Finding Text
Section IV - Federal Award and State Projects Findings and Questioned Costs
Findings and Questioned Costs – Major Federal Programs
Finding 2023-001: Internal Control over Compliance and Compliance with Cash Management
Federal Programs: ALN 93.575/93.596, and 93.558
Criteria: In accordance with the grant agreement and 2 CFR 200.305(8) and (9), the non-Federal entity must maintain advance payments of Federal awards in interest-bearing accounts. Interest earned amounts up to $500 per year may be retained by the non-Federal entity for administrative expense. Any additional interest earned on Federal advance payments deposited in interest-bearing accounts must be remitted annually to the Department of Health and Human Services.
Condition: The Coalition has a cash management policy in accordance with federal regulations, however, the policy was not followed. Federal funds were deposited into non-interest-bearing accounts.
Cause: Lack of effective controls surrounding cash management and review of controls to ensure compliance with federal regulations.
Effect: The Coalition has not accrued interest on DEL grant funds in accordance with federal
regulations.
Recommendation: We recommend the Coalition transfer all DEL grant funds to its interest-bearing account and return accrued interest to DEL.
Management’s Response: See Management’s Corrective Action Plan beginning on page 25.