Finding 480293 (2023-004)

- Repeat Finding
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-08-02

AI Summary

  • Core Issue: NCHE received reimbursements for program costs before actually paying for them.
  • Impacted Requirements: This violates 2 CFR 200.305(b)(3), which requires costs to be paid before reimbursement requests.
  • Recommended Follow-Up: NCHE should create clear policies to ensure costs are paid prior to submitting reimbursement requests.

Finding Text

Condition: During testing of grant reimbursements, we noted NCHE received reimbursement for program costs before it paid for those costs. Criteria: In accordance with 2 CFR 200.305(b)(3), program costs must be paid by non-federal entity funds before submitting a reimbursement request. Cause of Condition: NCHE does not have adequate polices in place to ensure program costs have been paid before a reimbursement request is submitted. Effect: The lack of adequate policies may result in noncompliance with federal program cash management requirements. Recommendation: We recommend NCHE implement policies and procedures that outline the process for requesting reimbursement in line with 2 CFR 200.305(b)(3). Uniform Guidance states that a non-federal entity must distribute funds for program purposes before requesting payment from the federal awarding agency or pass through entity. Management Response: Management accepts the finding and recommendation.

Corrective Action Plan

NCHE will implement a process for review of the reimbursement request before it is submitted to verify that the expenses included in the request have been paid for before the request is submitted. Anticipated completion date is July 1, 2024.

Categories

Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.422 Presidential and Congressional Academies for American History and Civics $334,629
45.163 Promotion of the Humanities_professional Development $166,139
42.010 Teaching with Primary Sources $83,004
45.164 Promotion of the Humanities_public Programs $31,041