Finding Text
Cash Management
U.S. Department of the Education
Upward Bound Program – CFDA #84.047A
Talent Search Program - CFDA #84.044A
Criterion:
Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)).
Condition:
Based upon our testwork, we noted the Organization did not have support for funds being drawndown on a consistent basis.
Cause and Effect:
Management did not follow the established process for drawdown requests to ensure that the amount of funds being drawn down were property supported to a specific federal program. Therefore, the resulting effect was excess funds on hands.
Questioned Cost:
None
Recommendation:
We recommend that management enhance the design of its control activities to ensure that the amount of funds being drawn down are properly allocated to the appropriate Federal programs.
View of Responsible Officials:
Management agrees with the findings and has hired a Contract Manager to oversee office management processes, budgets, and enhance the current way of working with federal timelines.