Finding Text
Finding #2025-003; Distance Learning and Telemedicine – ALN No. 10.855; Year Ended June 30, 2025 CONDITION: Grant funds advanced to the District were not disbursed by the District in a timely manner. CRITERIA: In accordance with the Uniform Guidance Compliance Supplement, Part III, Section C “Cash Management”, non-federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and disbursement for direct program or project costs. CAUSE: The District delayed payment of invoices due to receipt of faulty and incorrect products in order to ensure correction by the company. EFFECT: The retention of grant funds led to interest earned on federal funds in excess of $500. QUESTIONED COSTS: None PROPER PERSPECTIVE (SAMPLING): The District received funds in advance of payment of invoices twice during fiscal year 2024-25. 100% of the receipts were tested for compliance. The audit sample was statistically valid. REPEAT FINDING: No RECOMMENDATION: We recommend management contact the Grantor to determine necessary actions in response to the excess interest earned on federal funds, including the potential return of earnings to the grant agency. MANAGEMENT RESPONSE: Management agrees with the recommendation and will contact the grant agency to determine required corrective actions, if any.