Finding Text
Criteria: Non-federal agencies must minimize the time elapsing between the transfer of funds from the US Treasury and disbursement by the non-federal entity for direct program and the proportionate share of allowable indirect costs. Condition: The organization was drawing funding every quarter based on the funding percentage for the quarter without regard for the disbursement of funds. Cause: Finance personnel were not aware of this requirement and drew down funding quarterly on a pro-rata basis. Effect: The funds were held in an account with a nominal amount of interest earned. There was no interest earnings on the account. Questioned Costs: There were no questioned costs. Recommendation: The finance personnel become familiar with the federal compliance supplement as it relates to cash management and only initiate a draw down when federal funds are expended. Organization's response: After the former finance director completed the federal webinars on the guidelines for requesting funds through the Payment Management System and submitting Federal Financial Reports, it was identified and disclosed to the auditors that draw down procedures had not been in compliance. SAMHSA was notified and accounts were reconciled with the return of unspent funds. All drawdowns are currently only occurring when funds are expended. Current finance personnel are trained and have extensive experience in federal reporting guidelines.