Finding Text
Condition: The Center requested four drawdowns that were not based on its immediate cash needs. The Center did not earn any interest on the advances. Criteria:Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR 200.305(b)). Cause: The Center experienced delays in collecting sufficient practice revenue funds for those drawdowns. Effect: The Center is not in compliance with the cash management requirement. Context: The Center submitted 19 reimbursement requests to the federal government during the fiscal year. Questioned Costs: $0. Recommendation: We recommend the Center continue to identify other alternative resources for funding until practice revenue funds are received by the organization. Views of Responsible Official and Planned Corrective Action: After being informed of the finding, the Center instituted strategies to align drawdowns with near-term disbursement needs. However, these adjustments commenced during the subject fiscal year and will remain in place moving forward.