Finding Text
Condition: In the prior year, numerous draws were made beyond the federal expenditures reported under the grant. This resulted in six of the federal programs being over-drawn in the previous fiscal year by approximately $175,957. These prior year overdraws were not spent during the year ended September 30, 2022, and remained in refundable grant advances as of year-end. Criteria: Federal grant funds drawn in advance should not be held in the Center?s cash accounts for more than 3 days after receipt. Cause and effect: Cash drawdowns during part of the prior year were made using average historical amounts, not actual expenditures, resulting in various grants being overdrawn. During the year ended September 30, 2022, prior year federal grant funds drawn in advance and held in the Center?s cash accounts for more than 3 days after receipt totaled $175,957, carried over from the prior year. The prior year?s audit was issued in June 2022. As a result, recommendations from the previous audit were not implemented during the year ended September 30, 2022.Recommendation: The Center has reviewed and revised the system of internal controls over federal grant drawdowns to ensure that adequate processes are in place to ensure the proper amount is requested from the federal awarding agency. However, in order to remain in compliance with federal guidelines, the Center should spend prior year amounts that were overdrawn prior to requesting additional drawdowns. Management response: We concur with the recommendation. See Corrective Action Plan for more information.