Finding Text
Condition: The Organization made drawdown requests that included estimates for supplies for five drawdown requests. Criteria: For grants and cooperative agreements to non-Federal entities that are paid on a reimbursement basis, supporting documentation must show that the costs for which reimbursement was requested were incurred prior to the date of the reimbursement request. Cause: The Organization was not aware of the cash management requirement. Although the drawdown requests included estimates for supplies, the Organization incurred supplies costs that were subsequently more than the estimates. Effect: The Organization did not initially comply with the cash management compliance requirement, but corrected the process and complied immediately once the requirement. was noted in a previous audit. Context: The Organization made 18 drawdown requests in 2025. Questioned Costs: $0. Recommendation: We recommend the Organization incorporate in its cash management process and procedures the requirement to include only costs incurred in its drawdown requests.