Finding Text
Finding 2023-010—Cash Management Material Weakness / Material Noncompliance Federal Program: All federal awards. Criteria: Under 2 CFR 200.305, entities must minimize the time between incurring costs and drawing federal funds or receiving reimbursement. Condition: Subgrantee amounts included amounts drawn down but not sent to the subgrantees in a timely manner. Management adjusted the amounts to reduce the subgrantee expenses and related revenue for the amounts that were not sent to subgrantees. Cause: Accounting was recording subgrantee expenses when the funds were drawn down and not when the funds were sent to the subgrantees. Effect: Overstatement of subgrantee expenses and the time between incurring costs and drawing federal funds was not minimized. Questioned costs: None noted. Context: IFDC recorded $1,016,519 in subgrantee expenses and related revenue for amounts that were drawn down but not sent to the subgrantees. Repeat Finding: No Recommendation: IFDC should minimize the time between incurring costs and drawing federal funds. Views of responsible officials and planned corrective actions: Management agrees with the finding. See corrective action plan.