Finding Text
FINDING 2023-003 - CASH MANAGEMENT
Program information
This finding applies to all federal awards.
Repeat Finding from Prior Year
No
Condition
The District's management of cash flow related to federal grant programs is lacking effectiveness.
Delays in timely drawdowns and reporting have led to several grants remaining undrawn for periods
extending across fiscal year ends. Moreover, the frequent interfund borrowings have complicated
accounting processes significantly.
Criteria
Grant administration requires a more frequent and punctual drawdown process to ensure that grant
funds match expenditure requirements. Since all mentioned grants operate on a cost reimbursement
basis, funds are released only upon the submission of accurate reporting and drawdown requests.
Context
The District became aware of its non-compliance with the State of Wyoming and had to appeal for
forgiveness to safeguard against missing out on over $2 million in ESSER grant funding.
Cause
The District's inadequate management of cash flow for federal grant programs stems from a
combination of limited resources and weak internal controls. Delays in drawdowns and reporting,
along with frequent interfund borrowings, have extended the retention of grants across fiscal year
ends, further complicated by the district's abnormal financial resources compared to others, enabling
this situation to persist. Currently, the Business Manager carries the exclusive burden of these tasks.
Effect
The District's failure to effectively invest significant sums owed by various grant programs for
covered program expenditures results in unreimbursed funds, directly impacting its free cash flow for
operational expenses funded by federal grants. Subsequently, the district resorts to borrowing from
other funds, causing accounting complications.
Questioned Costs
Not applicable
Sampling Method
Not applicable
Recommendation
To resolve the issue, the District should strengthen internal controls and allocate additional
resources to support grant management activities. Improved communication between departments
involved in grant management is crucial, as is reducing reliance on interfund borrowings through
better cash flow forecasting. Establishing regular monitoring and reporting systems will provide
visibility into grant fund status and facilitate smoother accounting processes.
Response and Views of Responsible Officials
See corrective action plan.