Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-007: Insufficient documentation to show journals had been reviewed ahead of the payment being made (repeat of prior year finding 2021-009) (deficiency)Federal Agency: United States Department of StateProgram: Ethiopia: South Sudanese Refugee Assistance V (PRM5) and Ethiopia: South Sudanese Refugee Assistance IV Y2 (PRM4)Assistance Listing: 19.517 (Ethiopia)Award #: SPRMCO21CA3181 and S-PRMCO-20-CA-0047 respectively for EthiopiaAward year: FY22Pass-through: From Plan International USA, Inc.Criteria:Plan?s control procedures require that a journal is signed off and approved ahead of the payment being made.Condition:Plan Ethiopia were unable to provide evidence of journal review within SAP where the transaction is recorded. This is the case for 29 out of 60 of the samples tested across grants PRM4 and PRM5 and the total dollar value impacted is $114,954.This is a control finding relating to segregation of duties not followed when recording transactions in SAP, however, we noted no questioned costs in any of the items above.Cause:Plan Ethiopia is inconsistent with evidencing a reviewer sign off in SAP as they do not have any set guidelines to do this at the country office. The country office should follow the control framework set out in the control matrix by USNO which is for journals to be approved appropriately before being paid. This is unless the country office has their own journal approval process which they follow. These transactions highlighted were approved on payment request form before payment was made to employees/suppliers, however per the policy, the journal should be reviewed before it is posted. Plan Ethiopia explained that due to the nature of the grant being an emergency grant, this is what has caused this control not to be followed on a few occasions.Effect:The control weaknesses could lead to future questioned costs or inaccurate reporting.Recommendation:Plan Ethiopia should ensure that their processes are followed at all times ahead of payments being made, and that a clear audit trail is retained to evidence segregation of duties when recording transactions in their system.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-007: Insufficient documentation to show journals had been reviewed ahead of the payment being made (repeat of prior year finding 2021-009) (deficiency)Federal Agency: United States Department of StateProgram: Ethiopia: South Sudanese Refugee Assistance V (PRM5) and Ethiopia: South Sudanese Refugee Assistance IV Y2 (PRM4)Assistance Listing: 19.517 (Ethiopia)Award #: SPRMCO21CA3181 and S-PRMCO-20-CA-0047 respectively for EthiopiaAward year: FY22Pass-through: From Plan International USA, Inc.Criteria:Plan?s control procedures require that a journal is signed off and approved ahead of the payment being made.Condition:Plan Ethiopia were unable to provide evidence of journal review within SAP where the transaction is recorded. This is the case for 29 out of 60 of the samples tested across grants PRM4 and PRM5 and the total dollar value impacted is $114,954.This is a control finding relating to segregation of duties not followed when recording transactions in SAP, however, we noted no questioned costs in any of the items above.Cause:Plan Ethiopia is inconsistent with evidencing a reviewer sign off in SAP as they do not have any set guidelines to do this at the country office. The country office should follow the control framework set out in the control matrix by USNO which is for journals to be approved appropriately before being paid. This is unless the country office has their own journal approval process which they follow. These transactions highlighted were approved on payment request form before payment was made to employees/suppliers, however per the policy, the journal should be reviewed before it is posted. Plan Ethiopia explained that due to the nature of the grant being an emergency grant, this is what has caused this control not to be followed on a few occasions.Effect:The control weaknesses could lead to future questioned costs or inaccurate reporting.Recommendation:Plan Ethiopia should ensure that their processes are followed at all times ahead of payments being made, and that a clear audit trail is retained to evidence segregation of duties when recording transactions in their system.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-007: Insufficient documentation to show journals had been reviewed ahead of the payment being made (repeat of prior year finding 2021-009) (deficiency)Federal Agency: United States Department of StateProgram: Ethiopia: South Sudanese Refugee Assistance V (PRM5) and Ethiopia: South Sudanese Refugee Assistance IV Y2 (PRM4)Assistance Listing: 19.517 (Ethiopia)Award #: SPRMCO21CA3181 and S-PRMCO-20-CA-0047 respectively for EthiopiaAward year: FY22Pass-through: From Plan International USA, Inc.Criteria:Plan?s control procedures require that a journal is signed off and approved ahead of the payment being made.Condition:Plan Ethiopia were unable to provide evidence of journal review within SAP where the transaction is recorded. This is the case for 29 out of 60 of the samples tested across grants PRM4 and PRM5 and the total dollar value impacted is $114,954.This is a control finding relating to segregation of duties not followed when recording transactions in SAP, however, we noted no questioned costs in any of the items above.Cause:Plan Ethiopia is inconsistent with evidencing a reviewer sign off in SAP as