Finding Text
2 CFR section 200.208(c) states “Additional Federal award conditions may include items such as the following: (1) Requiring payments as reimbursements rather than advance payments.” During our audit we noted two checks were written and recorded in the accounting software but held until work was complete. These were claimed on expenditure reports as of June 30, 2024, however the checks were still being held on August 5, 2024. This resulted in the District essentially receiving advanced payment on this grant which was not permitted. Based on our testing of the bank reconciliation we are confident there were 2 held checks out of hundreds of checks for the year. In May and June alone there were over 50 checks charged to the grant, so it appears to be an isolated incident related to this project.