Audit 306033

FY End

2023-06-30

Total Expended

$1.90M

Findings

2

Programs

1

Organization: American Cultural Exchange Service (WA)

Year: 2023 Accepted: 2024-05-10

Auditor: Greenwood Ohlund Ps

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
396472	2023-002	Significant Deficiency	-	CN
972914	2023-002	Significant Deficiency	-	CN

ALN	Program	Spent	Major	Findings
19.415	Professional and Cultural Exchange Programs - Citizen Exchanges	$446,056	Yes	1

Contacts

Name	Title	Type
PNERN61XSYW6	Michael Li	Auditee
4254532237	Andrew Van Ness	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: ACES has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance for the year ended June 30, 2023. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of ACES under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of ACES, it is not intended to and does not present the financial position, changes in net assets, or cash flows of ACES.

Finding Details

Finding 2023-002

Internal Control over Compliance with Suspension and Debarment Requirements Federal Agency: U.S. Department of State, Bureau of Educational and Cultural Affairs Assistance Listing Numbers: 19.415 Federal Program Names: Professional and Cultural Exchange Programs – Citizen Exchanges Pass-through Entity: American Councils for International Education Pass-through Award Number: S-ECAGD-22-CA-0039 Criteria: Under 2 CFR 200.318, the non-federal entity must have and use documented procurement procedures, consistent with laws and regulations, to ensure the entity does not enter into contracts for covered transactions over $25,000. Condition: The excluded parties search or other verification of suspension and debarment status was not documented for certain covered transactions during the year ended June 30, 2023. Cause: During the year ended June 30, 2023, the Organization experienced turnover in its program and accounting departments, resulting in certain internal controls over compliance being missed. Effect: Inadequate controls over suspension and debarment requirements could result in the Organization expending federal award funds on contracts or other covered transactions with entities that have been suspended or debarred. Recommendation: We recommend that management develops and implements specific internal controls to verify suspension and debarment status for all covered transactions with potential contractors and vendors. Views of Responsible Officials: There is no disagreement with the finding.

Finding 2023-002

Internal Control over Compliance with Suspension and Debarment Requirements Federal Agency: U.S. Department of State, Bureau of Educational and Cultural Affairs Assistance Listing Numbers: 19.415 Federal Program Names: Professional and Cultural Exchange Programs – Citizen Exchanges Pass-through Entity: American Councils for International Education Pass-through Award Number: S-ECAGD-22-CA-0039 Criteria: Under 2 CFR 200.318, the non-federal entity must have and use documented procurement procedures, consistent with laws and regulations, to ensure the entity does not enter into contracts for covered transactions over $25,000. Condition: The excluded parties search or other verification of suspension and debarment status was not documented for certain covered transactions during the year ended June 30, 2023. Cause: During the year ended June 30, 2023, the Organization experienced turnover in its program and accounting departments, resulting in certain internal controls over compliance being missed. Effect: Inadequate controls over suspension and debarment requirements could result in the Organization expending federal award funds on contracts or other covered transactions with entities that have been suspended or debarred. Recommendation: We recommend that management develops and implements specific internal controls to verify suspension and debarment status for all covered transactions with potential contractors and vendors. Views of Responsible Officials: There is no disagreement with the finding.