Finding Text
Federal Program: Youth Homelessness Demonstration Program (14.276). Criteria: Federal cash management requirements generally require recipients to minimize the time elapsing between the receipt of federal funds and their disbursement for allowable program costs. In addition, interest earned on the federal advance payments deposited in interest-bearing accounts is generally required to be remitted to the federal government, except for amounts that may be retained for administrative expenses as permitted by applicable federal regulations and award terms. Condition: During the year ended June 30, 2025, the Organization earned $4,221 of interest on federal program funds. The Organization did not remit the applicable interest earned to the federal government or otherwise document that the interest was exempt from remittance under applicable cash management requirement. Cause: The Organization did not follow their internal controls put in place to identify, track, and evaluate interest earned on federal program funds. Effect: Noncompliance with federal cash management requirements. The Organization may be subject to repay the obligations or other remedies may be imposed by the federal awarding agency or pass-through agency. Questioned Costs: $4,221. Context: Total federal grant funds earned during the year ended June 30, 2025 were $2,504,423. Repeat Finding: No. Recommendation: The Organization should follow their established internal control procedures to identify and track interest earned on federal program funds, determine the amount required to be remitted in accordance with applicable federal regulations and award terms, and remit such amounts timely to the appropriate federal agency or pass-through agency. Views of Responsible Officials: We have implemented procedures to request funds on a reimbursement basis. This should minimize federal funds earning interest. We will work to ensure that our established procedures to identify and track interest earned on federal program funds are followed and remit the funds accordingly, if necessary.