Finding Text
Criteria: Payments reimbursed to subrecipients should be made within 30 days of receipt of the payment request. Condition: During our testing of special tests and provisions, we noted multiple payments to subrecipients that were not made within 30 days. Cause: Payments to subrecipients were not made until reimbursement was received from the awarding agency. Effect: Payments to subrecipients were not made within 30 days of receipt of the payment request. Repeat Finding: This is a repeat finding, see finding 2021-002 in the prior year report. Recommendation: A system needs to be put into place to track when payment requests are made to ensure payments to subrecipients can be made timely. Questioned Costs: None. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed a procedure and tracking system for the submission of payment requests from our subrecipients and reimbursement payments to the subrecipients to ensure payments are made within 30 days of the receipt of the request.