Finding 1143291 (2024-001)

Finding 2024-001 Significant deficiency in internal controls over compliance and instances of noncompliance with cash management for subrecipients. Federal Agency: National Science Foundation Assistance Listing Number: 47.050 Assistance Listing Name: Geosciences Award Number: 2208081 Award Year: October 1, 2023 through September 30, 2024 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards section 200.305(b)(3) requires that when the reimbursement method is used, the pass-through entity must make payment within 30-calendar days after receipt of the payment request unless the pass-through entity reasonably believes the request to be improper. Condition/Context for Evaluation During our testing, we noted that the Institute paid three subrecipient invoices beyond the 30-calendar day standard. The sample size was six selections. These subrecipients were under the reimbursement method for payment. Cause The Institute does not have an adequate system of internal control to ensure payments to subrecipients are disbursed within 30-calendar days after receiving the subrecipient’s request for reimbursement. Effect or Potential Effect The Institute is not in compliance with the requirements of 2 CFR section 200.305(b)(3). Payments to subrecipients were not made timely and exceed the 30-calendar day standard. Questioned Costs Not applicable. Repeat Finding This is not a repeat finding. Recommendation We recommend management update its system of internal controls to add processes in place that ensure payments to subrecipients are paid within 30 days after receipt of reimbursement request from the subrecipient. Views of Responsible Officials and Correct Action Management concurs with the finding and has provided the accompanying corrective action plan.