Finding 1206488 (2025-006)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-04-13
Audit: 398537
Organization: Quincy Asian Resources, Inc. (MA)
Auditor: GRAY GRAY & GRAY

AI Summary

  • Issue: Federal funds deposits were not disbursed within the required three-day timeframe.
  • Impacted Requirement: Timely disbursement of Federal funds for immediate program obligations is mandatory.
  • Recommended Follow-up: Create and enforce policies to ensure Federal funds are only drawn for immediate cash needs.

Finding Text

Condition and Criteria: Federal funds deposits were not immediately (within three days of the request) disbursed. Federal funds deposits must be disbursed for immediate obligations of the Federal programs within three days of requesting the Federal funds. Cause: Oversight by the Organization. Effect: Failure to disburse Federal funds promptly could result in the Company having excess Federal funds on hand and being required to remit excess interest. Auditor’s Recommendation: The Company should develop and implement policies and procedures to verify that the Federal funds drawn down are only for immediate Federal program cash needs.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Action: QARI agrees with the finding and will implement policies and procedures to draw down Federal funds only for its immediate Federal program cash needs. The timing of the drawdown in FY2025 reflected a conservative cash management decision made to ensure continuity of program operations and payroll given uncertainty about delays in accessing Federal funds. As a result, Federal funds were not fully disbursed within the required timeframe. This approach was intended to safeguard program delivery and did not result in misuse of funds. QARI has updated its cash management procedures to ensure that future Federal drawdowns are limited to immediate Federal program cash needs and are disbursed within required timelines. Management oversight has been strengthened to monitor drawdown timing and maintain ongoing compliance with Federal cash management requirements.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1206486 2025-004
    Material Weakness Repeat
  • 1206487 2025-005
    Material Weakness Repeat
  • 1206489 2025-007
    Material Weakness Repeat
  • 1206490 2025-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.988 COOPERATIVE AGREEMENTS FOR DIABETES CONTROL PROGRAMS $1.00M
10.225 COMMUNITY FOOD PROJECTS $106,613
97.010 Citizenship Education and Training $80,000