Finding Text
Condition: During our Cash Management tests, we found the following instances on which the Institution did not disbursed funds in an expedite matter: Fund Instances Days late
84.425F 3 32/40/46
84.031S 3 10/16/29
84.031M 2 13/15 Criteria: As per regulation, 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 or 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)).With respect to HEERF Section 2 funds the time elapsing between the transfer of funds and the disbursement should be 3 calendar days.Cause: In these instances, for the amount of the service contracted or equipment purchased, the Institution requested the totality of the amount of the service or purchase but, disbursements were made as worked progressed or equipment was completely delivered.Effect: Not following established controls could result in non-compliance of federal regulations for the program.Questioned costs: -0- Recommendation: Cash management procedures should be monitored better so that compliance with established safeguards are followed. Views of Responsible Officials and Planned Corrective Actions: Atlantic University agrees with the finding. See Corrective Action plan for the University’s Comments and plan.