Finding Text
Finding 2024-005 -Material Weakness: Cash Management
Identification of federal program: Assistance Listing No. 93-493 - Congressional Directives
Criteria or specific requirement: Per the OMB Compliance Supplement, "For grants and cooperative agreements to non-federal entities that are funded on a reimbursement basis, determine that expenditures, as defined by 2 CFR 200.1, were incurred prior to date of the reimbursement request."
Condition: We noted two instances of request for reimbursement prior to the expenditures being incurred.
Cause: Drawdown on reimbursement requests were submitted to the grantor prior to the System incurring qualifyig expenditures.
Effect or potential effect: This resulted in material non-compliance with the cash management requirement for the grant program.
Questioned cost: $92,130 known. The 2024 Schedule of Expenditures of Federal Awards has been corrected for this finding.
Context: The finding is considered systemic in nature.
Recommendation: We recommend that the System personnel administering the grant program comply with the System's established process, whereby qualifying expenditured are incurred prior to requesting reimbursement from the grantor.
Views of responsible officials: The System concur wuth this finding. See page 57 for corrective action plan.