Finding Text
Finding #2024-004 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Education, Passed through Texas Education Agency, Twenty-First Century Community Learning Centers, Assistance Listing #: 84.287, Contract Numbers: 246950307110006, 256950307110006, and 246950367110005, Contract Years: 08/01/23 – 07/31/24, 08/01/24 – 07/31/25, and 04/15/24 – 07/31/25. Criteria: Under the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.305, if advances are provided, management is required to establish policies to minimize the lapse of time between the receipt and the expenditure of funds. Condition and context: In a sample of 30 vendor payments, we found one instance of reimbursement by the grantor approximately five months before payment was made to the vendor. Cause: An invoice from a national affiliate was received in January, billed for grant reimbursement in March and paid in August. Effect: Failure to comply with cash management provisions resulted in federal funds being held for approximately five months. Recommendation: Strengthen controls to ensure that invoices are paid in a timely manner to ensure federal reimbursements are not being held for an excess period of time. Views of Responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.