Finding Text
Low-Income Home Energy Assistance, LI-007-23; ALN 93.568; Grant period October 1, 2022 to December 31, 2023. Condition: As of the date of this audit report, the Agency was holding $256,808 of excess cash on hand for Low-Income Home Energy Assistance Program (LIHEAP). Criteria: Uniform Guidance 200.305(b)(1) states “Advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project.” Further, Uniform Guidance 200.305(b)(5) states "To the extent available, the non-Federal entity must disburse funds available from program income (including repayments to a revolving fund), rebates, refunds, contract settlements, audit recoveries, and interest earned on such funds before requesting additional cash payments." Cause: Changes in county or grant allocation amounts were not properly entered into the grant data management system causing errors in grant expenditure reporting and, therefore, grant funding requests resulting in excess cash on hand. Effect: The Agency is not in compliance with Uniform Guidance regulations on cash management. Recommendation: We recommend the Agency implement systems, procedures and training to ensure grant expenditures reported in the data management system are reconciled timely and accurately with the actual expenditures reported in the accounting system. The reconciliations should be prepared by the Agency accounting staff and reviewed by the CFO. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed and begun implementation of a corrective action plan.