Finding 1055140 (2022-002)

Condition: The grant is a reimbursement type grant, as the grant agreement does not specifically indicate that it is an advance type grant. As such, all expenses should be recognized before applying for funding, or expended within a “reasonable” period subsequent to receipt of funds. Context: The Organization applied for grant drawdowns based on projections and expended funds greater than 30 days beyond receipt, resulting in the expenditure occurring in a different fiscal year than when the funds were received. Effect: The receipt of funds before expenditure was $708,288. Recommendation: The Organization should review internal policies related to drawdowns to ensure that drawdowns occur in compliance with Uniform Guidance. Managements Response: We agree with finding, and will follow prescribed recommendation.