Finding 610652 (2022-001)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-09-19

AI Summary

  • Core Issue: The organization did not consistently support fund drawdowns, leading to excess funds being held.
  • Impacted Requirements: Compliance with 2 CFR section 200.305(b) regarding timely fund disbursement and proper allocation to federal programs.
  • Recommended Follow-up: Improve control activities for fund drawdowns and implement a bi-monthly schedule for future requests.

Finding Text

Finding No. 2022-001 Cash Management U.S. Department of the Education Upward Bound Program ? CFDA #84.047A Talent Search Program - CFDA #84.044A Criterion: Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)). Condition: Based upon our testwork, we noted the Organization did not have support for funds being drawndown on a consistent basis. Cause and Effect: Management did not follow the established process for drawdown requests to ensure that the amount of funds being drawn down were property supported to a specific federal program. Therefore, the resulting effect was excess funds on hands. Questioned Cost: None Recommendation: We recommend that management enhance the design of its control activities to ensure that the amount of funds being drawn down are properly allocated to the appropriate Federal programs. View of Responsible Officials: Management agrees with the findings and has hired a Contract Manager to oversee office management processes. In addition, all drawdowns in the future will be scheduled and done bi-monthly.

Categories

Cash Management Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 34208 2022-001
    Material Weakness
  • 34209 2022-001
    Material Weakness
  • 34210 2022-001
    Material Weakness
  • 34211 2022-001
    Material Weakness
  • 34212 2022-001
    Significant Deficiency
  • 610650 2022-001
    Material Weakness
  • 610651 2022-001
    Material Weakness
  • 610653 2022-001
    Material Weakness
  • 610654 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.044 Trio_talent Search $277,276
84.047 Trio_upward Bound $189,682
59.008 Disaster Assistance Loans $89,876