Audit 27895

FY End

2022-06-30

Total Expended

$777,580

Findings

2

Programs

2

Organization: Acled Analysis Incorporated (WI)

Year: 2022 Accepted: 2023-01-25

Auditor: Iryna Accountancy Corporation

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
28099	2022-001	Significant Deficiency	-	B
604541	2022-001	Significant Deficiency	-	B

ALN	Program	Spent	Major	Findings
19.121	Conflict and Stabilization Operations	$480,820	-	0
98.001	Usaid Foreign Assistance for Programs Overseas	$296,760	Yes	1

Contacts

Name	Title	Type
QDN9FURLZ8J3	Amanda Bertran Llovera	Auditee
2623020379	Iryna Oreshkova	Auditor
No contacts on file

Notes to SEFA

Title: Note 3. Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of ACLED ANALYSIS INCORPORATED under programs of the federal government for the year ended June 30, 2022 and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule of expenditures of federal awards presents only a selected portion of the operations of ACLED ANALYSIS INCORPORATED it is not intended to and does not present the financial position, change in net assets or cash flows of ACLED ANALYSIS INCORPORATED. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The amounts shown as current year expenses are reported on the accrual basis of accounting. Such expenses are recognized following the cost principles contained in the Uniformed Guidance, where certain types of expenses are not allowed or are limited as to reimbursement.

Finding Details

Finding 2022-001

SIGNIFICANT DEFICENCY Allowable Cost and Internal Control Criteria: Payroll expenses and related employee benefits should be allocated based on actual time spent on the project. Condition: Incorrect percentage was used to allocate payroll expenses and related personnel cost to the program. Cause: Lack of review or ineffective oversight of allocation expenses to the program. Based on October 2021 timesheet, 50% of one employee?s time was spent on the program and 70% was allocated to the program. Effect: Incorrect amount of payroll expenditures and related personnel cost were charged to the program for October 2021. Context: Employees track their time allocated to the program on their timecards correctly. However, the allocation percentage was incorrectly calculated and manually entered into the prepopulated template. Questioned Cost: $2,358. Correct payroll expenditure allocated to the program for October 2021 should be $24,312 (salary plus payroll tax) and the amount allocated to the program was $26,446, which creates a difference of $2,134. Correct related personnel cost including payroll admin fees, retirement benefit and health and dental insurance allocated to the program for October 2021 should be $2,547 and the amount allocated to the program was $2,771, which creates a difference of $224. The total difference is $2,358. Recommendation: The management should implement procedures of checks and balances for any numeric calculations. There should be a formal review process of verification of proper allocation of payroll expenses. Views of responsible officials and planned corrective actions: The management agree with this finding and will implement adequate checks and balances to ensure that this problem does not occur. Please refer to the corrective action plan on page 28.

Finding 2022-001

SIGNIFICANT DEFICENCY Allowable Cost and Internal Control Criteria: Payroll expenses and related employee benefits should be allocated based on actual time spent on the project. Condition: Incorrect percentage was used to allocate payroll expenses and related personnel cost to the program. Cause: Lack of review or ineffective oversight of allocation expenses to the program. Based on October 2021 timesheet, 50% of one employee?s time was spent on the program and 70% was allocated to the program. Effect: Incorrect amount of payroll expenditures and related personnel cost were charged to the program for October 2021. Context: Employees track their time allocated to the program on their timecards correctly. However, the allocation percentage was incorrectly calculated and manually entered into the prepopulated template. Questioned Cost: $2,358. Correct payroll expenditure allocated to the program for October 2021 should be $24,312 (salary plus payroll tax) and the amount allocated to the program was $26,446, which creates a difference of $2,134. Correct related personnel cost including payroll admin fees, retirement benefit and health and dental insurance allocated to the program for October 2021 should be $2,547 and the amount allocated to the program was $2,771, which creates a difference of $224. The total difference is $2,358. Recommendation: The management should implement procedures of checks and balances for any numeric calculations. There should be a formal review process of verification of proper allocation of payroll expenses. Views of responsible officials and planned corrective actions: The management agree with this finding and will implement adequate checks and balances to ensure that this problem does not occur. Please refer to the corrective action plan on page 28.