Finding Text
Criteria
Uniform Guidance specifies that recipients of federal awards should use the reimbursement method for funding unless specifically allowed otherwise. The reimbursement method requires the Organization to pay for program costs with its own funds and then request reimbursement from the federal awarding agency.
Context
The Organization did not remit complete and accurate reimbursement requests. Specifically, we noted the following deficiencies in our testing:
- One reimbursement request was remitted for the wrong grant agreement. The reimbursement request was returned and a corrected request was resubmitted to the federal awarding agency.
- One reimbursement request contained an error in the amount requested. The reimbursement request was returned and a corrected request resubmitted to the federal
awarding agency.
- Indirect cost amounts were improperly calculated, and therefore, were improperly reported and requested on one reimbursement request (as included in Finding 2024-002).
Cause
Lack of understanding and oversight over the cash management Uniform Guidance requirements.
Effect
Non-compliance with reimbursement requirements can result in the federal awarding agency questioning costs, delaying reimbursements, and potentially imposing penalties or other administrative actions. It can also strain the Organization’s cash flow and financial management processes.
Questioned Cost:
None
Recommendation
We recommend that management review its internal controls surrounding cash management reimbursement requests to ensure reimbursement requests are complete, accurate, and in accordance with cash management requirements.
Views of Responsible Officials and Planned Corrective Actions
See Corrective Action Plan.