Finding Text
2023-002 Substance Abuse Prevention and Treatment Block Grant - Assistance Listing No. 93.959;
Oregon Health Authority Subgrant No. 167552; Grant period ending September 30, 2022.
Compliance Requirement: Cash Management
Criteria and Condition: Under the terms of the grant agreement with the Oregon Health Authority (OHA),
HIV Alliance was required to expend advance funding within the grant period ending September 30,
2022. Any unspent funds were required to be returned to OHA within 15 days following the end of the
grant period. HIV Alliance has not complied with this requirement.
Context: $278,644 in advance funds provided to HIV Alliance by Oregon Health Authority (OHA) were
not spent during the grant period ending September 30, 2022. HIV Alliance contacted OHA to begin the
process to return the funds in February 2023. HIV Alliance and OHA communicated intermittently until a
final amount to be returned was settled on and an invoice from OHA was provided on August 22, 2023.
The invoice for the unspent funds was paid on September 19, 2023.
Cause: The stipulated 15-day period for the return of unspent funds for finalizing grant accounts and
determining the exact amount of unspent funds is an administrative challenge. This short timeframe,
coupled with insufficient procedural guidelines within the organization for grant closure and reconciliation
processes prior to the deadline, contributed to the delay in initiating the return of unspent funds.
Effect: Funds were not returned to OHA within the required timeframe.
Recommendation: Engage in dialogue with OHA to discuss the practicality of the current 15-day period
for returning unspent funds and advocate for a more realistic timeframe that allows for accurate
finalization of grant accounts. Maintain regular communication with awarding agencies to promptly
address any potential underspending of advanced grant funds.
Management's Response: 15 days is not a practical requirement and will be a significant administrative
burden to comply with if it is maintained in future grant agreements. Steps will be taken to mitigate the
administrative burden as much as possible and close out grants more quickly in order to comply with the
requirement.