Finding Text
Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Cash Management). Program. U.S. Department of Education; Education Innovation and Research, Supporting Preschool and Kindergarten Students; ALN 84.411C; Award Number U411C160089. Criteria. Grantees are required to minimize the time elapsing between the transfer of funds from the grantor (U.S. Department of Education) and disbursement by the grantee. Grant expenses are only reimbursed to the extent incurred. Condition. Throughout the period of the grant, the Organization requested drawdowns of federal funds from the grantor in excess of their immediate needs and in excess of grant expenses incurred. Cause. The Organization, in error, throughout the period of the grant, requested federal drawdowns in advance of when funds were needed and for expenses not incurred. In addition, there was no evidence that the drawdown requests were reviewed and approved. Effect. The Organization received federal funds in excess of their immediate needs and in excess of the total amount expended. Upon discovering this error, and after consulting with the U.S. Department of Education, the Organization returned $154,615 to the grantor on November 4, 2022 and $75,167 on March 20, 2023. Questioned Costs. No costs have been questioned as all amounts have been refunded to the U.S. Department of Education. Recommendation. Written policies and related internal controls need to be designed and implemented in order to properly account for federal expenditures and to minimize the time between receipt and disbursement of federal funds. All drawdown requests should have evidence of review and approval. View of Responsible Officials. A policy around federal programs has been created and will be implemented for all future federal grants, which includes cash management to ensure funds drawn down are not in excess of need and amount expended.