they do not have any set guidelines to do this at the country office. The country office should follow the control framework set out in the control matrix by USNO which is for journals to be approved appropriately before being paid. This is unless the country office has their own journal approval process which they follow. These transactions highlighted were approved on payment request form before payment was made to employees/suppliers, however per the policy, the journal should be reviewed before it is posted. Plan Ethiopia explained that due to the nature of the grant being an emergency grant, this is what has caused this control not to be followed on a few occasions.Effect:The control weaknesses could lead to future questioned costs or inaccurate reporting.Recommendation:Plan Ethiopia should ensure that their processes are followed at all times ahead of payments being made, and that a clear audit trail is retained to evidence segregation of duties when recording transactions in their system.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-007: Insufficient documentation to show journals had been reviewed ahead of the payment being made (repeat of prior year finding 2021-009) (deficiency)Federal Agency: United States Department of StateProgram: Ethiopia: South Sudanese Refugee Assistance V (PRM5) and Ethiopia: South Sudanese Refugee Assistance IV Y2 (PRM4)Assistance Listing: 19.517 (Ethiopia)Award #: SPRMCO21CA3181 and S-PRMCO-20-CA-0047 respectively for EthiopiaAward year: FY22Pass-through: From Plan International USA, Inc.Criteria:Plan?s control procedures require that a journal is signed off and approved ahead of the payment being made.Condition:Plan Ethiopia were unable to provide evidence of journal review within SAP where the transaction is recorded. This is the case for 29 out of 60 of the samples tested across grants PRM4 and PRM5 and the total dollar value impacted is $114,954.This is a control finding relating to segregation of duties not followed when recording transactions in SAP, however, we noted no questioned costs in any of the items above.Cause:Plan Ethiopia is inconsistent with evidencing a reviewer sign off in SAP as they do not have any set guidelines to do this at the country office. The country office should follow the control framework set out in the control matrix by USNO which is for journals to be approved appropriately before being paid. This is unless the country office has their own journal approval process which they follow. These transactions highlighted were approved on payment request form before payment was made to employees/suppliers, however per the policy, the journal should be reviewed before it is posted. Plan Ethiopia explained that due to the nature of the grant being an emergency grant, this is what has caused this control not to be followed on a few occasions.Effect:The control weaknesses could lead to future questioned costs or inaccurate reporting.Recommendation:Plan Ethiopia should ensure that their processes are followed at all times ahead of payments being made, and that a clear audit trail is retained to evidence segregation of duties when recording transactions in their system.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.
Ref 2022-004: Foreign exchange translation methodology (repeat of prior year finding 2021-005, 2020-006 and 2019-006) (significant deficiency)Criteria:Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second last working day of the prior month. This is not therefore the `the rate of exchange ruling at the date of the transaction? in accordance with the Plan WW and Plan Inc. accounting policies as stated in the respective financial statements.Condition:For all transactions, the impact of exchange rates takes place in the following stages:At a transaction level1. Translation from document currency (i.e. currency of income / expense per invoice) to local currency at the time of initial recognition (Plan WW and Plan Inc.)2. Local currency to functional currency (Euro) (Plan WW and Plan Inc.)3. Translation to actual rate at date of settlement (Plan WW and Plan Inc.)4. Translation of outstanding amounts within the balance sheet at the period end rate (Plan WW and Plan Inc.)At the consolidation level5. Functional currency to reporting currency (USD) (Plan Inc. only)6. Translation of non-Euro NOs to reporting currency (Euro) (Plan WW only)We note the following:In FY22 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure.The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD).CauseThe rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used.Whilst the treasury team were aware the rate used was from the previous month, there was not an awareness that this was not in accordance with the requirements of the accounting standards or that this could result in material differences.EffectForeign exchange translation methodology is currently not in accordance with accounting standards.There are differences within the Plan WW and Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted.Recommendation:As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan?s accounting policies.Alternatively, there should be an annual review at GH level to assess the likely difference and adjustments processed if material.Foreign exchange rates should be checked to ensure that the rates being used are appropriate. Areas of political unrest are more likely to see volatile foreign exchange rates, which should be monitored.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.