Finding 1161725 (2025-001)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2025-11-03
Audit: 371674
Auditor: WIPFLI LLP

AI Summary

  • Core Issue: The Center did not follow established cash management procedures for drawing down federal funds, leading to a significant deficiency in internal control.
  • Impacted Requirements: This finding relates to compliance with Section 2 CFR 200.305, which mandates minimizing the time between drawing down federal funds and their disbursement.
  • Recommended Follow-Up: Implement cash management procedures to ensure funds are drawn on a reimbursement basis, aligned with actual or imminent expenditures.

Finding Text

Finding Number: 2025-001 Award Identification: Assistance listing program title and number: NSF Technology, Innovation, and Partnerships – 47.084 Federal award identification number: 2303493 Award Date: May 9, 2023 Name of the federal agency: National Science Foundation Repeat Finding: No Questioned Costs: There are no questioned costs related to this finding Type of Finding: Significant Deficiency in Internal Control over Cash Management Criteria: Section 2 CFR 200.305 establishes the requirements over the management of federal payments. Under this regulation, the grantee must minimize the time lapse between the draw down of federal funds and the disbursement of those funds as well as demonstrate written procedures and a system of financial management that meets control and accountability requirements. Condition: While testing of internal controls over cash management it was noted that the Center did not follow the procedures in place for the draw down of federal funds. Cause: The Center was guided by the NSF program manager to draw down the funds as they became available in accordance with the grant agreement as opposed to following procedures in accordance with Section 2 CFR 200.305. Effect: The Center did not incur the costs in-line with the draw down of federal funds. Recommendation: We recommend the Center follow cash management procedures in accordance with Section 2 CFR 200.305. These procedures should ensure that funds are drawn on a reimbursement basis, supported by actual expenditures incurred or very soon to be incurred and paid. View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.

Corrective Action Plan

Condition: While testing of internal controls over cash management it was noted that the Center did not follow procedures in place for the draw down of federal funds. Action Taken: Update grant intake process to identify draw down procedures outlined in grant agreement or agency terms and conditions. Document and follow identified procedures for all grant draw downs.

Categories

Cash Management

Programs in Audit

ALN Program Name Expenditures
47.084 NATIONAL SCIENCE FOUNDATION $728,974
10.730 COMMUNITY PROJECT FUNDS - CONGRESSIONAL DIRECTED SPENDING $568,048
17.280 WORKFORCE INVESTMENT ACT (WIA) DISLOCATED WORKER NATIONAL RESERVE DEMONSTRATION GRANTS $431,516
10.674 WOOD UTILIZATION ASSISTANCE $253,267
10.902 SOIL AND WATER CONSERVATION $179,059
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $174,029
90.601 NORTHERN BORDER REGIONAL DEVELOPMENT $151,960
10.723 COMMUNITY PROJECT FUNDS - CONGRESSIONAL DIRECTED SPENDING $87,599
10.446 RURAL COMMUNITY DEVELOPMENT INITIATIVE $58,477
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $27,927
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $23,120
10.351 RURAL BUSINESS DEVELOPMENT GRANT $16,876