Finding Text
Condition: During the current year, the Organization submitted some of their draw requests to one of its funding agencies past the 45-day requirement. Per the grant agreement, any requests submitted beyond this timeframe can be denied for reimbursement at the discretion of the granting agency. Criteria: Based on the standards of documentation of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), denied reimbursement requests due to timing requirements can be considered both as an unallowed cost and falling outside of the period of performance. Effect: The Organization was out of compliance with the required submission timeframe designated by the grant agreement. This could have led to a denial of reimbursement of funds to the Organization; however, the funding agency paid the funds without further incident. Cause: The combination of a new Finance Director during the year, who submits the draw requests, and no formalized procedures in place for the submission process caused the Organization to be out of compliance on their draw requests. Questioned Costs: No known questioned costs were identified during the course of the audit. Recommendation: We recommend that all primary accounting procedures be further developed and documented, and cross-training be provided where applicable. This is especially crucial for month-end and year-end procedures. Better documentation of procedures should reduce the likelihood of noncompliance and other accounting errors resulting from employee turnover or prolonged absences.