the Guiding Principle of Investing Responsibly.
Prior Court Action (if any):
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Date |
Agenda Item # |
Action Taken |
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3/5/25 |
11 |
Commissioner’s court approved a $100M cap on average Accounts Receivables balance. |
Location:
Address (if applicable): N/A
Precinct(s): Countywide
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Anticipated Court Date: 4/10/2025
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.
Emergency/Disaster Recovery Note: Not an emergency, disaster, or COVID-19 related item
Contact(s) name, title, department: Daniel Ramos, Executive Director, Office of Management and Budget; Bhumit Shah, Deputy Director Expenditures, Office of Management and Budget
Attachments (if applicable):