Finding Text
Criteria or specific requirement (including statutory, regulatory, or other citation) - The Code of Federal Regulations (CFR) Title 2, part 200.305(b)(3) states that non-federal entities must disburse funds for program purposes before requesting payment from the federal awarding agency or pass-through entity. Condition - The District's expenditure report filed for June 30, 2023 included expenditures that were not disbursed as of June 30, 2023. These amounts were not reported as committed or obligated and were not liquidated within 90 days of the end of the fiscal year. Questioned Costs - $63,703. Context - The District received federal reimbursement before expenditures were disbursed and did not label the expenditures as committed or obligated, and the obligation was not liquidated within 90 days of the end of the fiscal year. Effect - The June 30, 2023 expenditure report was filed overstating cash basis expenditures. The expenditure report did not include the expenditures disbusred after June 30, 2023 as committed or obligated, and the obligation was not liquidated within 90 days of the end of the fiscal year. Cause - Grant expenditures reported on the final June 30, 2023 expenditure report included expenditures that should have been reported as committed or obligated and not included with cash basis expenditures and liquidated within 90 days of the end of the fiscal year. Recommendation - Grant expenditure reports should be prepared on the cash basis and obligations reported. The liquidation of the obligations should be reported on subsequent liquidation reports. Management's response - There is no disagreement with this finding and management will monitor all future federal reimbursement requests. Committed or obligated expenditures will be reported appropriately, and will be liquidated within 90 days of the end of the fiscal year.