Finding Text
Criteria – In accordance with 2 CFR 200.305(b), non-federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and the disbursement of those funds for program costs. Condition and Description – During testing of cash management procedures for the program, we noted a few instances where federal funds received from the pass-through entity were not timely disbursed. Questioned Costs – None identified. Identification of a Repeat Finding – This finding was not reported in the prior year. Cause - The delay resulted primarily from timing differences between receipt of federal reimbursement funds and processing of vendor payments associated with program expenditures. Effect – Holding federal funds for extended periods prior to disbursement may result in noncompliance with federal cash management requirements and increases the risk that federal funds are not utilized in accordance with program guidelines.