Finding Text
Condition and Criteria: Federal funds deposits were not immediately (within three days of the request) disbursed. Federal funds deposits must be disbursed for immediate obligations of the Federal programs within three days of requesting the Federal funds. Cause: Oversight by the Organization. Effect: Failure to disburse Federal funds promptly could result the Company having excess Federal funds on hand and being required to remit excess interest. Auditor’s Recommendation: The Company should develop and implement policies and procedures to verify that the Federal funds drawn down are only for immediate Federal program cash needs. Views of Responsible Officials and Planned Corrective Action: Quincy Asian Resources, Inc. agrees with the finding and will implement policies and procedures to draw down Federal funds only for its immediate Federal program cash needs.