Finding Text
2022-001 ? Cash Management Program: AL # 19.519 ? Overseas Refugee Assistance Program for Near East, Direct Award Number: SPRMC021CA3120, SPRMCO22CA0166 Sponsor Agency: U.S. Department of State Criteria: Non-Federal entities must minimize the time elapsing between the transfer of funds from the US Treasury. The non-federal agency must demonstrate the willingness to maintain both written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non-Federal entity, and financial management systems that meet the standards for fund control and accountability. The non-Federal entity must disburse funds available before requesting additional cash payments. Citation: 2 CFR 200.305 Condition: RSN does not have written procedures as required as outlined above. The process RSN uses to make requests for advance payments is to perform a detailed analysis of all expenses anticipated for the quarter. Cause: As a small entity, formal policies were not considered feasible. Effect: There is a risk that the time elapsing between transfer of funds from the U.S. Treasury and the disbursements to vendors may not be minimized. Questioned Costs: None. Context: The amount of cash on hand at the end of each period prior to a drawdown ranged from $12,777 to $174,531 on contract SPRMCO21CA3120. Cash on hand at year end for contract SPRMCO22CAO166 was $485,741. Repeat Finding: No Recommendation: We recommend that management create written procedures to minimize the time elapsing between transfer of funds from the U.S. Treasury. Requests for quarterly advances should factor in cash unspent at the end of the most recent period. Views of Responsible Officials: See Corrective Action Plan attached.