Cash Management Federal Agencies: United States Department of Agriculture - National Institute of Food and Agriculture Federal Program Title: R&D Cluster Federal Assistance Listing Number: 10.205 Award Period: 7/1/2024-6/30/2025 Type of Finding: Significant Deficiency in Internal Controls Over Compliance and Other Matter Criteria or Specific Requirement: The Research and Development cluster requires that advance payments to a recipient or subrecipient must be limited to the minimum amounts needed and be timed with actual, immediate cash requirements of the recipient or subrecipient in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the recipient or subrecipient for direct program or project costs and the proportionate share of any allowable indirect costs. The recipient or subrecipient must make timely payments to contractors in accordance with the contract provisions. Condition: The Corporation elected to draw projected expenditures on a grant beyond what was an immediate and actual cash need. Questioned Costs: N/A Cause: The Corporation overrode their typical internal control processes for this drawdown due to concern over a government shutdown and availability of future funding. Effects: Funds were drawn down before there was an immediate and actual cash need. Repeat Finding: Not a repeat finding. Recommendation: Management should review the process and procedures over cash management. Views of Responsible Officials: Management agrees and has a plan to correct the finding.