Finding 1142261 (2024-002)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-06-23
Audit: 359527
Organization: The Nazareth Project, Inc. (PA)

AI Summary

  • Core Issue: The Organization delayed remitting grant funds to the subrecipient, missing the two-day requirement.
  • Impacted Requirements: This delay violates the Cash Management requirements of the Foreign Assistance program.
  • Recommended Follow-Up: The Organization should implement daily monitoring of its bank account after applying for reimbursements to ensure timely fund transfers.

Finding Text

Criteria: Grant funds reimbursed to The Nazareth Project, Inc. (the "Organization") under the Foreign Assistance to American Schools and Hospitals Abroad program are remitted to the Nazareth Hospital (the subrecipient) within two business days. Condition: The Organization received a grant reimbursement on September 15, 2023, but remitted those funds to the subrecipient on September 26, 2023. Cause of Condition: The Organization's Executive Director was not monitoring the bank account where the Organization receives its federal award funds because he expected a longer lag time between application for reimbursement and receipt of the funds. Potential Effect of Condition: Noncompliance with the Cash Management requirements of the program. Recommendation: The Organization should monitor its bank account daily after application for reimbursement under the federal award program until funds are received to ensure timely remittance. Questioned Costs: None

Categories

Subrecipient Monitoring Cash Management

Other Findings in this Audit

  • 565819 2024-002
    Material Weakness
  • 565820 2024-001
    Significant Deficiency
  • 1142262 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
98.006 Foreign Assistance to American Schools and Hospitals Abroad (asha) $953,286