FAC Explorer

Finding 969423 (2021-003)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2021
Accepted
2024-04-11
Audit: 303304
Organization: Chicago Minority Supplier Development Council, Inc. (IL)
Auditor: Prado & Renteria CPAS Prof CORP

AI Summary

  • Core Issue: Timely disbursement of funds was not met, with $13,600 from a sample and $197,249 at year-end not disbursed on time.
  • Impacted Requirements: Compliance with Uniform Guidance, which mandates minimizing delays between fund transfers and disbursements.
  • Recommended Follow-Up: Update policies to include monthly reconciliation of expenditures to cash drawdowns.

Finding Text

Finding 2021-003 Cash Management Federal Agency: U.S. Department of Commerce Program Name: MBDA Business Center Assistance Listing #: 11.805 Questioned Costs: None Condition/Context We tested a sample of four cash drawdowns out of thirty-seven drawdowns totaling $140,926, our audit procedures revealed $13,600 were not disbursed timely. In addition, our SEFA reconciliation procedures revealed that $197,249 had not been disbursed timely at the end of the fiscal year. Criteria Uniform Guidance requires that non-federal entities minimize the time elapsing between the transfer of funds and disbursements by the non-federal entity. Cause CMSDC did not reconcile expenditures to cash drawdowns. Effect CMSDC did not comply with Uniform Guidance and closed the year with a grant advance of $197,249. Recommendation We recommend that CMSDC updates it policies and procedures to include procedures for reconciling expenditures to cash drawdowns. In addition, we recommend that CMSDC reconciles expenditures and cash drawdowns on a monthly basis. Organization's Management Response See corrective action plan.

Categories

Cash Management Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 392970 2021-002
    - Repeat
  • 392971 2021-004
    Significant Deficiency
  • 392972 2021-002
    - Repeat
  • 392973 2021-004
    Significant Deficiency
  • 392974 2021-002
    - Repeat
  • 392975 2021-003
    Significant Deficiency
  • 392976 2021-004
    Significant Deficiency
  • 392977 2021-002
    - Repeat
  • 392978 2021-003
    Significant Deficiency
  • 392979 2021-004
    Significant Deficiency
  • 392980 2021-002
    - Repeat
  • 392981 2021-003
    Significant Deficiency
  • 392982 2021-004
    Significant Deficiency
  • 392983 2021-002
    - Repeat
  • 392984 2021-004
    Significant Deficiency
  • 392985 2021-002
    - Repeat
  • 392986 2021-004
    Significant Deficiency
  • 969412 2021-002
    - Repeat
  • 969413 2021-004
    Significant Deficiency
  • 969414 2021-002
    - Repeat
  • 969415 2021-004
    Significant Deficiency
  • 969416 2021-002
    - Repeat
  • 969417 2021-003
    Significant Deficiency
  • 969418 2021-004
    Significant Deficiency
  • 969419 2021-002
    - Repeat
  • 969420 2021-003
    Significant Deficiency
  • 969421 2021-004
    Significant Deficiency
  • 969422 2021-002
    - Repeat
  • 969424 2021-004
    Significant Deficiency
  • 969425 2021-002
    - Repeat
  • 969426 2021-004
    Significant Deficiency
  • 969427 2021-002
    - Repeat
  • 969428 2021-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
11.802 Minority Business Resource Development $151,042
11.805 Mbda Business Center $108,023