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 in the amount of $171,918 that were not disbursed as of June 30, 2023. These amounts were not reported as committed or obligated on the June 30, 2023 expenditure report. Questioned Costs - None. Context - The District received federal reimbursement before expenditures were disbursed. Effect - The June 30, 2023 expenditure report was filed overstating expenditures by $171,918. Cause - Grant expenditures reported on the final June 30, 2023 expenditure report included $171,918 of expenditures that were not paid by the District until the next fiscal year. The expenditures were liquidated within 90 days of June 30, 2023. Recommendation - Grant expenditure reports should only include expenditures that have been paid. Grant obligations should be reported on separately on the expenditure report. The liquidation of the obligations should be reported on subsequent liquidation reports. Managment'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. Additionally, the grant expenditures in question were liquidated within 90 days of the fiscal year end.