Finding 1106592 (2024-001)

2024-001 U.S. Department of the Interior Fish and Wildlife Management Assistance – ALN 15.608 Criteria: Per 2 CFR section 200.305(b), payment methods must minimize the time elapsing between the transfer of funds from the Federal agency or the pass-through entity and the disbursement of funds by the recipient or subrecipient regardless of whether the payment is made by electronic funds transfer or by other means. Condition: For six months during the fiscal year the Town maintained a surplus cash balance of over 50 percent of the amount drawn down and maintained a surplus cash balance of $580,531.07 at year-end. Cause: The Town is utilizing Federal, state and local funds for the same project and did not estimate its cash needs properly. Effect: The Town is not in compliance with Federal cash management requirements. Questioned Costs: None Repeat Finding from Prior Year: No. Recommendation: The Town should implement procedures to more accurately estimate its cash needs in order to minimize the time elapsing between receipt of grants funds and payment of the vendors. Views of Responsible Official: Management agrees with the finding.