Finding Text
Hazard Mitigation Grant Program (HMGP) – Assistance Listing No. 97.039; Grant No. 2057-4506-HMGP; Grant Period Year Ended December 31, 2023 – Cash Management
Condition: Perkiomen Township has no written policy regarding cash management of funds received under Federal grants that are subject to the Cash Management compliance requirement.
Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)).
Cause: Management was not aware of specific compliance requirements to minimize the time elapsing between the transfer of funds from Pennsylvania Emergency Management Agency (PEMA) and the disbursement by the Township for project costs.
Effect: Although Perkiomen Township has no written policy regarding cash management of funds received under Federal grants that are subject to the Cash Management compliance requirement, of the funds received on November 13, 2023, totaling $1,154,359.30, the Township had disbursed most of these funds, totaling $1,118,102.77, by December 31, 2023.
Context: The results of audit procedures revealed that funds totaling $1,154,359.30 were received on November 13, 2023, and that the Township had disbursed most of these funds, totaling $1,118,102.77, by December 31, 2023.
Recommendation: Perkiomen Township should adopt a written policy regarding cash management of funds received under Federal grants that is designed to minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the Township.