Finding Text
Condition - During the current year, the Organization submitted one of their draw requests to one of its funding agencies past the required deadline, which changed from 45 days to 30 days. Per the grant agreement, any requests submitted beyond this timeframe can be denied for reimbursement at the discretion of the granting agency. Criteria - Based on the standards of documentation of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), denied reimbursement requests due to timing requirements can be considered both as an unallowed cost and falling outside of the period of performance. Effect - The Organization was out of compliance with the required submission timeframe designated by the grant agreement. This could have led to a denial of reimbursement of funds to the Organization; however, the funding agency paid the funds without further incident. Cause - A change in the timeframe for required draw request submissions and a misunderstanding with the granting agency led to one of the draw requests being submitted past the required deadline. Questioned Costs - No known questioned costs were identified during the course of the audit. Recommendation - We recommend that all primary accounting procedures be further developed and documented, and cross-training be provided where applicable. This is especially crucial for month-end and year-end procedures. Better documentation of procedures should reduce the likelihood of noncompliance and other accounting errors resulting from employee turnover or prolonged absences. Management's Response - The late draw request was in the first month following the change from 45 days to 30 days for submission. There was a misunderstanding by the Organization that the new timeframe was to be effective at the new grant period in October rather than effective immediately.