Finding Text
2022‐001: Cash Management – Research and Development Cluster
Condition
Funds were drawn down by the Institute in excess of the three‐day period recommended by its funding agency, and did not minimize the time elapsing between the transfers of funds from the grantor
to the issue of payment by the recipient during the year ended December 31, 2022.
Criteria
Cash management under 2 CFR 215.22 states that payment methods shall minimize the time elapsing between the transfers of funds from the grantor to the issue of payment by the recipient.
Cause
The Institute’s preparation and review procedures over the draw‐down of funds were insufficient to minimize the time elapsing between the transfers of funds from the grantor to the issue of
payments by the Institute.
Effect
The Institute was not in compliance with the cash management compliance requirements stated in 2 CFR 215.22 during the year.
Recommendation
The Institute should improve policies and procedures regarding cash management. This should include the procedure for calculating the allowable cash draw for actual immediate cash needs for
expenses to be paid within the three‐day period, in order to minimize the time elapsing between the transfer of funds from the grantor to the issue of payment by the recipient to cover operating cash
flow needs.