Finding Text
Information on the federal program: Community Development Block Grant, CFDA #14.218, Grant Period 1/1/24 - 12/31/24 Compliance/Internal Control over Compliance: Cash Management Criteria or specific requirement: 2 CFR Part 200 Appendix XI Compliance Supplement, Section 3.2C. Cash management requires that program costs must be paid by the Township before reimbursement is requested from the Federal government. Also, interest earned in excess of $100 on grant advances held in an interestbearing account must be remitted to the U.S. Treasury. Condition: The Township did not initiate drawdowns for some expenses that had been paid. Accurate drawdowns of administrative costs were not maintained. Interest earnings exceeded $100 and were not remitted to the U.S. Treasury as required. Questioned costs: Undetermined Context: During our review of cash management, we noted that there were expenditures made that had yet to be drawn down through IDIS and we were unable to accurately tie out administrative drawdowns to actual expenditures. Effect: The drawdown of administrative expenses could not be verified to actual expenditures; nor were some expenses incurred drawn down. In addition, interest is accumulating on grant advances in excess of $100 and not being remitted to the U.S. Treasury. Cause: Financial drawdown policies and procedures are lacking and/or inadequate. Drawdown procedures are not consistently performed as expenses are incurred. Recommendation: The Township’s drawdown policies and procedures be enhanced; that once expenditures are processed for payment, the drawdown should be initiated through IDIS to ensure all expenses are properly drawn down and proper cash flow is maintained. Interest earned over $100 be remitted to the U.S. Treasury. Management’s response: The Township of Bloomfield should establish financial drawdown policies and provide training to its staff to ensure compliance with the cash management compliance requirements of the Community Development Block Grant Program.