AMARILLO INDEPENDENT SCHOOL DISTRICT

Program: Coronavirus State and Local Fiscal Recovery Funds ALN #93.323 Program Requirement: Cash Management Criteria: Per 2 CFR 200.305, “non-Federal entities other than states, payments methods must minimize the time elapsing between the transfer of funds from the United States Treasury or pass-through entity and the disbursement by the non-Federal Entity”. The non-Federal entity has cash on hand from federal funds, interest begins to accrue from the date of receipt of the drawdown and will be required to be remitted back to the federal government once the total aggregate amount of interest earned on federal grant awards equals $500. Condition: In accordance with 2 CFR 200.305 the District deposited federal grant funds into an interest bearing account. Interest earned on the federal funds exceeded $500. Context: The District received an allocation of Covid funding in FY 2022 but the funds were not expended until FY 2023. Cause: The District utilized the grant to purchase a HVAC Auto Cleaning air system which is subject to procurement and bid test work. With higher interest rates and the timing of the grant funds received and expended; interest accrued on the federal funds in excess of $500. Effect: At June 30, 2023, he District has accrued the interest payable to remit to the Department of Health and Human Services Payment Management System. Questioned Costs: No Repeat Finding: No Recommendation: The District needs to implement additional monitoring to ensure compliance with 2 CFR 200.305 and advances on federal funds. Views of Responsible Officials: The District agrees with the recommendation.

The District will implement additional monitoring on cash advances with federal funds to ensure compliance with cash management procedures as referenced in 2 CFR 200.305.