Audit 400376

Criteria The grant agreement specifies that requests for payment shall be submitted monthly on Standard Form SF-270, Request for Advance or Reimbursement. In no case, shall the recipient submit an invoice more than monthly or less than annually when work was performed within that fiscal year. Payment requests must comply or otherwise by consistent with OMB, USDA, and FAS regulations and Federal Awards terms and conditions. Context The Organization did not remit monthly requests for reimbursement as required by the grant agreement during the year ended December 31, 2025. Further, the Organization had not submitted a reimbursement request for any grant expenditures incurred during 2025 by its fiscal year end of December 31, 2025. Reimbursement for all 2025 grant expenditures was submitted in February 2026. Cause Lack of understanding and oversight over the cash management grant agreement requirements. Effect Non-compliance with reimbursement requirements can result in the federal awarding agency questioning costs, delaying reimbursements, and potentially imposing penalties or other administrative actions. It can also strain the Organization’s cash flow and financial management processes. Questioned Cost None. Recommendation We recommend that management develop processes and procedures, including implementing internal controls as needed, surrounding timely cash management reimbursement requests to ensure reimbursement requests are in accordance with the grant agreement. Views of Responsible Officials and Planned Corrective Actions See Corrective Action Plan.