Finding Text
Finding 2023-002 – Noncompliance with Cash Management Requirement – Human Genome Research - Enzyme Synthesis of RNA – 93.172
Criteria: Reimbursement requests and related draws should be made for allocable, allowable and reasonable costs that have already been incurred or paid.
Condition: During the audit, we noted an instance of grant funding being drawn in excess of allocable, allowable expenditures incurred to the date of the draw. Such allocable, allowable costs were incurred and paid over the subsequent three months which was within the grant term and the fiscal year ended December 31, 2023.
Cause: The former grant administrator was anticipating additional allocable, allowable expenditures in the coming month(s).
Effect: Financial statements could be materially incorrect.
Recommendation: The Foundation should ensure that grant funding only be submitted for reimbursement and cash draws once an expenditure has been made, regardless of anticipated expenditures.
Management’s Response: We agree with the finding and will implement procedures to ensure grant funding is drawn based on allocable, allowable expenditures incurred to date.