Finding Text
Audit Finding 2024-002 – Return of Excess Interest
Criteria:
Code of Federal Regulations § 200.305 (b)(9) requires a recipient or subrecipient to retain up to $500 per year of interest earned on Federal funds to use for administrative expenses of the recipient or subrecipient. Any additional interest earned on Federal funds must be returned annually to the Department of Health and Human Services Payment Management System (PMS) through either the Automated Clearing House (ACH) network or a Fedwire Funds Service payment.
Condition:
During the audit, we noted the Authority did not pay back their excess interest income earned on Federal funds.
Cause:
The Authority was not aware it had to payback the excess interest earned on Federal funds.
Effect:
The Authority is not in compliance with Code of Federal Regulations § 200.305 (b)(9).
Recommendation:
We recommend that the Authority payback the excess interest and monitor the interest earned in the following years and payback any excess amounts.
View of Responsible Officials:
Management agrees with the finding.