Finding Text
Criteria: A non-federal entity must minimize the time elapsing between the transfer of funds from the U.S. Treasury and disbursement by the non-federal entity for direct program or project costs. Condition: The Center had $116,113 in drawdowns on a federal grant for which no funds had been expended. Cause: The drawdown was inadvertently made out of the wrong grant and not detected by management until several months after year-end. Context: Management made two drawdowns near the end of the fiscal year totaling $116,113. Effect: The Center is not in compliance with the cash management compliance requirement. Auditor's Recommendation: The Center should have proper internal procedures in place to regularly reconcile drawdowns made per grant to ensure the funds are being drawn from the appropriate grant.