Finding Text
Criteria or Specific Requirement:
For recipients of research and development grants, payment methods must minimize the time elapsing
between the transfer of funds from the Federal agency or the pass-through entity and the disbursement
of funds by the recipient or subrecipient regardless of whether the payment is made by electronic funds
transfer or by other means.
When the reimbursement method is used, the Federal agency or pass-through entity must make
payment within 30 calendar days after receipt of the payment request unless the Federal agency or
pass-through entity reasonably believes the request to be improper (2 CFR 200.305(b)(3)).
The University must develop its own control activities. Requests for reimbursement are to be reviewed
and authorized prior to submission by reviewing supporting documents/schedules/reports to ensure
amounts have been paid with the University's funds prior to the reimbursement request.
Condition/Context:
During our testing of 5 reimbursement requests made during the fiscal year, we noted 4 instances that
did not include documentation of review and approval by a representative of the University.
Questioned Costs:
None.
Cause:
The University’s internal controls did not include a control for review and approval by an individual other
than the person performing the drawdown calculation and request from the federal agency.
Effect:
Incorrect drawdown requests could be made of the federal agency.
Repeat Finding:
No.
Recommendation:
We recommend the University review its internal controls around the reimbursement process for all
federal grants to ensure the necessary review and approval controls are in place and performed by an
individual other than the one performing the drawdown calculation and request from the federal agency.
Views of Responsible Officials:
Please refer to the attached corrective action plan.