Finding Text
Section III – Major Federal Awards Programs – Findings and Questioned Costs (Cont.) Finding 2025-009: Cash Management - Inadequate Policies for Drawdowns, Program Income, and Reconciliations (Material Weakness) Federal Program : Grants for Transportation of Veterans in Highly Rural Areas Assistance Listing Number : 64.035 Criteria: 2 CFR 200.305 requires documented procedures for cash management, including drawdowns, program income usage, and reconciliation processes. Condition: The Center does not have comprehensive written policies governing drawdowns, program income application, and required reconciliations. Cause: Noncompliance with Federal cash management and program income requirements may result in questioned costs or delayed reimbursements. Effect: The absence of comprehensive written policies governing drawdowns, program income, and reconciliations increases the risk of noncompliance with federal cash management requirements, potential questioned costs, and delayed or improper reimbursements. Recommendation: Management should develop and adopt formal written policies detailing drawdown procedures, program income usage, and reconciliation requirements. Repeat Finding: This is a repeat finding.