Finding Text
Program information 21.027 ? ARPA ? Department of Treasury Statement of condition We noted that total available cash was less than total refundable advances (unspent advanced funds). Criteria OMB Uniform Guidance compliance requirement allowable costs and procurement. Cause of condition On September 30, 2022, NSTC combined federal funds have a refundable advance balance in excess of the available cash balance. Failure to maintain an adequate cash balance implies that advanced grant funds were used for activities other than those intended. Management did not ensure that grant advances were spent on each applicable program as required. Effect of condition The funding agency has the right to refuse reimbursement for breach of agreement, and the Community would have to use general funds to cover expenses. Questioned costs Total refundable advance ($4,941,556) less Total Cash $4,872,561 = Total Questioned costs ($68,995) Recommendation We recommend the Community develop a system to adequately segregate advanced funds to ensure they are spent on the proper programs. Response See corrective action plan.